shares of broadcom surging at the open. chip names like apple, amd and nvidia posting better than expected results for the fourth quarter. sales came in a bit lighter than expected. still the company says a.i. sales jumped 220% on the year to $2.2 billion. shares up 15%. >>> shares of h are surging in the pre-market right now. taking a look up over 17.5%. the demand for home furnishing products remains strong despite what it calls the worst housing market in 30 years. a lot of people would agree. rh says q3 was up and it is raising the current quarter and full year. shares of rh are up 17 .5%. >>> shares of servicetitan after the 42% pop yesterday and the first vc-backed ipo since april. raising $625 in the nasdaq debut. selling shares at $71 a piece. the shares closed at exactly $101 per share giving it a market cap of just under $9 billion. the pre-market servicetitan are flat. >>> time for the check of the other top stories with silvana henao. silvana, happy friday on friday the 13th. >> happy friday the 13th, frank. goo

broadcom and nvidia. broadcom closing at a record high yesterday after the 11% pop. it is up 1.5% in the pre-market. the stock is up 40% since earnings last week, while nvidia, the other side of the coin here, down 11%. more on the two names throughout the hour. nvidia is the orange one taking the move to the down side. broadcom with the spike. trading at an all-time high. we'll talk more about this throughout the show. we have to talk bitcoin hitting a record high this morning. look at the moves in bitcoin. bitcoin trading -- actually, i think this may be a different chart. i'm sorry. this is bitcoin. trading $107,000. wrong title. right chart. bitcoin trading at 107,000. let's move on to the bond market with the fed meeting today. decision tomorrow. benchmark at 4.42. we will continue to watch the moves and talk to our market guest about the moves in the bond market. >>> that's the money set up. let's see how europe is shaping up with the trading day getting under way with silvia amaro. silvia, good to see you. >> very good morning, frank. so far, european equities

long-time partner, broadcom. we're up 6.3% on the back of broadcom.atility remaining around super micro after they got the extension to give their financials to the nasdaq by february. let's talk more about the private side and the chip question a little bit more. ayer labs has just raised money in its latest funding round, the likes of nvidia, a.m.d. ventures, intel capital are three big chip companies using what is the next technology. ayar labs' c.e.o. joins us now. i want to get the context for our viewers. what exactly is going on here? how does photons, ultimately light, help reduce the bottle necks in chips at the moment? >> first, caroline, thanks for having us here. i'm excited to be here talking with you. i think the way to think about this is everyone is familiar with and have been tracking all the innovations coming out, the exciting applications happening in a.i. but the a.i. application has really broken the back of existing computing infrastructure. we've seen a lot of innovation happening on the compute side, so people like nvidia buil

yes, i think what broadcom's report is, the message that broadcom is sending that there is a handful of piper scalers who are building out very large clusters for their own applications and sometimes for the public cloud but where is there the most amount of untrained data. that is all in the enterprise. it is not in the cloud. cloud is getting restricted because they don't have enough access to enough public data out there. but there is a lot of -- that is in the enterprise and that requires a very strong partnership between companies that are closest to the enterprise and companies who are building out the public clouds and i think nvidia is absolutely the leader in that market. the reason why i think nvidia stock has been under pressure is just in the last two quarters their in that transition from the hopper to the black belt. in the next report we'll see the surge in orders and that is going to reassure people that the story is in tact. so i think it is more the transition between product cycles that is impacted nvidia but we think it is a near term concern. >> and the rising ti

so it is, yes, nvidia makes the gpus and but broadcom is the player, and google is using broadcom toe their artificial intelligence chips as well. now apple is getting in on that as well. that makes it really exciting. and these are the ones that run in the servers for training the a.i. models. what is interesting about apple, so far, they've been using these alternative trips to chain the aim intelligence. they've been using chips from amazon and google, which, by the way, broadcom has a hand in helping make those. what they haven't been doing is running out there like microsoft and meta have been doing and google to some except, buying up gones and gones and gobs of video chips. they've been renting other alternative chips. it doesn't mean they're not using nvidia, but what they publicly disclose, they're looking at alternatives and it is impressive they've been able to do this and launch apple intelligence the way that they have without spending as much as some of the rivals have. >> although, i wonder if that is not as high stakes for them. in a way, the apple intelligence featur

broadcom will see interest in growth in ai sales. do you expect more second-tier companies to become mag seven like? racquel: that's a big aspiration. you will broaden out the sector and make room. the key point is as a sector there are so many companies that will move up. you will see easing of the mag seven. they have had incredible returns. easing is not terrible. it is making room for others. scarlet: the s&p up 10% in '25, building on the gains, it will not be a straight line up. pretty volatile action to that point. what does that mean in terms of where you want to be? racquel: we went through a year more focused on uncertainty. elections are over. the fed is easing rates. the slow easing for inflation. the opportunity lies in thinking about what is next. diversification and rebalancing is important. a new administration coming in. there are sectors we think will do well but you have to be ready. financials very high, tech, health care, industrial utilities. you have to pay attention to markets, knowing the importance of divers

