nkvd of the bssr stanislav alekseevich from the age of 30 in the body of the gpu nkvd boss rodtsevichogis makarevich another important assignment of the central committee of the party was carried out. in the areas of alleged partisan zones , warehouses with weapons, food, medicines and well-camouflaged hospitals were built repairs and workshops from the memoirs of stanislav alekseevich molochsov, the legendary intelligence officer, a hero of the soviet union in the belarusian forests of strict secrecy for partisan detachments buried thick pieces in the ground. grenade cartridges 50,000 rifles from 150 light machine guns. these warehouses were designed not only for the initial number of partisan units, but also for their rapid growth in the event of enemy occupation. but special attention to the composition of future partisan detachments the organizational group of the detachment consisted of eight to twelve people of a brigade of thirty forty chiefs of staff were selected from among the general commanders of sabotage and branching groups, which were supposed to act independently. but

, and ai is so new, but i feel very confident these llms, large language models will be trained on gpus from nvidia and amd. those gpus will be manufactured at tsmc on top of machines from asml the machine is the most incredible it costs over 200 million euros and takes three different 747s to take the tools from the netherlands to taiwan or arizona. there are other places where you can invest in ai without having to worry about what's happening at the application layer. >> for all the reasons to like apple, i haven't heard many suggest it's the leadership role that company may have when it comes to ai. rather it's meta, and it's alphabet now we can argue over whether alphabet's ceded anything to microsoft in the whole chatgpt ordeal, but how would you justify suggesting that apple has more ai upside than a meta or an alphabet where some suggest both of those companies are absolutely all in? >> this is the part that everyone gets wrong about apple in my opinion. everyone says that apple is really a secret consumer products company disguising itself as a martsmartphone comp right? that c

we have unique ip in the interconnect to be able to connect a number of gpu's at scale. the software to present this as a assistant and we have the services expertise. we believe we have the right to play and win with unique scaling capabilities. shery: the hewlett-packard enterprises ceo speaking exclusively to romaine bostick. here is a quick check of the latest business flash headlines. indonesia says a commodities giant and umicore are among investors punches been $9 million building a battery supply chain. investments will include a 20 gigawatts hour battery plant as indonesia aims to become a major hub for producing batteries and dvds. other investors include u.k. company and division and an indonesian miner. hsbc is looking to expand into a fast debt market so far dominated by credit suisse. the bank says it is in talks with partners to structure new debt for nature swaps in countries where it has a presence. it's global esd chief says hsbc remains cautious on scalability and cost. tesla is planning to give an early glimpse to its revamped model 3 sit and -- sedan

applications like those that power chatgpt and gpus that nvidia sells over the next four years, there will be a transition where the cpus will be replaced by gpus and nvidia can capture that potential $1 trillion opportunity. that is how he sees it really nvidia's entry into the $1 trillion club is predicated on nvidia being able to meet the demand for those a.i. chips as well as meet the demand which it is giving out to the market after the q2 earnings one issue is the stock has run up so high and so quickly. i'm sure a lot of people are thinking how far can this actually go and whether there may be profit taking to come the second risk and longer term is the potential of increasing competition for nvidia right now, nvidia is clearly the market leader when it comes to the gpu and chips that power a.i. what you are seeing is companies like google and microsoft and amazon and others running a.i. applications and designing their own chips to run a.i. processes which compete with nvidia. if these companies make substantial breakthroughs and manage to make chips better than nvidia's chips

it changes in 1999 when they basically bring to market the first gpu, graphics processing unit.ng 3d graphics to gaming principally on the pc. that higher level of compute power has proven to be so important, particularly to the training of large language models because it can run processes in parallel. they doubled down and put a huge risk putting engineering man-hours and talent into expanding the capabilities of that compute and they find themselves the main beneficiary at this inflection point with everyone, even elon musk, talking about his need to get a hold of gpu's wherever possible. tom: that big bet is paying off. you can catch ed and caroline hyde on bloomberg technology around 90 minutes. -- in around 90 minutes. how done is the deal on the debt ceiling? we will be joined by megan sc -- meghan swiber. 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 co

that means that prett much anyone can use this gpu card at home or in the classroo to conduct exoplanet discovery on their own. i found three new discoveries, and i think they are pretty cute! one of them is the smallest usb ever discovered. so that is really exciting. >> i would like to remind you that she is 17 and she beat out 1600 other young scientists at the largest stem competition fo teens in the world. she is adorable. she is down to earth. okay. let's bring in paul -- >> we are all going to work for her! >> we are all going to work for her someday! you are our scienc guy. what did she find? >> so we will switch over to ou graphics and we have a picture in the video wall of an exoplanet. we are going to brin in 3-d graphics as well. okay. we do have 3-d. let's see if we can bring it in. so we do have actual pictures. so there yes, it is not going to burn you. so there is a star with a planet around it. okay. we want to know exactly how many of those planets are out there. th only way we can tell without getting a picture is by measuring how much the star dem whenever the planet

