and this is bringing on the growing divide of the intel and nvidia gross margins nvidia's adjusted grossd 66% p. i intel's dropped. that gap is only expected to widen again and contributing to intel's stock reaction post the nvidia earnings we saw on the earnings call, ceo admitted competition is fierce he didn't name names the closest competitor, amd, seeing shares rise 8%. it is launches an a.i. related chip this year there are other a.i. plays as well meta announced the a.i. training model. broadcomm with the chips with google the arista networks as well. nvidia results stood out overcomeo over competitors biggest bottom line beat in years. frank. >> you mentioned the gain of market cap intel only $120 billion market cap to spell out how big the move kristina, you mentioned how many times a.i. was mentioned in the call nvidia is anticipating a surge of data center demand. what about the supply side could we see another covid shortage >> reporter: to the a.i. question, i stopped counting after 13 minutes within 13 minutes, a.i. was mentioned over 32 times. that was only from the cfo th

it's not just an nvidia story. it's the mega cap stocks that have led the way this year is everything riding on what nvidia does today? >> i don't think everything is riding on what nvidia does today. i've been calling for tech to start to get sold off the last six weeks. it can't continue this run it doesn't make sense it continues to lead everything else you have the same five to ten names leading the charge what i started to look at is the momentum we were seeing was coming in from retail investors only eight or nine different names wholeheartedly and a lot of the institutional money was still sitting in cash. that's what's following behind these names pushing up the tech trade. we saw the same thing in 2020 where the smart money was saying we need to get out of this market and you had retail investors who were buying up the high fliers and then institutional money had to follow that's what we're seeing happening right now. that's what gives us the momentum behind the name like nvidia and anybody else who could

guy: nvidia is a sensational.hat is interesting as it is also going up as rates are going up, so that kind of idea that the tech sector rally is rate sensitive seems to be disappointing -- disappearing. is this people who are underweight chasing the benchmark? fomo? there are all kinds of things going on. i think it is the story of the day. i appreciate the debt ceiling and something to be watching carefully. we also have to get to the housing data on the screen right now. sales month on month absolutely flat, weaker than anticipated. that takes the number 10 -22.06. very little activity in the housing market. the new market is good, everything else is quiet. nobody is moving. nobody wants to sell. that is a market that feels broken at the moment. what will fix it? will we just be talking about higher rates? alix: has it bottomed? i appreciate that it is stagnating. but stagnating rather than falling. will we see new versus existing and how it filters out? it is left to buy except for new starter homes? we'll talk

clearly nvidia got a boost wood sold her stake in january on nvidia. it rallied 17% from the october lows you think that is a reasonable gain to have take that money off the table. that is perhaps what she did i'm sure she was thinking about the interest rate situation if you think back in january which was a different picture for interest rates people thinking the fed may go more aggressive. what does it mean for tech stocks the nasdaq held its own. perhaps she was more circumspect and that went behind the question of valuation of nvidia at the time. what happened with chatgpt and what happened after cathie wood was the arms race with the global tech companies in the u.s. and google with bard a.i. also in china with baidu and other tech giants looking at their own chatgpt rivals maybe that is something she missed out on. it was thought clear when chatgpt was first viral. with the rise of chatgpt and now this massive investment in a.i. across the world, nvidia is seeing the benefit. >> arjun, the chart doesn't lie. nvidia is up 180% since the arkk sold

nvidia proves to you there's a reason to sell it and i couldn't conceptualize letting go of nvidia >> i agree jensen cited two things. >> jensen huang the ceo. >> they're just not a complete platform they're a networking, compute, software platform which is generative ai in a box b, we talked about the trillion dollar market that's going to update their entire cpu base that's the discovery information for the market that is driving the stock today. it gives you duration to the earnings >> everybody is thinking the same thing is it justified. what's the ramp look like moving forward? sure the stock could pull back from here. that was one of the views of stacy raskan who we spoke with take a listen. >> at some point we'll get di j digestions if you think about where we are, we're very early in the terms of both ai and accelerating computing. it's just getting started now. >> hard to put your arms around that concept it's just getting started now when you've witnessed, and we all have, witnessed these shares in all these companies go crazy. >> we spoke about this in prior weeks that we