how does broadcom trade like it got a takeover bid in a pay quarter?n't tell the whole story putting all that aside, we learned broadcom is having success with its ai chips which is all investors care about at moment as you know more important, comments about potential big new customers for the ai chip business the focus for broadcom right now is on developing technology for ai data centers, including and especially custom accelerators meaning advanced processors that they call xpus this is business building throughout the years broadcom's customers raced to build out ai infrastructure. with last week's earnings report, management noted the 12 months ending october was up 220% to a 12.2 billion 220% that wasn't even the best part we know broadcom was making xpus for at least three hyperscaler customers. they're widely believed to be alphabet, meta, and bytedance, cot that owns tiktok on last week's call, broad cam president ceo hawkins put on a show he gave more detail than ever before how he expects the semi kicker business to evolve over the next thr

nvidia and the s&p, not shabby for broadcom this year. tim: thanks. deeper dive in broadcom. you joined us live yesterday as the numbers rose. the shares went negative, what happened on the earnings call? reporter: the massive 2027. it gave investors a quantifiable target instead of worrying about the near term. tim: ai revenue grew 220% during the year, fueled by demand for processors and components. demand for non-ai chips will be down first quarter. should investors write off non-ai chips? kunjan: they should given the growth rates for the ai business. it will grow to be the majority. the non-ai business, 20% will continue shrinking. all the worries are out the window. tim: thank you. more on broadcom, ian king. they have built through acquisitions. does this continued? -- continue? ian: they said they will focus on bringing down the debt. does this mean the strategy of making acquisitions is a thing of the past? no, still looking. tim: what kind of companies have a acquired? what could be on their radar? ian: they have gone through the panoply. they started off semiconduc

up, with broadcom, they don't see a competitor. if i -- if dan is nvidia and i go to him to supply all my chips, he can compete with me. broadcom can't have that ability to compete the way nvidia does, so, a lot of these companies, we know the top names, it's the five megacap names that are the most -- the biggest consumer of the chip space. if i'm a microsoft, do you want to go with a potential competitor to get my chips there? >> one of the things about broadcom, and gene munster and i had this conversation, i know, when he's on "fast money," one of his things for 2025 is custom silicon. who is going to partner with a broadcom to create their own high-end gpu, which actually does, you know, kind of give them a second source. i think a lot of folks are really sick of nvidia and the stranglehold they have on pricing right now. that was a big reason why broadcom moved that way. we've seen story after story, whether it's micron, meta, these guys all want to create -- microsoft, excuse me, google, they are going to partner with folks

could rival broadcom be close to stealing its thunder.com scored key contracts with ai and reportedly apple for stizedhicuom cps we will dive into that more when "power lunch" returns. to go further, you need to be ready for what's down the road. as energy demand continues to rise, we're harnessing breakthrough innovations to increase production in the u.s. gulf of mexico. our latest deepwater development, anchor, produces previously inaccessible oil and natural gas, allowing us to deliver the energy we all need today so everyone can follow their own road. that's energy in progress. >>> welcome back to "power lunch." adobe is the worst performing stock today after its results key concerns around its ai offer offerings and ability to monetize them, and where is their place going to be as the ai tools continue to explode? >> we have heard from two major software giants today, oracle and today adobe. both of their guidances failed to live up to expectations and if we click on adobe, the street was expecting more from the management of how th

i think if you're asking me broadcom versus nvidia, we could come down on the side of proud -- of broadcom here. one of the reasons that broadcom is gaining some ground on nvidia, they are winning on the networking side if you scale the number of gpus, it is an end square versus end problem to connect them together and that is where broadcom and marvell play. and also broadcom is strong in the custom chips. so for the big hyper scalers like meta and alphabet, coming up with the chips that they need to do their specific work load, we see that as a more proven commercialized space. but i think broadcom is a little bit more tail winds behind it and that is setting aside some of the businesses outside of a.i. that are in a cyclical trough that we think could rebound next year. >> you say that the nasdaq has turned into an a.i. index. is that a complement or a insult. >> that is become a single bet. so it is a very risky thing to invest in. it is not what i think you would want from a sort of diversified i've. it is probably going to give you more volatile returns and would you be worried that

it was nvidia and broadcom. if you think through the potential evolution of this market as we go forward, you got nvidia, it's looking like it's custom asics. i still think these two are the winners. for broadcom, it's more and more -- this print, if you believe the numbers, this was almost like their nvidia moment. nvidia had their moment last year, middle of the year, may. this may be like their nvidia moment. >> what do you make of what's happened with chip stocks in general over the last few months? they diverged in performance between software and semis. does a report like this help change that? what does? >> semis have been weaker as a group. you have to remember, performance outside of ai has not been great in the sector. it's really been bifurcated. if it wasn't for the ai cycle, semis would be having a nasty time this year. look at everything, the end markets. pcs are muh. smartphones aren't going down but you aren't getting unit growth. industrial, into a double dip. it's getting weaker. auto, i've bee

