nvidia was trading 61 times forward earnings a year ago.ow 31 times sylvia, with the immense growth, is nvidia cheap now or is this still pretty lofty >> i think it is certainly cheaper than most of the peers multiples have come into a reasonable level what happens is when a stock rides up like this, investors get turned off with the price coming too high and they don't come off the sidelines there the stock split will change that you have a reasonable valuation and share price that's going to be lower and this is the company that will represent the a.i. trade in innovation. you want to have participation in the stock whether it is through an etf or directly you want exposure to nvidia one way or the other. >> josh, i didn't for get about you. you gave us your notes were you looking at the s&p overall. trading 22 times forward earnings it looks more reasonreasonable why would you want to limit exposure to nvidia or microsoft if you go with the equal weight? >> it is not about the equal weight, but we talk about the s&p as the market and tha

it is the same for nvidia. >> what do you hear with nvidia's impact on the markets?is the chart. this is nvidia and s&p quarter-to-date. i'll share this in a second. nvidia has taken dips, but the market has stayed buoyant at this time. is it possible we are overstating this on the market cause it has taken steep declines, but the market has kept going in the direction it is going? >> that's a great point, frank. at times, we have seen the rally broaden out. we have seen other corners of the market lead the way. utilities have been picking up steam and we're seeing the rally broaden out. just in terms of the simple path, nvidia is a $2 trillion company. one of the biggest companies on the planet. it does have a really big weighting on the s&p 500. i don't think you can ignore that. 10% move for a company that size is around a $200 billion move for nvidia. i think it has become a sentiment indicator. a sentiment check on a.i. and tech. >> gunjan, one thing i can promise you, we are not ignoring nvidia. thank you very much. >> thank you. >>> time for the check of the t

well, nvidia said _ growth to continue. well, nvidia said they _ growth to continue.l, nvidia said they will- growth to continue. well, nvidia said they will be i growth to continue. well, - nvidia said they will be having a ten for one stock split. what does that mean for investors? it means this is becoming one of the retail stocks. we're going to institutional and retail, and that will change the dynamics.— retail, and that will change the dynamics. new versions cominu the dynamics. new versions coming out _ the dynamics. new versions coming out all _ the dynamics. new versions coming out all the - the dynamics. new versions coming out all the time - i the dynamics. new versions l coming out all the time - high coming out all the time — high is that different from even just a few years ago? what we're really _ just a few years ago? what we're really seeing - just a few years ago? what we're really seeing now- just a few years ago? what we're really seeing now is. just a few years ago? what i we're really seeing now is an arms race around the chip—makers to come out

nvidia's -- screen. nvidia ya's results not having much impact on other markets,0 the 10-year treasury yield at 4.43 right now. and the 2-year way under 5, you're looking at 4.89 as we speak. bitcoin still around $70,000 a coin, 69,4. oil, $78 a barrel or thereabouts, $78.46. gas, $3.600 a gallon for regular, $3.900 a gallon for diesel. gold at $237. got it. politics. -- 2387. trump has momentum. he's widening his lead in season so-called battleground states. win these states and and trump wins back the white house. nikki haley says she will vote for trump. why? because biden, she i says, has a catastrophe. tonight trump speaks in the south bronx with, new york city, a big and enthusiastic crowd expected along with some protesters. the latest poll shows biden leads trump by 9 points in new york state, but he beat him by 23 points in 2020. trump has momentum. biden does not. his performance in new hampshire tuesday will set the alarm are bells wring -- ringing in the white house again. the room was with h

i'm waiting for comment from nvidia and amd.y said that sovereign ai would hit high single-digit in billions this year and this as more nations build out their ai infrastructure. keep in mind that nvidia said it was working with customers in china and the middle east to obtain exportlicenses for new products that would comply with u.s. rule. so rid now we don't know exactly how nvidia has been stopped, but they have been working with the middle east and it now seeps l seems that u.s. officials are delaying that relationship. >> we'll see the stock about the low of the day particularly on that news. >> kristina, thank you. kristina partsinevelos as nvidia shares are down $40. still ahead, dell's numbers dropping at the top of the hour. that stock is having a strong year thus far. can that continue? we will break down metrics to watch. the bell is coming right back. >> umgc has been absolutely instrumental in my post-military success. after doing about eight years active duty, additional four reserves, i wanted to go after that li

well, i think nvidia — the us at the moment? well, i think nvidia are _ the us at the moment?rtainly - think nvidia are certainly still enjoying the fruits of that first—mover advantage, which we saw in the figures today. but investors aring looking on the periphery for other companies because they're other companies because they�* re seeing other companies because they're seeing nvidia's share price and, you know, homing they haven't missed the boat but looking for, you know, alternatives elsewhere, so i think there are a number of companies, for example the ones you mentioned in terms of china and else where where, so i think that what we're seeing is that we could see, like, supplies to nvidia, their stock price also receiving a kick—on effect as well. turning to australia, where the rate of digital payments has shot up over the last few years. one of the country's biggest banks is predicting australia will become cashless by 2026. meanwhlie, charities are worried that those without access to technology will be struggling with the transition. from sydney, phil mercer takes

