i think that nvidia is not even remote i think nvidia is not emblematic of the hype because they are actually delivering the numbers. the hype is or what's unknown is all of these companies, whether they're in china or the u.s. or the hyper scalers or the vcs are clamoring to get these a-100 chips. the reality is maybe it's hype, maybe it's not, but nvidia will monetize it until we find out. what i don't see outside of a few companies is how these companies are trying to have their own chatgpt. to me, i think that what you're seeing in the options market today is so fascinating, scott so, we were looking at today the most heavily traded options contract for nvidia. nvidia is two days, a 500 strike, 30 points away it's trading at of $11 it's 30 points out of the money. it should be trading around 10 cents. it's like $11. i think there's so much energy in this market underneath with options. it could move much higher than 10% just because of what i'm seeing in the options market and how many people are long this stock going into the earnings. >> i know, but you got to admit, you're rea

shares of nvidia topping the estimates. nvidia seeing huge demand for chips. shares up over 7.5%. >>> smark is dropping plans for the deal for u.s. steel. take a look at shares right now. u.s. steel down 3% cleveland cliffs is up fractionally. >>> and nike posts the tenth straight losing session which is the longest since 1980 >>> and guess has revenue growing by 3%. helped by soaring sales in europe and asia. >>> boeing trading lower in the pre-market the company warning of the manufacturing flaw on the 737 jet. shares down 2% right now >>> shares of splunk jumping on the revenue earnings beat in the second quarter the software company boosting sales outlook for the rest of fiscal 2024. >>> ahead of the summit at jackson hole, markets are poised for a mixed open coming off the positive session with the s&p posting the best day since june 30th taking a look at futures with the dow in the red it looks to open 60 points lower. s&p up .50%. the big story is the nasdaq up 1% higher in pre-market. joining me now to discuss this . it is always great to have you here

nvidia is capitalising.are with al where we work with the internet 25 years ago, when we didn't know who were going to be the winners and losers. if you went back, the winners didn't exist then and for nvidia, don't exist then and for nvidia, don't exist now. the other implication of the stock market is that nvidia has a valuation of more than $1 trillion for shares, the six most valuable companies in the world, one of the companies in the world, one of the companies that has driven us stock market performance. it has to keep the stock market buoyant. i back it is astonishing that it is one of the world's most valuable companies, yet many will not have had a bit. chances are, increasingly, they will be using it. i am looking at the numbers. one of the chips, d h 100, it sells for £40,000 —— $40,000. numbers. one of the chips, d h 100, it sells for £40,000 -- $40,000. it is a big payday. you could flip that around and say, how many companies can in the end have a profitable enough business model to sustain re

i think that's the next question as you look at nvidia. >> does nvidia have all the capacity to meet the demands it needs? >> it's not clear what the nature of demand is. remember toilet paper during the pandemic we all do. there was a run, people were buying more of it than they needed for a couple of weeks that's what's happening with ai chips. i spoke with frank slootman, the ceo of snowflake they also reported after the bell, data driven software company. he's stockpiling ai chips, buying more than he needs because of that shortage and i asked him about the nature of the demand and the business models behind ai here is what he said >> ai is not going to be cheap somebody is paying for these wonderful nvidia results it needs to be a business model that's associated with the technology one of the things about search when it showed up not only that search was great technology but had the business model otherwise it's fun and games and is an expensive hobby that will not last all of these things will have to get sorted and we are going to be super confident that we will. >> i think t

i don't expect a major miss to nvidia i don't know what nvidia is going to do. i can't predict it nobody can nope predicted revenues up 50% i predict you won't see another reset of their guidance or their quarter where they're going to increase it by 50% relative to expectations i can say that with little fear i'll be corrected on that. that's what drove it if we've seen nvidia come out and say, okay, revenues are 5% and 10% more than we expected, then i don't think you would have seen the move that we've seen you don't see companies increase revenue by 50% versus guidance you just don't i don't think we'll see that again, is my point so the move -- except the downside move will be much more muted. >> you don't speak to 50% -- you don't see many stocks, kristina partsinevelos, at 50% since their last earnings report since this was done in three months. that's what nvidia has done. you're all over this company and will be covering the earnings in "overtime. what matters most? >> data center revenues. that encompasses ai and all the chips we're talking about. the

nvidia is up 200% this year. they have that incredible ability to expand their gross margins to a degree others just can't compete with >> and their cash flow at $6 billion, hence the reason they had the buybacks the discrepancy there, we're talking about 71% gross margin to 40, not even, for intel, and probably will continue like that because they don't have the same margins, as you pointed out, like nvidia. in terms of competition, i still stand by the statement based off the research that right now there is nothing, but that is the biggest debate going forward that there could be 2024-2025, especially when we start talking about the in-house players, qualcomm and apple do well with smart phones, but they still can't run. josh, you can't throw that out there and not explain it it's like waiting in line, cpus, you have to wait for the next one, and then you can run that compute whereas parallel processing it all happens at the same time. that's the difference with gpus and cpus institutional investors, goldman s

