nvidia said that they won't mess with arm's business model.y can solve this problem by putting that in writing. a combo would be too powerful. too much concentration but when i spoke to jensen, he sounded confident they could get regulatory approval, even overseas although it might take some time i'm get thing doesn't close -- it might take 18 months or two years. but it's worth it. finally, you've got to worry about china. the last time nvidia tried to make a big acquisition, it got held up for over a year, because the chinese authorities wanted to use it as a bargaining chip in the trade war that could happen again, but there were countless bears who publicly stated that nvidia had no shot at all of getting chinese approval they pronounced the mellanox deal dead. they turned out to be dead wrong. and now nvidia has a lot more experience getting china's regulatory apparatus and if joe biden wins in november, these trade wars are out the window if nvidia can close on arm holdings, the stock is going to be unstoppable even after its magnificent

can't be tesla they moved up nvidia and got a bid from nvidia.utting it out there is kind of funny. >> remember when they owned the vision fund and then sold nvi a nvidia fascinating. as people like to say on "squawk on the street. >>> when we come back nvidia ceo jensen huang will join us. keep it right here i'm a verizon engineer. and i'm part of the team building... ...a powerful 5g experience for america. it's 5g ultra wideband, and it's already available in parts of select cities. like los angeles. and in new york city. and it's rolling out in cities around the country. with massive capacity. it's like an eight-lane highway compared to a two-lane dirt road. 25x faster than today's 4g networks. in fact, it's the fastest 5g in the world. from the network more people rely on. this is 5g built right. only on verizon. >>> this is the most important accusation in history. nvidia announcing it will buy arm holdings from softbank and joining us to discuss the deal jensen huang you haven't gone to sleep. did you get a little nap i know you're working

working in nvidia's favor these are very different models. >> there are so many different nuances hereare questions about what this means for the likes about amd that competes with nvidia in graphics and intel that is now competing with arm we're get so many cases, david, where the provider is the third parties. apple and the app store. >> i defer to you. you question that, you know, he is a very impressive man as we all known. he built an enormous and fast growing company. but i will leave that question out there that you raised as well what is going to happen to the likes of an amd. i don't know the answer. he was very confident when we spoke to him earlier he will get chinese anti-trust approval they felt like the regulators were looking at them assessing them based on the fact pattern there. i would step back from friday about more technology and talk about the fact that we're seeing it and that we're using at least the majority of the consideration here, it is their high flying stock. softbank once owned and then sold and is now getting it at a far higher price and conceivably hol

nvidia is a part of that. arm will beomers of coming to nvidia now.lectual property that has been driving devices like the edge, compute, and these smartphones that are some of the most important devices in our lives today. emily: what does it mean for softbank? obviously, the company has had its struggles and this is an important exit for them. daniel: there was only a handful of companies that really made sense. nvidia makes a little sense. there will be some who probably will not be crazy about this deal but by and large, those will be companies that feel they will have missed an opportunity. for nvidia, there is not a lot of overlap. not a lot of direct competition, if any. it expands the business. ,ne of them builds the chips the other is building the intellectual property. with softbank, it got them an exit. such a large holding in his portfolio, having a solid, profitable exit, it was an important transition and it fell into hands that can continue to propel momentum forward. emily: do you think we will see more m&a in chips? some have said val

we are hearing that softbank divisionelling its arm to nvidia.his would be a $40 billion deal, the biggest chip deal to date. the transaction value is up to $40 billion. nvidia could be paying more than $21 billion in stock and $12 billion in cash. this would be a $2 billion payment as signing. this coming at a time as we continue to see softbank divest its assets. softbank could be receiving an additional $5 billion of cache if the performance meets certain targets. this also depends on what regulatory scrutiny they go through. this could be the largest ever in the semiconductor industry. we could see complaints from rivals such as apple and samsung. haidi: let's get more context on this deal from our deals reporter. me your assessment of the terms of the deal and what the implications and problems might be. >> seeing the headlines hit now, this is hot off the presses, this deal is being announced, nvidia buying arm from softbank for $40 billion. a lot of this transaction is in stock. the vast majority is in stock. softbank will be receiving $12

there is a lot of concern about this sale of arm from softbank to nvidia.e deal, onlyjust yesterday, about 29 hours now since we announced the deal. there has been a lot of speculation about what might happen. and the actual intent, all sorts of conclusions were being drawn. since we made the announcement, what we have been doing is being able to tell the story, what the intent is, what we do plan to do, and i think what we have is a very strong selling plan that will see arm's technology being enhanced, the business model being maintained, and growth in cambridge being sustained, and a number of exciting investments that nvidia are planning to make into cambridge and the uk. but promises and reassu ra nces and the uk. but promises and reassurances from you and also from those in charge at nvidia are very different to a legally binding document that commits nvidia to keeping on holdings, its headquarters and jobs in cambridge. why you not pushing for a legally binding commitment? i think there is again, a bit of a misconception, that it would be impossible

