declines up 4% this morning why broadcom as opposed to intel?talked about the fundamentals and shareholder model. you think about a.i. we are in the early stages with a.i. and broadcom chip if you look at the spending and global spend on a.i. in 2023 is expected to be $150 billion. compare that to last year which is up 27%. fast forward to that and that is $300 billion we are in early stages there broadcom has a diversified business model they have the best profit margins and at 73% gross profit margin >> okay. keeping an eye on intel. down 51% pat gelsinger said the company hit the bottom down one-third across the board. we toss it to "squawk bo wchx"hi is coming up next. have a great weekend thank you for watching >>> good morning tech stocks on the move. intel rising -- we'll tell you about that report. >>> amazon falling that seemed pretty good. except for the slowdown in aws snap and pinterest plunging. details on all of the earnings straight ahead. >>> more on deck we are expecting quarterly results from chevron and exxonmobil big oil in t

broadcom was up on the year. >> true. >> that is true. >> i can sleep at night better, and that's my style, versus your style. >> oh, i agree >> we have enough clarity. >>> now it's my turn a big downgrade for one refiner. how the desk is playing it >> next on "halftime." we got this. we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones welcome to the place... where people go to learn about their medicare options... before they're on medicare. come on in. you're turning 65 soon? yep. and you're retiring at 67? that's the plan! now's the time to plan ahead. learn about an aarp medicare supplement insurance plan from unitedhealthcare. here's why... medicare alone doesn't pay for everything. a medicare supplement plan helps pay some of what medicare doesn't. and that could mean fewer surprise out-of-pocket costs for you. call unitedhealthcare... and ask for your free decision guide. or talk with a licensed insurance agent or producer about plan benefits, options, and rates. this type of plan lets you choose any doctor, any specialist, anyw

we also like broadcom. that is another dominant semiconductor company.ther it is in pc chips or smartphone chips, the only place that does not seem to have a lot of excess inventory is auto chips. almost everywhere else, there is a supply glut. that is getting through pre-quickly. the stocks always predict that. questions, confidence pulling to the lowest level in months now. what does that tell you about? >> there are a lot of crosscurrents in the economy. this is the soft data versus the hard data. this is a survey-based measure. it doesn't measure actual output. the thing about survey-based data is it can be -- consumer confidence is low now. that may predict a downturn in the farther out and harder economic data. it remains to be seen. you're seeing inflation come down. people are happy about that. you can see wages go up and people are happy about that and unemployment remains very low here in the u.s.. that really helps families and i'm sure that was part of the reason why visa was so strong today when they reported their first quarter. consumers a

more sensors on callers -- cars, companies like nvidia, a diversified company like broadcom is good.hey offer a high dividend yield and you play into -- that is an area that is likely to grow even through a recession. look for those strong and markets and find companies that are critical market leaders. alix: going back to target and tjx. if we see tough times, will they not be on the consumer? joanne: it will be on the consumer but you have to look into the consumer to see where they are likely to move their spending if the tough times become severe. they will trade down to cheaper locations to shop. target, t.j. maxx and mcdonald's are all good examples. you want to be wary of how the middle income consumer is going to face a tougher economic environment and where are they going to shop? guy: where are the cracks in the market, the most obvious places to look? we have seen problems and thanking and we are watching what happens in commercial real estate. how many more cracks do we need to see before the cuts become a certainty? joanne: you have to look at companies that don't have a

data sensors, because of generative ai companies like nvidia or a more diversified company like broadcom a good position for clients. ♪ ed: stripes says growth in payments volume slowed last year even it as it helped more large businesses and clients pay over the net. the company says volume climbed 20% over 2022 but that is compared with 60% growth in 2021 when stripes are rapid growth as consumers did more shopping online during the pandemic. over to saudi arabia, a startup that provides a range of services from ride-hailing to food delivery, it -- to fuel the super apps growth. talks are at an early stage of the target amount is being firmed up. caroline? caroline: let's talk about another key payment startup, the african cross porter -- cross-border payment platform. the company's cofounder and ceo spoke to bloomberg about where they go from here. >> we are not immune to the idea that we've had to become a bit more efficient. we had to tighten our belts because even as a business we had to rethink and i've asked my entire team and everyone at the company to think about every single e

. >> things like broadcom which is the nuts and bolts legacy tech businesses some of that stuff is workingationchallenges. it's at the top mega cap level a third of the s&p trades it under 15 times this year people who think it's a stock-picking moment have a lot to do, even if there isn't anything you can be comfortable with it's like oh, i have to buy insurance companies or these consumer cyclicals where it's unclear whether you can believe the sorry. >> we were asking similar questions about whether we could own the banks right now. they have answered the call in some respects. we've gotten through the major ones as you said, as we head towards the close, with regional banks have had a hell of a good day? >> they've had a good day. they're not far off their lows maybe that means more catch up potential. it's a story of the select giants in banking which seem bullet proof right now and what do you want to pay for them? there's a jpmorgan chart i love. it's absolutely vertical to the sky. everyone has felt there were only a handful of banks you could comfortably own. usually you want to s