know, ten years ago the analysts covering nvidia were video game analysts and parallel processing and gpus becoming the new dominant way that cloud service providers and others would have to build their data centers is now becoming the reality. i think what is shocking people is the speed with which this is now happening, so even though it's been a long time coming, if you believe that only 4% of all of the infrastructure is ready for full-scale ai and that the other 96% has to get converted over the coming decade or two, that's where you can say, all right, this is a huge move, but i guess it makes sense in that context. a lot of people don't invest that way, and they refuse to look at this as a decade long story, and so for those people having a mega cap stock move over overnight is bonkers it is a little bit of a test and i think it's a lens through which a lot of people have to re-examine their belief system and how they look at equities in general and how they think about growth investing that, to me, is the really big story today. it's exciting, it's terrifying, we don't know what th

now many companies are rushing to go into this space, and nvidia being the market leader for high-end gpuyou can see why nvidia is no longer a cyclical company. this let's prolong for the next couple of years at least. dani: because you are looking 3, 4, 5 years out. we are already up 150% this year on nvidia. in your forecast, can you see that more than doubling in price ? stephen: this is difficult. there was always a valuation, even for the likes of nvidia. nvidia shot up 25% yesterday, as alex pointed out earlier, the consensus upgrade was even higher than 25%. so the valuation has become more undervalued than before. we think it will go above $1 trillion, once it gets over that, maybe we revisit our thesis. it depends how quickly the shares react. dani: it is so hard to be negative on this stock. something like 70% gross margin next quarter is remarkable. when you look at the wider space, a lot of ai type companies are also rallying off the back of this. do you want to be involved in smaller names? or do you stick to the giants like nvidia or microsoft, which is one of your top 10 ho

heavily into generative a.i., accelerated computing infrastructure, everywhere from the number of gpushat would be used in the capex budget to the accelerated switches and accelerated networking chips that connect them all >> jim, this morning, the goldman desk says it's probably the best tmt print they've seen since zoom in 2020 >> i think that's wrong. zoom in 2020 was aided by illness. this is just brilliance. and the calm nature of this man and his humility is so stark with what's occurring, and even just his -- the way he was speaking in somewhat of a flat way. he will not be in anyone's face, but to translate for our viewers what he is saying is that right now, a datacenter has about 5% of his material, gpu, and 95% cpu, what's in your pc, and that needs to flip. and it's going to be 95% his materials and 5% cpu so, this is going to happen at a level of speed that is shocking people, and the reason is because when all of those orders, the inventories that you heard, the problems that taiwan semi, things had dried up because of the lull, he put in all -- he went all in and procure

they're seeing demand for h-1 gpu.econd generation high performance computing chip across every type of industry you can imagine. charles: right, right. >> you see financial services adopting it. you see hyper scalers, google, facebook, meta. you see american express. even bloomberg has its own bloomberg chatgpt using in video processor. what is getting the stock up significantly and surprised everybody was really the forward guidance for july. >> i gotcha. >> i never seen a guide that big and i covered semiconductors for 15 years. the fact they beat that guidance by four billion is really shocking to the street. charles: your new target is 460? >> correct. charles: what will it be next friday if it hits that? will you get nervous? hey this feels bubblish, i saw this movie before, do you kind of get concerned about that? >> we always have to be cautious in terms of stocks some stocks might overshoot to the upside and overshoot so the downside. that is the nature of this game. but i think nvidia at the most fundamental

they're going to move to a world where they're balancing both gpus and asix.ink they're positioned well for that. >> cloud growth on the wall as well what is the thinking -- i know you're watching data dog and snowflake in the wake of what we heard about aws. >> yeah. so, you know, as -- the big trend of the past year in terms of the cloud has been optimization, optimization, optimization how can people basically run their cloud infrastructure more efficiently? that's pressured all the vendors in this space. we're particularly interested in the consumption based models like snowflake, like data dog that will probably be the first to see any stabilization in that trend and any reacceleration data dog reports this week there's some reasons why the quarter may be uneven. every sell side firm has previewed why the guidance for the next quarter may be challenging. if you look into the back half of this year, it is compelling they should see reacceleration, should continue to perform great on the margin side and will benefit from the resupgs of what we're seeing on

they're building out these ai -- this ai infrastructure all of the gpus they need to put in to actually to be connected with networking, and that's where we play. >> to me that would mean if i were you, i would be buying a lot of stock back now. when people come to realize where you play, the stock should be higher. >> well you think about the three things we talked about, jim we committed to, you know, modest growth in fy '24 given that we grew double-digits this year, but we also said we're going grow earnings per share faster and grow revenue and increase our buyback in line with what we've done the last couple of quarters i think we did 1.3 billion this quarter. and we're going do that much more consistently over the next come coming quarters we may be thinking the same thing you're thinking. >> the last thing i need to think about is this term living off the backlog. totally confuses a lot of our viewers. can you explain why that's not the way to look at cisco >> well, the irony is that it's almost like people believe the backlog just showed up this was demand that our customers pl