nvidia does what nvidia always does. morgan stanley, overweight. no signs of slowing down. another quarter of excellent growth. wedbush, outperform. no signs of any pause in demand. lisa: we always talk about how much the share price has gone up in the last 12 months. profit rose 628% in the last year. this is a company that relies on amazon and alphabet, and that is a feature at this moment. jonathan: that stock in the premarket up by 6.6%. dan ives joining us later on. annmarie: he says that is a masterpiece that needs to be hung in the louvre. what you are seeing this morning is not just everyone continuing to say bye, but goldman sachs saying we are going to raise our price target. even though it was just this week they raised their price target. what was so clear on this call last night is that demand is outstripping supply. there is this insatiable demand, even for some of the older models that nvidia has. jonathan: north of 1000 in the premarket. it will not be for long. we are getting a to and from one stock split as well. i take the snobbish view on stock split's.

nvidia is positioned as a leading edge of the ai revolution.p coming beyond that up for the one-year cadence for those upgrades. so they will continue to keep that leadership with the ai processing. but it's also a current generation of chips to corporations and governments. that's going to bring in new demand as ai kind of seeps into the fabric of what we do on a day-to-day basis. so i think, together, those things are going to combine the kind of sustained momentum. tom: on the broader earnings pictures across these big mega tech names, is there a divergence, do we get clarity, reassurance and there isn't a gap between the spend, capex and tens of billions of dollars for meta, microsoft, amazon and others on the hardware and the revenue drive that they get coming through from that, essentially, could they sustain this, do they have the revenue coming through to justify this enormous capex? >> it's a good question. definitely a lot more pressure on google and meta to generate some kind of incremental return from the sector investment they are

and you know, forget nvidia for a minute. semiconductors tend to get nervous when lead times pull in because that's when you tend to see cancellations of people ordering more than they needed. in this case though, they pulled in and i don't think that we have seen anything and that they have been more than sufficient. there is probably still access demand verses that supply. they are still concerned as they were of last quarter and still constrained on the h200, which is sort of the follow on. and then blackwell at the end of the year for any new product to launch, they will sell everything they can make and they've got all of next year to sell blackwell. pricing is going up on that. content is going up on that. i think it's going to be good. >> you know, bryn, i see stacy has a $1,000 price target, anded joe says it is going to $1,000 tonight. he shares the optimism that all of you do. what do you think really is riding on these results for the overall market? >> it is obviously becoming by the day, a bigger size in the nasd

even though his bank is a totally attuned to nvidia and the number one financial company attuned to nvidiai don't think he's getting the wonderment of tech here. i don't know i want to talk to him about it i want to talk to him, because i want to get his -- he's too good a guy to dismiss i'm not dismissing him >> sure. >> i just think he's a little too negative versus the times. >> it's interesting because we're still on the heels of their investor day onday, and that b of a note this week took a look at their use of a.i. and said it would redefine bank industry cost structure, and then it raises the potential for better r.o.e. over the medium to long-term. >> i know, and it really wasn't a focus at all of jensen the two things that weren't a focus, i felt, were the cell phone and the actual use cases away from auto but look, you only have so much time on the call colette only has so much time on the call, and the calls are great, but jamie dimon is -- he could give a totally different talk, and it would still be true to his negativity, which was to be able to say, listen, we're able to do

i bought nvidia. i used it all to buy nvidia. am i crazy, jimmy?. we know from my friend that nelson has been cleared out of disney. i've got to tell you, i'm in. i think it could clear up that much higher. i have a big meeting tomorrow at 12:00. i'll tell you why i think disney is not something you should run away from. not telling you to sell the nvidia to get into disney. i don't care nelson is out. these prices, nelson would probably join me in wanting to be in the situation. let's go to arshawn in california. arshawn? >> can you hear me? >> yes, you sound good, it's jim. >> okay, i'll cut straight to it. what do you think about mdoz, calloway? >> i think it will move up and you'll want to decide to play it with dick's. they've got golf, dick's is better run. i'm going with dick's. let's go to walter in new jersey. walter? >> booyah, jim. >> booyah. >> and i've been in the club for a long time. >> tomorrow, 12:00 meeting. i'm counting on you. what's going on? >> about a year ago one of the money managers on cnbc, they were giving their idea of

tesla and amazon are customers of nvidia. it is an example of what has happened and the run-up in value nvidia has had. it has leaked into the technology side of things. it is the market for ai. caroline: it has helped float many boats that demand exuberance around ai. let's get the applications with gina martin adams. we will go industry-specific. do you have to be all in on tech right now? gina: there are other opportunities bubbling up and we are seeing this play out real-time over the course of 2024. we look at 40 different themes in the thematic library and we look at stocks exposed to those themes. what we find is that of all the stocks exposed, nvidia is not the best performing stock. we are seeing themes of fiscal environment start to apple for themes of tech. themes of energy is the best multi-theme stock in the library. this is evidence of what is happening in the broader market and that is tech was the story. without a doubt, the only story of 2023. that resulted in a lot of attention, a lot of capital flowing into

