we have reports from broadcom, lululemon, z scaler and charge point. plus ai gets creative.to the ceo of advertising agencies, wpp, about the firm's

what broadcom has going for it is it partners with the tech companies making their own ai chips.com aied eed a -- adjacent there was an interesting concept this morning of an ai tourist investor they think they're getting something that is sort of an ai pure play, but when you look into broadcom's financials, it gets a lot of revenue from some of those slower growth end markets like networking as well as software and storage. so how is it going to play with those investors that think they're getting more of a pure play but may not and may have to wait longer for that ai shift to become more obvious. >> that's a great point. maybe salesforce sin detective of the fact that just because you mentioned ai doesn't mean your stock will benefit. i'm not saying broadcom doesn't have a legitimate business there, but do investors want to hear that? >> that's exactly what nvidia did, right it said that this shift isn't just happening in the future, it's happening right now, and they're going to be booking the dollar, dollars and cents that show it's happening right now. that is a high bar fo

earnings alert on broadcom shares volatile despite an upbeat q-2 report.rojecting year over year growth as it ramps up its investment in, what else, a.i >> a.i >> kristina partsinevelos has the latest kristina >> broadcom shares did a complete turnaround. they were negative when the earnings came out, but the ceo took the mic on the call and weighed in, of course, on the impact from a.i.-related sales t a.i. revenue was 10% of total revenues right now, he's saying it's 15%. and anticipating it to contribute more than 25% by end of fiscal year 2024. saying quote in fiscal q-2, they just posted q-2, he said, we expect this revenue to exceed $1 billion in the quarter so, that number, $1 billion, is up from the previous $800 million benchmark. management believes that quarterly revenue could double by the end of this year. considering broadcom makes custom chips for google, meta, and signed a partnership with apple, those details for that apple deal have been scant thus far, why investors want to hear about it on the call, which is still under way. broadcom, w

. >>> time for three stock lunch first up, broadcom higher.ccount for more than a quarter of the company's total revenue in 2024. shares jumping nearly 29% in may. here with our trades today, shelby what do you think of broadcom here at its current price? >> yeah, you know, when i see broadcom, i'm seeing a buy, and the reason for that is they are going to be more or less sort of a utility company when we think about how useful these services are, and the broad range of services that they deliver in our day and age, and when you think about the fact they're now being given this sort of supercharged opportunity to go ahead and get on a growth ramp after largely delivering mostly on income and being more a value trade, i think that's a huge opportunity for the company. now we still have a long ways to go, and to get more clarity on what the road for ai looks like, but if they're looking at a company that has a lot of scale and has been operating for awhile, and has gone through a lot of different environments and has been agile throughout, and t

ai and accelerated computing broadcom, 15% of their semiconductor revenue this year is ai and that'some design services for custom chips for ai as well as networking, and they said next year that's going to be 25% which by the way for broadcom would suggest their non-ai semi business could be down and they could grow it if it didn't grow that much amd is effectively going to be zero or pretty close to zero relative to ai and then next year they'll get some. it's probably single digits, like, it's actually not that big as of yet. >> stocks near double though year to date it's pretty remarkable >> yeah. sure like, they've done -- i'm not going to knock them. they've done very, very well and, you know, they have been killing it on the cp side and everything that's all fine. certainly the shares have caught quite a bid over the last, you know, month or two or three on the back on the ai play. everybody is looking for alternatives, other ways to play the obvious which is nvidia and ai, doing the next in line at least they have a road map with products on it that seem reasonably credible,

, the stock has gone parabolic after gen ai fomo to find the next nvidia broadcom is not the most popularip for the shift and it will not be guiding up next quarter revenues by 50% like nvidia did but broadcom's technology and ip is key for the megacaps building out their own large language models and ai systems and their own customers so the guide may not be there but if the ceo can play up broadcom's broader role the run could be justified and go further. even so there is cold water being thrown on it with salesforce and crowdstrike reminding of the macro backdrop still being tough and it's more disciplined despite the ai boom. >> you know, listening a few moments ago, dee, talk about the tech intensity of spending sort of what the dow has been preaching, the economy will get more and more concentrated in terms of how much we spend on tech and ai is one more chapter in that long story >> reporter: absolutely, i want to go back to that chart i showed you at the beginning that tells you what happens after we have seen the relative outperformance tech takes a breather. when you listen to n

jim will talk about one he wants to buy shortly, right, so for me i'm not negative at all on broadcom but the stock was up 11% two days ago on no new news and this does not have the same juice that nvidia as, right? it doesn't have the same beta. if it goes up 2%, 3%, 4% in a day that's a convict rye for me anyway but 11% on no news then reversed and closed down 2%. >> it did. it was sort of one of those moments that, you know, joe terranova was talking about, as well there were a number of stocks that intraday sort of traded well below where they had opened i mean, when you look at some of the stats, they're pretty astounding, c3.ai up 125% in may. >> i know. >> crowdstrike was up 33% before today. okta was up 36% in three months. salesforce was up almost 30% in three months now, you know, part of that takes today's decline into consideration, part of it does not but makes your point, the stocks have had a huge run in a short period of time. >> right, and for broadcom it went from 16 forward multiple p/e to 21 times in two weeks' time that's a huge rerating i think the quarter will b