guidance is going to be so important to see where we're going with this ramp up in gpus.h who else is going to be buying it, and what are they going to do with their products are they going to continue to ramp up their orders with tsmc that's another name to pay close attention to out of this earnings report. >> and we will kristina, thank you. got to run because i have breaking news on the airlines. phil lebeau has that for me. >> the justice department has won its lawsuit to undo the northeast alliance that is the alliance that allows jetblue and american to essentially work in a co-share operation for their flights in new york and boston, and this was one of those suits that people were watching closely to see if the federal government would be successful in saying, oh, no we disagree with what was approved during the trump administration, and there were a number of people who thought there was a good chance that jetblue and american would prevail, but again, the doj has won its antitrust suit this would undo the american airlines and jetblue alliance. i should point o

i certainly do the machines that i have over to my right, both have nvidia gpus in them. and that's great, and i think it's going to grow they definitely have a tail wind, but the problem we have is that this thing is trading way over 20 times sales. they really need to grow into their value, i think, at this point. and so it's really tough to chase it now, i can understand that often times, you know, we are inclined to basically buy a company and know that they're going to grow into it. but at over $7 billion market cap, this feel a bit stretched, so i would encourage those who are in it -- i understand why you don't want to sell your winners like it, not a good trade. >> you said it's so good it's bad. >> right, we talked about that, meaning -- again, not to keep relying on one word, but sequencing is important. think about any endeavor too much of the library, eyes get tired too much of the gym, heart attack you have to have pauses and rests, and nvidia's got a long way without one. >> mike, you have the second part of our pairs trade with a play on meta. >> yeah, it's

i certainly do the machines i have over to my right, both have nvidia, gpus in them that's great and think it's going to grow. they definitely have a tail wind but the problem we have is that this thing is trading way over 20 times sales they really need to grow into their value, i think, at this point, and so it's really tough to chase it. now, i can understand that oftentimes, you know, we are inclined to basically buy a company, and know that they're going to grow into it. but at over $700 billion market cap this one definitely feels like it's a bit stretched here so i definitely would encourage those who are in it, and i can understand why you don't want to sell your winners like this, that's not a good trading practice generally would want to hedge it. >> you actually said that nvidia is so good, it's bad. >> right so -- and we talked about that, meaning, again, not to keep relying on one word, but sequencing is very important, just think about any endeavor, too much in the gym, too much in the library, eyes get tired, too much in the gym, you have a heart attack, you have to ha

there is to it, let's talk a little about the details, the telegram channel you were waiting for, the gpuven reports specific personal data of servicemen who were wounded, their 1 2 3 4 5 6 7 8 i now see it in the list, and the same is reported by russian telegram channels that there are two dead russian servicemen a-a we saw the footage on which representatives of the republic of the republic of russia and freedom of russia e-e declare that they captured several pieces of equipment, well, at least on the video there is definitely one that is an armored personnel carrier or a svyatoslav tank a-a and it is just as interesting moment uh, what kind of equipment was it on which they carried out, uh, the russians , uh, against putin, launched this raid, let me remind you that there was a tank, there were tanks, there was an armored personnel carrier, and there were also other armored vehicles , helicopters were involved in this raid stories, what kind of equipment is this, real, very high-quality equipment well of course, of course, it works, what did we find when we use it ? i understood you

custody and some facilities now overcapacity, dhs releasing some migrants under strict conditions like gpule monitoring for the head of the family. >> the strain on personnel and facilities. >> reporter: david, you can see there's hundreds of migrants across the border behind me and they will still be there come midnight. border patrol officials have been processing them all night long. once they pass through the border wall. david. >> matt rivers has been on this for weeks, thank you. severe storms and tornado watches across seven states, the watch is up right now at least 16 reported tornadoes in the past 24 hours. this one up in colorado. part of the severe weather front, a man swept away by flooding in houston trying to help two children who fell into the water. senior meteorologist rob marciano tracking in oklahoma where there is a tornado watch right now. >> reporter: that's right, david, posted up until 11:00 p.m. and the sun's trying to pop out. adding film to the stories, active up and down and it's been active in western kansas, five reported tornadoes and one here that goes sout

they're the only country without the h-100 and nvidia gpu they have the intel.hat is it link >> they can't do anything for you, intel that's like 1980 version >> well, jeff probst to the chinese, got nothing for you >> there's a look at nvidia. as we saw some weakness creep in toward the end of the month, is that a surprise? >> there has to be some registering. we're seeing some pieces in the "wall street journal." maybe it's too hot but at the same time, the research -- >> 90 times revenue? what's the revenue multiple on this thing >> oh, god i have to work with you. it's incredible. i mean, a guy guides up -- he guided up by $4 billion. no one's ever guided up by $4 billion in a quarter ever >> use any adjective you want. i'm just making the point, particularly as you did, because people are ringing the register, that it does get to a multiple to years of sales that is pretty extraordinary. >> well, people are saying, listen to the opportunities to jump into microsoft at 31 times earnings according to that. >> there was a -- >> bunch of target increases today.