right up to nvidia earnings.l be with us also, we'll hit everything i hope you'll join me now. now to "final trades." joe snmplt >> so i've already said i believe nvidia goes above $1,000 but the certain about nvidia tonight and the effect on the market, what you do is buy puts on the smh >> jason snipe >> walmart really strong quarter and e-commerce sales up 21%. i like this one. >> focus on that and farmer jim >> vertex. it's spent a lot of this year consolidating but today set a new all-time high. it's clearly going higher from here >> you guys have a good day. i'll see you on "closing bell. "the exchange" begins right now. is>>> thank you, spot. welcome to "the exchange." i'm kelly evans. here's what's ahead this hour. we didn't get a recession, but the market is behaving as though we just came out of one. that's how our market guest sees it, and he sees opportunities because of that. he brings three names he likes and we'll talk commodities and what's going on there. >>> here comes nvidia. our trader is watc

we're going to hear from nvidia. giving billions of dollars more in student loans and easing prices at the pump. in the meantime trhe trump campaign will accept crypto donations. and rfk investing in gamestop. it's wednesday, may 22, 2024, and "squawk box" begins right now. ♪ >>> good morning, everybody, and welcome to "squawk box" right here on c nbc. we're live from the nasdaq market site in times square. i'm becky quick along with mike santoli. joe is off today. and andrew is reporting live from paris. andrew, tell us what you're doing there. what do you have coming up? >> reporter: we're now 65 days. yesterday was 66 days when i saw you from the olympic games. we're live from paris at vivatech. they're all here in paris. we have a whole number of them from med eye and openai. it's look a little bit like the french version of ces or those who may remember something called come de

the reason nvidia's software cuda snowflake in the last few months talked about using nvidia chips over aws chips for its large language models. another analyst report research out with a higher price target 1250 on nvidia because, quote, they don't see anyone challenging nvidia's margin for the next two years. >> wow. >> those are huge drivers. >> the moat is wide and deep. >> precisely especially because for our audience that's watching and wondering, should i get in, what else could happen with this company? on monday it's com pew text, over the weekend in taiwan, that is a computer trade show normally doesn't make news, but you have intel, amc, nvidia, arm ceos, all xanchls of people speaking and making news and assume nvidia will be one of those two. some murmurs maybe ai pc this is a computer trade show they seem to be talking about that that's one driver for nvidia the other is the plaquewell chip, the next iteration ramping in q3 start to see revenues q4 of this year. >> and that market cap that we mentioned early but the fact that nvidia is about to overtake apple, who knows, i

>> i do think -- nvidia?ink about their result,ing they really are kind of the center of the universe when it comes to the a.i. story, so a good kind of nvidia a.i. story out there this quarter will absolutely paint a better picture for the quarter semiconductor universe. stuart: okay, angelo, we will all be glued about 4:00 eastern time tomorrow afternoon. angelo zino, always appreciate it. taylor riggs with me. i keep going back to this -- >> i know. stuart: if nvidia does not meet wall street expectations, what happens to the overall market? >> bank of america talking about just that, saying this is exactly the one-year anniversary of when nvidia had that first blowout quarter and sort of surprised everyone, but this market is more than nvidia right now. since that time nvidia's added a trillion and a half in market cap, but a.i. is now empowering commodities, power, utilities. so really it's more than just an nvidia story the, a i much bigger story. nvidia contributed to about 37 earnings growth in the la

strategies, beginning with nvidia >> so, talk to us about sort of thecentric circles around nvidia hownking about the next places to put your money? >> yeah, so, i think you're thinking about nvidia is theal r you saw that starting 18 months ago, continuing throughout the rest of the year then you think about, what are the software players that are going to sit on top of that and benefit from it? you had steve on yesterday talking about apple, and their in interopera ability, and their operating system being able to personalize consumer and enterprise apps. microsoft at every level of tha chain. and then there are new consumer apps that sit on top of it but just the next level would be both the operating systems, as well as the providers of data that will inform those large language models. >> are you seeing in the early stages companies that are being built specifically around an a.i. business model, whether it be an app that helps you use a.i., or a.i. being, you know, very integral in terms of the companies workings >> i think there's two, both on the enterprise and consumer side th

sarah, i am taking a look at your notes and you like nvidia, but you do not love nvidia. is that still the case? sarah: it is. they are not the only player in the game. the thing that makes them such an interesting name will be the thing that drives a slowdown. their margins are crazy high. that is great if you have been writing it up, but we are seeing names like apple that we sometimes forget that apple is a huge chip designer in their own way and have been focusing a lot more on ai chips, so that means they will probably be buying less from nvidia. we saw that amazon is slowing down there ordering and everything is amicable. they are slowing down because they want to wait. but either way, a slowdown in orders is not necessarily what you want to see. i think nvidia is a solid company that has turned almost into a meme stock. there is excitement around a company that is not the only game in town. katie: when it comes to retail interest is off the charts. someone could push back and say they are the only game in town. really establishing their lead on the rest of the fiel