question, nvidia does. nvidia has a fundamental tail wind the mega caps don't i think portfolio managers -- and they're already under weight apple and some of the other mega caps just because of where they are in valuation i do think you're going to see a little bit of an internal rotation amongst the magnificent seven going towards nvidia at the expense of the other mega caps >> if institutions and mutual funds, hedge funds, are under weight we had a suggestion apple is under owned in that cohort another firm says a lot of the mega caps under owned in terms of that cohort does that lead to a chase? does it lead to a chase that gives the next leg after you consolidate? >> i think it does but i think in the fourth quarter we set up perfectly for a chase for performance driven by the positions in a lot of those mega caps >> so hold your thought. steve liesman is out in jackson hole there because of the big speech tomorrow. joe said the chair tomorrow needs to walk a, quote, fine line, or he could send the bon

nvidia would not break out the actual revenue.ne thing it continues to stress is that they have had a massive ecosystem out there and what they are doing on software is driving additional demand, both on the software side as well as on the hardware side. it is impossible to really know what the actual revenue potential is on the software side of things, but we think it is a major contributor to this company. haidi: great to have you with us, angelo zino from cfra research. we have results coming through from qantas. more or less meeting expectations when it comes to the profit. when it comes to revenue and other income, 19.8 2 billion aussie dollars. a little bit stronger expectation. a lot of the focus when it comes to these earnings will be on passage -- passenger volume. let's get more with paul allen. what were the key takeaways? >> the key takeaways are so passing through right now. you covered some of the key ones. maybe could have hoped for better after the blowout first half when we got a huge return. the momentum continue

let's get back to nvidia.imbing in after-hours trade after a revenue forecast that was much stronger than expected. for details we have bloomberg's debbie wu, the expert on this subject. debbie, bring us the numbers. >> they are forecasting that will -- it will hit about 16 billion. -- $16 billion. that is way above estimates. there is concern that investment might cool. also, it may modify concerns about not getting enough supply. they did say something about the inability to keep up with demand. it is happy with the progress of that. lizzy: there was one question mark raised earlier, about the buyback. what does it mean and why are they investing in it? >> i am not an expert of share buybacks but probably it is simply seen that there is no great mende opportunities or they are going to see a surge in their current products and new products. they are mostly focusing on trent to ramp up production to help it be able to get out as much tips as possible to satisfy the very strong demand from its customers. lizzy

nvidia has been preparing for this for over two decades.e are seeing two simultaneous platform shicfts at the same time one is the accelerated computing because it is the most cos effective and energy effective and best way of doing computing now. >> nvidia shares rose in after hours trade. here is the chip makers in europe which are trading firmly this morning asml is up 3% this morning in asia, the reaction in the chip makers overnight with green across the board there as well nvidia shares lifting the chip making space which as we discussed early they are week, t -- earlier this week, would be a wider set of perspective >> net income jumped to $6.1 billion to date. there's huge numbers arjun is here on the set they surpassed expectations. they beat on the actual numbers and also the outlook as well >> nvidia is sitting in a perfect spot in terms of positioning in the trends of broader adoption of a.i. and companies willing to invest in artificial intelligence and the backbone of that is nvidia's gpus which go into the data centers to tra

it's nvidia and broadcom.roadcom is a chip designed for like custom chips for the hyper scalers for ai as well as networking. they said last quarter it would be 15% of the revenue, going to 25% of the semiconductor revenue next year. just in the wake of nvidia and marvel and some of the others, do they take that number up. the second thing people are looking for is the rest of the semiconductor business. it's kind of interesting, it's been very strong. people are obviously worried about sustainability. if they're right on the ai side, the non-ai piece of their semi business could shrink double-digits next year and they could still grow. people looking for their commentary and outlook on that. the third thing is vm ware. it will take their software mix close to 50% of revenue. i think things are actually looking pretty positive. they got uk and eu approval. the hsr deadline, we're just waiting on china. in the meantime they raised permanent financing for it. they seemed pretty confident. they've been saying clo

when we think about nvidia, i look at nvidia like intel and cisco. the company is so large in terms of its market cap to be able to trade at 60 times earnings, they have to do everything just right. if you want to get into the space as jackie was saying there are other places to look as well. guy: do people talk about 1999? i do not hear that conversation very often. is anybody talking about the comparisons between the two? jackie: absolutely. we did a survey a few weeks ago, bloomberg terminal users on whether they saw similar signs of what we are going through in the tech rally to previous tech bubbles. over 50% of the 600 respondents that came in with their answers my half of them think that we are not close to the bubble bursting. that seems to reflect, a really big bullishness that there are still more, this has legs and we have more to go before we see the real warning signs show up. alix: i think in 1999 that is one guy was wearing birkenstocks with socks. jackie, where you most interested in when nvidia crosses? what is the number that is goi