and in the ivano-frankivsk region, he was the deputy head of the main investigative department of the gpu during the time of viktor yanukovych, in 2014, cyprus was included in the list of persons prohibited from holding public office in accordance with the law on the purification of power, however , through the district administrative court of kyiv, before the ruling that his lustration was groundless, a video of the air defense operation was distributed to four residents kyiv was informed of the suspicion, according to the investigation data, on the night of may 16, during a massive missile attack by the russian federation on the ukrainian capital, the suspects posted photos and videos on social networks of the deployment of the armed forces of air defense work and the consequences of hitting air targets, they face from 5 to 8 years, the explanation is currently being decided the question of the choice of precautionary measures for them from 12 to 17 years of imprisonment, the court in russia sentenced the accused crimean muslims rostemo murasovo dzhebarobakirova zavura abdulaeva and ros

he was the deputy head of the main investigative department of the gpu during the time of viktor yanukovych 2014, cyprus was included in the list of persons who it is forbidden to hold public positions in accordance with the law on the purification of power, however, through the district administrative court of kyiv, he obtained a decision that his lustration was groundless, there is no where divats in russia are building large-scale bases for storing the corpses of the occupiers, these will be complexes for sorting, analyzing and storing the remains of personnel eliminated in the war against ukraine, they are already being built in kursk and rostov-on-don, the main intelligence directorate of ukraine informs, the complexes will include points for conducting research on with bodies, cold rooms for a thousand places, warehouses with strings and mourning halls. everyone who can. during the speech on wednesday at the clubset forum in bratislava, the president noted - this will help ukraine to equalize the distance gap to the invasion forces on the battlefield, also in her speech, fonderline em

and in the ivano-frankivsk region, he was the deputy head of the main investigative department of the gpuer viktor yanukovych in 2014 cyprus was included in the list of persons who are prohibited from holding public positions in accordance with the law on the purification of power, however, through the kyiv district administrative court, a decision was made that his lustration was groundless in the regions from the point of view of the security of the front lines and i was in those regions that have a large hall with on the part of the russian federation, we will find a study of people with personnel who have experience in the field of law enforcement or rural experience in ukraine. it is not known how many children were kidnapped by russia from the temporarily occupied territories. of human rights and dmytro lubinets, there is also no information on where these minors are and what is happening to them, the outback added that no international organization is able to solve the problem of illegal deportation to the un , they say that they are unable to put pressure on the russian federation

also for gpu makers for example. gpu is used in those ai computations very widely.u.s. is one of the biggest producers in this area and also the most advanced manufacturer. so to replace qualcomm, china may need to find supply in a timely's comedy called mediatech but picking a taiwanese company as a replacement is not a very practical choice for the chinese government. in the sense it is quit unlikely for china to do so. >> thank you so much for the very cumber has a discussion. let's look at u.s. futures as we go to break ahead of the china open. you can see here that we've had the s&p futures at about a third of a percent year. a big rally occurred in u.s. stocks went optimism over the deal that is on the table now, the debt ceiling deal really started to rise. that is it from daybreak asia. this is bloomberg. ♪ ♪ e your afternoon cup with 5-hour energy. it's perfect for when you're feeling coffeed-out. coffee in the morning... 5-hour energy after. your stomach will thank you. discover 5-hour energy. ♪♪ ♪

the need for this is a lot of computational power and a gpu can do it in a short time compared to theonal cpus even if you stack a lot of them. one thing they have proven is not only is it an innovative way, it's the only way you can train this language model. think of our computational requirements across investment. you need this type of technology to enhance the productivity and that's something that will drive a massive cycle. that's what everyone is excited because the existing market needs to refresh to the new way of computing. that's a large market when you think of semiconductors as a $600 billion market. jonathan: do they have competition? >> that would be intel to one extent. they are so far behind especially intel in terms of focusing on gpu's and that's where they missed the boat for at least five years. they didn't think this market was big enough. they can still catch up. there were some rumors that nvidia partnering with intel. that's a boundary play. i'm talking about the 200,000 component that nvidia is selling. tom: what does nvidia mean for proctor and gamble? from

>> you can see that within nvidia's numbers, is basic business which is gaming gpu down a lot from yesterdaypc demand is not great, it's not getting any worse but that's the overall picture. whether you're talking about industry or automotive, all the sectors are suffering from this week demand outlook. not nvidia. shery: our tech reporter there with the latest. now let's get to su keenan with the first word headlines. >> we start with xi jinping who wants china and russia to work together to improve their ties at multilateral groups. amid growing pressure from the west. xi jinping told the russian prime minister that beijing and moscow could better collaborate at the u.n. and g20. both china and russia are facing sanctions from the west. governor ron desantis of florida has officially jumped into the presidential race giving donald trump his strongest challenge yet for the republican nomination. he made his candidacy official in a filing and also planned a twitter session with elon musk. m wrong con has offered to hold talks with the pakistani government as well as the military after his pa

