in nvidia's ability to raise cash.r 8% and the chip sector causing semiconductors to be the weakest players in the nasdaq today, kelly. >> while we can delve further into what's going on with the chips and there are other tech firms preparing investors as well for weak results and it's not just the semis >> yeah. you have this announcement from nvidia and there are several other names and we've seen several tech names that have detailed troubles on the earnings season and you're seeing intel, seagate and microsoft that missed on earnings and qualcomm, amd and micron, western digital that put forward wac forward weaker outlooks and when you draw prices and that eats into margin so nvidia's adjusted gross margin is a 21% drop compared to the prior estimate that the management put out. >> so the shift is happening the thirt toward data and auto and maybe possibly focus on companies that have that focus and are exposed to auto like nxp semiconductors and nvidia is out on the 24th of this month. >> kristina partsinevelos. >

. >> all right, we need to move on to nvidia. they put a press release out and jim, i will go through the highlights and let you take the rest, here. the stock is looking down. >> exactly. >> i'm looking at the release with data center revenue short of aspect haitians as it was impacted by supply chain disruptions. >> the shortfall attributed bowl to lower selling of gaming products reflecting a reduction in channel partner sellers likely due to macro climate headwinds. and reflecting challenging market conditions expected to persist in the third quarter. >> nvidia has been more gaming and that is their essence. i'm not saying it is a disaster, but i am saying it is a reminder that gaming is very much a covid phenomenon in the gaming stocks have come down. and the wizard is getting bought by microsoft. with two reports this week, let's see what they say. i would say this is a clearing effort for nvidia which will be now viewed as and industrial company. industrial and obviously data center. >> we got a preannouncement this mornin

we will continue to track the story of nvidia.ing to clean energy stocks which are getting a boost after the u.s. senate passed the landmark tax, climate and health care bill. ed ludlow covers electric cars and joins us now. in a year where there has been so much focus on the white house on getting more access to oil around the world, this is a reminder of the longer-term story of renewable sources and certainly the electric vehicle market. ed: the white house did have a hand in getting this over the line, taking a year of negotiation and a lot of concessions from where we started on the bill. it is interesting you see the biggest points mover on the nasdaq 100 and the market in electric vehicles and many other names also higher pair the automakers got what they wanted, a tax credit for both used and new vehicles that they hope will be a demand boost for electric vehicles across not just higher earnings but lower middle income earners as well. caroline: are we expecting the more luxurious ones to be subsidized? ed: the gap is 55,0

we continue to watch nvidia. more on that name in a minute down 8% but first let's get a news update with seema mody. >> good morning. as he left delaware this morning to see flooding damage in eastern kentucky, president biden told reporters he's not worried about taiwan and while he doesn't think china will expand on its military moves in the area, he is concerned they are doing as much as they can. >>> on ukraine's black sea coast, two more ships loaded with grain are on their way to turkey for inspection after a third port opened. the grain is flowing under an international agreement to guarantee the shipment's safe passage in hopes of easing a growing global food shortage. >>> and cuban and government television showing video of a fuel tank exploding at the country's main oil storage facility it had been burning since lightning struck on friday a fire at another tank has been brought under control. the country had already been suffering through a fuel shortage that is responsible for daily electricity blacko

tsmc forces nvidia to pay upfront more and that's why we saw the inventory write-off nvidia had to pay chips they didn't think it would be able to sell. that's juxtaposed with a customer like apple, those are mostly single source customers and they get better terms and we saw they didn't have these inventory write-offs. guy: european liquidity prices are 10 times higher than where they were a year ago. in terms of power consumption and the chips people use, how much more important is that going to be a factor in terms of what data centers will select if these are the power prices they will be paying? >> it will be critical to lower your total cost of ownership. that's one of the biggest costs from running a data center. so from operating a cloud network in europe, i'm going to evaluate the power consumption the performance of getting that. but if i'm just getting a cpu and it's been executing a lot better in terms of getting new products out of lower process goes till have more power consumption. so they've been gaining a lot of share with their manufacturing process and the rising ele

technology is at the bottom thanks to the sell-off in semi stocks nvidia is down 8.3%. coming up on the show today, three takes on the inflation reduction act which did pass the senate this weekend. in just a moment we'll talk to the president of the national association of manufacturers who says the bill will, quote, stifle manufacturing investment in america >>> plus former fed governor sarah bloom raskin will be here to discuss whether the legislation will live up to its name and bring noun inflation. >>> and the ceo of sunnova will talk about the benefit to his industry as the solar stocks get another big boost off of the passing of this. >>> nvidia out with a warning on its second quarter earnings. mike santoli with a look at the name in today's dashboard and a ripple effect of what's happening. >> the overall nasdaq is absorbing this downside shock reasonably well. part of the reason is nvidia was already on a big slide one of the great wealth creators the prior couple of years. you see semis have not been leaders in this last little rebound. they participated. yo