both nasdaq and nvidia losing early gains. mike santoli is with us on the floor. i don't know if it's harker, necessarily. >> it was nonhawkish, to say the least, if that's the message we'll get more broadly out of jackson hole, i think it's acceptable to the market bond markets didn't get a jolted f jolt from that to me the setup has more going on, which is to say we had the minimally qualifying pullback, five minutes from the highs in the s&p 500. a luke warm comeback, people say this is make or break in terms of the trend and nvidia comes out, a rational response, which is, extremely high expectations, largely met, stock mostly priced it in, but no real coat tails because it's an nvidia-specific story when you don't get a flush of buying frenzy on that nvidia news, we're settling back. i don't think it's determining this bounce has failed but it shows you we're in more of a neutral position market wise. >> or the market is more focused on what's happening with the market, two-year at 5% now >> i think there's no doubt the focus remains intense on what is going

is nvidia. that's it. everyone else is spending to buy nvidia chips. that's why i don't think it's -- they're all put together because they're the direct recipient of where everybody else is spending. >> yeah, i mean, part of the point, you can't afford to lose nvidia certainly not at the current time. chris harvey suggests today, quote, next week's reports and an a.i. sell the news reaction may help mark the near-term equity bottom. if you're looking for signals of when some of the selling could start in mega cap tech, do you need a sell-the-news thing to clean it out a little bit? >> maybe. but my inclination is opposite brynn's. i think this is a crucial earnings report and one of the most important earnings reports we've seen in a long time. >> sure. is it right now the most important stock in the market? >> i think for sure. listen, part of why i agree with br brynn, we know they're not doing once they once were. >> broadcom is benefitting. >> they make auto and industrial chips which is doing okay. given its size, its importance and how much it's

his nvidia of the cleanest way to play ai or do you think there is also other alternatives to nvidia now? >> that's a question i have been asked often. nvidia has 95% ai accelerator gpu market share just as long as you know it's not the discrete pcs, it's the data center. amd is coming to answer to this in q4 with the mi hundreds. this will be an important moment. we hold high allocation because of the demands we believe that even if the chip is not as powerful as the system or platform, there's so much demand that it will see similar beads, maybe not triple digits, but phenomenal warnings over the next four quarters starting in q4. we are very bullish on the runway over the next 18 months. rishaad: i want to get back to that $25 billion share buyback. share buybacks occur because the company may well see nothing better to do with the money. but the other thing is they think their stock is undervalued. clearly the latter is not true so why give back that 25 billion when they could use it, to your point to generate more income to shareholders through investing it? >> i believe the rea

nvidia long-term?ou look at the founder supply chain, both tmc and samsung support nvidia's business. there is continuing growth they see in the dataset. advanced packaging companies and others that are building these next-generation packages that are foundational to what we see in compute and ai, i think those companies will benefit with materials companies. everyone that's involved with the unique supply chain. haidi: it's interesting because we are expecting this to lift a lot of the other ai names, especially the nasdaq has been struggling for traction. this is one of the few growth stories left. as you say, with unique production and distribution aspect, is it really help everyone else is depending on this ai narrative? >> i think it's going to help them over the coming year, but you are definitely seeing an inflection point where ai, in terms of training will maintain itself within the data center. there's a very large opportunity over the coming years to begin to incorporate ai. think about pcs

you guys hold nvidia across multiple fronts. what was your take from this nvidia earnings print?> thank you for having me. as you guys alluded to in the numbers, the kind of growth, we just don't see any sequential growth like that. the data center business is now 76% of total revenues. five or 10 years ago, it was a gaming company and now it's all about data center. it's about fundamentals with your outstanding, a huge beat in a huge raise, it's like the godfather two, the sequel as good as the original. there -- if you had been paying attention during the quarter, expectations were so high. there is a lot of people get uncomfortable with parabolic group like this. we are more comfortable on wall street with steady and linear growth. this kind of growth, optically, people say this cannot continue. there is a law of large numbers but they are so well positioned that for the foreseeable future, i suspect the fundamentals will remain strong. they conveyed that they are getting additional capacity and have more demand than they can address. caroline: i'm interested with the fact tha

nvidia is key.ot just the chips but also the networking that goes behind the chips and the software. so really great position. the cloud service provider reported recently. as chkristina mentioned, it's lower. >> what would move it lower and what would you need to see in this report to make you put a buy rating on it? >> sure. kristina mentioned supply, and i agree. there's a little be it of a potential issue over the next several quarters with supply and nvidia to meet the demand out there. that's one thing we'll be looking for. i think expectations are universally positive for a guide that's higher than consumer estimates as they said here today. that's sort of the way the table is set going into the end of the year. there's also a couple of other moving parts. what will be the impact over the next six to eight months? i think there might have been preordering with restrings going into place later this year, which are already in place. and then really this is a competitive environment that we're l