23% in pre-market with nvidia opening up 23% it is lifting tsmc arjun told us how nvidia's desire toroduce more chips will directly impact tsmc because they are the largest chip fab in the world. tsmc is up as well as micron up 4.3% alphabet and microsoft and names wading in the a.i. have a sympathy rally on the back of the strong nvidia earnings. >>> coming up on the show, ron desantis entering the race for the white house, but his big day falls flat as his republican candidate breaks the internet. >>> rock 'n' roll star tina turner died at the age of 883. she had a career spanning five de decades. she died wednesday in her home in zurich after a long illness there will be a private funeral ceremony for close friends and family members >>> florida governor ron desantis' presidential campaign plans were derailed by technical glitches on twitter. elon musk said the servers were straining on the live stream where they were supposed to have a conversation desantis filed paper work earlier in the day putting him in the running for the republican nomination. gabe gutierrez has more from n

nvidia can be done the same way.lio managers we don't get the luxury of hyping any one thing i can't get into ai because it sounds cool. we've done the same thing for 25 years, but it's easier to get caught up in it and i would caution people to be careful. >> you reminded me of the specifics of your strategy in terms of it having to have a dividend we showed the next to no dividend that nvidia pays when we put it on the screen. thank you for doing that you sold calls on dow, do w inc. >> aside of the stocks that have been going to the moon, the rest have been trudging along in a purgatory, and we have been trying to tread water. the dow position has an amazing dividend we have the calls on it and we're taking advantage of trying to make money, and get paid while we wait in the flat market, ai stocks excluded the stocks also went dividend today, and we picked up another 75 cents on it, but this is a stock that's been languishing and anything having to do with health care, industrials, energy, all the things that d di

we are already up 150% this year on nvidia.n your forecast, can you see that more than doubling in price ? stephen: this is difficult. there was always a valuation, even for the likes of nvidia. nvidia shot up 25% yesterday, as alex pointed out earlier, the consensus upgrade was even higher than 25%. so the valuation has become more undervalued than before. we think it will go above $1 trillion, once it gets over that, maybe we revisit our thesis. it depends how quickly the shares react. dani: it is so hard to be negative on this stock. something like 70% gross margin next quarter is remarkable. when you look at the wider space, a lot of ai type companies are also rallying off the back of this. do you want to be involved in smaller names? or do you stick to the giants like nvidia or microsoft, which is one of your top 10 holdings, too. stephen: the strategy is focused on large mega cap companies. that's a limitation on what we can do. on the other hand, while we are positive about chatgpt, it is a private company, but it is all

nvidia is overweight in a lot of portfolios that have held it that 2% out of nvidia will be 20%. >> $118 billion. >> i was in the ballpark you see what i'm saying, the small amount of flows out of the winners can make a huge difference to the ones that have lagged >> it's just you have to give people a reason, rob, to sell out of the winners and maybe take bigger risk in some of those other names. you don't have a similar problem, if you want to use that word you own broadcom you do own cadence, kla, you do own lam. they are among the best of the month-to-date winners out of the chips space. how do you view this and what might be determined to be the watershed week >> i think it is we just added to it. we added broadcom, up 25%. our key takeaway we are officially in an arms race for ai and instead of joining that arms race and buying the arms dealers, we are owning the pick and shovel company they are the arms dealers. they are continuing to sell to those businesses and they're capital light. we've avoided the capital heavy, and we haven't been willing to pay up or be innovators like nvi

nvidia has gone to the moon.ning bell is next. ♪ look at futures in particular pay attention to nasdaq up 300 points, that's premarket. want to talk about nvidia because this is an extra nice story. you may know last night about 4:00 eastern time, nvidia reported most importantly look to the future and saw a gigantic gain and ai chip sales. that's big. as you can see, the reaction this morning is up 27%. i might add if nvidia gets to a price of 401 and 60 cents a share it will be 1 trillion-dollar company look at that screen, all the other ai folks are up. >> we don't have taiwan semi on that graph and they are up about seven, 8% because they make chips for nvidia and everybody and their mother is ordering processors to power jet gpt and competitors. we are in the early stage right now. stuart: i've been doing this almost 50 years and i've never seen any company, foreign or domestic gain $200 billion in value in one day and that's what nvidia did. >> $1 trillion company and the sixth largest in the world i believ

>> i own nvidia in the joet. >> okay. so if you could, would you ring the register on nvidia, too? >> good question >> the things you describe about amd how could they not exist for nvidia, has gone on tremendously, make a good amount of money on it, you think the market squeezed a lot of the juice it's going to get out of this orange, so to speak what's up? >> if i had the ability to sell nvidia understand that we put nvidia on at the end of april at 277. i think it takes out its all-time high. i think it's a leader in generative ai than amd is. the other interesting fact about nvidia, kari made a point about earnings not so good so far. you've had 28 s&p 500 that have reported 23 have beat on earnings what have analysts done surrounding nvidia they've only revised up 2% you would think they would revise more. >> we do have some breaking -- we will get back to this conversation in a moment to steve liesman because fed governor chris wahler is speaking what's he saying >> reporter: a little unsatisfying, saying it's unclear at this point whether at the june meeting the federal rese