looking at nvidia, i'm thinking the preannouncement will save them here.en you're looking at other companies that have already preannounced earns, typically what we see is the bad news is already priced in. i like the way that nvidia is sitting on the price point i am a shareholders. i think that right now with the geopolitical tensioning between taiwan, china and obviously the economic slowdowns we're seeing, i think it's expected it's going to be a little bit weak. for that reason, expectation will be priced in, and that leaves room for nvidia to trade higher i'm holding my shares. i think it's a good spot to add, but if i'm wrong, it will bring down the nasdaq tomorrow. >> steve, react more to danielle's fish tank. >> it looks really great i'm an admirer it's also a different kind of company than walmart what really matters, what i'm thinking of is what it's telling us about consumer demand that's going to inform how we think about some other companies reporting -- dell, hp, pc makers, gaming makers. all of these are struggling industries, and nvidia is

obviously price cuts for nvidia. cut from 210 to 180. still buying 60 million shares of nvidia. i know who is a seller jim, you are actually selling nvidia >> yeah. this is not in any way opposed to what josh just said both on the sector and specifically to the name this is a high quality name. and i do believe that chips in the long term future are exactly where you want to be but we're going into what is obviously an economic growth slowdown we've had a nice bounce off the bottom here. i am very overweight in chips. i own nxp semiconductors in qualcomm and before yesterday i owned nvidia as well i decided to trim in space and nvidia came right to the top of the list just because i've got this combination of being overweight it's got a high multiple it cut its revenue guidance. i put that all together and i just want to watch nvidia from the sidelines. i may be back into it but with the combination i just talked about it is a good time to take that off the table when i'm looking to trim chips. in the long run i completely believe in the space this is just a speed bump to get th

you do have chip exposure of course just not with nvidia. is it tempting to get in if it is in fact a negative report >> i think to joe's point, there are a lot of near term headwinds for this stock there is a lot of concern about potential semi oversupply in the market we're seeing a downturn in gaming interests as people look outside of the home for different things so i think that there is a number of things that will impact the stock i don't think that it will get down to valuation where i would think that it would be attractive, kind of sub 30, but i think that from a longer term perspective, reset in the business is what is necessary for people to want to maintain their gexposure here because i think we're entering into a lull in terms of gaming demand. there has been a significant amount of purchasing over the last 34 months not just consoles but games themselves and i think that there needs to be a reset in expectations for gaming going forward. >> great analysis from both. and i do hope that this is not like the nvidia where they pr

though >> i have so much of nvidia it's scary. >> want to share on that >> absolutely. >> nvidia shares will be down not such as salesforce because they did guide down a few weeks ago, but it was a revenue number below the guidance that at least analysts -- >> you're very funny >> thank you >> in october of -- they did a preannouncement october 2018 saying we are not going to make the numbers and they did the report and quantified how bad it was. it was worse than what they said then you thought that was a clearing event and that's when you caught a bottom. that bottom in november, which was at 32, lasted. it was tested again in may of 2019 and then it was off to the races. i think you have a very similar situation developing here. the difficulty is we don't know where the inventory backup is. and there's lot of inventory in the system the inventory was for gaming or high performance computing data centers? we didn't know because you know who is virtually stopping spending on the most important part of the brain trust in the world right now, high-performance computing, a country we alwa

. >> zoom, peloton, and nvidia, oh my. we are asking traders which one will give us the real read of the market. stay tuned at 6:00 p.m. for the battle of the consumer after the big week for retail. we dive into what is next for the sector and how they are fighting to keep customers coming back. we will be back in two minutes. ? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. ♪ ♪ ♪ ♪ ♪ ♪ i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the w

so nvidia is off another 5.5% after big losses yesterday micron down 5.25% on its warning. lamm research and applied micro are some of the biggest laggards in the s&p 500 keep an eye on the chip stocks they have been viewed as the leading indicator of the broader trade over the course of the last several months. one other place to watch is what's happening with bitcoin. we got commentary from some trading desks, jpmorgan and others, about maybe this bottoming process happening right now with bitcoin prices. earlier this week. bitcoin is below 24,000, 23,089 off 3.5% the reason it's kind of important some traders are eyeing this level here on the upside about 24,000. that was the high end of the range that we've seen for the last couple months here. if we were to break out above it maybe it poretell morse upside, but kind of drift to the downside here, might just say that, a, maybe the bottom is not in yet, so watching that 24,000, that's the reason why some traders are scrutinizing that level. we'll keep an eye on the bitcoin prices >> thank you very much >>> tomorrow's cpi

>> we have intel's numbers and nvidia's numbers. it points to a weakness in consumer device shipments and lesser spending on consumer devices. this validates that because of the weakness is really focused on consumer focused laptops that use their gpu cards. it came up quite strong, the negative i think investors are trying to figure out is around the gross margin guide. they took down the gross margin guide. the last time we had a downturn, nvidia's gross margins compressed. they are seeing some weakness in times of the higher costs to get these chips made. pricing wise, the demand has fallen off of the cliff on the gaming side because of overall consumer weakness. heidi: we went through those consumer expectations, does that provide something that could be soothing to the fed when it comes to worries about inflation expectations getting baked in? >> any time you talk about the federal reserve, they thought inflation may be transitory. we are watching inflation expectations, prices getting higher than what people expect, they expec