ge 64% year to date, broadcom, 52 starbucks has it worked out flat and the xlf, again, a positioningthrough what you think happens now. >> i still like all of them. i think ge is a simplified company. they spun off ge health care by the way, that spin has worked very nicely. they're going to spin out power gen in january of 2024, and then you're left with ge aerospace which is the gem of the company. it always has been the gem of the company and the paris air show reinforced that with new orders both oems, after market margins are poised to see upside i still like it very much. i put a 14 multiple on ebitda on the aero space you can get $125 from here powergen is repressed on earnings broadcom, i've been taking some profits because i think it's prudent to do but i like it very much with regards to ai, cloud, data center, apple exposure. they have $18 billion in free cash flow and trades about 19 times. why i trimmed it, it's seen expansion from 16 times to 19 times. not rich by any means, but i think that was -- it got ahead of itself. i just took a little bit there but i like it ver

we are looking at shares of broadcom. which story do you buy into when it comes to broadcom? the narrative that ai sales will double over the course of this fiscal year? or that every other business area is slowing down? particularly when it comes to the memory side. i think that is really important. right now, investors are liking it. up 1.9%. this is bloomberg. ♪ [office sounds] ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely day) (lovely day)♪ ♪(lovely day)♪ a bank that knows your business grows your business. bmo. welcome back to earth. thanks, it was pretty life changing. dude it was eight and a half minutes. i didn't even get to finish my burrito. technology lets you vacation in space, but to get work done on earth... you need more than technology. you need cdw. so with the cisco hybrid work environment, we can deliver the same network experience to all your offices. space spaghetti. no. securely connecting your team from anywhere. houston we... have a solution. we get it greg, you've been to spac

lifetime fitness ventas >> broadcom.arter earnings, revenue was $8.73 billion, up 8% you got some positive adjustments in terms of price. you can see from analysts, you can see the stock is up. >> clowns sold it down 33 points last night did they bother even listening to the conference call it does have a.i >> they do >> then why'd they sell it down 33 points, down 50 points from where it was >> what is it they saw in the earnings release before the conference call that would have had them selling the stock >> it was down 5 when the release came out, up 3% when he started talking about a.i., then dropped 30 points when he said, you know what? we're not just a.i we also have businesses that are flagging, including some of their pseudosoftware >> still waiting on the vm ware deal as well >> that was mentioned. >> i think they're hopeful but there are still questions. cma is still a big question mark in the uk. >> this was a great call and all that was really brocade and they are in the mix with marvell, and hock tan talked

some more glamorous than others. >> i don't hear you say you're filling your boots with broadcom for second, let's talk intel. it's been left out of this conversation it's started to perk up with these comments you can explain it better than me do you think there's something real there, and people looking for maybe an unloved, low multiple, maybe find the next ai, would it be that >> well, when it said intel's fab looks kind of interesting to him. what you have to remember is this -- a lot of the sexy chip companies, like nvidia, don't make the product they design the product and hand it off to well, maybe taiwan semi so they don't want to have just one vendor, they want many vendors. and intel wants to get into the fabricat fabricating, or the fab, as we call it. so it's good that they are coming up to speed, and if they can satisfy a picky customer like nvidia, they have a shot. they being intel, have a shot at getting some of the ai love, because it will produce other people's chips >> is that why you own it, or is that just a sweetener? >> it's a sweetener. i think the other reas

let's take a look at broadcom if we can.nd there is someone pretty bullish on this stock, up 2.5% tell me about it. lauren: bank of america says they are going to $950, so that's a nice bump. they also reiterated their rating on broadcom. they say when you look at a.i., broadcom is just completely under valued, so 950 for avgo. ashley: very good. great job, lauren. running through all of those stocks this morning. all right coming up by the way the dow up 327 points, so we continue to gain ground. coming up, during his town hall with shawn hannity last night former president trump made a bold prediction about the war in ukraine. listen to this. >> i want to stop the war. i don't want that war to continue and i'll stop that war, mark my words. >> [applause] >> i'll stop that war in 24 hours. you need the power of the presidency. it was a war that should have never ever started. ashley: he's going to stop it in 24 hours: former state department official christian wh itton will take that on, meanwhile, british glamour cover spa

i sold out at 118, a much more expensive p/e and went to broadcom went in at 7.88. i'm looking to make the trade in cyber security i think the market at some point is going to give me a better entry point. that's the next move on this exit >> jason snipe, what do you think about this move? you're in palo alto. >> clearly my pick in the space. the stock has run -- a lot of the cyber names have run a lot >> this one has done well. >> yeah, yeah. >> it hasn't done as great as palo alto but it's had a very good run >> just them moving into the profitability sector coming off the fourth consecutive profitable report in this last quarter, eps growth has been substantial. we're looking at taking some off the table. 100% because of the move it's had already this year. >> most likely fortinet is the name i'm going to purchase >> that's the stephanie link name >> quality is what right now speculators and investment managers want and it has it in cyber security >> when you deem it has more -- it rings the quality bell -- >> yes >> more than, say, palo alto, what does that mean