let me show you what nvidia did. me show you again because this is about $200 billion worth of cap that nvidia will add on if it can hang on to gains for the rest of the day. i pulled up the earnings call yesterday from nvidia. on your bloomberg, you can search for specific words and synonyms. if you search ai, you will get 122 instances on the call where they mentioned ai, natural language processing, machine learning, any word like that. last time they said it only around 65 times. it drives home the point that there is a lot of optimism. a lot of hopefulness, and a lot of people trading on ai. bank of america last week called a mini bubble, is it a medium bubble, or is it not hype. a tangible trend to bet on when the market is confused about the macro narrative. we are getting that spillover effect, a lot of stocks are rising in the u.s. nasdaq futures are up one and a third percent. asian semiconductor chipmakers are up. sk hynix and tsmc are both up at least 3%. just to show you that it is not all tech, it is th

nvidia is a good company. it has done a great job of being relevant through crypto, ai, gaming over the last couple of years. the reality is, it is getting way too much credit for where it's real earnings are and where the revenue is and i think that is dangerous to keep buying into that kind of rally when it is not clear they are going to grow into those shoes. it is undervalued for all the actual amount of it is manufacturing and the technology. this technology is not easy to build but something there are several companies that do it and the reality, one of those companies is getting crazy credit and the other companies are not feeling the love. caroline: 20 times future earnings currently trading and looking at what the price point is for nvidia, 55 times future earnings. putting on your hat and thinking about your portfolio, have you lent in to powering the ai boom we are seeing? or is it for companies and language models? sarah: it is a little bit of both. i'm invested in a company spun out of google. the

five things that could knock nvidia down. the first on the list is any credible evidence that china is about to do something with respect to taiwan. think about how important taiwan is for the whole semi space, for tech and semis in particular, they don't even have to do anything it could be a report and you could see 10% come out of any chip stock overnight the risk is not lower as stocks rally. it appears to be lower, but it's actually higher. nvidia's enterprise value to earnings metrics are in the triple digits. ev to ebitda 148 ev to free cash flow is 187. now the bulls would say, and i am a bull, oh, no the stock just got cheaper based on guidance for q2 okay, possibly, but it's also possible that q2 represents this massive pull forward, and we don't see followthrough necessarily in q3 and q4 guidance think about tech in general. that's the highest since january. 72% of the xlk names are above their 200 day moving average the median relative strength rsi and the xlk is 61. take schrodinger, ai, whatever that is, take al

gold rush right now, and nvidia has all the picks and shovels. >> what should nvidia be valued at givenquarter and given the guide? >> well, people are scratching their heads. it's one of the most difficult things to analyze out there right now. we had a p.e. of call it 80 times, going into this report. our numbers are going to shake out going from next year from call it six bucks to ten bucks in the single report, given this inflection, so -- the answer is, it's extremely difficult, and it's extremely open-ended. >> hey, chris, i was trying to explain why they can't have this kind of a lead, but you just said no one else has a pick and no one else has a shovel who is close and we don't have the time or the bandwidth, probably, to get into the technical answer on this, but you know, can anyone compete? >> i will give you the short answer, the short answer is the best prospect that i can see right now would be amd's mi-300. they might be in the ballpark. they're probably not close to the h-100 a.i. card out there, but we have actually some good prospects for amd and the accelerated compu

nvidia, over $300. so i guess if you look at c 3 a.i., that's as close as you can come look at the chart on that one. that looks to me like retail investors have been buying it, selling it, buying it back cheaper stock than nvidia. it has -- ands name is a.i., right? so that one probably tests that premise off the bat. >> its ticker is a.i how much is that worth today do you think it's just a matter of time before retail starts getting in the point in the note was that it was banks doing a lot of the inflows into some of these names. >> i think steve makes a lot of good points. i agree with some of them. i am looking at the same thing from a different lens. look at some of the names that were heavily involved by the retail, right. tesla, amc, gamestop and bitcoin. tesla's down 50% from the 21 peak amc down from 3640 are gamestop from 81 to 73 -- >> is that earned? if you look at the carnage what do you think that does to the psyche of a retail investor? a professional investor would be taking pain, woul

i want to own nvidia, there's room to the upside here, the tech full run going to keep going, nvidiatill want to be in i was in indianapolis watching trial runs of the indy car, the indy 500 coming up here. when you look at cars, right, the indy car is going to be heading 240 miles per hour at the end of a straightaway. the average speed is a lot lower because, why, they hit the turn, they need to slow down if i'm getting to turn 3, the crowd's back there partying and nvidia is on lap 125 is the driver going to be able to hang on and make that turn? we have earnings, that's the turn coming up earnings next week for nvidia, i've got to know i can navigate that turn and slow down and continue higher. i'm going to use a put spread to navigate the turn and protect a long position in nvidia, there's options expiring next week, i can buy a put spread, looking at the 295/275 put speed. it's kwibt quite a bit of money. it continues to hang in there and move higher. anywhere below that this is where my protection is going to kick in, i'm only spending $3.10, and it's going to give me $1 $16.9