so that is the case clearly for nvidia buying arm.the challenges, the risks, the concerns for arm's competitors? is there a way for nvidia to address the concerns of the likes of apple and samsung? mehdi: yes. of course the concerns are very obvious in limiting competition, but as i said earlier, i am sure nvidia has remedies. they would not announce a deal of this magnitude, the size, not having thought through the challenges that would come up. challenges would be associated with regulatory approval, china has to approve this, and also how nvidia is going to overcome concerns regarding limiting competition. we had to in the 1990's, wintel alliance, an alliance between microsoft and intel, that enabled the commoditization of the computer. the last decade has all been about convergence of communication and consumers that apple's iphone introduced. that limited come petition. and apple were able to do that by providing a cheaper solution. i see the concern, and i think nvidia will do that, but ultimately they will minimize competition,

but this nvidia sale, i am cautious. nvidia is using arm in its own products, and arm is a platform used by other semi-conductor chip companies that license the technology, i am sure there is going to be a whole lot of finger-pointing about, this is not a good deal for the arm environment. so, it's going to be very, very challenging. haidi: more broadly within that chip sector is where you see still some hidden opportunities or value that perhaps we are not looking at hard enough, given the broader headlines made by the tech rally and the tech selloff. kim: sure. iain, in the last six months, guess the theme has been winners are going to win, and rightly so. intel fell behind for very good reason. i am still an intel believer for a lot of reasons. ceo seemsly now the to have realized that there are problems getting their product to market and he seems to be take steps. that is why intel is interesting to me. i also like xilinx because it is think isnsion that we going to happen. and finally micron. and that is, i still t

the big softbank nvidia deal.you see korean kospi index up one and a third percent and shanghai composite about two-thirds 1%. ruling party after shinzo abe. bite dance tapping oracle for u.s. business for tiktok beating out microsoft. president trump signed executive order unless u.s. operations were sold to american company, calling it a national security risk. shares of oracle better than 8% on this win. oracle gets tiktok. nvdia acquiring arm holdings for $40 billion, makes chip and cell phones. checking shares of nvidia better than 5%. gilead sciences acquiring med kicks for $21 billion, makes a key drug used to make breast cancer. take a look at the stocks. imuno medic is up as you see there 16%, gilead is down a fraction. trading barbs, president trump in nevada slamming joe biden's voting record and mental readiness during his first indoor rally in months. take a watch. >> this man is totally unfit to be president, up here, he's totally unfit. jim-- joe is not qualified for e position. maria: the rally las

nvidia best known right now as the world's largest graphic chip maker, but nvidia becomes a player incpu market, too. that's the primary brain in most computing devices. arms technology is everywhere, under pinning all sorts of products from smartphones to tablets to pcs there is one potential risk in this deal, though. many arms customers will be up in arms, unhappy that another chip company is buying this asset, and what bregulatory approval ceo jensen huang sounding confident on cnbc. >> this transaction, because of two of them are dplimtcomplemen, it's not two different companies buying each other. it's nothing like that >> now, working in nvidia's favor here, these are two different business models and nvidia makes chips on licenses kelly, back to you >> those videos up 4%. they've nearly doubled this year >>> earlier that month, secretary of state mike pompeo said they were looking to ban the tiktok app president trump said he would ban tiktok in the u.s. before changing his tune saying he would allow an american company to buy it. that became a flurry of activity microsoft, as

what does nvidia get out of it? >> for nvidia to add arms to its arsenal, it is great.ia started off as the maker of graphic cards for pc gamers. it has grown by investing in those same cards and deep learning. training and operating algorithms. are stuck inthings your large pc or in a data center. it leads to these two companies coming together which makes great sense. the whole time they have operated under the cloud of whether they would be able to get the value out of this company. they still have not paid off. haslinda: why would he want to take his company private? what are the benefits? another speculation that has emerged. major selloffs by softbank. that they are considering some kind of management buyout. they still think of that very deep discount. that includes stakes in t-mobile and alibaba. the shares are cheap. one way of putting money where your mouth is that is buying them up. recent news about softbank investing in fang stocks and using derivatives has shaved off about 18 billion of their market cap. another sign that the markets to not really trust lo