these are some of the arms dealers, broadcom, nvidia, while the fluid a.i.o a.i. companies, are going to continue to win. i think that can continue for a long time. >> i mean, amazon looks like they're going to maybe go to the wireless business, saira details are sketchy, but would you include them as one of the companies you're excited about >> we like amazon for other reasons. some of these mega cap technologies, amazon, meta, they started to restructure their business models earlier. we've seen that with meta as a big winner year-to-date. amazon made large investments into their logistics during the pandemic they basically overspent, but now they're starting to fill that capacity and look for other areas to cut costs i think that's why amazon will perform better and that was a good strategy for them to -- more control over their logistics, given what's going on continuously with supply chains. >> can the s&p stay above 4,200 if we are going to have a recessionin the next 18 months >> well, this is definitely a feeling and a level that we want to see the s

a news alert reuters is reporting eu regulators are approving the broad broadcom deal for vmware broadcomt 40% year to date one of the benefits of the a.i. fueled rally. >>> coming up on "worldwide exchange," a first on cnbc interview. michelle mayer and the latest spending pulse report. why sticky inflation is doing little to stop the consumer di trend "worldwide exchange" is back right after this ♪ ♪ this is rochelle, who gives you a shot. ♪ ♪ rebecca is there when you feel not so hot. ♪ ♪ this is larissa, who's feeling glown up. ♪ ♪ and this here is winnie, who zhuzhed up their cup. ♪ ♪ this is victoria, helping women stay healthy. ♪ ♪ these are your kids, snacking snacks ♪ ♪ made with veggies. ♪ ♪ and matty can help ♪ ♪ you find your new favorite color. ♪ ♪ and kyle helps find meds for under 10 dollars. ♪ whoever you are, wherever, whenever, at cvs, healthier happens together. [office sounds] ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely day) (lovely day)♪ ♪(lovely day)♪ a bank that knows your business grows y

. >> broadcom is up 48% per date. is that okay? >> how high is high and how low is low? i think there's an excellent risk management in understanding that you never make that prediction in either a staff on the decline or staff that is rising. you are talking about a stock that is compelling relatively to a amd. it's trading at a valuation that is less then the -- itself. there is a semiconductor or name that i'm willing to earn. >> but terry is not willing to chase chips even if what joe suggested is growth at a reasonable price. are they unreasonable prices to you? >> i don't think they are unreasonable but chips are not the type of names we put in our portfolio. we have many names that are high-growth, tech and communications. if you look at the big names like amazon, meda, apple, google, i think broadcom particularly is attractive right here because it took a long time to come back and starting to come into its own and it's not in video where it's 100 times earnings. it's a much cheaper stock. >> jason stipe reiterated her weight reader ration at j.p. morgan. >> list

will it be nvidia, alphabet, microsoft, or broadcom you can head to @cnbcclosingbell to vote. we're just getting starteded up next. artificial intelligence star, ai, led by a brand-new investor. the company's ceo and co-founder mustafa suleyman is up next. he's with us next. we're live at the new york stock exchange you're watching "closing bell" on cnbc. the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com inflection ai announcing it secured $1.3 billion in a new round led by microsoft and a new investor nvidia. joining me now, inflection ai ceo and co-founder mustafa suleyman back here on "closing bell." great to see you. >> great to see you. how's it been? >> great day for you obviously with this raise. tell us what that means. >> it's a fantastic day. it's a great honor and prifb ledge to be backed by some of the leading investors and techn

so trading out to a reasonable valuation chip play that is going to be a winner in ai, broadcom's theernals here of the sectors for the s&p are doing the best you know, we're at the highs of the day on the dow, so we're 33,978, approaching the 34,000 round number and the s&p is still holding above 4300 at 4317 you know, weiss, the further this market starts to advance the harder it's going to be for the bears to stand their ground, so to speak. >> yeah. that's for sure. i look at the style like adobe that i owned in the past i actually bought a little bit of it last week, and not enough to matter one way or the other and it's up another 4% after that wild move last week so, yeah it gets more difficult if you're on the sidelines and you have to account for performance, relative performance to say, hey, here's why i'm still doing it, but ultimately, you know, i don't think the world's changed all that much. the market momentum. >> big contribution from intel today up 5% for the dow jones being -- >> people look for the next adobe and the next one and they think it can be intel. >> so we

amd and broadcom are up after nvidia which is in a class of its own.een as the next chip winners of this early stage of generative ai. the picks and shovels, if you will there's salesforce, oracle and cisco. seeing renewed investor interest let's take salesforce. it has given a slew of activists reason to cheer and maybe back off climbing 60% this year in part thanks to its dedicated generative ai service called einstein then oracle has turned itself into a serious cloud player. cisco, another cisco name launching ai features across product lines. investors have pushed its market cap above $200 billion this year rounding out the next seven are adobe and netflix. adobe on its earnings call made the case to, quote, lead a new era of generative ai today it's already adding to huge gains of 50% this year. there is, guys, however, a huge caveat the group, much like the original seven, largely still unproven in terms of actually monetizing the hype. aside from nvidia none of these companies boosted by the promise of this platform shift are clearly backing it