nvidia surging the nasdaq at 1.25%.er stocks in the market and you see the dow a little bit lower tech leading lifting all the semiconductor names that nvidia move higher. 30 minutes into the trading session. three movers we're watching. nvidia skyrockets posting a big earnings beat, blowout guidance, sending a.i. beneficiaries higher around the market look at the move, it's up more than 25% snowflake sliding as the company slashes the forecast telling jim cramer last night he remains optimistic in spite of the guidance that was disappointing. more on those companies in a moment the retail beat, watching american eagle plunging. the retailer lowering its outlook and cutting its guidance down 15% it is a split of two markets tech leading with communication services utilities, staples and energy bringing up the rear. >> pretty fascinating. housing data to start the hour we'll turn to diana olick. hey, diana. >> hey, carl pending home sales were unchanged in april from march, according to the national association of realto

how do you play tech from here pairs trade here, in nvidia, but also -- brian? >> when you look at nvidia, this is one stock where if we were constructing a portfolio, give me the best 25 stocks out of the nasdaq, nvidia sits at number 3 and it's waiting just behind microsoft and apple. well, half the weighting of those two, but still number three. i still want to own nvidia still room to the upside to go tech run is going to keep going. nvidia you probably still want to be in i was just in indianapolis watching trial run of indycar, we're having the 500 coming up here when you look at cars, indy car's going to be heading 240 miles per hour at the end of a straight away. the average speed is a lot lower because he hit the turn, need to slow down. if i'm getting into turn three, the crowd's back there partying and nvidia is on lap 25, is the driver going to be able to hold on and make the turn we have earnings coming next week, earning for nvidia i've got to know i can slow down and navigate i'm going to use a put spread to navigate the turn and protect the long

the easy answer is nvidia and the nvidia 100, i like that.ally moves to a vegan. 70 basis points is not the same as 60 basis points. lisa: people are pricing out the idea of rate cuts and pricing in be idea that the fed will raise rates for longer. when it comes to the debt ceiling, we have tried to touch at it from a distance but we do get information. kevin mccarthy said they worked past midnight to get a deal done. i said there are issues remaining any he is speaking to reporters. parsing the urgency of getting something done, the feeling of progress with trying to make sure anyone -- everyone can present some into their constituents that the stomach them look bad. tom: red hats, beer, i will let the speaker picked the beer. we can gracefully get through memorial day weekend and tuesday, there is a solution. lisa: they will get together and have a barbecue and figure it out. cap we all just get along? tom: soldier into delaware as a president? right now, 4.43% on an important to year yield. markets on the move. good morning. ♪ >> with the

under that was nvidia.point had a pretty good bump so far on the back of the chatgpt craze. it was easy to see it has run too far. maybe it was out of control when we were looking at what the fed was doing and the impact it might have on growth stocks going forward. it was unclear how far the fed might go and aggressive they may go there was uncertainty about the extent about the nasdaq may rally. it has done pretty well so far this year. perhaps that was feeding in to the reason she closed the position in nvidia obviously, we are looking at the stellar guidance since january and what has happened is google has come out with its bard a.i. and chatgpt is continuing to grow and develop at a blistering pace every company in the world wants an a.i. strategy what will power that nvidia chips >> you know there will be more competition in that space. the chips will power that we spoke about all of the chips that help manufacture these chips which is doing well. asml and asmi stand out. you look at the nvidia stock

on "oa" it jumped 25% this week after earnings the most heavily traded option, it is, of course, nvidiahow it could earn you even more than lululemon moving the opposite direction. so bad it's good, is there a way to risk a little on an earnings robbed without bending backwards. there is >>> tesla and technology, ways to help your port tole owe do to help your portfolio do the same i'm melissa lee. we're live on the desk tonight, mike khouw, carter worth, and brian stutland let's get right to it. let's get to nvidia, after it ended in a 25% gain this week, the stock jumped up in the rankings to become the host heavily traded options name in nominal terms, one of the biggest over the last several months because of its more than 160% run year to date. here's the kicker. if you own the stock there is a way to squeeze more juice from the semicitrus foot with options, mike, please explain. >> yeah, you know, we often talk about selling covered calls and how it isn't typically advisable to do that going into big catalysts such as earnings it certainly wouldn't have been in this case, would it