can i -- i've talked -- look i had to -- i got nvidia nvidia is trading down right now.'t get petco is down 20%. >> you know what, nvidia don't care for petco he likes just food for dogs. the stuff looks good i've had it. top flight. >> you've had -- >> when desperately hungry you're hungry. >> >> i thought it was bird's eye. looked like a burger. >> pet food. paved my own driveway. it's incredible. >> i ate puperoni. >> we got to go. >> we'll see you soon. jim cramer this morning as the dow is turning around, early session highs up 170 more reaction to nvidia's results and philly fed president like from jackson hole in a moment . >>> good thursday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber, seema moody live at post nine of the new york stock exchange sara eisen has the morning off the nasdaq was looking to outperform premarket, but that story has flipped. the dow up 0.6 financials up 1% we'll talk about that as a very important day takes place tomorrow we'll take you live to jackson hole, wyoming, first on cnbc inter

visit indeed.com/hire >>> nvidia trying to pick up the space here ahead of earnings tonight.demand, but one that analysts say the wider market is depending on to deliver. our deirdre bosa is here to break down what to expect. >> the committee question going into tonight, can nvidia do it again, deliver a blowout quarter amid sky-high expectations that's what happened last time the bears say the lightning will not strike the same place twice and they say this is a supply, not a demand story, which is a little trickier. the bulls saying that it's the only way to play generative ai whatever happens, it will be crucial for the broader markets. nvidia is now a $1 trillion plus company and it's tangible benefits from ai, they give investors hope that other beneficiaries like microsoft and google eventually follow in terms of revenue and their own profits even if they didn't deliver ai numbers in their latest reports. the hype cycle, it could use a boost. the magnificent seven have lost steam and disappointment from nvidia can take the broader markets with it. the question, is gener

shares of nvidia were up and then rolled over. it comes ahead of their critical earnings report tomorrow. rest assured, tomorrow we are all over that. >>> elsewhere, a couple of retail wrecks not helping the story, either. macy's and dick's sporting goods falling sharply on earnings for those companies, and then there is the banks, where more credit downgrades see those shares fall across the board, including most of the well-known regional names. it brings us to the talk of the tape, where it means a fall to fear for investors. let's ask gabriela santos, global market strategist. nice to see you. i look at your notes and you say this is not necessarily the start of something worse once we hit the fall. >> i think we've come a long way in a year and a half in terms of appreciating that the bear market is likely behind us, as we believe, and that we're back to seeing a normal period of volatility in equity markets from time to time. so a 5% pullback once a quarter or a 10% pullback once a year within a bull market. that's where we

joe: i have not heard any nvidia talk. i am sure there are plenty of people looking at their phones and looking at the line going up, but full disclosure, i have not yet, other than me looking at my phone and my jaw dropped. i have not heard about -- i have not heard much nvidia talk. alix: that is an interesting point because a conversation that's been percolating is that nvidia was leading rate volume rather than the other way around and i wonder if we kind of overdid that a little bit. what do you think? kriti: two different stories. if you look at the nasdaq, it's peering a lot of the opening gains it had, driven by the nvidia moves, shares higher by 3.5%, but i think it comes back to what joe was talking about, which is there was this narrative that may be ai could solve all the productivity and production problems in the labor market. that is the theme of the academic symposium at jackson hole, structural issues in the economy. if we are talking about the labor market and labor being the kind of metric of success for

like nvidia because everybody else is buying their chips and spending the money and nvidia is making it. i think it's a unique time with a unique company, and i think when we see this kind of company and these numbers is few and far in between. >> steve, i will come back with that other pick. >>> shares are down 10% this month alone, and the committee's take and how to play the big banks coming up next. we're back after this break. cvs is pretty... flex. wanna schedule one online while prepping dinner? gravy. avoid the wait by scheduling for you... ...or the whole crew. or if you prefer to just pop in? do you. and if you wanna even tack on a covid-19 vaccine to your flu shot, feel free! and speaking of free? our flu shots are... well... free. really? yes, really. healthier is getting a flu shot on your schedule. cvs. healthier happens together. (christina) with verizon business unlimited, i get 5g, truly unlimited data, and unlimited hotspot data. so, no matter what, i'm running this kitchen. (vo) make the switch. it's your business. it's your verizon. every business that's why comca

after what nvidia did and what the market did after nvidia reported, how should we be thinking now aboutcom? >> i think you save the best for last. i still view broadcom as a reasonably valued way to participate in the generative ai trade. this is one of the more strategically opportunistic plays in the semiconductor space. they're going to grow their ai revenue from where it was 10% in '22, 15% in '23. ultimately 25% in '24. a billion dollars in ai revenue. and i think that the fact that nvidia had that type of reversal takes a little bit of the pressure off of broadcom in terms of what the price reaction's going to be post earnings. i think you can see a strong price reaction concurrent with a strong earnings. >> quick break, final trades right there after. [phone: starting route.] technology helps us navigate to work. [phone: go straight.] but, to navigate the complexities of modern work... [phone: turn left.] ...you need more than technology. you need cdw. [phone: you have arrived.] so we'll implement cloud based microsoft modern work solutions like microsoft 365, teams and azure, so