there is this recognition that nvidia is the scale player when it comes to gpu's and it stands to benefit the most from generate to ai --generative ai but how much it translates into growth in the next three years and how can competitors catch up because i don't semiconductor is eight space where one company can dominate consistently for the next five years. guy: mandy --mandeep, what is the company need to state -- to say tonight to keep the company on the tracks? mandeep: it is all about growth and everyone expects them to talk about how they have more demand and -- there is that softer aspect with nvidia and also on the automotive side. those are the two additional segments that beat -- can become big over time in the main driver is data center but you will see the additional revenue come from these two pocket so they will talk about all three of them probably. it is about how do they maintain that and can they do that consistently because semiconductor growth averages around 10%. a company can grow 50% for a cup we -- for couple years but they will have a bad year. how will they offse

most large language models are trained at least in part on nvidia gpu chips. is for behind both in terms of designing chips, but also manufacturing. most of nvidia's chips are manufactured in taiwan, where tsmc has capabilities no company in china can match. tom: when we talk about the money china has funneled into his semiconductor efforts. much of that has failed, there has been corruption scandals. smic, one of the big hopes of beijing, has been sanctioned by the u.s.. how far away is china from having the most sophisticated chips and ending its reliance? chris: it depends where you look in the semiconductor supply chain. it is closer in memory chips then processor chips. when it comes to processor chips, including smartphone semiconductors, china has made little progress catching up to tsmc. over the last decade, china has had the same gap with tsmc year after year. china is actually not catching up. it is building manufacturing capacity for low end chips, but at the high end it is hard to find progress. tom: what you did in chip wars is chart the history,

every scaler is doing a combination of nvidia gpu and custom chips on the networking site and that is where you see the demand when it comes to a small chip maker like marvell. caroline: men deep sing, thank you --mandeep singh, thank you. we are going to talk to sarah kunst. you hit me up saying the nvidia price points, the level they are trading at, the overall price is really hefty stuff. why are you starting to see the value in ad, particularly with chips out of the equation? sarah: highlight taiwan semi conductors. they are a manufacturer providing services to massive companies like the apples of the world but they help nvidia do their chip manufacturing. nvidia is a good company. it has done a great job of being relevant through crypto, ai, gaming over the last couple of years. the reality is, it is getting way too much credit for where it's real earnings are and where the revenue is and i think that is dangerous to keep buying into that kind of rally when it is not clear they are going to grow into those shoes. it is undervalued for all the actual amount of it is manufacturing

technology bid because they manufacture gpu chips giving them a lot of tailwi tailwind it is boostingll chip makers as for u.s. futures as we head into the u.s. session, it looks like we are in for a mixed bag s&p and nasdaq are opening up in positive territory dow is seen opening down over 100 points >> joumanna, fitch placing the sovereign credit rating on negative watch as lawmakers wrangle over the debt ceiling deadline of june 1st this comes after the white house and negotiators met for another round of talks speaker of the house kevin mccarthy reiterated there are a number of points which remain and have them a long way apart. >> we know the differences you have to spend less than last year that is not that difficult to do in washington, somehow, that is a problem. they have increased spending with the democrats on dis discretionary by 33% no household can afford to do that we can find ways to eliminate that >> minutes of the federal reserve policy meeting showed division over the central bank policy path. the decision to increase the benchmark rate by 25 points was unan unanimo

they'll be connected to millions of gpus. customers are cut back on buying those traditional servers that power or computers that intel have come to dominate over the last decade, instead biographic chips and the surrounding infrastructure imperative for generative a.i lastly, nvidia's strong guidance should drive up a significant revision of a.i. stocks. micron for memory. micro and tsm that makes all of these chips. it's what's driving that higher margins and maybe why investors will be willing to pay for nvidia. >> kristina, thanks. >>> senior vice president of equity research, he just upgraded the stock neutral matt, tell us about more where you see the prospect now >> pretty clear there was demand on the a.i. side for nvidia. i just didn't think that it was going to be quite this explosive given the lead times to get new chips from tsm and so now, i mean, i look at my numbers, data center revenues roughly doubled. earnings, they've nearly doubled and so, yeah, my price target goes up even without having to revisit my mul

enough there's been all kinds of stories about big cloud companies who have to ration their use of gpus. they don't have enough my biggest thing i'm wondering is, you know, if nvidia has upside and they need to deliver it, it takes time to get the waivers. there's a lead time. that's something that may negate their ability to show near-term upside if that's the case, they have to talk up the back half. i can't imagine they're going to say anything that's going to make people feel worse about the narrative. >> of course they're going to talk about ai as much as you possibly can, and for good reason. stacy, i joke about e equals ai. what upside do you really side in the numbers as it relates to where artificial intelligence is now for the company and where we think the addressable market for it could really be >> i think we're early jensen loves to get up on stage and throw up big numbers that's fine. they threw out a trillion dollar attempt for the whole company. it seemed crazy, although it seems less crazy every day if it's 300 billion or 200 billion or 100 billion, nvidia is running t