i have to ask, nvidia are _ background. i have to ask, nvidia are we _ background., nvidia are we going - background. i have to ask, nvidia are we going to - background. i have to ask, nvidia are we going to see| background. i have to ask, i nvidia are we going to see it in the trillion dollar club? i think they will because i think it is the biggest transformative thing we have seenin transformative thing we have seen in 30 years covered in terms of ai, nvidia are the only game in town. i think they will be giving that pass to that trillion dollar club. a free trade deal between australia and uk comes into force today the first the uk negotiated from scratch after it left the european union. westminster has said it will add almost three billion pounds to british exports, describing the deal as "fantastic". however uk farmers warn they could be undercut by cheap imports, which could cost jobs. the government says it would only at .08 to the u k economy. a uk new zealand deal starts today as well. by by the accounting form pwc. the country treasury says that it would

yes, today nvidia soared 24%. ♪ hallelujah ♪ or $75 the largest single one-day move in the history ofge capitalization stocks. it's a reminder that even in the choppiest of markets which we have some companies can transcend the madness even of washington and if they do well enough they can color the whole tape that's how we ended up with a day where the dow dipped 35 points, s&p dipped .8% but the tech heavy nasdaq went up 1.8%, aided yes by nvidia and its multibillion-dollar companies. there are so many companies that work with this company lots of people asked me how i knew to anoind nvidia as own it don't trade it along with apple. first, before anybody accuses m before they became great for the charitable trust but i've also picked some stocks that i'm not proud of and the pain they inflict -- >> the house of pain >> -- is with me day and night i own up to any loser, though. and you can see the whole thing warts and all by joining the investing club it can be very embarrassing to admit a stock mistake but i'm proud i'm one of the few who shines the light on them even as i wish of

nvidia is at a peak valuation.e you want to point to to say things are getting out of hand. the rest of them are acting as havens and growers in a scarce growth market. i think that's where we stand. and again, the big question is, are people going to feel forced to participate more you have people generally under exposed to the market. no one thought tech could leave. >> is some other tech names having good days. >> the semis. >> yes salesforce, honeywell, nike, amex all up as the dow is up 128 as we get closer to the end game here. >> an indexing move. i don't want to say that everyone is discovering there's a refreshed fundamental case for all those stocks but it does tell you that sometimes, you know, the market cap construction of the s&p 500 works to its favor right here. again watch yields, have the vix below 17 because you have good dispersion in the market and the market has been rotating as opposed to pulling back. this is what everyone thinks is the top end of the range for the s&p. we'll see if that get

what we don't want to see is nvidia come back into that gap quickly.day's low, which is right around $366 as it stands, todd's low will define the upper boundary of the gap left on the daily chart of nvidia. we want to see nvidia hold up for several days above that gap in order to preserve the breakout and make it clear that the gap is not indeed exhaustive, which sometimes they are after big up-moves >> that is so helpful and explains the importance of watching the price action for the next couple of sessions. does it have any bearing on the market overall the s&p 500, does this change the charts in a dramatic sense or i'm just curious what your latest thinking was. >> it hasn't helped the s&p 500 much the s&p is testing resistance around 4155, which is a key level in our work, and we want to see it close above that tomorrow but the nasdaq 100 is benefiting big-time from nvidia's rally and has the potential to confirm a breakout it looks more likely with this move, and that was require a close above 13,600 tomorrow. so that's looking increasingly like

that is significantly benefiting nvidia.cast for this quarter was 53% above analyst expectations. that is why we are seeing a huge stockpile premarket. tom: what is your sense? the key question posed by at one of the analysts watching this company is this a short-term move to thought data centers with ai chips? how sustainable is this demand going forward? what is your take on where this positions nvidia going from here? alex: i think there will be a lot of demand for this some time into the future. the question is whether we are at the peak of the hype cycle and actually there will be a dip as we see limitations of this technology. at the moment, we are seeing this going into the cloud servers. increasingly some technology will go towards the edge. we mean alongside -- or smartphones because it accelerates the ability to process this super quickly. if you use chat gdp you have to wait a while because it is been sent off to the server before it comes all the way back and gives you the answer. that power will be brought close

jonathan: nvidia 4.07.e dow is not there, it is flat to read on the screen. this is a tech rally, tech relief rally, even with spx up, nasdaq up 1.5%. jonathan: it is a monster rally. to cover that, victoria fernandes will be joining us from cross mark. andrew simmon from morgan stanley, catching up with them in 30 minutes time. tom: you have to reframe here, if you are in the game, do you load it up and critically and we will talk about people comfortably in cash. jonathan: comfortably in cash getting 5%. tom: stop me. i was blown apart on that -- jonathan: on that deal. tom: the guy says do you have nvidia in the triple cash and i said no. jonathan: this 5% cash down, looking good on that. it is sucked away. it gets slapped around. lessig equity market stuff. ♪ he snores like an angry rhino you've never heard an angry rhino baby i hear one every night... every night. okay. i'll work on that. save 50% on the sleep number limited edition smart bed. plus, free home delivery when you add an adjustable base. o

we've talked about nvidia on the leading edge here. you have to build the data centers first and then you use the data all the hyper scalers, snowflake and others that are bringing this data real time and otherwise into these models announced an important acquisition yesterday. microsoft the day before talked about something called retrieval augmented lmns these are the models that drive chatgpt. you have a vector database that goes out, looks at the documents in the company, and gives you a chat-based answer, that transforms how we discover the enterprise it is run by amazing google veterans they layered that on top of these lmns for compelling answers and so i think that combined with their acquisition of an ai foundation model company focused on deconstructing corporate documents, they're getting ready for the next wave of ai but we're in this lull around companies who are tightening their belts and they're going to have to grind through that, execute. this database platform that thousands use is a really powerful one on their core