you see broadcom up 14% versus adobe falling 14%. as stocks get more expensive you have this idea the margin of error is thinner. you do not get stocks falling together. you get bad breath in a market that is more difficult to navigate. lisa: at the same time there is money flooding into u.s. equities, poised for a record 480 billion dollars of inflows this year into u.s. equities. how much of the hit cup is the idea we are facing policy uncertainty and waiting for the optimism to be borne out. annmarie: a ton of policy uncertainty but there is u.s. exceptionalism. the global equity benchmark is closing at one of the worst weeks in a month. policy uncertainty, tax cuts. canada mulling ideas for retaliatory measures that could be inflationary. yesterday donald trump came out on the dockworkers. does that mean we are going to have a protracted fright -- a protracted fight when it comes to the dockworkers and imports into the united states. dani: risk markets do not seem to care. i thought michael hartnett was interesting this morning,

super micro and tesla and broadcom and palo alto. a check of the top corporate stories now and including one of the final majors here in 2024. silvana. >> servicetitan is set to go ipo. pricing shares at $71 a piece after previously raising its range to between $65 and . service titan is valued at more than $6 billion. >>> we are watching shares of health insurance and benefit managers with unitedhealthcare and cvs and cigna this morning after falling 5.5% yesterday on the new bipartisan bill aiming to break up the companies. the bill would force them to divest their pharmacy businesses within three years. we are seeing shares just moving fractionally in either direction before the open. >>> microsoft says it expects to face an $800 million charge in the gm cruise unit. microsoft took a stake in cruise in early 2021. in the regulatory filing, the tech giant expects 9 cents on second quarter earnings. frank. >>> shifting gears a bit. returning to broadcom reporting after the bell today. that stock up 10% since the last report. investo

broadcom tried to buy qualcomm. the trump administration, the ftc or doj they blocked that deal. >> i agree with you on big tech. i think a handbag deal might go through hypothetically. >> you might be buying in bulk. >> the ftc is -- but if you -- i mean, to your point, though, in terms of google being an underperformer, are we seeing this realignment of assets where you're going from what had been the performers like let's say a microsoft which hasn't been performing very well, the last high was fwh august, sometime over the summer into a google now. at the end of the year even within the mag seven you are seeing the recognition there are the underperformers within mega cap tech that we want to be in. >> i think that's fair. mega cap tech broadly they keep putting up the earnings and they're taking turns. there's one that shines more brightly than the other at any point in time but the value trade is not working because it is not putting up the earnings growth. the relative valuations are staying elevated for the

>>> broadcom booming. can it keep climbing? >>> the latest waves of executives set to visit the president-elect. >>> will fedex beat? i'm coming to you live on the desk tonight. we start off with the latest overhang for the health care sector. there's a petition to revoke approval of the polio vaccine. the fda was petitioned on the ground that the polio vaccine safety hasn't been studied sufficiently. it's more than one of a dozen he filed petitions against. this is the latest sign of hostility toward vaccine makers in the next administration since president-elect trump's victory. they have seen losses. it comes amid a wave of backlash against health insurers following the death of brian thompson and a senate bill that could face insurers to break up. it's down more than 10%. it's the worst performing sector in the s&p this year. how do we trade health care? maybe the answer is not simple. >> it's not simple. it's complex. this is going to take years to play out in terms of policy. what we argued is that the headlines are not n

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apple is a huge customer, 17% of broadcom. and, you know, this thing is acting very contrary to many of the other names attached. telling a story about generative a.i. last week, a huge rally. gapped up 25% to new all-thyme highs. >>> coming up, costco and rh on the move after reporting results. the numbers from the quarter next. >>> and a big debut for servicetitan. surging in its nasdaq debut. that'strgh sait ahead. don't go anywhere. "fast money" is back in two. big news for mahomes! i'm switching to iphone 16 pro at t-mobile! it's built for apple intelligence. that's like peanut butter on jelly... on gold. get four iphone 16 pro on us, plus four lines for $25 bucks. what a deal. ya'll giving it away too fast t-mobile, slow down. what if your mobile network wasn't plus four lines for $25 bucks. what a deal. just built to work out here... ...but was designed differently to also give you blazing fast wifi where you are most of the time? reliable 5g, plus wifi speeds up to a gig where you need it most. xfinity mobile. xfinity

particularly profit-taking at broadcom. what is happening in individual movers when it comes to the crypto space. bitcoin up at 1.108,000. we're still holding on to record highs. a bit of profit taking after a 100% run-up this year, basically a bitcoin proxy entering the nasdaq on friday. many feel this will be the beginning of amendment to -- of a momentum trait. sectors like crypto are continuing to outperform following the election of trump. payrolls processing company gusto has a bird's eye perspective. it has announced a new partnership with zero, a leading accounting software platform. let's ask the ceo and cofounder josh reeves. josh: pleasure to be here. caroline: let's talk about the partnership and while -- and why you are focusing. josh: we are thrilled to support and serve over 3000 small businesses. one of the things we realized is you have small businesses that will use gusto directly. there are a lot of small businesses served by existing platforms like zero and zero focuses in on accounting. a lot of these o