it's basically doubled next up for $40 billion, the biggest chip deal ever, nvidia buying arm holdings which designs chips. up 8% and finally not quite a deal yet oracle betting to be technical partner in the u.s. september 20th deadline. oracle shares up 5% on the news. we'll have all of this back over to you >>> all those big deals on wall street helping the comeback rally in stocks. after two down weeks in a row. we haven't seen that in a long time jim paulson joins us now is your time to buy the dip. welcome. good to see you. you see the marriage between wall street and main street looks as strong as ever today. i say what have you been smoking? i'm telling you, in my little town in new jersey, you cannot walk the streets of that town and say that small businesses are in any sense as healthy as big corporations >> i tell you, what this country experienced was a complete collapse of the economy on main street in a matter of a month or two. that's what happened on wall street with the biggest collapse, biggest, quickest bear market to drop 30, 40% then what they both experienced is a

it is great for nvidia to be very clear.hey get a shot in the arm from an r&d investment perspective, but the regulatory hurdles will be an interesting one, even without the u.s. china trade relationship. this is going to take it to a whole different level. guy: how is this going to change the landscape for chip design and chip manufacturers? why would an alternative chip manufacturer want to buy licenses owned by nvidia? >> nvidia says the intellectual property business model will stay as is. going of that, nvidia is to be able to license its graphic processing capability, which is used in ai building blocks, through the distribution -- arm distribution model. on paper, arm customers have the option to continue business with ,he arm model as is additionally have the opportunity, if you make, to buy nvidia building blocks and have chipmakers.other from a competitive perspective, obviously, nvidia is going to have access to the roadmap potentially early, and that is the concerning factor. if you step back and look at the alte

they are paying a fortune among nvidia stock up 100% for the year nvidia stock still roared again today. the deal is a game changer the only real objection, some analysts believe the anti trust regulators will put a stop to it i spoke to jenson wong and he's the bankable ceo and on "squawk on the street" and adamant the deal would pass. given that he finally got the fabulous deal through the chinese government tried to profit initially, i believe him. he says what the add is to earnings and i believe that. it could be a steal because of the one. >> arm is an extraordinary company. this build the world's most popular cpu. it is build 180 billion units over its course of its history 22 billion of it last year and they're in everything, they're in everything. >> people are believers up $28 today. up $28 on paying 40 billion for a company and most people don't know exist most people think nvidia is over valued i think they are wrong it's 57 times earnings nvidia looks ridiculously expensive in 2018. the thing is when the actual earnings came in, they were higher than expected the stock look

sanctions >> soft bank shares jump as they agree to share to nvidia for $14 billion. the japanese investment company is looking to go private >> japan's ruling party leadership race setting him up to take over as prime minister placing the country's longest serving premiere shinzo abe. >>> thanks for joining us. let me take you to the european market but we haven't got 6,000 points which is very difficult territory in recent months so the dax chasing almost half of a percent and looking solid. near 5,000 points last week and holding on to that leadership with another .7% italian stocks also in the green. we saw last week that these markets would try to hold on to some of the gains despite selling on wall street very serious patches of volatility on the u.s. markets but european stocks did try to put a little bit of distance between themselves and the market action. let's take a look at the better performing parts of that market. that's very close to a theme from a number of fund managers looking for the recovery stocks. we had the rally in technology and health care.

one, nvidia buying arm holdings from soft bank for $40 billion and oracle -- tik tok, the latest, as you pointed out on our call, julia, don't call it a buy out. it is not a deal what exactly is it then? >> well, it's not an acquisition. it's definitely not an acquisition, brian, but what they're doing is saying they've chosen oracle as their trusted technology partner and part of tik tok's restructuring, not the sale of tik tok's assets but rather oracle is to become tik tok's cloud provider the proposal was received over the weekend and trump will have technical discussions with oracle ahead of the september - 20th deadline for when the deal would be done. as cloud provider oracle would take responsibility for privacy and data security issues and would be key to address u.s. government concerns about china -- -- this in response to president's demands. sources tell me things are definitely citile fluid and could be others participating in this deal such as walmart who continues to have an interest in tech it okay investment and -- tik tok investment and now things are in talks and

we saw for example, nvidia, nvidia agreed to buy the chip division arm for $40 billion.oking at dollar, pretty much stable. crude oil in the u.s. at 37, and you can see also the pound at 1.2844. "bloomberg surveillance" continues in the next hour. tom keene joins me out of new york. this is bloomberg. ♪ francine: yoshihide suga is set to be japan's new prime minister. the chief cabinet secretary overwhelmingly wins the party's race to succeed shinzo a bay that shinzo abe. nvidia will buy arm, and there is a report that ubs is exploring a merger with credit suisse. both banks declined to comment. and boris johnson prepares to send his brexit lawbreaking proposals to parliament. the justice secretary warns he could quit over the issue. investors now await the boe rate decision on thursday. good morning and welcome to "bloomberg surveillance." i'm francine lacqua in london. tom keene is in new york. tom, there is a lot of news for monday money. tom: huge news flow. francine: -- there is a lot of news for monday morning. tom: huge news flow. francine: i'm very focused on the