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it's not just nvidia. nvidia is not just hardware anymore. there's lots of players -- i don't like to dive into specific names, but samsara is helping to digitize fleets around the world. for utilities and mining, many subsectors. companies like that. there are other semi conductor companies. they are trading 40 x or 50 x pe. so there is more picks and shovels in the ecosystem. there is cybersecurity, there's cloud and networking companies. demand and utilization require more storage both in the cloud and especially as we get into multimodal ai. that's going to require more storage. companies like pure storage haven't taken off. it's hard to imagine with this uptick in demand that is going to grow with the rising tide. ed: someone that lee -- that lives and breathes artificial intelligence. thank you for your time. coming up, elon musk touching down in beijing. we will discuss the tesla ceos first visit to the country since the pandemic. shares trading at the highest level in around two months. some of the commentary coming out of the meeting

in nvidia shows it. it's not a bubble. it's real growth. >> wyou're one of these people that tom is referring to hard landing, recession probably inevitable, and the stock market valuation now relative to your view is irrational to use tom's word. >> our call has been that a recession would come later than people expected and that growth will likely hold up better than expected and that's what we have seen to begin this year, and i think where we have been wrong or where we've seen the market move against us is that we did expect better data which means tighter fed, and mostly for growth and tech stocks and that simply hasn't happened this year it could just be because of ai and because of the prospect of that e exploding to the upside, and it could be because of liquidity. we know liquidity has been a tail wind because of the spending down of the treasury cash balance there's been liquidity added to this market, and that typically is supportive of growth and tech valuations, and so it's a question on the other side of the

nvidia, is so far ahead.ng the bears, the few bears are thinking about is it always going to dominate, that's why some people think it is pricey. when you go to a tsmc or arm, they are the switzerlands, they don't have to bet on any single one company, any one shift they are sort of spread out. >> there's the multiple, karlg. >> when you guide revenue 50% above the street but your stock's up only 30%, you can see how that math works. i'm glad you brought up the morgan stanley point they raised two points one -- nvidia is usually conservative on upward revisions, historically. the other argument they make is the spend on ai is happening so quickly, it is beginning to crowd out spending on traditional servers and legacy tech >> right and i like that you bring that up, carl, because something i was talking about this morning, how do the hyperscalers fit into this we talk about this narrative for much of this year, but revenue slowing down at aws, at amazon, for microsoft cloud, for google cloud. you see this bac

it is not unique to nvidia.ave to think about how quickly they can adapt their portfolio and they can do it pretty well. at least for now the risk there is not super bad and as we think about the chinese government, they have made some supportive statements of generative ai. we have seen chinese companies come out, it is clear that they are building their own models and training them. right now they don't have any other options other than nvidia. just from a viewpoint of if they want to see a domestic generative ai market growth they are going to need nvidia. >> good to have you with us, director of research at brown hill investments with his views on the semi industry. here is a quick check of the latest business flash headlines, ex punk has recorded a wider than expected quarterly loss after getting entangled with a price wart sparked by rival tesla. the chinese automaker posted a first-quarter net loss of $332 million, analysts forecast compiled by bloomberg had suggested that $277 million deficit, they expec

let's get to nvidia. stunning earnings rally, the stock jumped up in the rankings to become the most heavily traded options name in nominal terms. it was already just one of the biggest over the last several months because of the more than 160% run year to date. here is kicker if you own the stock, there is a way to squeeze even more juice from the semi citrus fruit with options. mike, please explain, we often talk about selling covered calls and how it isn't typically advised to it that certainly woo certainly wouldn't have been in this case. this is not a stock i happen to own. we own several other semiconductor names and many traded up as basically a benefit i think from nypd's stellar performance here once that catalyst has come and gone and in nypd'ondisclosure agreement -- nypd's case it has rallied to an extraordinary level, after that catalyst remains high, i was looking at this earlier today and the june 405 to 410 calls were about call it 2.5 to 3% of the current stock price. so if you are fortu