second events, the second tier companies to benefit we are suggesting networking to connect all these gpus and ai cards together takes plumbing, takes networking and optical companies and networking companies, broadcom is an excellent beneficiary of connecting the ai processors together. >> i have a question about some of the other big tech names we're leaving out of the conversation no one on this panel mentioned apple, amazon. are they too late to this? >> they're a little late to this they haven't emphasized it in the same way that others have. google has been really a leader in all of this they understand the existential threat for search for something like chatgpt for example it's less clear how someone like amazon is going to benefit from ai in the same way i think they're making appropriate investments, maybe apple is a little behind the curve here as they could be ratcheti capabilities generally each company i think is making a massive investment which we've really seen as of this last quarter of nvidia suggest that when chatgpt was launched in november, all of these orders from al

you're going to see a lot of their chips go into the system that also post their gpus.for them it's all about creating a better experience for their customers around ai right now as opposed to really trying to push amd or others out of th market. >> you mentioned others like amazon making their own chips. >>> the one word every investor needs to know today marking flashing symbols and turn license, david katz lays out the stocks he's putting to work in follow our podcast check us out on ape,pl spotify, or other podcast apps. "worldwide exchange" will be back in just a minute. ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ >>> welcome back to "worldwide exchange." we have our w.e.x. wrap-up uk inflation falls to 8.7% they'll continue increasing interest rates >> the federal reserve has developed a real-time tool to look at financial sentiment. the index uses natural language processing and can help forecast changes in monetary policy stance and e

on the markets, he says nvidia could possibly switch to intel as a chipmaker for its next generation gputsmc right now which makes majority of nvidia chips. chip stocks have been the biggest beneficiaries of the ai bill not just stock but if you look at the emd, pretty good results and this ai chip replacement cycle could hit a trillion dollars, i think about the movements in those stocks. lauren: i think intel would have been more than half a percent but nonetheless the chipmakers, some in the red, some in the green. >> intel unfortunately seated the battle in the eye and even mobile, they missed that boom because they've been stuck in this memory pc space so i think they have to have a rethink on the business going forward. lauren: let's look at the dow 30, and desk down 30, page nine points. the dow winner, not many of them today but looking at green down 30, he's yet in tech, microsoft, apple, verizon, intel and merck. let's take it to the s&p 500 and the winners are american airlines, very strong for travel. no major disruptions over the memorial day weekend and the nasdaq t mobile,

up the capex and that will benefit a whole slew of enablers, of semiconductors and it's not just the gpu units, it's the asik units, the data center chips, the networking chips that's a tie that will lift a lot of boats including networking equipment if we get a breather, if we get a pullback, scott, i would be looking to at back to those names and it is a race for several years to come. >> so, jenny, barclays is out today talking about how tech, to anastasia's point, is not crowded relative to what you might think. it feels like everybody is in these stocks and has been in these stocks and riding these stocks the fact of the matter is many people came into the beginning of the year severely underweight these stocks they say fear of missing out may have legs. >> this goes back to jason's rest or plateau but if we think about this year, it's so bifurcated seven stocks up 44% and you have -- we're talking about the s&p -- s&p on average is up 10%. it's just a weird, mixed up, dislocated year. we were talking about semis and i was constantly saying this is where you need to sift through you

, 95% cpu is now 95% gpu a lot of people are struggling, including cathie wood with how to value it. >> let's talk about how do you value nvidia the market at the open, if we stay at the current shares, it will be over a trillion dollar market value so we will add another one to that club with the likes of microsoft, amazon and apple. how do you value it? obviously there are those who would say this has gotten out of hand in terms of a price-to-earnings or even price to revenues. >> it's hard because a lot of people worry where is he going to use it. he says it's going to be used on times received, cloud and data center, design and pro visualization, health care, high performance computing, self-driving cars and entertain. that's pretty much the shooting match. >> that's all of it. >> by the way, firm orders in every one of these >> i mean the problem, high-class problem is they can't make enough of them. >> he promised -- last year when there was a lull -- >> he put his orders in with tsmc. >> you are so right. >> so they have the capacity to make the h 100. >> all that he needs by

estimate they only have about 4% of their $1 trillion data center cpu installed that's converting to gpus they're in early innings i can make a case to be really excited about it, but you know me, i'm not going to chase i'm trying to find other ways to play the similar theme. >> that's an interesting point you make about i'm not going to chase because, you know, if you believe that the upside is as tremendous as some suggest, whether it's stacy, brad, are you chasing? number two, i remember us having this similar conversation years ago at this point about amazon where i remember you telling me, i can't buy it the valuation is too big then finally you said something to the degree of, the heck with it i'm not going to miss out and you bought amazon at that moment what is that moment for you with nvidia >> well, look, the stock is up over 100% year to date, right? i mean, i just -- for me i think -- look, it's a great story. yeah, there are new data points. they're definitely going to win. this is a pure play in ai for sure i just think there are other places i can make money too. broadcom i