before we change subjects here >> no, i think nvidia, they negatively preannounced, right we have thebers and we just want the macro color commentary. we've been hearing all quarter long pc week and it's terrible it wasn't getting any worse, on the flipside data center are growing quite nicely i just want to hear more about what the macro tells are from the company versus the actual numbers and i don't expect big fireworks. >> all right steph, thanks so much. i know you're going to stick around as we continue the conversation. >> yeah. >> tech was a big leader coming off the june lows and we mentioned that and the last few weeks we've seen some of that rally stalled and it is down 9% in the past week and could this be a technical breakdown and we'll bring in carter worth, and he knows all about what the charts are telling us. cater, give us insight into what you're seeing and what's going on with tech and what you think may foretell about what's to come here. >> stephanie just toucheded on it, the weakness we know the s&p was up 19% actual low to high, right? from june 16, but the nas

this is all going to play to nvidia's strength. when russian tanks rolled over ukrainian data centers that were supported by the really good hydroelectricity there, for the first time ever states and sovereign countries are saying where's my data? there's no such thing as a cloud anymore. i want to know where the facility is where my data is stored ask all of a sudden every state is looking at building out. this is a big play for semis, semiconductors i may not get the bottom hear, but i'm starting to build on my position at a 9% discount this morning. >> joe we're going to give you last word on this before we head to break. >> i was a buyer of nvidia earlier in july, so obviously i'm at a good price point. i completely agree with what kevin just stated. i still view nvidia as one of the best in breed semiconduct tors i'm not surprised by what we heard today. we knew gaming was going to be weak, and i like they've come out and set a lower expectation. >> there we go. >>> straight ahead, the state of software as palantir shares fall

nvidia lacks the forces to make a comeback.has too much consumer exposure and not enough enterprise. when it does have the enterprise to curb the fed, does that mean nvidia is done as a stock? it does mean the expectations should reset more accurately. the stock was down 40% a share. they have been resetting, and now we know why. it is a dismal come up, but i think it is one of the world's best companies. now after all of that amazing work, they will have to prove itself all over again. i would like to say there is always a market summer just for you right here on mad neney.y.m i'm jim cramer. i will >>> brand new tonight. former president trump has just sent out a statement saying that mar-a-lago, his home in the palm beaches is as he put it, under siege, raided and occupied by a large group of fbi agents. new reporting tops our news tonight. >>> plus searching for a potential serial killer. i'm shepherd smith this is the news on cnbc >>> four men ambushed and murdered, all muslim, all of them shot. >> we will not stop until t

, it may well be nvidia specific and i don't think it is but the problem in the market is people are selling first and asking questions later and they look at amp, bit of a failed breakout still in a significant downtrend. this move with nvidia coupled with what we have seen in the s&p means we might have the next leg lower in the wide market. >> when you look at micron and intel those are the names and people fundamentally have given up on it and technically it looks like the charts are a waste of time and those are the only two names that dip below the february 2020 level. intel has not bounced back so i'm not saying he wanted be a buyer micron but maybe micron is the one you want to buy since it has already rallied above the level. >> i don't know if you're looking at my screens and anybody and i can see guy and jeff and courtney, is anybody on the desk owning or wind willing to buy intel? and if you're on the radio listening, guy is shaking his hands like i'm crazy but nobody wants to own intel and i don't think anyone wants to own qualcomm. any names worth owning in this group?

alphabet nvidia up nicely micron on the flat side. what's been weak is the defensive sector big pharma not having a good day. neither is united health the health care sector a little bit on the downside today. remember, these are defensive plays. what's going on here remember, everyone is afraid that jay powell is going to sound more hawkish, but the bottom line, one of the reasons the market is holding up is the data is supportive of the economic slowdown that all the bulls want and that they want to hear jay powell talk about look what happened today new home sales, lowest since january of 2016. pmi services, lowest since 2020. pmi manufacturing, lowest since august of 2020 jon, all of this is good news if you are a bull an want to see data supporting some kind of slowdown because, remember, that will help support the position of jay powell and that is, that they're winning slowly, to fight against inflation and, of course, they want that economy to slow down a bit jon, back to you. >> yeah. are they winning it quickly enough that's

and then we saw kind of nvidia echoing something very similar yesterday.ever, today with micron saying that they're going to come on the low end of the range for this quarter and then the number is going to come down further for the next quarter, i think that's going to retest that idea that a lot of these semiconductor stocks are kind of kitchen sinking the numbers or clearing the decks there could be larger estimate cuts than what investors are anticipating definitely more than the sale side is anticipating. >> so are you still recommending these stocks >> i think what we need to see in the case of nvidia, because nvidia will report in a couple of woeeks, same thing micron later this month, is to get a better sense where we are witch hunt overall inventory level situation and where we are with gross margins. semiconductor stocks can work in an inventory correction period we saw this in 2018 when the former president trump started the trade war with china and there was a four to five quarter inventory correction across the semiconductor stocks that lasted