give us the new nvidia?hat is the name you got to buy on, maybe a strong buy no one is talking about yet? >> i think one stock we like to electrification vehicles is on semiconductor. on semiconductor is stock we liked for a while. the stock moved up a light. we think it could foe potentially double from here. basically to 140. they are powering electric vehicles with silicon carbide chip. this makes range longer with less battery. electrification of vehicles will be a huge market for automobiles. charles: i got a minute to go when i first came on wall street everyone used to talk about separate semiconductors. they're just commodities. not worth it, don't be invested in there. then we also had moore's law. >> yes. charles: is moore's law still valid? is it it still part of what perpetuates this industry? >> it's great question. moore's law is starting to coming to the end. moore's law basically doubling number of tran sistores inside a integrated circuit. charles: 18 months, two years? >> exactly. you could

this is where nvidia is right now. that is where asml is. the question is, does that come down there, what is that go up to there? i think it is going to be a key question. what role is europe going to play in this story? clearly we have some ship equipment makers that are going to play a role, but i also wonder they're actually europe's real role is going to be regulatory. alix: what is the valuation gap about? we were talking about this earlier. maybe it is the regulation part. to this point, openai ceo sam altman spoken london on wednesday and told a reporter that openai could cease operations in the eu if he could not comply with eu policies. he said we will try but there are technical limits to what's possible. this raises the point, europe has a lot of sticks, and not a lot of character. is this a case where we are going to see damage? guy: the question is, what is europe's trade in this whole ai story? that is going to be our question for the next hour. is it going to be that we provide some of the kit that makes the stuff we ultimate

have missed out on nvidia's blistering rally.bal news powered by more than 2700 journalists and analysts in more than 120 countries. i'm alex morgan and this is bloomberg. tom: let's check in on stocks on the move. asos gaining on the back of news that is indeed doing a capital raise giving some clarity according to analysts around the prospects on visibility around the liquidity for that business. that is accord -- according to city analysts. rio tinto upgraded by morgan stanley railing 3.6%. morgan stanley pointing to its koppers holdings being underappreciated. glencore getting 2.8% on news that the grain trading business viterra is in talks potentially to merge with bunche. plenty more coming up. this is bloomberg. ♪ tom: welcome back to the open. here are your top stories. negotiators inched closer to a deal on raising the debt ceiling said to include capital spending for two years. cathie wood's flagship arkk fund dumped nvidia stock right before the chipmaker's blistering $560 billion rally. plus tech stocks propel asian ,

side for nvidia. i just didn't think that it was going to be quite this explosive given the lead times to get new chips from tsm and so now, i mean, i look at my numbers, data center revenues roughly doubled. earnings, they've nearly doubled and so, yeah, my price target goes up even without having to revisit my multiple. >> the valuation, i mean, normally i don't like when people say, when you look two years out -- seriously with nvidia if you look two years out -- give me the numbers. >> so for me it's actually 40 numbers. having said that, depending on how you look at their data center revenues a couple of years from now, i could get more aggressive with my model nvidia, you step back to the last cycle, they were rough ly trading at 40 times -- >> what do they do at nvidia that's better than their competitors? is it's a question they're always at the right place at the right time what is it >> it's a little bit of that nvidia, genesis, it's pretty amazing they've been able to transition that to an

i said nvidia?rds he said, no, the electricity -- everything is run on our audis using nvidia chips that's when i first heard about it i thought, wow, audi the stock was around 12. i didn't believe it, because i said, well, isn't that when you open up a gaming thing right? you want the oil and gas is that what you want me to do >> sure. >> how about farm machinery. >> talk a little oil and gas >> okay. there's a glut of enormous proportions of everything including oil. the fact that oil is where -- >> how did that happen >> because the russians are frantically pumping because they may be losing the war. we're going to be at 14 million. we're exporting, thank you, rusty brazil we're exporting a huge amount, importing from canada exporting a lot because it's light speed crude, we don't have enough refining capacity we're killing the price. we're killing the price. by the way, natural gas, there's a lot of coal. there's still coal -- >> yes even as we decommission here, when you talk about climate chan

i remember super high-end video games, nvidia is there. bitcoin mining, nvidia's there. now ai, nvidia is there. >> the fundamental level from the ceo, you're talking about what he calls a shift in computing to accelerated computing. the idea that instead of using a type of chip that does everything quite well. an intel cpu, use a chip as -- that has a specific purpose that is really good at doing simple things relatively, but a very parallelized ways. it is a huge rush to ai training software or taking the software and doing the implementation of it. recognizing cats in video or what you say to your alexa speaker and making that more efficient. alex: i do not want to damper on the day for nvidia they're having a big one. it mixed me wonder when you think about the hyper scalars, the folks like mehta, they are -- meta, they are known for wanting to vertically integrate the info structure stack. when do you see customers creating their own silicone? >> you wrote about it recently, this is the question hanging over them and nvidia has two answers to that. one is we can run