formats without his chip >> without the h-100 without the gpu that you need manufactured by tsm, designedy nvidia, which is now, by the way, a $750 billion market cap company again. >> $40,000 for h-100 by the way -- >> to your credit, you've been talking about a.i. and nvidia for a very long time in fact, even back to the time that nobody understood what you were saying, because you would talk about these things called da vinci >> i said i wanted to listen to henry iv part ii the only thing he didn't have was shakespeare. >> shakespeare will be back. nvidia, microsoft, now alphabet with the recent rally off their presentation from last week, which seemed to encourage investors after being discouraged about where they stood on a.i meta now maybe tesla. if you listen to musk, what he said the other day >> that's where i was going. there's no love lost between tesla and nvidia >> but they use their chips. >> they used to. they were pals but it doesn't sound like they're pals now >> we have -- >> jensen is one of the most diplomatic people on earth you saw him with bill mcdermott. people sho

that means pretty much anyone can use this gpu card at home or in a classroom. i found three new discoveries and i think they are pretty cute. one is the smallest usp ever discovered. that is really exciting. >> i think it is cool. she beat out 1600 other young scientists of the world's largest stem competition for teenagers. congratulations. she will be on a good path for whatever she wants to do. i love how she said, pretty much anyone could find it. no big deal. >> she said it so casually. it makes me excited. women in stem have so much motivation. when you see it at a young age, it is great. >> good motivation to get us started on this wednesday morning. what are we looking at? >>> it is chilly in san francisco but it is interesting. as you take a live look and east bay we are dealing with sunny skies . and partly cloudy conditions in the south bay with misty conditions close to the golden gate bridge. and into the bay bridge. visibility is fine but as we look at the wind gusts, breezy on the eastern portion of the bay bridge, close to 15 mile-per-hour winds

for jensen's gpus, not 15 billion, almost 100 billion on a single chip. >> oh, my god. >> much of thatmes from applied >> do we have enough engineers in this country to help you? >> i think that's another big focus for us with this high velocity innovation center the super power of the united states is our university system. if you look across the tech ecosystem, most of those leaders, many of those leaders, some from the united states, some from outside the united states but the majority were educated in the united states. so this is our super power that's another big focus on this innovation center, we'll connect not only with the entire ecosystem and our customers, we will accelerate that super power of the university system for the u.s. and create this tremendous pipeline of new talent. >> i know a lot of people are cynical about the government but this chip sack seems like it's a great thing to keep the intellectual property we have in our country and do great things with it. >> no question it is a catalyst so i think there's two things. one is where you build chips so i think hav

shift in ai stacy is spot on, and probably a better number than me, but it's 30 times the price of the gpus than the servers you have the same number of units and the pricing is huge, you know, i think there will probably be supply con trants and that will be another issue it's interesting to not have gotten some word out of taiwan because in my 25 years of this, i've never seen a revenue guide with that much upside as nvidia. going from $7.15 billion consensus to $11 billion, and the magnitude is massive in my meetings, i'm doing mostly with cios, and in general, they're trying to figure out the broader perspective, which stocks might benefit or get destroyed, and thinking of that. i'm kind of with stacy there, and bryn too, that you don't want to value it on 2023 or 2024 cash flow. we wrote it when it was $700 billion cap, but it could be worth $2 trillion >> are you now rethinking the way that you're thinking about everything in your coverage universe, and the potential if there's a legitimate ai use to it and what it means to the way you need to think and model your numbers? >> so clear

you no longer can govern economic output by the number of people in the workfor governiby number the gpust the potential for investors, health care, all different industries. and here is what open ai ceo told congress earlier this month. >> it is essential powerful ai developed with democratic values in mind. and u.s. leadership is critical. if the technology goes wrong, it can go quite wrong and we want to be vocal about that, we want to work with the government to prevent that from happening. >> so how do we regulate it? is this industry self regulation, u.s. government, do we have a model? >> we don't really have a model. closest model we have in modern history is what we did with the internet where the governments of the world, private sector, academia all got together and created a network of regulatory educational and governmental systems. they even changed the u.n., created nonprofits and foundations, new regulatory regime. that is the level of effort it will take for this. >> and you could still argue the internet has been the tool for ill as well. still a lot of bad things that h

nvidia's gpu's are powering, and already powering the ai story. you take a look over the last couple of years, you've got nvidia in orange and asml, which produces the lithography equipment, the equipment that makes the chips that go into nvidia's products. the two had not been correlated, but you can see the relationship between these two. that has now broken down. this is where nvidia is right now. that is where asml is. the question is, does that come down there, what is that go up to there? i think it is going to be a key question. what role is europe going to play in this story? clearly we have some ship equipment makers that are going to play a role, but i also wonder they're actually europe's real role is going to be regulatory. alix: what is the valuation gap about? we were talking about this earlier. maybe it is the regulation part. to this point, openai ceo sam altman spoken london on wednesday and told a reporter that openai could cease operations in the eu if he could not comply with eu policies. he said we will try but there are techn