nvidia or these ai models.ength that has power through. 265 billion dollars in terms of revenue on the sales front. can they continue that pace of growth or is that growth starting to slow? that's the importance of the earnings story nvidia. it ties into your views around the s&p more broadly. u.s. stocks more broadly. at the time when jp morgan is the only prominent bear that remains and this is his target. he's looking past the ai effect with a target of 4200. 4200, that's a 20% gap we are talking about from currently at 5300 on the s&p. you have mike wilson reversing calls yesterday. he is now targeting around 5000 400. goldman sachs is there's barely any more upside to come through for the s&p. but they are still there expecting that 20%. he got it wrong last year and he got her on year before as well. he was overly bullish last year and overly bearer the year prior to that. but nonetheless, that's his view in the stand out. nvidia in the ai effect. he said geopolitics concern, risk around the consumer bein

nvidia numbers are the real focus today, nvidia is one of the key suppliers for chips to samsung. a heavy weighting on the kospi. haidi: just a look at the first couple of minutes, in sydney, some upside, but flat at the moment. the futures was pointing to gains across the rest of the region. we these -- we did see some declines yesterday, health shares were the biggest. watching for some of the minors, watching rio tinto after the force majeure declared on the aluminum, causing a big spike in aluminum which one he three-month high. aussie dollar is holding stott -- is holding steady. depending on the messaging from the rbn, how dovish that will be perceived to be. watching treasuries, we were heard from the fed reserve governor saying the continue softening of the data over the next 3-5 months would allow the fed to lower borrowing costs for 2024 but the take away is after several good months of data needed. take a listen. >> in the absence of significant weakening in the labor market, i need to see several more months of good inflation data before i would be comfortable supporti

what if nvidia disappoints? what does it mean for the entire ai ecosystem. >> well, i think it probably doesn't question so much the entire ai ecosystem because we have seen, you know, the very strong run-up of nvidia in terms of returns, but this is very well underpinned by the revenue growth and earnings growth, and there's an entire ecosystem around this. so i think what the cloud providers have said, you know, even if there is a bleep on it, i don't think anyone is really expecting that. but even if there is a slight bleep, the long-term trend around artificial intelligence and the trans performance and potential of it is probably not a question really. >> all right. you're still pretty bullish here overall on the ecosystem and the spend. you reference the big spend by the hyperscalers before, and i'm just wondering how long can it continue in the same vein? how sustainable is it because obviously nvidia has built this incredible moat around it, and there isn't a whole lot of competition at this point in tim

for now, a few things in the nvidia sweet spot.ong demand from the hyper scalers with amazon and microsoft which continue to buy the product and excited about the blackwell chips as well. the supply constraints are working in its favor you are talking about margin slippage, but 74% margin order which is unheard of for the chipmakers so far. on top of that, the demand continues to be there and new chips on the horizon and lack of competition at this point. >> we talk about the cost of the chips. the h-100 is $35,000 per chip. bl blackwell is expected to be $30,000 for chip you are talking higher price margin the issue is a.i. is bringing in the revolution and it will bring a lot of money and productivity gains. we still don't know that at this stage. the hype means people are willing to spend the money because if they build it, there is is something on the other side there is still a what if for me and that might be a pushback to paying for the chips currently. >> valid points. i will say on the morning after nvidia reports, we saw

here's what's on tap tonight the nvidia divide. semi stock surging to null heights, but the broader markets didn't come along for the ride how did we shift so suddenly >>> plus, boeing bungle. the struggling aerospace giant says cash flow is going to be even worse than expected this year is there anything that can get the company back on track? we'll stalk to one bull who still thinks there's upside to be had. >>> and later, elf beauty stock gets a makeover. ticketmaster forced to face the mu music. i'm melissa lee, coming to you live from studio b at the nasdaq on the desk tonight -- tim seymour, karen finerman, steve grasso and julie biel. >>> the do s&p 500 and nasdaq pulling back after hitting record levels in the session that even as nvidia soared more than 9% on the back of an earnings report that few could find fault with. so, why weren't the big numbers from the third biggest stock in the u.s. enough to boost the rest of the market maybe ironically, even stronger numbers on the economy a better than expected read on pmi sen

men o nvidia today.harles: amd is acting great last two sessions. scott, thanks. trading options can make-or-break an investor. we know they're an amazing tool. you need the right training. we have some strategies for you. we'll talk about nvidia, with other areas of one of the option greats. the that the najarians are here. ♪. [introspective music] recipes. recipes that are more than their ingredients. ♪ [smoke alarm] recipes written by hand and lost to time... can now be analyzed and restored using the power of dell ai. preserving memories and helping to write new ones. ♪ (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life i

nvidia reported a net income of $14.9 billion.put that another way — the company is making around $6.8 million in profit every hour. as for its revenue for the last three months, it came in at $26 billion, up a whopping 262% on the previous year. about the results, founder and ceo said the next industrial revolution has begun. its business, once built around chips tailored to gaming consoles, has been transformed by demand from data centres, which are at the heart of the generative ai boom and have sent its share price on a tear. the stock? well, it's up 97% this year alone. we dug into nvidia is resold with marc einstein, chief analyst and digital services at itr corp. he said if the momentum is sustainable. i can't really remember the last time we were talking about triple—digit growth in the tech industry. so this is very exciting but, as you've said, this is being driven by the big data centre players, and they do have a buying cycle and so i think we need to be a little bit cautious when we think about, you know, how long we