speaking of nvidia, this is part of a series of megamergers announced, $70 billion, nvidia, 40 billion, gilead had 21 billion-dollar deal, verizon a 6 billion-dollar deal. nvidia i think it is the most important name in the semiconductor world but there are a lot of new names emerging in technology. i think it is changing the whole outlook. shah, you've been really good on some of these. i know you like nvidia. there are other names household names should be in people's portfolios? >> there is nothing that i'm looking at right now, only reason being i think the ones that i have interest in, had interest in are really a little overpriced. again if i'm looking for a bit of a pullback which i am, five, perhaps, as much as 10%, some of those new names might be enticing. up here all of the new names i like are way overbought. again, i just think that the timing is tough to get in now. charles: all right. folks i want to talk about the cpi report, consumer price index. came out on friday. here is the interesting thing. for the most part we always talk about with respect tote federal reserve,

nvidia was only trading at 20 times future earnings you just didn't know it yet. but if you get on nvidia in 2018, you made a killing because it was actually inexpensive. how come none of those want to find the next nvidia why do they talk about the whole market simple because they run too much money. this causes a host of different problems it's risky to mention stocks they like on etf that stock whether go up, they will be tempted the sell and the fcc will nail them for pumping and dumping. when you're managing billions upon billions of dollars, you don't care about the next nvidia because it's too small to move the needle there are only a handful of individual stocks large enough to manage to make a difference many of the hedge fund luminary also say they can't discuss individual stocks, but they're just trying to be responsible. but their opinions aren't worth much if you're trying to pick individual stocks. back in my day, we picked stocks the same way you do. now you need to understand these institutional money managers are not playing the same game as indiv

nvidia lost half of the gains.firm up here into the close the dow is up 370. all sectors are green including technology what were the last two weeks and what is today? >> i think today is part of the last two weeks this on going process, this adjustment period of kind of letting the stuff that was most overheated cool off. and then settle out in terms of what the market is positioned for in terms of broader economic recovery that push-pull is the content. i think the big question over the big cap undechls is, you know, is there enough of a payback at this point? there does seem to be kind of pretty solid two-way action. by that i mean, you know, people are buying dips. there is very low conviction at these levels i don't think that anyone is necessarily too alarmed what the is going on inside which is, you know, relatively help nly pullback activity within the context of a longer term trend higher sfwh chr >> chris, do we have enough of a pullback >> i think what is interesting is when you look at the pockets of th

nvidia, 50% in cash. the oracle deal is about the playing cash, but it is nowhere near what it was in 2015. good morning. annmarie: certainly not what we saw in 2015 or years prior. this has been a weird year. but it feels normal to have a little bit of an m&a monday. let's look at the markets across the world. msci asia pacific trending higher. s&p 500 futures up more than 1%. euro stoxx 50 futures looking for a higher start. this comes off the back of the first consecutive week of decline since march. news flow certainly positive with a few deals to digest. manus mentioned this, astrazeneca resumed their trials. deploy acould likely covid inoculation before the end of the year. the pound certainly in focus in london. a lot of brexit drama that into the market. brent trading under $40 a barrel. the cartel celebrates their anniversary. 10 year 0.66%. a lot to watch as we wait for the fed today. and of course astrazeneca talking about their trial, back on track again. it is m&a monday. for u.s.nning the bi

it helps nvidia become a major player in advanced computing from the cloud and nvidia ceo the stock is up $31 a share, as per the election campaign, the contrast, the president took his message directly to live audience in western states and invited up a crowd in nevada, joe biden stayed home. after the ambush of two police officers in l.a. biden issued a tweet condemning violence, trump called for the death penalty football, tom brady lost but football is back and despite the absence of crowd, the gate on time played well on tvp fight shots of the game piped in crowd noise, it worked for me, social justice activism was hardly apparent during the game itself but colin kaepernick did have something to say. you will find out what he had to say. we have a new shopping holiday, trump goes to california, bloomberg spends 100 million in florida just in florida and josie the restaurant people in new york city marching against rules that ruin them, "varney & company" is about to begin ♪ ♪. stuart: wildfires on the west coast, dramatic video killing 27 people, that was last week, the total d

that is a partnership with vm ware. >> yeah, it is nvidia and vm ware coming together, and they haveilding their capabilities for quite a number of years, but they're used by 10% or 15% of enterprises. they are only available in remote cloud environments. what we're announcing today is t the democratization of ai. the industry standard deployed vm ware data and software and bring it to every data application. so we're quite excited about the application. we have known each other for several decades. you are suggesting that there is only a fraction of the effect, how big will this be for your revenue. >> we see an idea that we can now make ai broadly available to enterprise exciting for nvidia they are still cracking just a small piece of the application workload we think this is a major accelerant but also extending to the edge as we see 5g and edge emerge this is a major new area for both of us and the virtualization offeringings and every enterprise can start to take availability of the powerful ai capabilities we see it as a game changer. it is clearly an accelerant opportunity. >