the situation with nvidia you had to believe in they had such a substantial lead in the types of gpus that lauallow to you cay out nonlinear compute that when this wave crashed upon us, this is the stock everyone had to own. that's the way it played out took a while but now we're here. you can cite amd to me, the 25 chip they're trying to sell for some ai applications is not even in the same ballpark intel is repositions cpu products and trying to tell people their ai chip -- forget it it's literally the only game in town the only real competition is going to be at the hyper scalers themselves google is an example the chips that operate in google's own environment yes, that's also happening on a parallel track, but there's a reason why nvidia is becoming as overowned and overhyped as it is as a long-term shareholder i don't wantto get rid of it jus because other people are excited. i didn't throw out big head todd and the monsters because they had a top ten hit song in the 1990s. okay, other people discovered them it's still cool. maybe i'll pull back, let them surge forward. this is

it's important that investors need to understand the bulk case around hopper because i do think that gpusositive earnings revisions there's never been a data center sales cycle that has lasted less than one year. it shouldn't be a one-event of earnings and then they fall off a cliff. i think this is sustainable, pardon me, but the biggest point i can make is there's probably going to be air pockets in this name moving forward. that's the risk of buying this if there is an air pocket which is probably inevitable, the stock could pull back, you know, 20%, but i do like nvidia here though i recently trimmed it because i don't want to subject my investors to all that volatile i. >> let's move onto another one the world's most valuable company, that would be apple sitting at a market cap of $2.8 trillion leading the exclusive trillion dollar club do you see more upside here for apple or are you more cautious >> there's a lot of convicted piece for apple. it's polarizing. it's not a name i'll be betting against from a technical perspective. while that perspective is strong here, even at valuati

. >> yeah, they're obviously making the gpus that are used for that.viously more on the software side of the equation. right. so you know, the interesting thing about a.i., and we were just discussing this, there's really not a good pure play a.i. company out there. like you kind of have to play it through these derivatives like an nvidia or microsoft, google, amazon. maria: or etf that holds all of those companies. again, that etf is going to be a lot of tech. >> yes. maria: that's doing other things in addition to a.i. yeah.there's just no pure play. it will be interesting to see when we have more pure plays how those perform. maria: is there something you want to watch in terms of confirming your position in terms of stocks and being cautious here, kathy. >> absolutely. i would say if you look at the top ten, they're taking up 35% of march he t get weighted index -- market weighted indexes. rest of the march market is not performing the way it should be. separate those out, look at the rest of the market and look for opportunities that are valued th

storm surging, nearing a trillion dollar valuation on spiking demand for ai gpus deirdre bosa with ourhistoric day. >> it is nvidia is looking extremely pricey there may be other ways to play this ai boom nvidia is a fabulous semiconductor company, that means it designs a chip but it doesn't actually manufacture them sigh wan semi, that is the company on the other side of that dynamic that makes nvidia's advanced ai chips. all working to design their own artificial intelligence semiconductors its adrs are up 10%, more than that today investors are looking at it as the next beneficiary but its valuation is a whole lot more reasonable forward pe 20 times, nvidia, 828. arm is looking to ipo this year, unlike nvidia which sells finished chips, arm helps companies bring the chip inhouse, ie, own more of the process and potentially cut costs by cutting out the middle man, aka, nvidia apple, amazon, meta, google, microsoft, they're all working on this and doing so with arm. for that reason it's known as the switzerland of the chip industry may be helpful to zoom out look at the potential gene

nvidia is the heart and soul of the revolution because of gpus. centers, cloud stocks will not see as much growth because companies are getting a bill for cloud, realizing it costs more to be in the cloud. we're seeing repatriation. data centers need to adjust having a.i. capabilities. we'll see flatten of tech stocks in the cloud, growth of any company with a.i. in it. pros and small caps, they do a.i. travel management pricing optimization. c 3 play a role. adobe, oracle, service now jump in on those areas. nvidia has done something special. they have partnered with everybody in the industry with car manufacturers like byd, companies like service now to everyone of the big cloud members, microsoft, amazon, and google to be able to work in this environment. they have had the right strategy. that is stuff that will happen three quarters from now. that is why people are jumping in the stock. neil: if you don't want to be individual players how do you buy that? nasdaq 100 or technology comeback from the lows enough to give people pause? >> i think y

and it is using a cheap gpu card. that means anyone can use this card at home or in school.ound three new discoveries and i think they are cute. one is the smallest usp ever discovered. that is really exciting. >> what ever? she beat out 1600 other scientists at the world's largest stem competition for teens. >> she looks so passionate. >> i cannot imagine what she will do with the rest of her life. thank you for representing the bay. and maybe some motivation. >>> we are mild across the bay area. just like yesterday we are waking up with the marine layer soaking us in and breaks apart into the afternoon, leaving us with sunny skies and temperatures a little below average. we start with the mount diablo camera looking to the east bay. mostly clear but we are seeing a little bit of cloud layers rolling in. it is more misty at the bay bridge right now where current visibility , is not the issue at the surface level. the marine layer is above us and in san francisco we are at 51 degrees. a cool start to the morning. heading into this afternoon, you can take up the jacket but th