broadcom up 50% in the past four weeks. paul, thank you for joining us.l ks on all things tech. >>> coming up, putting troubles in the rear-view mirror. coming up, your mystery chart and my next guest says it is nothing for that beaten down name. >>> if you haven't already, follow our podcast. check us out oape n plor spotify or other podcast apps. we will be right back. (inner monologue) my kids don't know what they want. you know who knows what she wants? me! with empower, we get all of our financial questions answered. so you don't have to worry. empower. what's next. >>> stocks are looking to end the week on a strong note. the major averages looking to gain up 2% and the dow up 1%. the futures are indicated lower. right now, s&p 500 down .4%. nasdaq has been weaker throughout the session as well. look at the biggest laggards. we are led by datadog and tesla down 1%. on that note, we are keeping a close eye on apple. $4 trillion watch. shares are trading at $258 and change. the stock did hit a record high in yesterday's trade. joining me now and how to

broadcom has been partnering with hyperscalers.hope will compete with nvidia. wall street is betting on an over 50% jump in fourth quarter sales. guidance is key, following rumors that been a hiccup with the google partnership. the ai outlook will provide a good outlook, whether the spending continues despite the broader debate on ai's return on investment. shares up over 60% this year. >> thank you for that. back to you, miami. apple is a machine. it's up again for nine straight days. we will get another closing high for april. you have the $4 trillion in market cap, hanging around the rim on that. >> i don't know if we have a wall street rule of thumb that all stocks that get to 3 and three quarter trillion get to 4 trillion. naturally, it's a story that you don't have a lot of people pushing back on. that's not to say everything is bullish and growth is accelerating. it's one of the things where it's an easy one to own when the price action is this way. i don't want to overthink it beyond that. we have talked about these big tec

where broadcom sits and who it competes with, is it broadcom and al, so where does broadcom play herestion. you have to break out the pu market into two pieces. one is your plain vanilla, intel-like chip that does a lot of different things, and you can buy it off the shelf, and you have software available and a lot of help available from vendors to be able to work this. not just sophisticated people. let's say your typical enterprise or medium sized business, that's what nvidia does, what amd does. you have broadcom and marvel, that will make you a custom chip that's 20% cheaper, 30% faster or 20% faster, takes up 25% less power but there's no technical help, no software provided. you basically have to know what you're doing. you have to be a diy guy, a google, a meta, a microsoft or an oracle to be able to use those chips. now, these chips are not meant for everybody. each have cost, 4, $500 million to make. they're not making chips for a 5,000 unit order. they're making the chips for 250, 400,000 unit orders and so the customers are chosen appropriately. that's roughly the split. br

broadcom is down 2%.atch that as we welcome in our next guest, warren pies of 314 research. it's good to see you welcome back >> thank you for having me >> not a great bounce, right after what happened yesterday. what does it portend for what lies ahead >> you end up with strong forward returns. that's the very near term. towards the beginning of next year i think there's too much complacency on the -- >> i need to break away. i want to get to emily in washington with breaking news. >>> we have been tracking government shutdown news we had two law makers saying there's an agreement we don't have any additional details. both said an agreement has been reached. they are expecting details soon. they are expecting a vote in the house tonight. this was the head of the appropriations committee when i asked, are you concerned that we might see donald trump and elon musk scuttle this again? she said no. they seemed confident what they will put forward has a chance to pass we don't know details, what it is most me

broadcom beating on earnings and showing the upside in terms of revenue from ai. let's flip the board and lacrosse asset. investors around the ecb and fed expectations -- the expectation is that the fed will go again. currently, yields of 431 on the 10 year. euro-dollar below the 10 five level. a little softness coming through from the euro on the expectation that there will be further cuts. gold, 2688 dollars. let's look at the asian session. the kospi almost entirely wiping out the losses that came from the back of the botched decision on martial law from the south korean president. it is up .5% on the session so getting back up to the gains were at least wiping out the losses since the shock announcement from the south korean president and an impeachment could come through during the weekend which could lead to some political certainty or lack of political uncertainty. we will watch the events over the weekend. broadly across the benchmark in asia, it is tied in with the story from china. a lack of detail coming from the work conference in terms of the economic

stuart: but they're not using broadcom chips, but broadcom is up. >> yeah.reas of the iphone. traditionally, the rf chips tune in to the different bands like 5g and 3g, so they're just moving away. it's been in the works. stuart: one of these days i'll figure out technology. [laughter] don't hold your breath. tesla, please. i think the stock is up again. yes, it is, a quarter percent. they've launched a new feature in china. >> yeah. so, listen, this is called the the actually smart feature that lets you go in an autonomous car in china from a parking lot to something very close by within your eye sight. you'll be able to do that with autonomous driving. they're starting to roll out maybe a small portion of autonomous driving getting underway. stuart: what. >>some if i look in a certain direction, the car takes -- >> if you can see the spot where you want to go, then, yes, the autonomous driving will go -- basically, they don't think autonomous driving can go much further that -- than that, they want to test a couple hundred feet. [inaudible conversations] s

we look at broadcom and say the stock is up 100%. they might have made acquisitions and moves in their business. people have to think about that. >> its been a lot of acquisitions and it is a big company. they just crossed a trillion dollars, so it could be the mag-8 at some point. it's a pretty exciting company and a pretty exciting technology and when you think about how every company is starting to adopt this , the whole idea of the a.i. infrastructure petering out is likely to go for years, in fact it could be quite impressive in the out years. charles: i want to talk about a couple things. your approach to helping investors. one thing that you have is you talk about the tools you use. i think we have a chart of them because i don't remember them all, but okay we don't have time to go through all of them but i started with the risk free rate at the open of the show. how do you, and i was asking an astasia, how do you juxtapose that? >> this is the can chill sees heel. if the risk free rate starts to rise we'll have a very differe