we looked at buying nvidia once in the past as well. i think other companies are looking at these things. and people are using their currency >> yeah, we have been talking about that a lot, so to extend this what if game, then, do you think the likes of qualcomm as reason to be wearing but graphics technology this cheps is an area where they work >> yeah, they are very focused on the mobile chips, and they're focused on power con trained environments nvidia has been focused on the high end, photo real tick realistic visuals. they had not been that successful there so i think there is difference spaces in that market. i think there will be some constraints that keep things open so that companies like qualcomm, apple, and others. >> okay, i want your take on the news of the day. especially give then environment that we're in, how important are these two mobile products? >> i think we all know we're on screens all of the time right now. that is one important thing. apple watch, you and i had a conversation a long time ago about whether or

nvidia's headquarters is here in the u.k..a deal this bid was one softbank acquired arm to begin with. chips are used in one billion smartphones annually. it is also used in everything from household goods to machinery. there is a huge reach here that more than likely outweighs the revenue nvidia would get. there are a lot of regulatory hurdles. they need to get approval from the eu, the u.k., the u.s., and china. there is also a question as to whether arm's clients would be ok with this. clients include apple and intel. would they walk away? nvidia pledging that arm would maintain its neutrality. bether hurdle for what would a gigantic deal. matt: would love to know what softbank made on that. gilead is set to buy im munomedics for a drug that i think only makes like 20 million a year, they will pay $20 billion. dani: they are paying about double for what the last closing share price was. eightats breast cancer, type that is difficult -- breast cancer, a type that is difficult to treat. gilead is betting that this can be used

meantime, japanese investment giant softbank will sell it's chip unit to nvidia for $40 billion in cash and stock. softbank acquired them in 2016 for 31.4 billion in one of its largest acquisitions ever. it's best known as a designer of computer chip architecture used in android and apple phones. they're also planning to ship to a design the news comes as softbank is reportedly holding talks about taking itself rivate >>> a huge saga developing we'll see you later on back to the markets, futures are indicating a higher open as a series of deals are raising hopes that battered stocks may recover as the nasdaq comes off the worst week since march the major averages closing up modestly but ended the week sharply lower. the dow shedding 1.7%. the s&p off by 2.5% and the nasdaq dropping by 4% in a week. joining me now the chief strategy at principle global investors. i guess the simple question is were you surprised and how big of a deal is this >> but let's not read too much into this. and so we should anticipate to have this kind of volatility moves or concerns for the foreseeable future.

nvidia is one of them. kailey leinz has a closer look.dia is down for a second day in a row, another 6% today, putting it on pace for its worst two day cello since the depths of the bear market in march. we have to keep in mind where nvidia started this decline from. as of wednesday at a record high. through wednesday, it was up 143% this year. we have come off from that point, but the stock has still more than doubled year to date on a fundamental basis and trades at a p/e multiple at 80 times. as for the decline, it may be the launch of their new gaming chip. the last time they went through one of these product cycles at the end of 2019, it didn't go well. they had revenue declines for the two quarters afterward. there may be some concern around that. then you have the china issue. reports that china is starting a five-year program to build up its own mystic semiconductor development and production which poses a risk to nvidia, which gets a quarter of its revenue from that market. then you have the broader tech selloff. profits being ta

the worry about nvidia is it is expensive. in tech, you never sell anything just because it's expensive. just like you never buy anything because it's cheap you have to wait for a nar tifr change i woun say the narrative on nvida is changing at all if anything it's getting stronger we like it here. >> thank you so much a pleasure >> thank you >>> the chips are down today kelly, coming up, we'll have much more on this market sell off. financials and industrials are in the green while tech and consumer services lead the way lower and it has been a long time since technology has been at the bottom of that board. not even a strong jobs report could keep an early rally going. could a market sell off increase pressure for a stimulus deal when congress gets back to work. we'll talk to marc morial right after this break when the world gets complicated, a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with f

what are nvidia's ambitions? how big of a market doesn't see for the combined business?dia want to use the chipmaker that licenses its technology to get a leg up on its competitors? estimates there is a $250,000 addressable market and i don't think that's an overestimation. it is making inroads in data centers. it is things like amazon web services. given nvidia's artificial intelligence technology and development and emerging markets ,uch as autonomous car's internet of things, there's a lot of synergy between arm and itself. ceos of both companies say they will maintain arm's business model. combining and synergizing. anna: who might put up the most serious opposition to the deal? regulators in many parts of the world might want to. in london, this is really interesting, this u.k. asset that was taken out of public markets essentially sold to softbank in 2016, could it now be a topic of conversation if it is to be sold to a u.s. player? >> that is quite an interesting question. companies such as qualcomm, maybe even apple, might put up a disagreement. the recompense in