. >> yes, nvidia we know musk left that and now he's come back when you talk to nvidia, you don't getbout their ai business what you get is they're developing autonomous machines that aren't really -- they don't think of them as cars. you layer this in. this would be part of an autonomous machine i'm confused, david. i'm con confused by how much of this new company would be used by tesla. >> i think you're right to be somewhat confused. i don't have the answer for you in that way. they're separate, the ai efforts at tesla in terms of self-driving and xai in fact, i think the union here would be more closely x, twitter, the old twitter and this because you can use the data set from twitter which is realtime and it's very valuable potentially for a large language model. so that may be more where you see it obviously he owns all x. it's a private company he can do whatever he wants with it maybe there's more opportunity for his efforts again in ai which are competing against the much larger still, that we know about, obviously open ai and you go on from there in terms of everybody else,

she doesn't own nvidia. missed it, valuation too high, but she points out broadcom and the other stocks, like bank of america today, talks about their top five u.s. semi picks exposed to a..ii. broadcom is next on the list. i know you probably wish you were able to capture that kind of upside, but you're in other names. if that doesn't underscore it, i don't know what does. >> it's cheaper than nvidia but not as cheap as when i was buying it. it was trading at 14 times forward estimates. that's one of the reasons i bought it because it was yielding so much and it is so strong. you're at 30 times forward. their part of a.i. is going to go from 10% of the company, of their semi business last year to 25% by 2025. that's huge growth, too. they benefit as well from the hyper scale spending and they have the best in class margins, free cash flow of $12 billion this year. they will in the fourth quarter will increase their buyback again. they have the vmware which helps in recurring revenues and higher margins and

caroline: cool ridge, mainly working with nvidia here, the ceo telling us everyone wants an nvidia chips, you can talk about the competitors of the market, but ultimately that is what the demand is. is anyone starting to show the competition angle on the market share? kunjan: nvidia still has the lion's share and we don't see that getting -- changing significantly. caroline: generative ai was energy and supply for chips. how likely is that to be something we are hearing discussed on the call, that this is the one that needs fixing, ultimately, impacting the environment or the costs of energy? kunjan: it has across-the-board. i don't think we will hear a lot about that specifically. we will hear about customer costs, to be honest. even if a real increase in power , there's a total tco that continues to get better. caroline: thank you, be a busy week for you, kunjan sobhani, with all eyes on nvidia. coming, what's happening in the here and now in tesla? job cuts loom, anxiety is gripping the workforce. that's next. this is "bloomberg technology." ♪ caroline: openai work to halt the use of

nvidia is a big driver of eps in the quarter.ogy is an interesting place for the market to be. the h 100 has driven accelerator sales. they will do $40 billion of ai accelerator revenue this year probably. you have black wealth later. there was concern that in the middle part of the year, there might be a pocket where they are having customers stop ordering h100 because they are waiting for the next generation of chips to come through. others say that will not be the case. nvidia is the only store in town. expect topline growth and everyone does well in the market. sonali: what are you looking for from your big interview soon? ed: i think it is interesting there are three american ceo's, not three sat next to each other historically. why now? how companies at that scale do business has changed. the service now software ceo used to have a direct relationship with jensen huang, the chipmaker. sonali: ed ludlow, enjoy it. it looks like a party put the big party is in the interview shortly. we will turn to another big event, jamie di

nvidia has to push, getting pulled into the market. microsoft and apple push ai into the market so -- neil: they meet those products. >> microsoft's copilot running on architecture so it's not necessarily nvidia. nvidia is not going to be the only supplier of ai chips. they announced in recent weeks they are coming up with ai chip division. it's not -- neil: we talk about this on and off the air. this bull market and whether this bull market keeps going, ken fisher was here, slightly different, off buyer billion but he was saying that i don't see anything getting in the way, this one is 580 days old. it is gone up 50%. that the typical market rally, bull market rally, a thousand days, and double that, 114%. >> by that metric i agree. here's the other thing we have to think about, this bull market is running, through a huge fed rate increase cycle and there are going to be cuts which is stimulative to the economy and the stock market to. ultimately we are going to get fed rate cuts, won't have until next year. neil: also a case of buyin

nvidia up 90% year to date. surely others will play catch up. >> in terms of valuations we are a little less enthused by some of the other names but we continue to like in video for the most part, as an industry leader it has a platform that will benefit it and in that respect if you are looking at who benefits most from the ai push it is still nvidia. as far as we are concerned in terms of value and where value goes we still like chips first and we do not think nvidia is overvalued so there is still room. >> give us a sense of where we are in the chip cycle, ai cycle. a lot of questions being asked. how much more upside and surely a correction is coming. >> i think if the numbers, on the chip side there is still upside because we are looking at industries that are supportive to the sector coming back off excess inventory levels that have since been absorbed. so that will be a prolonged benefit for the chip names and we like a few of them going forward but i think for the ai side, this is a multiyear new industr