broadcom connects these together.xt trillion dollar company, this company -- >> it's a better investment for you. that kind of chip that does a specific function as opposed it one that does all functions. >> we don't need to search the internet for something. we need to take our data and be specific to it. that's what they're doing. that's what i think they're trying to build with apple. this is a good play. i don't think a lot of people know about it. >> matt, thank you very much. remember this. remember one thing from this program, you can always hear us on our podcast. follow and listen to "power lunch" wherever you go. grocery ste,or hardware, anywhere. we will be right back with final thoughts from ron. okay! client wants his head bigger. wow, fast response. sent! okay, oop! even bigger. sent. [sending swoosh, notification alert] still bigger. okay, yeah i'm not doing that— [typing noises, sending swoosh] i think it still looks good! [notification alert] oh — even bigger. at t. rowe price, we help advisors move f

i think beyond that broadcom has been a name we've really liked in the ai space. them in 2025 which is funny we're seeing these concerns '26, '27 i think broadcom will be quite robust as well. >> joe, have you thought about just coming up with some type of like law just to use in your own sort of -- with morgan stanley like a moore's law for covering semiconductors at this point you haven't done that? >> i'm not as commercialized as i should be, i have had a few podcasts where we've called it moore's law. >> see, andrew he's had a couple couple podcas called it moore's law. that wasn't you originally. >> afraid not. >> does it still work? fit iks caught up with moore's law. >> it doesn't work in the way that it did. i think that's why innovative approaches like nvidia paid off. >> joseph, i want to thank you for joining us this morning. happy holidays. >> you, too. >>> coming up, a new report from s&p global shows liquid, natural gas and that industry the growth could actually double, adding $1.3 trillion to the gdp, but regulatory and legal uncertainty has the po

mania sweeping the market this year but not all stocks are winners like broadcom and nvidia. kim forest will be here to share the semi names to avoid in 2025. meantime, retail expert jan nifin is making his list of the best and worst retail stocks to buy this holiday season. and here's one of the names you should be picking, he's going to be here at 2:15 to give us that list. micro strategy officially joining the nasdaq 100 today as mike will say, affecting bitcoin for the seventh week in a row. we break down why bitcoin's bull run is far from over. we'll have all of that and oh, yes, so much more, on making money. ashley: well, stocks mostly rising to kick off the holiday week. yes, trading volumes are low but after tumbling last week on the fed's hawkish stance, can we turn it around to finish out the year? will this optimism continue for the remainder of the year? joining me now is main street asset management cio aaron gibbs. aaron, look, okay, stocks have been acting a little shaky the past few weeks and are becoming increasingly as you call them narrow but do you think

. >>> broadcom shares extended in trade after it is developing custom a.i.hips with three large cloud customers. fourth quarter revenue from the artificial intelligence business soared 220% to $12.2 billion. >>> meanwhile, apple is reducing reliance on broadcom as it will switch to an inhouse chip according to bloomberg which apple's chip which has been in development for several years will be introduced to products next year. >>> as donald trump prepares to return to the white house, questions remain over the presidency on tech. joining us now is marcus. good to you have on the show. good to discuss quantum. i want to start first and foremost with the political implications here. you were at mar-a-lago in late november after the election of donald trump. what can you tell us in terms of the conversations that you had both with the president-elect and elon musk? >> i really had the honor to be invited to r-a-lago. it is, of course, an interesting place to be these days. a lot of interesting conversations. my read on it, really is we can expect really a boost

i think nvidia and the market saying broadcom, are really the two semi names you still want to own going into 2025. >> let's see, malcolm, you don't think that these hyper scalar names are going to be as dominant next year as they were this. i think we've laid out a number of scenarios which potentially would question that. >> well, to bryn's point i think the company and the stock are two completely separate things, right. nvidia is sold out well into the future by ten years or what have you. any chip they can make, there is a willing buyer on the other side of it, and just about at any price nvidia decides they want you to pay for it. the difference is the expectations by wall street now. the expectations by investors are that companies are going to continue to beat and raise and beat and raise and i think that we've already seen a growing skepticism, dare i say, from nvidia shareholders which is part of the reason that the stock has been trading sideways for a little bit now to bryn's point. i think that in tech specifically, megacap tech in next year going forward, i think that inves

investors seem to think the same sustained rally may be had for broadcom.eturning to the crypto space with bitcoin having all the positives, it seems to be rising. lots of green on the screen for the crypto space. scarlet: thank you so much, abigail doolittle with our check on movers. president-elect donald trump and masayoshi son just spoke with his plans to announce softbank's investment. >> softbank will be investing $100 billion in america creating 100,000 american jobs at a minimum. >> my confidence level to the economy of the united states has tremendously increased with his victory. so, because of that, i am now excited to commit this $100 billion and 100,000 jobs. scarlet: for more on this developing story, let's bring in peter elstrom joining us from london. the big numbers are $100 billion over the next four years, 100,000 jobs. where, specifically? peter: context is important. it was eight years ago when he met with president-elect trump and pledged he would invest $50 billion in the united states. what you are seeing is essentially double that p