it's happening. >>> take a look at shares of broadcom, higher after reporting strong earnings and guidancet of bullish street reaction let's bring in stephanie link, she joins us on the phone. steph, you trimmed some of the position ahead of the number just give me your take on it, what happened with the earnings and what your current psyche is on your position here. >> sure. thanks for having me i trimmed it on tuesday because the stock was up 11% on no news, and i thought the expectations were really high headed into the print. but it was a really good quarter and it was a beat and a raise, and we know the ceo has proven to be very conservative. the focus really is all about ai and the guidance, and what they guided to was their customized ai chips and switches, which they are the number one player in these segments. that segment is going to be 15% of their semiconductor revenue this year, up from 10% last year, and it could grow to 25% next year. so you're talking about revenues going from $2.2 billion in the segment to $5 to $6 billion. i always knew it was a great ai story, but it's r

the i like broadcom. i would still own it. i would see what happens after the bell.ing the number not to be good or they're taking money off the table after what they think, what they saw happen to c3.ai yesterday. that was ridiculous. that stock to be fair is, was up 258% going into the report. charles: you know and real quick on that same note, for instance, crowdstrike, crowdstrike had a mind boggling number, just mind-boggling. no way it should be down as much as it should be down. it be up as much as it is down now. the high beta names, particularly ones with the high valuations will be a lot wilder. i want to go book to c3.ai. i think you saw my interview with the ceo tom siebel. >> i did. charles: i want to play a part of the conversation, get your thoughts on it. >> every business leader, every government leader, sure the demand for what we do has never been greater. i think that, you know the stock is up i believe 260% year-to-date, so the shareholders have been well-served. i think the next few years bode very well for c3.ai. charles: so initially i felt he

got to look ahead at the one year forecast and stocks like broadcom avgo and microchip, are very cheapn a relative pe base it looking at next years earnings estimate. charles: i put the semiconductor one of the lead semiconductor etf's. i love it, mark. i love the chart. i love the breakout gap there, and you know, maybe you could argue short-term relative strength is a little bit extended. the fundamentals though, for getting the chart, the fundamentals in your mind, are they, is the hype, are they matching the hype so far? >> well not until a.i. became a reality. a.i. is what the driver here is and because semiconductors are cyclical, and corporations were not spending on clouds which means fewer servers and so forth a.i. has changed the equation, so you can pure play it with nvidia and roll the dice, not that it's a risk, but it's expensive, or you can go with the semiconductor equipment manufactures & companies like broadcom which are going to benefit from increased semiconductor consumption. charles: marc, let me break this out to the broader market because all the conversations t

you own meta, you own broad broadcom, you're in nvidia, you're in a.i. folks on the fence still and looking out like, golly, did i miss it, is it too late to buy them at this point? >> well, actually, maybe not. but again, it's always going to depend on, a, time frame and, b, risk. so looking at these charts with a fresh eye, let's just take nvidia, perfect example. when you had that earnings gap, you now established a new base, a new place to risk from. so if you want to take a chance as it's in the sort of consolidation period thinking that this is really a $500 stock, then at least you know where you're wrong, and that's how we would approach it. and even though we've taken profits along the way, sometimes it's those tails when something goes really parabolic that make the most money at the end of the game. so that's kind of how i'm feeling. meta maybe not as strong but still looking good, maybe a dip would be more enticing to me there. i was looking at a.i., same thing. but broadcom, even tesla, all these stocks right now, they're on their own fumes,

. >> my five stocks are broadcom, archer daniels midland, marathon petroleum, jpmorgan, and verizon.rsified thanks for taking my call. >> absolutely. this is going to be very hard. archer daniels we know is ag company, it's perfect. marathon, good oil jpmorgan, great bank broadcom, very high-yielding technology company it's verizon i'm worried about the yield's 7% when you get 7% it's out of sync with the rest of the market, that means people are going to question the cash flow we're going to pull verizon. we're not going to want to be in verizon because it's too high yield so to speak. and let's use one that i have far more confidence in the dividend, which is johnson & johnson. 3% yield i'll feel much better if you make that change next up we have william in arizona. william. >> caller: hi, jim i've got my concentration with three accounts apple at 53.1%, microsoft at 7.3%, lion dell hazing at 4.6% abbvie at 4.3% and iron mountain at 3.9%. >> okay. now, this gentleman did give us the percentage breakdowns. obviously i think you could tell where i'm going here, which is he has too m

right now, currently we're here in broadcom talking about did you wish for any porn conspiracy? right? no. as long as i've started it is only one, and that is focused on community right. coming up next, focused on with a flu shot and j. f. k. mystery of their very own. we'll discuss it when we return with comes as our salaam sit tight. the m o will be right back the the who, what i would show the wrong just don't safe house because the application and engagement because the trail when so many find themselves will support, we choose to look for common ground the, the other way, not the right it says the brother, the printer was or up at the moment. this is just a blue slippers associated with me. the last name was needed, read it was can where we used to live and we have some more for someone who was this, we would show new people to the the more expensive and i'm here to plan with you. whatever you do. do not watch my new show. seriously. why watch something that's so different opinions that he won't get anywhere else. welcome to please or do the have the state department to see