watch out. >> we know that from nvidia, they've made that clear as well. me is one in which i got pretty lucky on july 5th, the stock bottomed at 140 i bought it that day towards the end of the day up around 148 so i'm in at a good level. i have zero expectations in terms of them being positive for this stock whether it's technically or fundamentally, and maybe that's the catalyst is just that so many people realize the challenges that are ahead for nvidia i think you have to have semi exposure, if you believe in jimmy's fundamental thesis, i think you have to have semi exposure if you believe in what i'm telling you where i think the market is now a buy the dip market >> you sold nvidia two weeks ago. >> i'm still overweight chips. >> why'd you sell nvidia two weeks ago? >> that multiple with that big of a whip on a preannouncement, i can't do it. that's a bad combination. >> what do you own >> i own qualcomm, i own nxp. >> it's really that simple i mean, that is a multiple that's now 43 times this year's earnings, 32 times next year's earnings in a vacuu

why nvidia? >> thanks for having me, lauren. i like nvidia as a long-term buy, as a long-term value. you know a lot of these names, nvidia was one of them, paypal, they have come down so much i believe there is value here. the fundamentals will improve. we will get through this. there is still some noise right here that we're going through but for long-term investors i think they will be happy a year or two, three years from now that they bought it. lauren: seems like a lot of problems for nvidia. crypto miners who use some of their chips, they pulled back. consumers that buy pc's, phones and chips that pulled back, where do you see the opportunity? there is the chips bill but that law doesn't really affect the chip-makers for quite some time? >> yeah, correct. i think there's a lot of opportunity in gaming. there is always opportunity there frankly, there is opportunity on autonomous vehicles and electric vehicles, there is more areas that we've yet to touch an kind of this omni verse metaverse, there are other areas there are

eastern time. >>> nvidia shares in the green today and up about 7%. the chip maker the managing director of semiconductor equity research at needham has a buy rating on nvidia with 185 price target we're hoping for a kitchen sink quarter. what would that entail in terms of what nvidia says, raj >> we're certainly hoping for a kitchen sink what micron spooked us because when they cut numbers we thought they kitchen sinked it but went out and lowered numbers further. i think some continued risk to the october guide as ethereum moves the demand goes away so there's still a fallout from that china and europe, both markets are weak there we're hoping the october guide will be a reset. we're also paying very close attention to both gross margins as well as data center on the data center, it grew 2% and decelerated on a year to date basis we need to see that business is not slowing down in a meaningful way. on the gross margin they took a $3 billion charge, inventory charge, around 46% they took the inventory charge and took the hit initially we want to have

obviously you have the ftc going after nvidia, microsoft deals.ou have the activision deal for nearly $70 billion. you have meta, amazon, all of these players spending so much money and regulators suing them and trying to get in their way. and so maybe apple is fearful of that. as a new note inside the regulatory filings to the sec may suggest. but i think it is neither of those. 2020 was the height of the pandemic and that year, they spent more than they had since 2014. right? i also think that apple is not spending amounts of money that necessarily would lead to scrutiny from the ftc and other governments globally. i think this is a matter of fact of their product development schedule, one. two, investing in other areas. and three, maybe they are trying to go at it more alone without needing to acquire companies. but at the same time, this is extremely odd. i would bet that most people do not know that siri, face id, touch id, apple music, apple news, the weather app, i could sit here for 10 minutes giving you a list of iphone features that we a

nvidia had its worst a in months.ing up, china sends military exercises near taiwan, keeping up pressure on the island following speaker vonnie: these are your first word headlines. donald trump said this evening his mar-a-lago home was currently under siege, rated by a number of fbi agent. the former president he cooperated with relevant agencies and that the rate was not appropriate. the u.s. and iran have weeks to decide whether they want to revive their nuclear deal. negotiators wrapped up 15 months of talks in vienna with a draft. it would see reduced stockpiles of uranium in return for economic concessions. south korea's education minister has offered to resign after backlash over a plan to reduce the school entry age to five years old. she is one of five member -- female members of the cabinet. the resignation is likely to be accepted. india is bending firms from exporting carbon credits until it meets climate goals. the government is seeking to create a domestic carbon market in advance of energy transition go

nvidia would end up in the top 20% of our coverage right now. really around this ai opportunity and the fact that their language cuda is the de facto software for ai development. so we're very bullish. >> pareto, cuda, throwing all the terms around chris, thank you very much we appreciate it chris rolland. speaking of supply chains, the inflation reduction act that just passed the senate includes a big bet on ev battery minerals that are mined here in the u.s the only problem, are there going to be enough of them pippa stevens is here with those details. pippa? >> hey, kelly, this is the largest climate funding package in u.s. history, and its aim is to increase renewable energy production while also building out domestic supply chains but this green future depends heavily on raw materials with some warning we simply won't have enough. here's what barrick ceo mark bristo said this morning on "squawk box. >> we don't have enough copper and again, you've seen the copper price come off because it's always short term and what we as miners have to do