nvidia, a major driver for the rally. shares hitting another record today, and are up 7% since monday, it is now up 237% so far this year. not the only tech stock seeing strength apple closed back above its 50-day moving average today. alpha bet's biggest move grasso, feels like we're back. >> it's funny, because, we've seen this where they were the risk stocks and now they're the security stocks, the defensive plays. they were the stocks to sell in a rising rate environment, then they became the stocks to buy in a rising rate environment. everything sold off enough to get people a little taste of a bargain. the bargain was still overpriced, but yet people t think, this is where i'm going to get the gains going at the year end >> yeah. we've seen rates sort of come down a built, it, won thbonawyn be settling in >> yeah, we have some economic data out, revised gdp, adp numbers came in lighter. so, we're seeing signs that perhaps the fed doesn't need to be as aggressive i would argue that maybe the sentiment is shifting her

we won nvidia is going much higher. thanks.et's go with vivek ramaswami back to the debate, he told voters he believes what he believes is the greatest threat we face. role that tape. >> an invasion across somebody else's border when we should use those same military resources to prevent the invasion of our own southern border. we are driving russia further into china's hands. the russia china alliance is the single greatest threat we face. stuart: the single greatest threat we face? china expert gordon chang will react to that later in the show. everybody is talking about last night's debate, it was a good debate but trump surrenders in a georgia jail. willet killed a good bows from the debate? i will ask ronna mcdaniel next. ♪ hi, i'm norma, and i lost 53 pounds on golo. (soft music) a lot of people expect to fall apart as they age, but since taking release, my energy's improved, my skin's improved. i've never felt better. ♪ let innovation refunds help with your erc tax refund so you can improve your business however you see

and now i think it is nvidia's turn and nvidia is basically where intel was several decades ago in thismation what i think the technology from here to some extent is the ability for the cloud players to monetize this new computing paradigm because their spending is not growing as much it is special on top line. they have to find new and innovative ways to monetize this technology, go from advertising-based models to more subscription-based models. those things will unfold over the next few years what is clear is that they have to outfit the data centers with the new computing technology. >> i don't know if we can show a 30-year stock chart of cisco that company trickled its revenue from 1997 to 2000, from $6.5 billion to $19 billion, the stock went up 10x, then revenue flatlined 2000 to 2003 and cisco lost 70% of its value thereafter, you can go back further if you can, i don't know if you can show the late '90s. but so we -- and i saw dan ives making the comparison there, you can see the -- it coming back down in the early 2000s. so when ives is saying this is the 1995 moment, well, we

that makes sense that all eyes are on nvidia and all eyes are on nvidia data center segment area the corridor, expectations are high. by side expectations are about one billion for revenues for this quarter and next quarter, so for the companies to do surprise to the upside, they would need to clear the market. however, over the past few weeks, there have been a lot of investors shorter term concerned about capacity constraints. so basically the point is there is no imminent amount you can because there's a physical constraint to how many gpu's can produce. as it emerged, the center has been pharaoh will but i agree expectations are high so they are going to have to hold some outstanding numbers to beat them. matt: if you are a hedge fund manager and have a couple hundred million dollars to play with today, do you go short nvidia just as a tactical move because the chances of them beating expectations are lower? ivana: we run a strategy that is a little more long-term focused and nvidia is a top holding in our etf. we would not go short here because you are fighting against a powerfu

that's nvidia. artificial intelligence, data centers, the boom around that super computing and microchip company nvidia up about almost another 2% ahead of earnings later on this afternoon. and just to give you an idea of how high the stakds are right now, because it is such a bulk of the year to date gains so far in the s&p and the nasdaq, options traders are already pricing in what could be a 10% move up or down in this stock. and just to give you an idea, over the last eight quarters after it reports it's up or down about 8 1/2% so already expecting a slightly more than volatile report on average. so watch nvidia shares and then the consumer focus, as kelly points out it's a very mixed picture. but there are softening consumer trends and certain discretionary areas. we're hearing that from the likes of foot locker which cut its guidance for the second time this year on softening consumer demand peloton seeing some of those subscription weakness numbers as well kohl's, though, generally positive a

so could that be a hurdle later on for nvidia? and if we're going to talk about the stock moving today, nvidia's contractor, taiwan semi is up almost 2%. today it reiterated its prior outlook in light of prior reports suggesting conditions have weakened. one name i wanted to bring up is analogue devices, higher ahead of earnings about 1% higher. there are some concerns, though, about analogue demand, and weaker demand coming specifically from china. >> i'll tell you what, the sell side is giving us a lot to chew on just on nvidia alone. thank you. kristina partsinevelos. >>> still ahead, investors may be buzzing about nvidia, but one top investor says there's another key name investors need to be looking out for. >>> first, bracing for a breakout, chris farone forecasting a significant move in one part of the market. we're live from the new york stock exchange and you're watching "closing bell" on cnbc. my cpa told me i wouldn't qualify for the erc tax refund, so i called innovation refunds. their team of independent tax attorneys