broadcom sees third-quarter revenue.are raise about 380 million dollars to fund acquisitions in the u.s.. they have been seeking to diversify the business and turn them into a global music powerhouse. you can watch episode one, it focuses on tech and ambitions. the international institute for strategic studies with our very own haslinda amin. >> it is about diversifying. quick the semiconductor has been such an important part of our life. >> you have to look at the whole ecosystem and the supply chain. >>, think there is anything here. as school has prevailed in all of this. >> you can tune in. let's take a look at asian markets right now. >>, flat at the moment. as is a poor performing elsewhere we have city futures, about two thirds of 1%. the end strengthening just a little bit. l(jennifer) mthe reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe

total revenues are expected to rise 5% this quarter as broadcom's slowest growth in years. the ceo of pelletier says new developments are so powerful he is not sure if they should be offered to some customers. speaking exclusively to bloomberg, he is worried about providing tools to local law enforcement agencies. it would be used for surveillance. >> usually we wait and have to find people, now we have customers in the u.s. calling us every day. >> you say the demand is huge, can you quantify it? >> we had a number of down calls in a year in like a month. we are offering things so powerful that in reality, i'm not sure we should sell this to some of our clients. alex: global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. tom: a round up of the top stories with a check on ai. let's get to the individual corporate stories. individual stocks on the move. we will focus on the u.k., a pharmaceutical story, dechra pharmaceuticals have an offer from eqt to buy this with a 4

we begin with bank of america raising the target for broadcom. moving from $950 to $1,000 a share. say big winner deutsche bank upgradiing anheus anheuser-busch shares of bud right now up 1%. and ab bernstein boosting kellogg. the company has a cheap valuation and investors have ignored improving outlook. looking at shares up more than .50%. >>> turning to dc and a who's who of corporate america lining up to meet prime minister narendra modi. the guest list at the state dinner includes tim cook, sundar and satya nadella. they are pitching the dream to the executives and issues over regulation and infrastructure. call this an early win for team modi ge announcing it signed agreement to produce jet engines for the indian air force joining me to discuss this is the ceo of the company already doing big business in india. alan masarek, the ceo of avaya >> good morning. >> i want to ask the first question you have feet on the ground in india. what makes it attractive to do business and have operations there? >> india is important to us. we have 1,200 employees over 6,000 globally it is a

artificial intelligence to chai nachlt taking a look at nvidia, down 3.5%, microing micron, qualcomm, broadcom moving down to the tune on just about 1.5% turning to one part of the market getting more attention from the investors and that's the ipo side of things gen, it's expected to start trading today, a small offering, expected to raise around $30,000. it follows the success of cava earlier this month, giving inspiration to other restaurant chains to follow its lead. cava down. restaurant stocks have been also at the top of mind for wall street for another reason. they offer insight into consumer spending trends amid stubbornly high food inflation. it's also been a mixed picture for the industry with names like shake shack, chipotle, jack in the box, all up between call it 33% and 80%. it's a different story for domino's pizza, for starbucks, for wendy's, which are negative year to date domino's has shed about 6% year to date. so let's talk more about where restaurant stocks can go with jeffrey bernstein. he's a senior analyst at barclays it's an interesting move we have framed it fast cas

we get reports from dollar general and broadcom and lulu lululemon.rker this afternoon. a lot of people listening for his tlhoughts on rates we will have the issue of the financial sector turmoil with the regional banks >>> a key look at futures this morning. futures are green across the board. higher across the board at this point. the dow would open up 50 points higher for more on the trading day, we bring inbrilliant. >> thanks, frank. >> what is your thought about the debt limit deal moving forward? is that a net positive for the market is there anything you are concerned about with the deal? >> i think it is net positive. the deadline was loomging and everyone was getting nervous i don't think we will talk about this six months from now this is something that will prove fleeting >> you are hopeful with the hope in mind, what is your "wex" word of the day >> my word of the day is immaterial i couldn't which one the reason i went with immaterial is what i was saying. we took a long-term perspective. regardless of nice news today, trading day is imm

i thought that was broadcom, though >> right. >> same narratives about different stocks that are the to play x. >> yes it will work for a bit maybe if there is genuine earnings upside beyond what we thought before, sure, let's price it in now. i think the ai source of energy in this market is not to be dismissed, even if the stocks themselves look like they've run ahead of themselves and maybe longer term the returns aren't that great because, as i said before, you kind of need a reason for optimism that's not just, hey, maybe we won't slide into recession and maybe it's not more of a defensive move it's certainly part of the story of why the market has gotten to this point, along with some of the consumer stuff that hasn't quit, hasn't given way just yet. >> we have barely 30 seconds left where's tesla? is this the 12th straight day? >> yeah. it's a streaky market right now. we're running into a little bit of -- >> good day for stocks next up "overtime. i'll see you tomorrow. [ closing bell ] >>> more gains for stocks today. the s&p touching a new 13-month high welcome to "overtime.