s start off with a big earnings miss from nvidia. the stock dropping after eps and revenue came in sharply lower than expected. >> just like you said they are reporting a tough quarter as we had expected. revenue coming in at $6.7 billion versus the estimates of $8.1 billion. i want to talk about this. those estimates were not revised down two weeks ago when they came out with the revised guidance on revenue. that is actually in line. it is excluding some items versus the $1.26 per share. guidance for this quarter $1 billion lighter than expected. they do predict margins will improve significantly. the company is hoping to see growth in data center business to fill the gap in gaming. they are looking $3.81 billion in revenue. that is up 61% year over year. the ceo warning in the release of a tough environment especially in the supply chain. also pointing to auto chips as the opportunity. the call is just kicking off and we will be back with any updates you need to know. >> we will come back as a news warrants. then, i want to start w

a lot of the tech stocks very much a wait-and-see happening with nvidia yesterday. the 10-year treasury and 2-year treasury is now inverted 2-year treasury is 3.22% the 10-year treasury yield is below 2.79%. we are keeping an eye on that. all rates across the curve are higher in the oil market, crude off the highest since august 3rd $90 a barrel wti is down to 9$89.34 in crypto. bitcoin showing signs of down side movement after the surge from the last couple weeks bitcoin below the $24,000 mark similar percentage move for ethereum 1, $1, $1, $1,771 >>> let's get a check of the issues in europe with julianna tatelbaum. good morning, julianna >> dom, good morning not a lot going on in terms of market action. it seems investors are somewhat in the wait-and-see mode with the inflation report due tomorrow we have a flat start to trade for the french market. cac 40 down .10% ftse 100 is down many on holiday in europe. that august low is having impact on trade this morning. we have more earnings rolling in one of the better performers is trading at the top of the stoxx 600

nvidia preannounced a not good quarter. the previous time they did that the next quarter was similarly and they said negative things. if you want to buy nvidia please wait until after the conference call. do we have time for one more question? oh, that is it. holy cow. i thought i did my absolute best. is actually been 30 years, not 40 years for the eagles but it sure feels like it. anyway, try to find companies that deserved to give data as much as -- are. i dare you. right now we are hostage to this markets mind-set and all he cares about is a particularly beautiful area that someone once told me to buy land in and i did and it's called jackson hole. cnh has its sights set on sustainability so how is the agricultural machinery company positioning itself for the future? i am founding out from the ceo and then meme stocks are back in the headlines. even though they love me sometimes i do get wistful. i will give you my take and i am digging into palo alto's numbers and it looks real good. so, stay with cramer ! >> don't mis

nvidia missing physical second-quarter sales by $1 billion. wow. emily: that is a big one indeed, ed. i want to talk about that a little bit more. thank you. sticking with nvidia, the giant missing its quarterly revenue projections by more than a billion dollars per debt into the demand of components drying up after a two-year pandemic. bloomberg's who covers all things is here now. what happened? >> it's not a surprise that it happen, given what intel had said, what other pc related components makers have said. but i think the extent to which they fell short on the rapidity with which demand has fallen away have caused concern. that is what analysts and investors have been talking about today. emily: why did they get their own projections so wrong? ian: they said it happen so quickly, it fell off so rapidly, that they did not see it coming. the concern or if you like, the underlying suspicion is that it is not just consumers, not just gaming related, but also crypto dependency that they said that they shared. chips are not good for crypto mining a

bill for me. >> yeah, we had nvidia yesterday. you wonder with nvidia, sending the c.h.i.p.s. an odd juxtaposition. what is your macro read? >> in detail, it goes with what was said last night. there is a whole in this, with some issues that doesn't make the c.h.i.p.s. necessary. in this quarter, doing quite well. broad comp should be doing okay. we have to figure out which part is weak. he is the key man for the large form factor. c.h.i.p.s. , the country really needs, because i don't want to say that there is bad c.h.i.p.s., but they don't have former c.h.i.p.s. that is what goes into ford. that part is good. i want to know where my markets are weak because it is kind of devastating when you look at what they said about cash, what they are putting their money in. it is a fineprint situation but it is a really bad one. >> right now we are down about 4%, nvidia about 2% down as well. you kind of feel like it is almost pellet time peleton esque, and you have the kids gaming, back at school now. it's amazing how things flipped. >> i think that is a very good call. just to be sur

it into the portfolios of many of my aggressive clients. >> why go for one of the pricest stocks nvidia, versus an intel or an amd. >> well i have intel too intel is a value stock even though it is a technology stock and it is a rather big position for us i have no exposure to nvidia until recently and i decided to add it because i think it is one of the better companies out there in that space. however, it is very expensive even with this decline but when things turn around, this is a kind of stock that i expect to go up a lot very quickly. >> and speaking of intel, i know you like a dividend and that is why other wise in tech you're looking at plays like an ibm what did you make of salesforce last week, kind of got overshadowed by the weaker guidance but a $10 billion buyback for the first time do you think we'll see more cal capital return from tech names. >> we might see between now and the end of the year. because of course that 1% tax goes into ervffect in january but i wouldn't buy stocks on the hopes there might be buybacks. a buy back is nothing but a substitute for a dividend.