tesla, broadcom, palo alto each up 400%. so, does today's action give the all clear for that tech trade, guy? >> all clear, i love that all clear. for -- the six names we just had up on the screen, i was trying to figure out, where i have been on some of these things. apple, missed the boat, tesla, no question. netflix, facebook and google, we've done a decent job. so, all clear -- i don't nope. valuation on three of those names, you can still make a case for it, despite the fact we've seen these unbelievable moves. the other ones, i'm not so sure. and couple that with the fact that yields on what people were saying was a soft cpi number, actually went higher today, which -- one has to keep in the rear view mirror, without question. >> yeah, cpi, i think, probably gave enough for the bulls to feel that the fed is in line for december. disinflation certainly maybe is taking a pause, but inflation is not running amuck. you have the ppi tomorrow. back to big cap tech, what's exciting is thatof megacap tech, really outside of te

charles: i want to ask you real quick about broadcom.it was indicating down, the news came out they were going to work with apple on an a.i. chip and the stock is up number 3 percentage gainer up over 5%. you already own this? >> no, we own marvel instead but they are well positioned on the custom chip side so basically all of the hyperscalers or companies like apple that want to develop their own chips, they need to come to broadcom, or marvel, and we like it a little bit better because it represents bigger portion of the company, it's a smaller company. but it is -- charles: it's more of a pure play. >> exactly versus broadcom plays in a lot of more traditional networking areas but broadcom was the early mover here and they are working with google on there's. charles: full disclosure my subscribers own both but i love marvel better and i've got 30 seconds but the software names attached to a.i. are really taking off. these are three names you like right here. would you rank them or sort of like them equally? >> i like them equally for

the broadcom move last week, it was the number one stock in the entire s&p for the week.the stock before the big pop on friday. march 22nd i discussed sound view, $4 stock, that was a short squeeze last week. check this out. bam, look at this stock. $4 to almost $20. this year. and you know what i love pout it? why did it pop today? we'd wed bush, they like the st, see it going to 22. you always want to get in before wall street. i liked it so much. so does my next guest. she noted wall street's flawed reasoning when it came to a.i. stocks was unfortunate. i want to bring in stockbrokers.com director of investor research, jessica. we want to put some of your grand slams up. you've done extraordinarily well. the question is, these things are going to go up 100%, 200%. you shared this with the audience. 100%, 200%. do you hold names like this? do you sell some? how do you approach these grand slam winners? >> well, it's always prudent if you have a grand slam to take some off the table i love to deploy options to do that. charles: you like options. >> we cover calls. we sel

broadcom, nvidia, tesla, meta, amd, apple is also in that group. looking at staples, utilities, energy, industrials, they are all weaker this morning. that's why the s&p 500 is wavering around the flat line. treasuries have been a big story. higher treasury yields potentially standing in the way of equity gains, and they're higher again today, 455 on the ten-year, two-year, 4.3 after the hawkish cut we got from fed chair powell last week. >> outside of the markets, luigi mangione, the man accused of shooting unitedhealthcare ceo brian thompson arriving at a manhattan criminal courthouse. he pleaded not guilty to eleven charges including first-degree murder in furtherance of terrorism. we'll keep certainly our eyes on that developing story throughout this day as well. but these were pictures from within the last hour here in manhattan. >> we are 30 minutes now into the trading session. here are some big movers we are watching. honda and nissan officially beginning merger talks to create the third largest auto maker. if the deal goes through, the mer

broadcom and nvidia, reaching new highs.el, as we know, falling sharply in 2024 as they contended with losses and a grim forecast, really trying to figure its way forward. we are joined by someone who knows us on myspace like no other -- the semi conductor space like no other, ian is joining us on this monday. good to have you here with bonnie and i. i want to start with intel. i wonder if 2025 will be the year it figures itself out, how are you thinking about it as we get ready to kick off the new year? ian: it's a huge question right now. it doesn't even have a ceo. we still don't know who is going to lead this company forward. we heard from the co-ceo's, the interim appointees, will it be broken up? we don't know. that's even the existence of the company. even that's a question at this point. vonnie: what is its expertise in ? its expertise, what would it be bought for? ian: historically, it had one of the strongest design teams, it still owns a a huge percentage of the pc market in terms of market share and a big percent

a buy on blackstone and broadcom >> absolutely.nk blackstone is using this to trade debt. you can't beat them. >> that will do it for "worldwide exchange. >>> deal wasn't done after elon musk pressured republicans. details straight ahead >>> stocks tumbling yesterday. ten straight declines in the dow after the fed cut interest rates by a quarter point, but signalled a slower pace of cuts next year. >>> tiktok has a court date. the supreme court will hear arguments in january just nine days before the app is scheduled to be shutdown in the u.s. it's thursday, december 19th now and "squawk box" begins right now. ♪ >>> good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. here we go, folks. yesterday was a day for the markets. you've now seen the dow down for 11 sessions in a row the longest losing streak we've seen since 1974. the longest we've seen since 1974 you are seeing a