through some -- i threw some cold water on the $60 billion transaction between chipmaker broadcom whichand vmware. stuart: american airlines, around $14 a share -- no, it's 13 -- susan: preemptive profit warning which pretty much took down the entire sector. americans looking at the worst day for the stock in over a year's time, and that's because they gave a range, so they're going to earn one penny to five cents, i call this kind of a hedge on their bets which wall street is not reacting well to. they're fill going to make money, but they -- still going to the make money, but higher labor and fuel costs are hurting their bottom line despite the fact that you have an air travel boom, and it's going to be expensive to travel this summer. stuart: tomorrow the banks start rolling out earnings. >> that's right. and warren buffett, oracle of omaha, he said that the banking crisis is not over yet. more bank failures are likely. also i was just blown away by this statistic. did you know top u.s. banks said that they saw the the big deposit drop many in a decade? if -- in a decade? $521 billio

i really like broadcom, i like am. did, nvidia. micron compared to rest of those stocks.t is never a relative strength leader. charles: i just mentioned, full disclosure, my subscribers thursday, i don't know why it is up today. i was getting ready for the show, i didn't get a chance to look at the news. earlier in the show i start off with the earnings warnings. i will get more granular. huge earnings warnings, industrials, financials with the fewest and communication services. how does this inform because you are really great playing these earnings? you position yourself so well before they come out. how does this inform you? would you want to be in tech names already with the warnings? or be in the sectors that haven't had many warnings? >> charles, you know sometimes the warnings are some of the best things that can happen. when you have a strong stock, you know, let's say, for example, microsoft, and there is some warnings prior to the fact, what ends up happen something that market participants are expecting bad news. when the news isn't that bad or it is just alrea

a name like broadcom providing not just cloud solutions but ai solutions. >> seems like a pretty revealingme there. keith, i see you nodding your head it's got to be because you agree in some ways with what nancy is saying about the schematic element of that tech trade that's the key nancy is as sharp as they come we pricreated 90% -- companies k apple and microsoft are leading the charge because of all of the work in this area. chatgbt is a google killer google is on the defensive, because they raised the bar. so to us, this is a matter of going forward with schematic changes. i think thers important that not all tech companies are. meta and google are significantly at risk. >> if that's the case, how exactly does the allocation go, keith, in your mind? these are mega cap names, widely held if you're a mutual funds or etfs, you probably own these names. are there ones being missed who are just in some of those passive instruments? >> well, that's an interesting question i think that's a sign of strength, the fact that they are so widely held by the etfs and funds, the endowments, all of t

. >> broadcom.fficiency of their data centers. >> anastasha >> right there with you, rob but vanek is down 7% next week is a big one for a semic semico semiconductors >> farmer jim? >> you guys are making me happy, but my pick is visa. i still think this economy is not given enough credit for how resilient it is. i think there's more spending ahead. >> that will do it for us on "halftime. markets moving a little to the upside that does it "the exchange" starts right now. ♪ ♪ >> thank you very much, frank. hi, everybody. welcome to "the exchange" on this friday. i'm kelly evans. mega cap tech is the market, at least in terms of what is happening in the space and sending a big market signal. we'll tell you what it is, where to be in tech. and then big oil, exxon and chevron out with earnings, as crude tries to avoid its worst monthly losing streak in eight years. and bigger is better when it comes to health care apparently. not just talking about the big names, but the big trend everyone is watching,

margie: we think broadcom is a good stock because it is diversified in the dividend. lisa: we talk about when to know when to cash out. some of the big tech have been profitable. when do you say that is enough? margie: i think that is true but on a relative basis we really don't know how deep the economic correction we will have, will it be mild or severe? tech prices may come down because pe has expanded but we don't know if other sectors will have disappointing earnings if we have a big recession. that is the push and pull of the market where you want to be positioned. lisa: have you seen reaction from some of these earnings? margie: so far this earnings season, which is about 20% or so, the results have been surprisingly good and the market was looking for signs that companies will tone down earnings expectations in the quarter we -- will be disappointing and we are waiting for the correction we haven't seen. jonathan: we seen corrections the earnings margins in the smaller banks. just in terms of taking a step back and trying to understand the broader economy, wha

can you extrapolate that over to apple and nvidia and broadcom etc.? >> that's a great question. the microsoft share will be difficult and amazon's core will be important but i think it's company by company. they are not trying to say their leading indicator on macro because they don't know where macro is going. it's probably slowing down. they think they are gaining share on six or seven different products. we are not sure what it means for the whole tech sector going forward. lisa: as you talk about artificial intelligence, where are the ethical concerns as many tech giants have been talking about perhaps pumping the brakes a little bit and understanding it better before it gets rolled out en masse? >> that's a great question and i'm no expert but firearms kill a lot of people in medicine kills a lot of people. it doesn't mean you stop making medicine. i think the genie is out of the box in ai but we will need some regulatory rails around it. jonathan: thank you for the latest on microsoft, that stuck up more than 8%. -- that stock is up more than 8%. frc is down about 6% on th