and yet, nvidia yesterday, sort of a loan. it didn't bring the market down. >> today, they basically preannounced at the same time, fortunately we can find out more. sometimes when i am more subdued , in the way apps i present things, i am more concerned. i think the mean is something that is at the tail end. of when you think that things are a ride. you need to come in at the end, and you have a january comeback, remember. a couple of years ago. that is where it all started. >> right. >> i look at this and they are trying to make these stocks go up >> okay. >> they have raised 300 billion in order to pay off 25. well, shouldn't they sell enough to be able to get some of that done? >> so they have done everything they had possibly done in terms of shares right now. wouldn't you advise that? >> well -- >> jcpenney. jcpenney went bankrupt. >> you were there. i remember when jcpenney did that gigantic offer, the seven point billion that broke. one of those stories that broke. memo to bed bath. call david and do something big here

we'll pivot and talk about a big stock of the week, nvidia.e again today along with us. we told you the rest of technology shares are down 11% since the earnings war are watch warning earlier this month and 50% off of the high. paul meeks thinks there's more downside and says there's not a buyer on the dip it's our call of the day josh, we want to turn to you first. jason snipe, he says and i quote, in an interview with street signs asia, "the way i look at nvidia, i think unfortunately it can go lower. i would not be a buyer on the dip. every time they report or communicate to us they're lowering numbers again you could not buy a stock even if it becomes relatively inexpensive when numbers are going down. their problem is a third of their sales come from gaming and you could read crypto because quite often these chips are used for crypto mining and of course that asset class is absolutely been crushed so josh, what's your response to a well-known investor like paul meeks saying don't touch this thing? >> well, i don't know that's saying never

nvidia, what can investors expect. around and we will be right back. ♪♪ hey dad, i'm almost out. i got you. any questions, chris? all good, thanks maura! healthier is managing all your family's prescriptions in one app. ♪ ♪ the thing that's different about a vrbo vacation home. you always have the whole place to yourself. no stranger at the dinner table making things awkward. or in another room taking up space. it's just you and your people. because why would you ever share your vacation home with someone you wouldn't share your vacation with. ♪ ♪ >>> welcome back to fast money, making headlines today, after intel secured $30 billion in funding for the new chip factory, saying that the deal with canada's brookfield asset management can be the first of many.>>> sticking with chips, nvidia, results due after the bill tomorrow, the stock down more than 40% this year after a heck of a run, options traders are plugging in ahead of the report. and let's go mike. and single stock options, the contracts overall, the options ma

. >> thank you, wilf nvidia warned of a shortfall now nvidia nvidia said they will be offset by the datater stock two is salesforce. the third quarter guidance is softer than estimates. launching the first buyback of $10 million. speaking to jim cramer, the ceo says deals are taking longer to close. >> major economic benefit. everyone is trying to assess what is going on and how to position for the new economy it is a new day for many companies. i think when you look out at all of the businesses, yes, they are all doing digital transformation this is everybody's priority every digital transformation is beginning and ending with the customer >> salesforce shares in red. stock three snowflake. the software company beat revenue forecast in the second quarter. snowflake has more than 6,800 customers. including 250 with product revenue upwards of $1 million. the company expects third quarter product revenue in the range of $500 million to $550 million. shares up 17% this morning back to you, wilf. >>> frank, thank you so much for that all more impressive to see the nasdaq futures up almost a

as mentioned, this follows the nvidia warning on monday.here were weak reports by intel and other chipmakers. the majority of the pain is being felt by companies that make pc chips. it's consumer demand that is driving this downturn. the lockdown is over so there is not the demand for pc's there was one or two years ago. two, household budgets are hammered by inflation. like intel, micron plans to reduce capital spending on new plants and equipment this year, and expects capital expenditures will be down meaningfully from a year ago. they are committed to long-term expansion but making short-term adjustments to protect profits and avoid a glut. david: what is the drag to the nasdaq, which has done well and would have done better where it not for this latest pain we are seeing? su: this latest pain is making chip stocks a real pain for some asset that are not trading. let's take a look at the bloomberg chart of this sox. it's below a key technical level, down 27% this year. all 30 members in the red. the decline was the worst in more than a

so they obviously are the leading supplier like qualcomm, amd, nvidia, so they are the leaders in the space this put a big overhang for that supply chain it also underscores the need of the chips act, right? having on-shore, you know, supply for all these data centers for the computing side it underscores the time-sensitive nature of having on-shore manufacturing for supplies. >> there you have the president and congress, you know, now it looks like nancy pelosi putting the mouth of where the congress was, supporting some anticompetitive efforts in the united states. this all comes at a side when we're hoping to see china reopens in the wake of these covid lockdowns. that would be, what, another tailwind for the chips sector if we end up seeing china reopening in spite of the tension with the u.s. >> i think it's funny. economics is obviously a two-way street it's a big market for semico semiconductors, but the flip side also mean they're getting -- you can see, you know, export restrictions being put on the semi cap. but the flip side you have the opening in china helping other chip