specific nvidia story today. brian: charles stock, jamie dimon comments are hitting markets hard here. jackie: interesting, i have a feeling that is where he will take us next. the dow is down 545. >> a lot to cover. i had so much fun on your show. talk to you real soon. don't forget the marble thing, brian. good afternoon, everyone, i'm charles payne. this is "making money." despite the red on the screen face it leave is in the air. but it is about to get too stifling? could investors actually have their hearts broken? i will explain. also nvidia, you saw the earnings reports, absolutely fantastic. we have wall street cheering wall street, analysts and strategists you wonder how much they would cheer if a.i. took their job? you know what? tweet me at cvpayne, let me know if you would let a.i. take your money. new hard landing warnings from jpmorgan ceo jamie dimon. goldman salomon see as goose egg when it comes to rate cuts, none. tapped out consumer, i'm curious, what is the leest price you remember paying for

. >> to me it is apple and nvidia right now. when you look at these mega cap companies you have to focus on them strong performance from alphabet and meta and amazon. they are not the near term catalysts for the market right now. so i am concerned about stepping in front of what i think is a rebuilding of positions in apple and nvidia's earnings. >> i agree on apple. what is shocking in some respects, i don't remember a show in as long as i can remember where not a single person on the desk actually owned apple. >> apple is going up >> he just rebalanced out of it. jenny hasn't owned it a long time says it is dead money. and you've been in and out >> i think it is a trade here because of the ai announcement with open penai. that is what is building >> that was the report that they are nearing a deal with openai >> so that is what is driving it now. but then you come back to maybe they will sell a few more phones in this fresh cycle. >> i think that they think they will sell a lot more than a few. >> but to me you're still left b

nvidia has delivered.t encourages the bullish backdrop we have had all year and we expect that to continue in the next few month. it might be more volatility just because valuations have gotten more expensive, but the backdrop stay strong. haidliv exive editor at mark cudmore there. the bank of korea as expected, leaving the key rate on hold at 3.5%. much more to come. this is bloomberg. ♪ ♪ do you want to close out? should i? normally i'd hold. but... taking the gains is smart here, right? feel more confident with stock ratings from j.p. morgan analysts in the chase app. when you've got a decision to make... the answer is j.p. morgan wealth management. craig here pays too much for verizon wireless. so he sublet half his real estate office... [ bird squawks loudly ] to a pet sho meg's moving company uses t-mobile. so she scaled down her fleet to save money. and don's paying so much for at&t, he's been waiting to update his equipment! there's a smarter way to save. comcast business mobile. you could save up

900, is it too late nvidia 950, too late maybe not. nvidia 1,000, 1050. >> yeah. >> you have to be an auctioneer. >> right and you're not getting hands up in the air at that point. >> the point is you are. that's the crazy thing you are. >> so i think what will start to happen if you look at what happened even broadly in the market we had that pull back in april and we're back up to slightly above where we were, but we've been kind of sideways since we recovered from that pullback now i think investors will start searching for other places, rather than the ones that have been popular if you look at tech, i think what could happen, this happened earlier this year, some of the old tech caught a bid. some of the stuff that wasn't semis because it was like i want to be invested in tech but this doesn't look like a good entry point anymore, i'm not going to buy that, i will buy something else adjacent or like copper flying because we've got data centers and demand for copper into the future. utes flying because of the themes i think some of

the dow going one way, technology stocks, nvidia. ai has a future.> >> young people who think stocks and cds. jackie: its new again. i'm taylor riggs. brian: i am brian brenberg

nvidia's become a fascination. kind of stuff of alchemy many of the people who own it have no idea what it does. they may have bought it because i named my mutt nvidia they may have bought it because jensen huang dresses in cool motorcycle jackets for the most part when you're dealing with a business that's a business to business operation like this one it's hard to get your head around what they really do and how the product works. maybe the buyers just like the quirky name. maybe they like the stock that keeps winning. but if people don't take time to learn what nvidia really does, how it has the ai field almost to itself, how everything it makes is in short supply, how it sold $26 billion in product this quarter, which is over a billion more than anyone expected a few days ago, probably 20 billion more than anyone expected a couple of years ago, if people took the time to learn the company and it's all there, they wouldn't trade it. they wouldn't own etfs that encourage the whamma jamma buying and selling they w

you can credit that to nvidia.ident biden is scheduled to hold a press conference with the kenyan president in washington. we have more on that next. this is bloomberg. ♪ - super excited to open up my diploma from southern new hampshire university. ♪ ♪ - i'm nervous, i'm excited. ♪ ♪ - [man] okay, let's see it. let's see it. - oh my gosh. - jesus suarez, i did it and it's here. (group cheers) ♪ ♪ - [narrator] next term starts soon. visit snhu.edu. visit snhu.edu. scarlet: for the first time in 16 years, an american president is hosting an african leader in a state visit. the kenyan president is at the white house right now. this is part of president biden's commitment to engage with african countries. let's bring in and the current to give us more context and when we say commitment to engage, i notice african nations have a strong relationship with china and this is about the u.s. playing catch-up here. enda: i think it is all about catch up about seems to be the theme of the analysts watching this closely. you men