you have broadcom, amd, micron all higher on the day. the market is clearly shaking this off i think it confirms my belief there will be this putt for not only mega caps but technology. >> amy, you've owned nvidia for a long time. you've called apple's p/e insane those were your words. and you've owned nvidia for a long time? >> i've owned nvidia forever, trading up 35 times revenue. so we've trimmed it all the way. nvidia is a great company. the gains are unspeakbling we're telling clients if you want to make gifts, gift nvidia stock because the gains are so large. it is a data play, not just artificial intelligence but all types of data. scientists were telling us to use parallel processors to crunch this data every time there's a new app, whether it be crypto or ai, nvidia gets the benefit. >> i'm guessing when you bought it the p/e was a lot more elevated than today. >> it was not actually people thought it was a gaming company. and people weren't excited we buy and trimmed based on the sentiment and we've been trimming >> tack has b

broadcom expecting sales to start slowing but could ai give the company a boost.emember in may, they had their best month ever, up 29%. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh caroline: welcome back to "bloomberg technology." i am caroline hyde in new york. we are halfway through the trading day. the nasdaq, we are seeing risk tolerance come backing to the market. we are seeing a debt ceiling -- hoping the federal reserve might pause. even though the inflationary pressure is styling back a little bit, the jobs market is still on fire. we are waiting for the jobless number to come out. mixed dated today in terms of adp. to your yield back five basis points. crypto currently on the downside. not risk asset hungry everywhere as bitcoin had a rough month previously of me. some of the individual mover

the 86 cents expected the recovery is a long way off and forecast weaker revenue as well >>> and broadcomhares sank in extended trade after better than expected third quarter revenue the revenue guidance of $8.5 billion was the slowest in years after sales jumped 8%. last month, nvidia forecast q2 revenue more than 50% above expectations >>> this is interesting. shares in lululemon surging in extended trade after the company posted a beat on revenue for the first quarter. sales rose 24% with revenue in china rising 79% it tells you some consumption spend is coming through from china. >>> this is the picture of nike shares in pre-market and reacting well to the positive news that is coming from lululemon. nike opening up 2.8% let's look at others puma and adidas and others opening in positive territory as well positive signals coming out of lululemon this morning both opening up 4% our u.s. colleagues will speak with ceo calvin mcdonald at 1600 cet. >>> and dollar general shares plunged after they missed the top and bottom lines customers are reducing spending among the tough economic cond

, and i think, broadcom and marvell are the two companies that make it so you can go from the exclusiveips to melonox and then to where you need to go, which are the datacenters. >> okay. >> i'm just trying to get people to understand the flowchart of what -- of how narrow the number of companies that really benefit from a.i. is, versus the ones that claim to benefit. >> well, right, this is, again, in the chip side of it, as opposed to the usage side, for the likes of amazon, meta, microsoft, alphabet, all of which conceivably are seen as big beneficiaries of generative a.i. >> right >> as it grows over time >> well, oracle surprised me in the great keynote -- >> and oracle. >> jensen huang talked about oracle and was, like, wait a second >> oracle's moving up almost 5% into the earnings announcement after the close. >> while i love oracle and i have been recommending for a long time, do you buy at a -- this stock is a stock that does pure way you can buy it at five the other day, someone criticized me and said, jim, how could you not tell people to buy nvidia up 18 i said, no, we have

think of broadcom or oracle who is able to produce on the cloud much more efficiently a.i. spend. so there's names like that as well as microsoft which is known and others that i think will benefit long term and will continue to benefit. ashley: those big tech names, but i want to turn our attention if we can to tesla. the shares have been taking a hit following a second downgrade in just two days. if i'm not mistaken you had tesla as one of your favorite stocks last month. it has been on a tear. do you still feel that way, have we seen, it is actually up 1 1/2% today, do you think it's little bit of profit-taking that pushed this stock down a bit? >> yeah. i mean, as a portfolio manager what we all tend to do we buy to a target position and then we trim back. we never got the opportunity to buy enough. we were buying in early january and then the stock took off so we're not in the mode of trimming at this point. i do think investors need to step back and say, yeah, you can underestimate elon musk at your peril. i mean the charging deal that he struck with ford and gm, no one saw

so amd, nvidia, we too have exposure in micron that hasn't done so well br broadcom as well but it is a matter of rotation who is the next leader in the market technically you also have tesla, more of the consumer name. amazon is a consumer name. we don't have any exposure in consumer names other than amazon >> look, there is a reason why discretionary i think is still the third best sector on the year is because of tesla as we just head. and amazon >> tesla and amazon. >> everything else is like so spotty, what do you bet on there. >> you could buy some home builders >> fair point. >> i'm not just a growth manager. i'm a manager looking for alpha in the market is right now our theme was bring out the 2019 playbook. even in may, we bput it out to clients. we've been bullish and we'll continue to play that theme. i have levels that if tesla were to reverse, we'd manage and cut out of that position the same way, joe, you talk about moving names when you manage the risk so this is a very tactical position i'm going to raise additional cash from other parts of it. but i like it right now.

in the media sector part apartment, maybe micron's biggest problem is it's not amd and it's not broadcomr nvidia or at the forefront of to a hike >> exactly probably contributing to why they're expected to miss q3 estimates. much of wall street is bullish there's 24 out of 36 buys at the moment firstly, you have china imposing a critical infrastructure ban impacting revenues by what the company calls low double digits. the ban came into effect may 24th, which means much of it will be felt in this current quarter, so that hurt q4 guidance and lastly, companies are cutting ban on its central processing units and memory units and pieing more gpus that hurts companies like micron the memory prices are considered to be on their way to a bottom and stabilization within pc sand smartphone sales could help. we'll be looking at how the chinese bans could weigh on micron's recovery trajectory, given that it was a low-hanging fruit that china went after. >> we're learning ai haves and ai have-nots those with the hype and those trying to get a piece of it. >> i think there's a chance to be miscalcul