-- nvidia?t me give you the number one rule of the shop in stocks, and has the stronger the better, the the longer the better, and that's earnings and sales growth. and nvidia just had a major acceleration of both. and that's what counts most and the fact of the surprise, a gargantuan surprise. and now you're going to have all the big institutional crowd that's not positioned getting in. i am pretty darn sure the stock is going much, much higher. as long as the it's not a one-quarter wonder, and i'm pretty sure that this is not -- it is not. the good news is for those that don't own it, i think a lot of the market's in for it in the next couple quarters. i think there are a lot of areas that are breaking down. that may halt the stock for a little bit and just settle it down. but ultimately, a couple of more quarters like this, look out, it's got much higher prices to come. stuart: that's fascinating. you say other areas of the market are breaking down, as you put it so the gains are restricted t

over the past 12 months, nvidia's share price has more than doubled. are betting the company will be able to profit from its foresight in developing chips that are easily adaptable. and of course ai is the next hot thing in tech and certainly an area with a lot of growth potential. but now there are questions about whether nvidia has ability to keep up with this demand, especially as of the demand especially as other chip—makers like intel and amd try to get in the game. staying with chips — we're going to take a closer look at the the global players. despite pushback from china, the us and japan have unveiled plans to improve their cooperation, collaborating to make advanced chips together. tokyo's also agreed to match washington's export controls on china — limiting the sale of chip—making tools. a little earlier i spoke to daniel ives of wedbush securities, who told me it's a game of thrones—style fight between the us and china. the big focus is going to be on automotive as well as ai. and that is important because they play a key role which is why

nvidia is a hardware stock.re, but the history of hardware and software is the bigger beneficiary over time is going to be software. in our view, for every dollar of hardware that nvidia cells, software -- sells, software providers will generate eight dollars in revenue. we are looking to the software providers who are actually right now where nvidia was when we first bought it. nvidia was in the $5 billion to $10 billion range. now it is $1 trillion, as you said. but we have software opportunities like ui path and the robotics process automation space, in the genomic space, te ledoc, we have companies that are because of artificial intelligence are going to develop new businesses that we think are going to thrive. right now they are in that $10 billion to $12 billion range that was in place when we first bought nvidia. we are really happy that investors who own benchmarks like the nasdaq and qqq still own nvidia. they own it in some portfolios, but we are onto the next thing. rebecca: as one of the leaders in t

what is the risk from nvidia?onso: this passive investing story with everyone buying, you have nvidia in your 401(k) most likely. it is hard to draw comparisons between micros systems and nvidia. i find that when we are in the midst of animal spirits in general and how do you do find -- defined animal spirits? it is literally -- it is always hard to take a step back and look at the big picture. when you look at the valuations you have to ask yourself a couple times whether they really make sense or not. manus: it is good to quote someone from the past. let's hope the past performance is no indication of future performance. thank you for being with me this morning. the founder and ceo over at the macro compass. a good read on a sunday afternoon. adrian wong will set you up for the week with business flash headlines from around the world. >> the u.k. government is seeking an agreement with supermarkets to voluntarily limit prices on basic food items like bread and milk to help tackle inflation. the prime minister ha

most of it is nvidia lifting up the entire group. paul: in terms of ai nvidia lifting and floating all books, what's going on in china? has the ai rally been helping? annabelle: it helped on tuesday because we had names like one that creates voice recognition was up 8%. gains in the ai sector or the ai names helped. it doesn't seem so significant as other markets, but china being able to close muted is a bit of a milestone because we have seen the stocks in those indexes so much under pressure. the reasons for that we have already discussed. things like weakening external environment, domestic issues as well with the economy. the yuan pushing past the seven level. h-shares are in focus. we have been watching for that to enter a typical bear market instead we got the drop in the golden dragon index overnight. shery: how are the china pmi numbers going to factor into investor sentiment? annabelle: that something else would be really closely tracked. investors are looking for any signal that there has been a stabilization in the economy

we're talking about nvidia in a vacuum in this particular quarter. to replicate that quarter after quarter. cheryl: the year over year comparisons, wait until a year from now. the retail industry, they've lost about 100 billion within the last year because of retail theft. it's been kohl's, foot locker, target, walmart, feeling the effects of retail crime. there was a billion dollar warning from target alone. what's your take on this, jay m. >> i think -- jamie. >> i think there's two areas people have to focus. one, if there's groceries involved, i think inflation is a big problem. people are suffering, having to spend enormous amounts of their budgets supporting their food or whatever just general things that people buy every day and so it's expensive and the lower income levels you're at a point where you can't afford to buy these things so there's some theft there but i think the bigger piece of it is look no further than the lack of checkers in the store. you have all of these computer based systems that are now allowing you to check out and peo