nvidia weighed on the nasdaq. currently futures pointing to gains. the inversion remains pronounced wti's closer to $90. francine: you are looking at inflation, never quiet. >> absolutely. it is all about the u.s. cpi print. the cpi print comes out at 8:30 p.m. my time. when the last prince came out i was having dinner with a bunch of macro guys and there was a guy if use of that he knew that the cpi print was beat because he had a leading indicator others weren't watching. he tells me to dig into the cleveland fled in -- fed inflation tracker. first of all, it is saying that for the print we will get tomorrow night, it will be 8.82% , already above the median average forecast of economists. over the last 12 months, it has underestimated the inflation print. over the last six months. it has underestimated for the last nine months in a row. the theme is it underestimates and it is saying it should come in at 8.82%. if that trend continues, it suggests a reading of about 9%. so that might put the cat amongst the pigeons. tom: it certainly would, wouldn

again, even nvidia -- even nvidia. >> it's up 2%.d this week focused, as we should have, nvidia on monday, and then yesterday micron. we tried getting sanjay mehrotra telling a story that -- i'm not sure we succeeded. >> the cfo lowered the boom on the cloud. it was quite a comeuppance to a tremendous secretary gina raimondo, who worked very hard, ron basically said we don't need any of that equipment. >> they did announce the $40 billion expansion. >> right, but it was totally timed. they did what they had to do they had to speak. they could not tell people that will things were good at a conference i wish he had said what was said in a conference, which is that the cloud is weak. that's what caused the market to roll over. western unable to get that as reporters, we could not get that. >> i agree i've never done an interview that i was happy with, frankly. >> how about the bank stocks they're the winners. remember, what do they pay me, jpmorgan >> 0.0001. >> this is very similar to 1992 with greenspan >> let's talk about bristol-my

>> we are wondering about nvidia. >> the outlook for nvidia. the stock also trickle slide.se new rules that could impact business in china, therefore sales and the outlook. >> this is actually a big deal for nvidia. there gaming segment has been sliding. slowing because of the crypto market and whatnot. slowing consumer demand. they have been looking to the server business to offset those declines. now we are getting the government coming in, saying you need to get licensed to sell these high computer chips to china. that is going to pressure their margins, pressure their sales because it is likely delays on the top will pressure their margins and their -- this is a pretty big blow. it does not mean it is permanent committee could just be delays in their topline. we are going to see weakness. >> senior analyst paula. next, a new survey shows than four/five of business leaders are focusing their strategy -- recession. this is bloomberg. ♪ ♪ haidi: u.s. companies increased headcount at a sluggish pace in august. adp reports hiring is downshifting in a economy buffeted by risi

a tough day for nvidia investors, but long run it won't matter.e hold the stock with artificial intelligence, so anything outside of that thesis is not important to us. i love to be contrarian, you know, data center will be up 61%. they also provided that number. for a.i. investors like myself we're right on track. showing to be much more secular than the cyclical gaming market and what we want that data center segment to continually expand and surpass and double and potentially triple overall revenue from gaming. so the more that we see that really the better. then i would also point out third that the proof of stakes emerge which is ethereum's merge. it is, it's way better to get that over with, put that behind us which is probably what happened in this quarter. it has been looming for a long time. let's get it over with, get back on track and focus on a.i. charles: you are still confident in management then? >> oh, for sure. charles: i look at your list of stocks and you're having an amazing great earnings season for your portfolio including pa

nvidia warned about supply issues such as longer lead times and that's the time when the chip is ordereddelivered, and i was in nvidia's camp and an engineer was chatting with me and he's struggling to get his hands on chip power for artificial intelligence systems and earlier this morning i spoke with the ceo of arm and the company that provides the chip blueprint for over 90% of global smartphones and he echoed nvidia's comments on data centers. >> we certainly are impacted by anything that we see on the supply side and in data center particularly, we have seen supply issues and not just for the guide themselves and what it goes into in a custom package and certainly, we are in a supply constraint in the data center >> as for the market reaction specifically today, analog devices is the drag on the semis. tyler, you mentioned that briefly. it's down almost 6% and this although the analog chip provider issued strong guidance, management did say cancellations were starting to increase so the cyclical nature of -- are definitely still in play >> so softbank owns a chunk of arm and that's

sarat, i'm coming to you, you own nvidia and qualcomm.tiple correction and another 10% by eps cut, quote, unquote, from jim cramer, i think the citi piece is going to be proven as too negative but he admits tough to get in the way of that today. >> yeah. look in the short term, this could be right, but longer term, companies we're talking about like nvidia, qualcomm, some of the higher margin businesses you don't have enough supply out there and the question is, when that does meet demand you're going to get the product cycle out there and it's dependent on the apples of the world and other things a lot has been discounted. maybe you get more pain, but longer term these are the companies you want to own and maybe some of the super growth investors get out of the semis but funnedamentally you want to own for three to five years. they're spending a lot of money on r&d that's what you have to look at who is going to be reinvesting in the cycle, so i want to own these companies even if there's short-term pain. short-term payne they're all dow

we might learn a little more about its hold on its market share later on this week that's because nvidiamorrow the company preannounced weaker revenue stating like you mentioned, carl, the gaming chips face a crypto hangover and challenging market conditions, they're expecting it to continue into q3. but that also means there's going to be much more emphasis placed on data center sales. investors will wanting to see long-term projections and if they will hold out of all of the smh constituents, the semiconductor etf, nvidia has fallen the most from its 52-week high. lastly you have marvell technology it has a lot of strength in 5g it could be an opportunity for market share when earnings are out on thursday, but both of these companies, marvell and nvidia can give insight into how lucrative the data center business is, if it's holdings up and if they are stealing market share from intel. >> that's pretty interesting mike, bernstein earlier in the week talked about nvidia and gaming and said we're getting the feeling the buy side would actually like to see a further derisked fiscal q3 out