is nvidia a buy ahead of earnings or should you wait to see the numbers?ead to x to vote. >>> up next, raising the red flag he's been raising them consistently are there any red flags left to raise? morgan stanley's chris toomey breaks down his forecast after the break. >>> later, banks sinking in today's session. 'lwel drill down on what's behind that move the citi custom cash℠ card automatically adjusts to earn you more cash back in your top eligible spend category. hi. ♪♪ you don't have to keep tabs on rotating categories... this is the only rotating i care about. ... or activate anything to earn. your cash back automatically adjusts for you. can i get a cucumber water? earn 5% cash back that automatically adjusts to your top eligible spend category, up to $500 spent each billing cycle with the citi custom cash℠ card. i love it... [voice vibrating] >>> we're back summer seasonality dragging down the major averages in august the s&p now on track for its worst month since december our next guest says the most likely move for stocks here is lower. joining

stacy rasgon joins us next to talk about nvidia. this is bloomberg. ♪ what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. my cpa told me i wouldn't qualify for the erc tax refund, so i called innovation refunds. their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your small business qualifies. matt: this is bloomberg markets. shares of nvidia drove the nasdaq and broader market higher before pulling back. stacy rasgon is a senior analyst and we see the nvidia shares of the rest of the market has come up. talk to me about the earnings report and how impressed you were yesterday with the raised outlook. stacy: it was clearly a good report,

nvidia down 15%. reporting earnings in two weeks. what should we expect from the group as we head into that report we will ask the chart master what are you seeing? >> and before we get to the charts, many ways it is always a beta trade just consider the fact that semis are down 9.5%, from their peak three weeks ago, the s&p down three on wait down from the original peak, s&p dropped 27, stocks dropped 48 from the low in october, from which all equities have been bouncing, s&p's up 28 and the stocks up 67 it's just juice. so the question is, is there more juice to the downside right now having already dropped 9.5%. i should think so. let's look at three identical charts so the first is the smh. no lines, no drawings, no jumts. let's put some in. second chart it is what it is and are we ordained? we have to go down to the line no do i think we are? yes. let's look at another iteration. final iteration. we are in a channel. the lower is another 4%. ultimately, i think we will get down as much as seven from here. >> interesting moves he

i think we saw it with nvidia. that's just the appetizer to what we will see with this trillion dollars tidal wave of spend over the coming years for players across the tech -- >> but these stocks are up like five years' worth in eight months. i mean, even with the pullback we have seen, a lot of stocks are up 30, 35%. we can't just continue to suggest that they are going to, in your words, rip higher to no end, are we? >> growth. everything we see from growth across software, across chips, i think ultimately the numbers, especially going into next year accelerate 15 to 20%. i think this is a 1995 moment. not a 1999/2000 movement. it started with the internet. we are seeing the biggest transformation that we have seen in 30 years in tech. that's why our view across the board, this is just the pause. it's halftime of the super bowl rally that we will see in tech going into the next two or three years. >> i know. at some point the air gets thin, no? look at nvidia. i know you don't cover it specifically like you do a

nvidia because of a very bullish morgan stanley.t microsoft google, service now and cisco. watch cisco, it is doing better. for right now, we are starting to realize it is pretty much all hype. because nobody will know was -- knows what to do with ai. until somebody can give me a general use case where general ai actually saved business money by cutting support staff for increasing the knowledge of its workers, they can send the stock cascading south. that is where we are in the dog days of august. we are sick of ai. i would like to say there are always market. i am jim cramer. see you tomorrow. "last call" starts now ♪ >>> i'm brian sullivan live from florida tonight. it's a special edition of "last call" because we have an exclusive and wide-ranging interview with florida governor and gop presidential candidate, ron desantis we met with him at the governor's mansion in tallahassee earlier today. where we covered a truckload of topics, including inflation, debt, deficit, possible entitlement cuts, his well-known fight with disney a

i'm a big bull on nvidia, the magnificent seven. i believe all the hype we're seeing around a.i., which is largely driving nvidia, i think in hindsight if we look ahead five, ten years, we might see we had underhyped where we will land in the future, but for the moment, it is fine to be able to continue to see the performance we expect, continue to understand these macro conditions and how the fed will make moves as a result of them. >> malcolm, you have a lot of these stocks. you say derisk, would you derisk from these? >> as you might recall, i was actually selling a -- trimming my positions over the last couple of months as we were getting these higher highs and notching these record prices. i've been taking chips off the table preparing for the opportunity to scoop these names back up at a bit of a discount whenever the inevitable downturn does come. i'm still in the camp that believes that the yield curve inverting is an ominous sign that just has yet to be proven true. and i also believe that the fed is going to say something