not 20 billion, i think that is an important thing for investors to continue to focus on, we got broadcomh man's nvidia delivering a.i. growth 65% projecting a.i., of 90 billion by 2027 if that continues and it will we are likely to see the kind of returns in 1990s back-to-back, double-digit earnings growth 34% 95, 20% 96, 31, 27, 20 second half 90s i think could see that again. >> you just mentioned broadcom the stock obviously, on fire this morning, on the heels of last night's news, but look. i mean, these stocks are up huge just year-to-date, so do you think there is more to -- if i wanted new money to work here in broadcom or any one of these names benefiting from this ai revolution, do they go much higher from here. >> two things, earnings growth is expected to be 14% next year, half of net income technology and healthcare if you get tax cuts from this new trump administration, let's, say doesn't get 15% say corporate tax rate to 18 that adds 4% eps, s&p eps factor that in, the equally he weighted pessimiste on market 18 s&p historically 19 1/2 cisco trading 100 times peak earnings

a lot of this recent rally was due to such a big surge in broadcom shares. they reported earnings on thursday and it jumped nearly 11% yesterday as well. nearly 40% for the share of broadcom. they reported a decent boost in demand. flip on and talk about how this rally has been narrow recently, one of the narrowest we have seen this year, led primarily by big tech. the mag seven has been outperforming at the biggest margin that we have so far seen over and -- in over a year. >> when it comes to europe, a different sentiment. >> we are seeing it from the market and economists. we got some downgraded revisions from the bank of france yesterday. they originally saw the french economy growing at 1.2% for 2025 and shaved that down for 2025. for the markets, a lot of this pessimism has been reflected in positioning in euro-dollar. if we take a look at the cftc positioning, the euro-dollar pair has its most shorts since march of 2020 so this pessimism with traders positioning for it, a lot of it's happening in the fx space, so keep an eye on how euro-dollar trades.

again, a big month to date for broadcom.thought the money going into nvidia is now moved to broadcom. take a look at needs. a lot of the upside moves. benchmark at. 4.59. and bitcoin hovering around the $95,000. it is lower for the month. take a look. down 3% for the month. right now, up 1%. bitcoin trades around the clock. >>> that's the money set up. we iron turn to oil and gas. pippa evens is looking at what risk and reward is up big and small. >> reporter: good morning, frank. energy is the second worst sector this year and the lack of catalyst for oil, 2025 is all about nat gas. it hit the highest level in nearly two years and looking forward, two key tailwinds for prices. the first is lng growth and the second is generative a.i. that could translate to upside for gas focused drillers. at the expense of more oil focused players. now president-elect trump has talked about increasing lng exports so cheniere is the name to watch. they are the second largest producer of lng globally. and finally, pipeline companies should b

we're going to start with broadcom and invid why.post-election highs. that's a 10% drop from recent record or 52-week highs. broadcom shares about 1%, nvidia down about 1.5% right now. chip maker rally is falling on broadcom's earnings, but that stock up 160% this year. nvidia and broadcom, real monthssteres so far this year. also turning to a couple of analyst calls. goldman sachs' top picks in their respective industries for 2025. analysts say despite the socks outperforming the markets, goldman expects a.i. infrastructure demand to continue to lift those stocks higher and higher. dell is up around 55%. arista is up, and keep an eye on the move. we'll end with a check on tesla. mizuho has outperformed from a neutral, and raising the target price all the way to $515. it's a bit of catchup trade here. they're seeing a looser regulatory environment under president-elect donald trump, and musk's alignment with trump to potentially boost robo tax evaluations and cut auto spending as well. keep more tesla shares, and for more on that and

broadcom reports for the year ai revenue jumped 220% to $12 billion.t news took broadcom stock up about $39 a share. right when the opening bell rang this morning. also this morning, word that starbucks baristas raises will be down this year as the coffee shop announced the worst financial results since the pandemic. taking a live look at the markets, they all started higher, but in the last half an hour or so, the dow jones stern turned slightly negative. the s&p 500 also down a little bit. the nasdaq though hanging on to a bit of a gain as it tested that 20,000 level this week. the german tech company bosch has signed a preliminary agreement with the federal government. the deal would provide $225 million in funding to upgrade its facility in roseville and sacramento county. that money would contribute to bosch's overall $1.9 billion investment to make semiconductor chips for electric cars here in the u.s. a new state bill would require plastic bottles to have an attached cap by 2027. now, supporters of the bill say single use plastic caps are easily

on the other hand, looking at broadcom, they actually continued the recent rally.hares closed up more than 11% on monday falling friday's gain of excess of 20% putting the stock on track for its best ever monday. off the back of nvidia's decline, don't miss our pro talks tomorrow. i'll talk to steven wu about his stocks and get his take on how they are likely to perform in '25. that is coming up midday gmt tomorrow. >>> meanwhile, china's attempts with a.i. could be paying off. the chinese a.i. models are keeping pace with and even surpassing those with the u.s. in terms of performance. arjun has been looking at this. arjun, tell us why this matters? >> reporter: silvia, this is something i have been looking at for a few weeks. there are three conclusions i found. chinese open source models are proving popular ally. i'll get into that shortly. including those from the likes of openai. this is happening despite the chip restrictions from the u.s. on china as well. now the important point here is china has been pushing open source or open large language models. these