i'm absolutely fascinated by nvidia and the transaction for softbank's arm.nd then cancer for -- cancer therapy, really important. how can they say $20 billion is not a big transaction? by gilliarde payout to get back into the cancer game.eutics coming up on a property of jon ferro's, the open. kate moore of blackrock will set the stage for september and into the fall. this is bloomberg. futures up 40. ♪ ritika: this is "bloomberg surveillance." gilead is making another big that, that in innovative tumor fighting drug can boost its fortunes. the company has agreed to buy immunomedics for about $21 billion. gileadhe maker of a debt has been focusing on drugs that harness the immune system to fight tumors. softbank reached a deal to sell chip division, ar -- chip division arm to nvidia. the chairman of ubs and credit suisse reportedly are exploring a possible merger. according to a swiss blog, an agreement could happen by early next year. the merger between ubs and credit suisse would create one of the largest banks in europe. that is your latest bloomberg busi

nvidia has been the darling of the stock market. how much do people like to follow this?arah: for now, you really can't blame these companies for going about this when interest rates are so low. that havebig names been winners, investors like to see that they are growing revenue streams, using cash at hand to make purchases that will benefit their companies going forward. romaine: real quickly, obviously tech soaring, speculative names soaring, but also this -- also these returned to normal cyclical names. are you surprised that the 10 year yield will not budge an inch higher? sarah: not necessarily. the fed meeting this week on wednesday. ask about rates right now and people seem bored because the fed has said they will not make any moves. what will it take for yields to move sustainably higher? it will take a recovery more than what we have seen so far. romaine: sarah ponczek come across asset reporter, giving us that update. also running hot, the housing market, the homebuilding index that march50% off low. it is one of the strongest areas of this economy. jerry howard

the cambridge—based company is being sold by its japanese owners for more than £30 billion to nvidianot have heard of the name but we know about its products? yes, simon, arm is probably the most exciting and important technology firm that has surfaced in the uk over the last 30 year, it is the kind of company in fact that the government is talking about needing to have in the future, we don't have many global technology powerhouse, of course it was sold originally in 2016, to japan's soft bank and there we re 2016, to japan's soft bank and there were guarantees thatjobs would stay in the uk, they have been kept. the concern now is it is being acquired bya concern now is it is being acquired by a company nvidia which is in the same field, it is the world's most powerful chip maker. arm's klein, 500 client, it has been described at the switzerland of the chip world, they rely on access to its technology, some may be concern they will no longer get that. arm's co—founder has said this is a disaster, this deal, it almost is certain the headquarters will be moved to the united states. i

we have this tweet he had on nvidia as well and zoom. it underscores, if you will, i think, very well the landscape and what may be a pull back in some of these loved names especially over the last few months >> for what it's worth, i don't know what octa does. i think that is indicative too they are trading at tiny valuations and cash flows. guess what's up on my screen today. centurylink is up. verizon is up. those kinds of companies are up. that maerpts i don't think it's just the snow flake thing. i do think that the party lasted a little too long and valuations expanded a little too much things got too crazy now we're seeing a reconciliation of that it's healthy it's great >> let's look at whether a docusign stayed at the party too long the stock is up 158% year to date. that list is long and distinguished. it does raise some sort of signal of how far we have come in those names >> i would agree with you. i would say the name we're talking about here, crowd strike can go through, all these names that have flown to the upside and it'

nvidia. this is, of course, what used to be just a graphic chip company, now it checks all the boxes and it is up 5% in this final hour, despite wall street's growing regulatory concerns swirling around its new deal to buy chip designer arm holdings from softbank for $40 billion. the biggest u.s. chip maker will pay the japanese firm $21.5 billion in stock and then $12 billion in cash. softbank is up nearly 8% right now. yes, i double-checked, nvidia is now way bigger than intel. a lot has changed in the semiconductor world. >>> we've got a steep premium not facing gilead sciences investors. the u.s. drug maker buyingimmunomedics for $21 billion to gain access to the biotech's breast cancer treatment drug which was granted accelerated fda approval. look at gilead, up 2.8%. now, here's the deal. gilead is going to acquire all outstanding stock for $88 a share. it's at $83.63 right now. so the 88 bucks is a premium of 108% over friday's close of $42.25. yeah, you can do the math. i will do it f