we have nvidia earnings and focus today.e have talked about the potential implications for the s&p. what about for china tech? some are saying that nvidia overshadow jackson hole. mark: it is a big deal for the china market for sure. the last time nvidia reported quarterly earnings was in may and it was around that time that they had a good result and the stock performed extremely well. it flooded over into asia as well. the hang seng tech index which is where most of the big china names are with alibaba and tencent, they are in the index. that started to rally pretty well off the back of nvidia and there was a good run. it has since given up some of those gains but still holding well above the levels that we saw back in may. certainly, nvidia has spurred a letter of interest in tech anthony's in the greater china area and also korea and taiwan. it is a big deal for people watching the tech space in asia. they will be glued to their screen tonight to see how nvidia trades because a good performance there will probably ensure

david, i say nvidia is an ai indicator.happening when the report hits. >> great to be with you. everyone is looking to capitalize in this ai revolution. when this report comes out and meet analyst expectations we will see the market rise. if we see things deteriorate it will take things down. big question is whether supply and demand ratio is the new trend or the same idea as people buying too much toilet paper with covid and people are double buying right now knowing this revolution is building and supply challenges have been significant. i think it's a progress report in the ai industry and most important it will be the call. whoever gets on the call and looks to the future is why the stock moves. >> i think that is right but here's the deal. this doesn't change the world economics. everyone is banking on nvidia. we have fed meetings this week. we need to have eyes on the banking industry which we are 5 months into this thing. i think there are challenges that are just beginning to show up today. stuart: you see a recessi

lauren: this is the head of nvidia earnings. >> all nvidia today.n: confused on how to say it. synopsis is riding this ai wave and help in the chip design, in the semiconductor design and get 10% of the revenue from ai and that's growing. it's up 2.1%. this is a lou basanese pick. stuart: thank you, lauren. frontier airlines wants to turn your student loan debt into free flights. not sure how that works. we'll try to explain it. teachers in portland, oregon, being encouraged to stop handing out 0s as grades. the district thinks this will solve inequity in schools. critics argue it's just hurting the kids. we have the story. donald trump will turn himself into prosecutors in georgia tomorrow. the day after the republican debate. is the legal process being used for political purposes? i'll put that to shannon bream. shannon is next. ♪ i may be known for my legendary football career, but truth is, i love a bunch of sports. the only trouble is knowing where to find them. that's why i got xfinity. so, i can easily find and watch whatever sport i'm into a

a lot of anticipation ahead of nvidia. parts advancing right now even after the company missed on second quarter earnings and cut full year profit outlook and shares up about 3%. investors maybe optimistic about the strategic review and shakeup and retailer struggled to keep up with inflation and cytocritted head winds for competitive price targets and stock saw larger ever single day drop back in may. look at this. it's not pretty when the retailer slashed dividend to aap still down 52% year-to-date. and advanced auto parts report comes on the eve of its replacement on the s&p 500 by johnson & johnson spinoff kenview and shares up three quarters of a percent and shares go up prior to trading on friday. netflix password crackdown a categorical success. according to new data from antenna, netflix crackdown kept signups at elevated levels and netflix saw 2 a 2.6 million sigs in july and higher than normal and back in may, the streaming company began charging $8 more a month to add additional users, re kids stealing your pass

stuart: is nvidia wanted the magnificent seven, the stocks with nvidia number seven. >> that's exactly so overdone with evaluation and s&p 500 you're basically buying the seven stocks are called tech fund a drag, not the best place to put your money you not get intruder into diversification. stuart: we hear from you frequently, it was good to hear from you today. the opening bell it will ring any moment. a gentleman with a young child, several young children at the nasdaq, which one is going to press the button, one of them is, will the be the child, come on press the button, but the child do it, they've open the market, up and running, not that much change, on this monday morning you're not seeing that much price action i'm not sure the trading volume is down for the summer, that is usually the case. >> its light volume, everyone have a good time trading stocks. stuart: we have opened up in the dow is up nine points, the s&p 500 up a quarter percent, 12 points in the nasdaq composite is also higher to the tune of .4%, not that bad, i presume big tech will do fairly well, microsoft at

nvidia could not save the day.kets react to chairman jay powell. ♪ larry: hello, folks, welcome to "kudlo

in the case of nvidia absolutely, my next target of 600. suspect it will get there, then you will say it is the target of 800. i don't want to write the script. that is why. you just never know. it is a powerful story. 30 trillion calculations per second, ten times faster than any other chip out there. that's why -- stuart: 30 trillion calculations per second. china does not get that chip but the hottest selling chip made by nvidia is $40,000 chip and by the way you can't get just one, you need several because you need to put them in an ra, lined up and they worked together. stuart: $40,000, need to line them up. >> we are not talking about an nvidia chip in your iphone, we are talking about computers that are very powerful, in air-conditioned rooms et cetera. stuart: 492, nvidia right now you think it is 600. >> i've been long since 175. stuart: congratulations. >> i don't get them all right but i got nvidia right. stuart: well done. that's the market. now look at this. mitch mcconnell freezing up, the priest lasted about 30 seconds. watch