the weights that were reduced were tesla, meta and broadcom.r rules say they don't want any one company making up too much of the index. so after the massive rally, if a stock triggers that rule, he was to go and rebalance. some of the companies that had hair weights increases were apple, nvidia, microsoft and google. it all depends if on how much these companies with worth, it's the second time now they've had to rebalance this. ashley: very interesting. let's move on. taiwan semi. they had a record high. they're having quite the year, aren't they? >> unbelievable. the best year since, you guessed it, party like it was 1999. the stock is up over 82% this year -- [laughter] we're looking at the american depository receipts. over in taiwan it topses thousand -- topped a thousand overnight. a lot of analysts think this is the a.i. play. taiwan semi on a tear. ashley: very good. what's this about microsoft using a.i. models that don't actually come from if its partner, openai? what the heck's going on? >> yeah. it sounds like they're trying to red

the initial deal that was announced is still a small piece of the custom portion that broadcom would this puts them on the table to gain more share going into future designs that we think apple is building, especially as they try to spend their chips in their data center area. sonali: i understand that you believe they could outperform here, they have more upside space. but you look at their most recent result and the worries are around the non-ai businesses. how much does that matter at the end of the day? >> overall for their total company it is not just ai, it is a massive business. you 40% in software, 60% in semi's and there is still a big chunk of revenue coming from the cyclical non-ai chip business. so at the end of the day in terms of free cash flow and topline growth, that does matter. however right now the sentiment is purely around the ai business. sonali: at what point do you think investors are going to have them start to focus more on the ai part of the business vs. what is outside of it? >> the key thing investors want to know if they will give a guide for fiscal year

reddit and broadcom had g large moves. buying because business is accelerating or something good is going on. in three to four weeks we're going to have thousands of companies reporting. i'm waiting for the next great thing. you never know which one it's going to be. if there's any stocks, any stock does well, the one characteristic is an acceleration of the seals and earnings because they have some -- sales and earnings because they have a great product or great service. ism looking for that going forward. the big banks are holding up well right now. not the regionals but the big banks. if they continue to hold well and break out again, goldman and jp morgan are my favorite. right now, they're pretty much back into dormancy. cheryl: i heard the worries about commercial real estate may finally come to fruition in 2025 and that's bad for regionals. >> yeah. and i read every day about a big office building in a big city that's being sold for 30 million that was worth 150 million four years ago. that means markdowns. that cou

i think broadcom is an interesting name because it does something nvidia doesn't do, which is customr their customers. this segment is growing as fast as nvidia is, and the company itself has a lower multiple than nvidia. companies like palantir look interesting to us. it's controversial because it sells at a high multiple. we recognize that. the company just became profitable just two years ago, but it's been cash flow positive. we think it's uniquely positioned in the incoming administration. peter thiel was a founder of palantir, a connection of elon musk there, and with the d.o.g.e. efforts that are coming in to reduce government expenditures, we think palantir is really uniquely positioned. >> i mean, clearly that is the collective conclusion of the market, that palantir is in some kind of privileged position and it's gone vertical since the election. you mentioned the valuation issues that made it to above 50 times revenue at this point. there's been lots of top insider selling shares into this ramp. i mean, why doesn't any of that give you pause at this point? >> you know, we'

look at nvidia and broadcom and apple. volumes are way below normal. is a big technical indicator. that tells me there is nothing important today fundamental going on. with you just don't have a lot of buying interest right now. >> and what happens with the bond yields and the fed which injected a little bit uncertainty when it said it wouldn't cut the fed. what is going to happen with the inflation reports as the trump policies roll out. >> there are four big issues for 2025. the first one is that the trump administration makes some kind of mistake. for example, they put tariffs that are too high that cause economic problems. so that would be an issue. the second would be the federal reserve makes some kind of policy mistake. maybe they don't cut enough, they're worried about fighting inflation and they stop worrying about job market deteriorating. that is a major worry. another concern is the tech story. if there was a sudden revolt against the a.i. story, that would drive down valuations rather dramatically. that is unlikely. but it is a risk. and f

and that's one of the reasons broadcom has been so strong recently. for next year. amazon is going to be down from the mid-50s. moat meta also. apple, microsoft, alphabet, double digit growth gain but not as big as 2024. overall as a group mag 7 up to be 24%, next year 18%. great numbers but decelerating growth. and that's got some people very hopeful that maybe we might get some rotation. what about the other 493 stocks? so, here's the estimate. the current one for the -- the other 493 for this quarter up 4%. next fourth quarter, one year from now, 14%. okay. that's accelerating earnings growth. that's what you want to see. so, some of the rotation crowd is getting excited saying, maybe we can finally entice people to do this. what would it take investors? if you look at 2025 number says, tech is the leader for earnings growth. there's very good earnings growth in other sectors that nobody cared about. like health care has got very strong expected numbers but the valuations are far, far lower than technology. so, has industrials. so do some of the ot