broadcom is the other one. many a.i. businesses chips. maybe 1.5% of their semirevenues.hey expect that to grow to 25% next year. you're getting 2.2% yield and 23% annualized growth in the dividend over the last five years. charles: love it, nancy, love the way you put that out. also note for the audience, note that uber is high on your watch-list of potential buy list. thanks so much, nancy. appreciate it. coming up can you guess what sport cost americans, next year will probably cost us $400 million in injuries. it is a new sport if it is a support. tweet me @cvpayne. i will invent a spoon. i will talk about that later. most popular sport on the tweet after guessing game when the tech crash will happen to the "countdown" to the recession. i will machine all global chief strategist francis donald. francis, lots of economic data out the past week. i tell you most of it is strong. i show the audience, new home sales up 12% from a year ago. advance report on durable goods up 7.7%. the core by the way was up really impressive. a week ago we saw business formations they conti

we own apple, we own microsoft, we own broadcom, we're interested in the longer-term story. we're happy to hold it through this volatility which in the last three months has been to our went fit. cheryl: yeah. >> but i like it there. some of the frothier ones, nvidia at 20 times forward revenues seems really expensive. cheryl: yeah, well, i think that's the action we're seeing on nvidia. kenny, word? >> no, to that point, i think you're right. and when this correction comes because i think we're coming into the last four days of the quarter, i think you're boeing to see more pressure on exactly those things that are so, so stretched, right? whether it's invired ya, whether it's c3ai, you've seen it back off about 30 percent in the last week and a half because with asset managers need to rebalance, need to take this money that's been given to them almost as a gift on some of these names and reallocate it which is actually why you're seeing strength in the russell today and the dow industrials, because it's broadennenning out. money's coming out of tech, and i think you have t

names so far this month nvidia and intel among the biggest winners along microchip technologies and broadcom making a big bullish call on one of these stocks you have been adding to your position >> and to be clear, right, i've been on the wrong side of intel during a big move down, but i also trimmed some of that at some point and i've been adding and some of it is the technicals that have meant a move above 31 and move above the downtrend, above the 200-day and things i do watch, but the story is more, first of all, last week at a jeffries event, they actually p preannounced their june quarter, and the numbers were at the high end of a range, so, this is a company that we've been more worried about. the view is, certainly, the view was, that they were not only losing market share in data center, but getting worse and worse. what the ceo, or what the cfe was able to reaffirm, it's actually a little bit better and i think there's a story there about the longer term. they have exciting products coming up. the chip in '24, that's real there's real excitement around it and you get to a place wh

when i see things like broadcom doing what it's doing and the semiconductors which is basically puttinga flag pattern straight up the pole, a little right turn and looks like it's going to break out again, that is some significant strength. charles: so let's pick up on that because, you know, the narrative again as i was trying to set this up was last week we saw action outside of the many mega-cap names, which is great to see the market go up without that leadership, but here we are today, it's the growth names, right? consumers, discretionary, communication and technology. we've got a lot of sectors in the red. are you trying to sprinkle any money into those names or just riding these out for now? >> well, you know, i bought a little boeing today on the 1-year breakout, and i will tell you look at the cruise lines here. that's not aunt mary and uncle bob buying carnival cruise lines today, that's the big institutions, and that's after royal caribbean broke out a couple weeks ago over 80 and it's already over 90. it's good to see the participation. the one area i think we need a lot mo

it's not exciting that id kaence one of their partners makes the cases that marvell and broadcom make the connecting pipes or its service has teamed up with nvidia to make your office more efficient. i know it means so little to you. it's just all of this business to business productivity that cuts waste, lowers costs and frees up people to be more efficient. that's why i mentioned the lemon dress, okay? not as boring. but you can see the value. honestly i wish there were more to it. that there was something -- i was thinking the other day, how about if ai could put a man on mars in two days how about if ai could win the war for ukraine? how about if it could solve world hunger it can't do any of that stuff. and maybe that's why it leaves so many of you cold or in the dark but here's the bottom line when you consider the scale of the business to business opportunity, you can see why ai might be worth far more than most people realize, even if it's too early to calculate the exact numbers. i know there's a lot of hype here and in some individual cases it is overblown. but anyone who te

the nasdaq is up 159 points let's see what's leading it here you have broadcom, airbnb, intel , adobe systems, palo alto networks and remember, we should point out the stock of nasdaq, we're talking about the exchange operator ndaq is floundering this hour down 11.7% and nearing a one-year low. one-year low be $48.06 we're at 51 and change after making the biggest acquisition in history. the stock dropping on fears that nasdaq perhaps maybe over paying , for financial software firm adenza, the price $10.5 billion in cash and stock, which works out to about 31 times estimated ebitdar, or earnings before interest, taxes , you know, depreciation, amortization, this year. it is owned by private equity outfit toma bravo which gets 14.9% of the nasdaq outstanding shares as part of this deal. investors don't love it at the moment but nasdaq ceo adena friedman is steadfast in her mission to broaden nasdaq well-beyond an ipo listing operation. regardless, s&p ratings firm downgrading nasdaq, inc. to triple b. the agency says nasdaq's plan to raise close to $6 billion of new debt to fund this p