>> first, i can't speak for nvidia. i don't cover the stock. nvidia played the a.i. darling of the year. that has the potential if you have a.i. exposure. that is a lift. start there. secondly, a lot of the stocks in our coverage, google, meta, amazon are situations where the consumer is obviously driving that. so long as the consumer data is strong, we will see what happens. 8% interest rates on mortgages don't help. we have to see how that flows at this point. >> wasn't a.i. driving the nono market? >> i know you don't cover nvidia, but does that mean these stocks have more room to run? >> there are three components. the chips and semiconductors and the application layer. the first two are defined and understood those benefit from the trend. a lot of people haven't figured out what to do with a.i. yet on the application side. i don't know there will be followthrough. >> brad, that is interesting. we have gotten so excited about a.i., but we don't know what the transformation will be from the emerging technology we are always talking about. a lot of times we focus o

we learned from the "ft" saudi arabia is purchasing nvidia chips. you have china, a bunch of companies, hyper scalers as well demand is clearly there. yesterday on your show josh brown made the argument how can nvidia continue to blow past analyst expectations it was 50% past estimates the last quarter talking about guidance can they keep that momentum going when so many companies, countries, et cetera, are front running their orders right now to get a leg up on the ai push >> also the issue, hey, make sure you ask stacy ras con on "closing bell" about supply constraints because of the quality, quote, unquote, of the chips nvidia produces and their dominant position in that area, can they produce enough of what people want. >> that would taper down revenues the sole contractor for nvidia make their chips i listed the names that have want demand. that is a big issue now which is why it will be about this next year, how will this momentum go with front running orders. jimmy is looking at it >> may 24 to may 25 the stock jumped 20 post earnings. the qu

nvidia is catalysing.0 years ago, when we did not know who would be the winners and losers, and if we look back 20 years, the winners of the day may be didn't exist then. that is the biggest challenge for nvidia. the other implication for the stock market is nvidia has a valuation of more than $1 trillion for its shares. it is the sixth most valuable company in the sixth most valuable company in the world. it has to keep delivering in some ways. it is the world. it has to keep delivering in some ways-— the world. it has to keep delivering in some ways. it is astonishing that it is one of — in some ways. it is astonishing that it is one of the _ in some ways. it is astonishing that it is one of the most _ in some ways. it is astonishing that it is one of the most valuable - it is one of the most valuable companies in the world and many people will not have heard of. chances are they will be using it. there is one of the chips, the eight 100, it sells for $110,000. it is a big payday if you are in the right

the options volume for nvidia exploded today, traders betting on more gains ahead.> yeah, traded all 2 1/2 times its average daily options volume, that made it the busiest single stock that traded today so, we did see calls outpacing puts by about 3 to 2 the busiest contract were the weekly 500 strike calls that expire a week from tomorrow. we saw about 34,000 of them trading. risking about 1.7% of the current stock price on bets that the stock could retest those highs that we saw overnight. >> mike, thank you of course, for more options action, be sure to tune into the full show tomorrow, 5:30 p.m. eastern time coming up, will the auto workers go on strike more on today's vote deadline and what it might mean for the legacies like ford and gm, when "fast money" is back in two. (fan #1) there ya go! that's what i'm talkin' about! (josh allen) is this your plan to watch the game today? (hero fan) uh, yea. i have to watch my neighbors' nfl sunday ticket. (josh allen) it's not your best plan. but you know what is? myplan from verizon. switch now and they'll give you nfl

they have a 70% growth margin versus nvidia.ter] matt: good point but most of the margin is a dream come true. do you look at the secondary effects of ai or companies that are not pure play? what else out there could be an nvidia if they focus harder? intel is now entering the fray with gpu's capable of power and large language models. amd is out there too but neither has the supply to fulfill the demand. mandeep: i a worried about intel because of the nvidia print. at the end of the day, semiconductor market long-term growth is still going to be high single digits to low teens. over the next three or four years, someone is losing share. in the data sector right now, intel is incoming with their cpu . they do not have the gpu. they could catch up but on this x86 system, this goes to show there is a risk they will continue to lose share. i think there is a shared learning aspect to what nvidia is doing. matt: just to be clear, because my mom is watching, that is compound annual growth rate. we have to explain this. great having y

i think this is coming back to earth. >> it's the nvidia pharma, except this time, nvidia is out with>> right >> the importance of this study is that health care will now pay for this drug, because it actually reduces, you know, cardiovascular events. so, that's a game-changer in terms of total addressable market >> think about it. a year ago, we were talking about the prospects of this alzheimer's drug and the stock's rallied 80%. it's a half a trillion dollar market cap and i think i just heard that last year, money jaur roe was $16 million in sales, this year, it's going to be a billion and some of the estimates jared was saying is maybe $100 billion drug. i don't know how you get comfortable, you look at novo and you look at this and they have a combined trillion dollar market cap, i think the valuations are getting a bit stretched. you had times to buy both of these stocks this year i don't think you chase them like this. >> you were actually -- tim mentioned nvidia of health care, you mentioned, it's sort of felt a.i. bubbly. >> a market like this, where there's uncertainty and

nvidia maels.ion is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. i'm just trying to make you a little money my job is not just entertainment but to teach call me or tweet me at jim