the major question, you have to ask yourself with tesla up 386%, year to date and nvidia up 120% yeare, where is the next 30 to 50% for the upside coming from is it going to come from those names or the names on the value side of the spectrum that are down 30 to 50% as of late and this year in particular waiting on the economy to restart. >> steve, great insight there. we'll toss things open to you. hopefully your technical problems have been resoever vred are there any macro factors leading you into that direction? >> we think that growth will out perform as we head into that direction. we need interest rates to climb higher, for value strategies to do well. we like etfs like ivw. >> we have to cut it off right there. just sit tight we go live at 1:00 p.m. eastern time with luke oliver of dws group. >> jon is coming back with unusual activity we'll be back in 30 seconds. >>> welcome back the shares of nikola are trading positive for the day after being down earlier in the session. couple of headlines that will ge interest gm ceo has made an agreement with nikola regarding the comment

nvidia, that is right in nvidia's wheelhouse.s are not a drone pilot piloting the aircraft to a location, it will be autonomous technology that will point to a company like nvidia. charles: the drone stocks obviously will get hot again. kurt, i give you the last word here. what else should we be bracing for that will change our lives, eastern the way we chill out in the backyard? >> do not order a trig rate refrigerator through the primeair drone delivery. will only carry packages five pounds. if you don't have a amazon distribution hub within 15 miles of your house, it can't coming your way. charles: might be the reason they keep buying the electric vans, right? kurt, thank you for kind words. been too long. david, the viewers always love when you help them make money. >>> at the bottom of the hour the stock trades you need to consider perhaps to make some big money. you remember our guest yesterday said buy zoom into the close? pandemic workers are really worried about what is going to happen next. the anxiety is tough. how are

can you put nvidia, ask and you shall receive. nvidia up. susan, explain.ave to put into context, of course, now we are looking at 3 straight record days. gaming is where nvidia made its name. what's driving the stock today? well, we have gaming levels hitting record during lockdowns so guess what, they are unveiling holy grail in game chip, it's recall game tracing and games are now life like. life-like games and fortnite are moving to life-like games. also nvidia cutting price by a thousand bucks. stuart: wait a second, i look at some to have video games and they are life-like already. susan: think of it as 3d almost, very impressive technology and, you know, nvidia is benefiting from the ship to the cloud, benefiting from gaming and data centers and just going away. stuart: a couple of months ago we were saying that nvidia it was heavy-duty stock. susan: it's obviously breaking out. stuart: off to the races. make them look life-like and you win. check the big board, up 148 points. that's exactly half percent. 28,788. what's the yield on the ten-year trea

no i think this is a healthy pull back tesla, zoom up 230% and nvidia up about 150% prior to today i think this is a reminder that gra gravity not only exists in nature but the stock market fp nasdaq needs to have a good 10 to 15 plus percent retracement i think some of these high flyers like tesla and zoom will have more. i think that rotation will go right back into these growth names because once again, this is where you'll find growth. i think it's just the price of admission for owning equities and every one needs to just buckle up and ride it out. >> i guess we all find ourselves a little bit surprised that today is the day we see this first cascade in stock prices but earlier in the week, we started to see some erosion in some of those momentum names >> i think there's some discipline going on in the markets and some sell off which is profit taking some of the insiders were selling their own stock. some of the investors are doing some same taking some profits. it could signal the beginning of a rotation into other areas of the market we're encouraging investors to diversify an

definitely nvidia and the gaming side is a standout in terms of what we're seeing in gaming.o ai just for all aspects of industries >> all right we just got a few moments left here i'm curious, v.j., what parts of the semiconductor space you would stay away from given the bullish trends for all the other ones >> we think at this point most of the industrial and gaming seems strong i think there is obviously some worry. and some of those sectors that are exposed to the china supply chain. so that's where you're staying away you're seeing some impact in this sector and taking down the risk in some of the names. if you look at this, it looks good especially because across the board supply chains riare impacted thank you, we appreciate it. thanks for watching "power lunch. "closing bell" is going to start right now. >> thank you so much welcome to the "closing bell." stocks surging to kick off a new week of trading. looking to close out a sluggish september on a high note let's have a look at what is driving the action potential optimism for a new round of stimulus giving a boost

tiffany, you own nvidia but that's about it. you're not using that a pure semiconductor play >> i'm not we were lucky enough the buy nvidia a while ago and we were just correct i would really rather be be diversified in our tech holdings i kind of get back to this idea of these kind of three buckets that i've created. i like tech. tech adjacent companies and tech enabler companies. we did see that little dip that's okay. last week they were coming out of the that. we had a whole conversation about volatility these tech companies today, i know a lot of people talk about compare this to 2000 >> all right good stuff there let's step out of technology and go to maybe the value trade. the transport sector, that's on a bigger roll than a tractor trailer truck rolling down a hill for a tv commercial transports on pace for a sixth positive month in a row. fedex is up 17% this month recently upgrade at deutsche bank key bank upgraded u.p.s. you wonder are we going to get a buy back or do you just got to wit even though they are on a roll