caroline: full coverage on nvidia. pushing ahead to that all-important earnings after the closing bell. >> apple looks to get its doj antitrust case tossed out. we will bring you the details. >> scale ai skews as its valuation nearly doubles to a most 14 billion. the ceo joining us later in the hour. there is a macro bit of data we are waiting for the fed minutes coming later in the afternoon and we are basically flat ahead of that. we are still digesting some strong earnings from the tech ecosystem we are up just five points on the nasdaq. record highs looking at 20 year yield just flat ahead of the auction we have seen bond selling often yields rising. we go back into the green just a moment. inflation is cooling but it's not cooling as much, of pound is higher and the u.s. dollar as we see the bank of england not being able to cut at the anticipated rate that the market had wanted to see. let's see what's happening in the world crypto because suddenly we re-galvanize ourselves with the latest spot etf this one being

stuart: have you bought nvidia yet, and are you going to? >> yes. i have bought nvidia.. it certainly looked expensive all the a way up, but, yes, or we bought nvidia, and i'm very happy with it. again with, i'm looking -- i'm. hoping for dips because there's a lot of stuff i want to buy including more nvidia, but i want to see a little bit of a pullback before i go into some of the names that i think have gotten expensive including nvidia. but we do own it and very happy with it. [laughter] stuart: it takes a strong stomach to buy a stock that's going up $100 a day. you've got to have a strong stomach, let's leave it at that, okay? [laughter] it is now 9:30 eastern time, and i see the market coming further south, or actually. we've opened up, and the dow is off a, indeed, 300 points as we speak, and the vast majority of the dow 30 are in the red are. i only see 2 in the green. a lot of selling, obviously, right now. the s&p 500 also opening lower. let's have a look at the percentage decline though. three-quarters of 1%, that's slightly less of a drop than the dow but pr

nvidia. is it worrisome or do you just give in to the tape that you have a very small group of names leading this rally? >> well, good afternoon, liz. i think it's a little bit of both, actually. to me, it's nvidia's market, and we're just all trading in it. in some sense this reliance on nvidia's a little scary because it's great when it goes up 7%. if and when it does ever start to correct, and that may not be until after a it splits on june 10th, but let's just say if this ever turns around, i shudder to think what's going on because i think it's scrubbing -- sucking in a lot of money from other places. that money, i think, is flowing out of stocks into with nvidia chasing the momentum. that's great until or unless this comes to a halt. liz: well, it just looks like investor, jeff, are primed to get into stocks at a very time where we've seen that happening month after month after month except for pretty. what do you think? >> well, i moan, yeah. and i think -- i mean, yeah, just like stev

accelerators, the gpus that nvidia makes is so strong.hey also have this new product called blackwell that will ramp starting in the q2, q3 time frame. we don't think there's much risk in the short term. obviously the demand has to continue if you look at their customers, the big cloud companies, they continue to spend aggressively as long as the spending continues, we don't see risk in the short term, at least what kind of risk could there be let's say they're all spending, and investors, customers are almost expecting these companies to spend on a.i. what exactly then has to stop in terms of spending? what can derail this nvidia narrative anytime in the medium term i guess at the end of the day when you're spending, you need some return to justify this cap ex investment we're seeing today. the competition is highly intense. obviously microsoft, google, facebook, they want to maintain their lead in a.i., so they're continuing to spend. i guess, if there's no return on investment investmentiumly, in a slowdown the spending we're seeing th

stocks, but nvidia's one of those core holdings like apple was five years ago, i think nvidia is now.t: okay. big picture for a second, put nvidia aside. you say investors should be prepared for higher for longer interest rates and inflation if. that sounds like a big negative to me. >> well, unfortunately, i don't know if it's negative if or positive. it's t truth. if we've seen -- powell's been talking about innation's going to come down. -- inflation's going to come down, it hasn't. we're seeing it reaccelerate in certain parts. commodity prices are going up, homeowners insurance prices are going up. in fact, actually, core services number, the highest it's been in 12 months this last month if over 5%, shelter's going up. so it's the reality. investors need to look at that and say, okay, where am a i, where do i need to invest for the market i have, not for the market i want, and you need to have some things that are going to be there for inflation. stuart: okay, got it. thanks very much, michael. >>> we're just getting this coming at us, the rnc headquarters in washington, d.c. ha

sk is a supplier for nvidia, highest since the year 2000. all eyes on nvidia.om: avril with the check on asian markets, thank you. wall street betting on a quarterly report from nvidia, a record yesterday with gains of 6/10 of 1%. evidence they can maintain explosive growth. let's bring in matt from bloomberg intelligence for the importance of nvidia. what are you focused on? >> another beat from nvidia. he numbers about revenue, so they got 24 billion in revenue and they will report 240% growth, huge expansion. market is between 24 and 25. all eyes will be on quarter to, the street is positioned close to 27 billion in revenue, so that will be a key number this quarter. historically they have withheld because the business grew so quickly it's hard to estimate. the number if it is not the consensus number, the option spread could be skewed so people are expecting them to stay better. tom: ubs pointing out last year they need to consensus by 20%. matthew: gets tougher because people are understanding where the business is. tom: what is the threat? matt: it is gro