>> i will talk about nvidia's forecast first. earlier this month that the third quarter will be weaker than expected, and indeed it was. yesterday, it said this quarter will be $1 billion less than what analysts were looking for. this is concerned for demand for peter's that is weakening -- computers that is weakening and the markets are challenging. we understand that contract makers are saying they expect shipments for this year will be about 15% to 20% less than last year. that means we will be able to see other countries to start more quickly? not necessarily. nvidia is struggling to get the purchase of products so it cannot shift the budget. and the chip material supplier also said earlier this month that it did not get enough chips for all the equipment it wants to make. it is not going to supply all of the demand yet. this indicates that there is still a shortage of chips that companies are looking for, and that also means that chipmakers are still likely to spend quite a significant amount of money to continue its expense

and nvidia earnings also playing into the chipmaker outlook for asia. tokyo electron just slumping, we did see that company posting a miss. alibaba did sharply decline but has recovered earlier losses. at has laid off about 10,000 workers in the space of three months. keep an eye this morning on hong kong property stocks because the government could be waiving double stamp duties for chinese buyers of property stocks which is supported for the sector here. dani: annabelle, thank you very much. coming up with manus and me, the ark investment ceo says the u.s. is already in recession but predict we will be out of it by next year. more on that story next. manus: plus, one decade's hottest bond market is imploding, china. we bring you the big take. ♪ >> we believe we're in a recession. two consecutive quarters of real gdp declines is the beginning of that definition. three consecutive months of declines in leading indicators which we have now would suggest the same. dani: ark investment ceo cathie wood on the state of the economy. we have been concentrating

nvidia missing its projections by more than $1 billion.electronic components are drying up, second-quarter revenues about $6.7 billion down with a projection of 8.1 billion, shares falling 6% worse decline in nearly two months. making elon musk complete the billion dollar buyout, plus a look at the controls that committed $1 billion to the proposed deal. david: all right, about an hour into the chinese and hong kong session. we are at the -- level of the hans saying index -- and sing index. is talking about nvidia and the soft revenue guidance for the company, quite clearly one of these big names including -- property names a big drop in country garden, some decline, not as much as a drop yesterday. we might see a bit of solace as far as exiting millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers

what's your take on nvidia?nd chips. about a week ago they forecasted lower guidance, but the enterprise side is growing with the data centers, and that's an area to what watch. also their automotive piece, and you're seeing what they're doing on the metaverse side, those are are things people look to in terms of growth areas. overall, when you think about the chip market in general, it goes through these swings based on china's supply chain and data center demand. those are the big areas. but growth of nvidia has slowed down a little bit, but i think we'll be seeing different forecasts as we get to the end of the year when we see the big, you know, public cloud companies buy their chips and and also when we see what happens with the swings through the supply chain issues in china. ashley: very good. as always, very plaintifftive. ray wang -- very informative. appreciate your time this morning. >> thanks a lot. ashley: by the way, elon musk and spacex are giving t-mobile's stock a boost. why, lauren? lauren: elo

we've got to mention the nvidia giving cause at the bottom of the nasdaq and s&p after warning second quarter sales would fall short of original forecast and shares down 8% to $174.46. the company cite add drop in gaming revenue in recent weeks. sud muchly; right. now while revenues will come 19% quarter over quarter down, they'll still be up 3% year over year. can you really glean that we're going to have a hard landing from that particular story or today's overall market action? let's bring in the floor shower. j&mp security and trader scott redler. feels like a market driven by individual stories because the dow turning around from red to green oneiroider's report and involved the faa saying that boeing made necessary changes that the 737 dream liner meets certification standards and that stock up about 1.13% but beyond that, what can you glean from this action? >> liz, we clearly had news the last two or three weeks, whether tvs earnings or the fed -- it was earnings or the fed that drove the market higher and the start of the year saw every stock corrected and we've gone from a m

talk about nvidia orang range reso resources. let's call it opportunity monday >> brian, we are over at the end. we still like what we see in the energy space we continue to see this as an innocent until proven guilty range resources a company. a lot of them saying it cannot work further it will take profits you have not had a big up trend. that is range resources. nvidia, despite the negative news, the quarterly miss that occurred we did not see the stock break to a new low if stocks are not breaking on negative news, i view that as a positive sign. lastly, brian n, in the health care space crispr this is a stock off the highs. it looks like it stopped finally making a series of lower lows and low irreleer highs i define it as an attractive looking base those are three names for opportunity monday that we should focus on. >> yeah. i like it. nvidia, range resources and crispr they're brapeutictherapes craig johnson, we appreciate your views this monday morning >> thank you, brian. >>> you are very welcome let's get a few of the