the smh still up about 80% since its march lows >>> jason, you're an owner of nvidia and qualcomm.is indict tifr cative of s the movement it's part of the pull back story in tech. competition is part of that pull back a lot of these names are done well this year i don't think people are hurting with that trade. we'll see what happens as the months continue to come. >> jenny, you have several names in this space applied materials, qualcomm, taiwan, teradyne >> we don't own the high flyers or the huge p/e stocks in that space. it was an interesting point made about demand being pulled forward. i think there are broader repercussions on that. i don't think there's likely to have been a will the of demand pulled forward i think as we get into third, fourth quarter reports and into next year, i want to be surprised if we hear that theme emerging not just in the chip makers but much more broadly maybe at companies like apple where we do see the demand was pulled forward and holes are left many the future i appreciate bringing that up. >> steve, you are long quite a few names in this area

nvidia when from 505 to 580.ll of the way down to 580 you can see it is slipping below that level that had six or seven trading sessions you get blow off top that's are really frothy on the upside. so they have overshoot and go where they have run ups. i love what he did in his comment, it is very true two kinds of traders in the market right now it was fundamentally based traders out there. they are the ones that say the economy matters the most then they are the liquidity based traders. the fed liquidity people, that is what matters most, the stimulus, economy, and reopening is number two after that the market has been dominated by those that believe that the stimulus is the most important thing that is out there. if you focus on fundamentals more, maybe these stocks have run up way too much and that is what i think is going on here. in the meantime, just remember something. put this in context. with all of the sell offs that we have been seeing, look at these moves for the year we were horrified yesterday when

. >> those names, just so our viewers are aware, include home depot nvidia, mastercard and microchip. jason, let me turn back to you apparently we can get two different opinions >> it's designed to do that. >> i understand. they take the raw information and filter it through their own, i guess, paradigm. but let me ask you where you are on the inflation debate, because it would seem that so much of what we're talking about here comes down to where that's going and where rates are going. >> in the short term i would agree with jerry big time inflation are our rents and wages. right now obviously both are impaired, it's going to be very difficult to get any sort of big wage gains with an unemployment rate at 8%, and obviously in terms of rents, homeowners' equivalent rent, that's also going to be under pressure as well in the short term i would agree. there is not a lot to push inflation higher in the long term, we are doing things from the fiscal perspective and the monetary perspective that we've never done before. it's difficult for any of us to know what the ultimate impact of that

british—based chip designer arm is being sold to the american graphics chip specialist nvidia.create the premier computing company for the age of artificial intelligence. and finally, is there life on...venus? scientists have discovered what they say could be potential signs of life floating in the clouds of the planet. a new scientific paper reveals the discovery of gas called phosphene, typically associated with living organisms. the future really is in the cloud. this isn't fog, it's smoke. california is a state reeling from wildfires. flying into san francisco this week from london, you could barely see the city. my name is james clayton, and i am the new bbc and click san francisco technology reporter. and i have landed at a pretty weird time. i've been to san francisco a few times before, but this was san francisco only different. mandatory masks everywhere, the airport almost completely empty. the streets quieter, much moreso than london. i've come during a monster week for tech though. many of the stories based on theme that are likely to dominate tech journalism in the

nvidia, qualcomm, broad cam, amd i think all of them hitting all day highs yesterday. to do? do the fundamentals support all of that? do you have to bend yourself into a pretzel to justify some of your price targets? >> well, not exactly so let's talk about where the sectors kind of come year to date obviously, you know, nobody had a global pandemic on their score card when things started out and when everything hit, people were sort of applying the global financial crisis as the most likely filter to look at the current at the current crieses through, that's what happened in march, everything collapsed. we've seen something interesting as it has gone along, semis by and large are proven quite resilient in the wake of the global situation we've got changes in consumer behavior, work from home that's actually been driving and supporting demand far above i think what anybody had hoped for and so now, we're looking forward, we have a few things. demand held up better than people thought we have a growth story for a number of names, particularly ones better at these trends

hourours into our 48 worldwide event. , the nvidia announcement, , every enterprise able to provide.far, a very exciting show. poised to be is spun off by dell next year. how will that impact future m&a, hiring for example? pat: the dell relationship is great, we want to make sure we keep that going on the other side of a spinoff should that occur. we will not use our equity for m&a, only out of cash proceeds. we expect this will be a positive thing. employees looking at vmware. overall, the debt markets, the equity markets. we have a long way to go before we get to that five-year anniversary. emily: what is the status of the spinoff? are you still on track for 2021? pat: we formed a special committee. work is underway. i cannot see a whole lot else at this point in time. i am reasonably optimistic. but, a long way to go. new world, you have a lot of workers leaving silicon valley, wanting to honor those flexibilities, but figuring out how to deal with pay packages and logistics. reported vmware will be cutting pay for some of the workers leaving the silicon valley area. what more ca