of course that focus very much on nvidia. it's available on dayb on the terminal and on mobile in the bloomberg anywhere app. we will have more ahead on "daybreak: australia." this is bloomberg. ♪ annabelle: time for morning calls ahead of the asia trading day. the goldman sachs ceo says he currently expects the fed will not cut rates this year. he still does not see compelling data that would support the move. but he adds that the average american is already feeling the pinch from inflation. he says that could heighten the risk of a real and palpable economic slowdown. meanwhile, some investors see a week chinese currency burnishing the appeal of hong kong listed shares over there is on the mainland. they expect hong kong stock to draw in more capital as a local currency pegs the dollar for higher for longer u.s. rates. they add fears of a yuan devaluation could further motivate investors to favor h-shares instead. this year's hong kong investment conference is beginning thursday and we will hear from seymour capital's

i can go on and on about the nice things about nvidia but everybody knows this so nvidia has to dazzle the stock to take off. it's flat to slightly up. >> when you say it really has to dazzle, what are do you mean what are the expectations versus your forecast? >> the reality is 1.9 is a pretty amazing number for the last three quarters for a beat they've got to do better than that for the stock to go up materially from here, it has to be $2.5 billion and dazzling commentary on the back half we know the blackwell, comes out at the end of year. the channel checks that we've done suggest the black well series is amazing and astounding in performance we think the real action for the stock comes in the second half of the year. >> is there any potential disappointment or news around china? because of the export restrictions and everything like that that has been an issue in recent quarters >> that has not been an issue in recent quarters. they had a new chip they introduced, mwhich meets all government criteria. they worked with the department of commerce and whatever other regulatory agenc

woo-jin: if you think about nvidia in relation to dell, nvidia sales their gpu chips and cards to delldell helps to assemble it, install it to the and customers -- end customers. a lot of interesting customers purchasing from dell and their competitors. tesla is rumored to be one. there is a private company called core weave also buying. we are still in the early innings of this ai factory revolution. dell, who has been a long time corporate systems integrator, they will continue to sell into them. vonnie: can i ask you about something that crossed the wires yesterday in the u.s. session, where nvidia may not be able to sell chips in the middle east. is that a significant impact to the bottom line if it happens? woo-jin: pretty interesting. the u.s. is starting to be very cautious of where american companies are going to sell the ai assets. nvidia is already sanctioned to some degree of selling into china. in terms of saudi arabia, it may prevent further upside. given the demand overall in the u.s. and europe, you should continue to see momentum for nvidia. vonnie: absolutely. thank yo

to put that in perspective, nvidia is doing $80 billion. a great company they play in a lot of places besides the data center like the pcs where you don't see nvidia with a bigfoot print in the datan center gpu market, they are still a distant competitor to nvidia >> alec young, thank you for more nvidia, head to cnbc pro. see when shares rise >>> coming up here on "worldwide exchange," getting an up close look at one facility helping in the fight of rising temperatures diana olick is taking us inside the largest carbon removal plant in the world diana. >> frank, this plant is sucking carbon out of the air at a record pace. we will tell you who is behind itnd a which u.s. companies are buying in. that's coming up next on "worldwide exchange. >>> welcome back to "worldwide exchange." the u.s. and china coming together in washington as the climate envoys are looking for common ground to combat rising temperatures one company tasked with carbon capture is in iceland. we have diana olick with more. over to you. >> reporter: good morning, frank.

>> yeah, that's in nvidia's favor. don't have to worry about rates in the context of that. >> professor, i'm going to put you in the hotseat here. you see these bond yields breaking out to the upside. there's a lot of different ways to think about this through corporate finance and so much more. but i'm just curious what your take is. >> so if we want to connect this back, there's certainly the element where high interest rates really change the amount of patience investors have for these types of long-term investments to pay off. while definitely i agree with nick's point that for a long-term investment say into ai or ai processing power, fluctuations and interest rates over 12 months are not that substantial, given their long horizon. it does indicate that investors are likely not as patient as they were in the last 10 to 15 years where we had extremely low interest rates and companies could make these long-term investments and rely on investors for those to pay off. now we are seeing a lot of companies, meta, micros

let's start on the nvidia question.what extent is it a catalyst for the kind of growth expectations that you are seeing across the tech ecosystem or is it something of a suffocating presence? how difficult is it to invest right now in the startup space given the dominance of some of these big ai firms? >> is one of the biggest opportunities in the world right now. the way we look at it, there are three big opportunities within the space with infrastructure they operate. it is infrastructure in the way that you have -- they are going to build the infrastructure of the future. discovering new medicines for science or infrastructure. also data centers and so on so is general infrastructure. it's where are you going to see the next trillion dollar companies? there are not going to be that many of them. they need the best people in the world in that space. the secondary is the appc built on top of the infrastructure and they are you will see way more companies, hundreds if not thousands of billion dollar plus companies build