broadcom that compliments your art, your green thumb or just you.me with the firm to overcome. >> listen, your deodorant justm has to work. i use secret aluminum free i use secret aluminum free to swipe and it lasts all da. secret helps eliminate odor instead of just masking it. and hours later, i sell top secret works. >> oh, yes. who do you guys think came first? the chicken or the baby? back with baby back ribs? chicken tenders all the way that grilled chicken, inner baby back ribs, baby back ribs, baby back. and tenders. >> i'm going to go get some piet . are you looking for more inhe this world? d. are you driven by purpose? then we are looking for you.han >> the big hearted, the bold, the change makerwis. we are the peace corps, with volunteers in more thantraf 60 countries. we join hands with communities, we join hands with communities, live togethe transform lives and servere yoe boldly together. are you ready to goat fir the distancest to make a difference? a difference? then we have a place where you belongbut . >> join us. at first, we te

we recently trimmed nvidia and broadcom. this a.i.etting ahead of itself in the short term. it makes more productive and more money eventually but we're years away companies adding significant revenue and profitability not bottom line. these multiples are getting pretty extreme and pretty crazy. from a stock standpoint from our clients we're looking to add a.i. derive sieve plays, stocks not as sexy but have traditional a.i. touch to them. one of the stocks we picked up, emerson electric, industrial company, pretty boring in a lot of investor's eyes. we've gone through the industrial revolution and now we're going through automation revolution which is concerning economically if i had more time. software, emerson does it all. we're looking at non-sexy stocks that had not much loaf but to pick up they get the love eventually. neil: jay, if you want to play the group as aggregate invest in nasdaq 100 or proxies or etfs or technology stokes as a group or is that too vanilla? >> no, it is not have flim la because there is a very volatile

gains from s&p come from only 10 stocks, the magnificent seven, apple, amazon, microsoft, nvidia, broadcom, amd and salesforce, which we're going hear from later in the show. i hear all day, i'm not kidding, all day, that this market can't be real if tech's leading the way. real somehow that means this whole move is slight of hand legerdemain? plus, there are other stocks in the mix. service now, they had thousands of customers from every single industry hard to be broader than that customer base. how about oracle a terrific quarter, great cloud revenues i'll take the 12 points you made in that one. you don't want them? i'll take them you don't want the 20 push you would have made in adobe i like that one 52-week high i guess that's not allowed two semiconductor equipment makers, they join the new high list, as does these are all stocks that we favored industrial chips, cyber security, they've all been on the show we like them tech is a bigger and broader sector there is nothing narrow about the winners in tech. and if you own them, which is what matters, right, isn't that what we're doing

>> i think, to me, i like broadcom and lam research. i like those two if they pull back, i would add them right back. i like those there are other areas, melissa i would buy delta. the demand has been so strong and the ceo was actually on "squawk box" this week talking about the goods to services theme just being in the middle innings. they actually raised guidance. stock trades 8 times earnings. fedex has been beating estimates the last three quarters. there is upside on the margin front. there are places more exciting to me on a valuation basis not giving up on tech or any pull backs >> steph, thank you. stephanie link. >> thank you >>> coming up, lydia moynahan from the new york post will join us to talk about intern wages on wall street rising as much as $120 an hour on wall street. this is the wrong type of higher wages for liberals they want to back down to $7 an hour we will talk about how her new piece quotes goldman sachs insiders about the appointment of tom montag to the board we will talk about those subjects next. "squawk b

the gap above the 200 day moving average is 80 some percent above its 200-day trend line and then broadcomer one check those shares out a huge move higher but the gap between where it is right now and the longer term trend line is over 40% at this stage. one more to kind of get you sorted out for the rest of the tech sector. apple, that stock in particular, the biggest part of the weighting is 20%, carl, above its 200 day moving average those stocks have been powering the gains. that's a sector perspective on what's happening with tech i'll send things back over. >> thanks very much, dom. >>> some discussion, mike, about whether or not there's apprehension as meta gets to 300, apple gets to $3 trillion what do you think? >> i don't know if there's, you know, a real reluctance to push the valuations that much higher. apple was in its own category toward that $3 trillion mark if you break down the numbers, yep, it's expensive based on its history, but it's been more expensive, you know, in three years ago or so in the summer of 2020 4% free cash flow yield is not s insane we've talking about

now, the piping is indeed broadcom, which had this weird move where it went down, then up, and marvelle is, there are really only a dozen companies >> these are all the companies that are involved in the -- >> in the switch from cpu to gpu. now, remember, the -- >> and obviously, the most important is still taiwan semi, because none of that happens without taiwan semi. >> where did they do the meeting? taiwan semi. the current configuration in the datacenter is 5% cpu, and now you think about intel, and 95% cpu, 5% gpu, which is jensen the new ones are 95% gpu, jensen, 5% cpu because they work so much faster, burn so much less, and they -- >> although they generate more heat, don't they >> no, that's what's surprising. they use much less heat than you think. >> than you think? but is it more than your typical datacenter because i do wonder about that >> he has statistics that say it's half of what people realize. that they burn really light. now, look, i mean, they put the thing out there, and by the way, it starts with jensen saying, i know it's too long, and it's beautiful music, soa