it feels like nvidia is the only kid on l like nvidia is the only kid on the block.. what other competitors are around? an easy name to mention _ competitors are around? an easy name to mention is _ competitors are around? an easy name to mention is amd, - competitors are around? an easy name to mention is amd, they i name to mention is amd, they have their own product coming out, they have an ai forecast up out, they have an ai forecast up to 4.5 billion which is great when you compare that you nvidia, probably in the hundred billion dollar range, it is just a contest at this point. intel does not have a competing product either. this is nvidia's world and we're just living in. at the same time key customers, the hyper scale is like amazon and google and microsoft, they are spending billions of dollars on nvidia products and frankly they cannot be happy around everything that nvidia has over them, so they are developing their ownerships. for cost reasons and for nvidia reasons and i think that is a big competition that is coming down the line. having said that, nvid

it's nvidia day.arket value after apple ahead of microsoft for now reports results after the bell. the stock has been the ai darling of 750% since the be beginning of last year. but the question, as always, can it possibly keep it up. >> and check out

it's the main event, and the countdown is on to nvidia earnings. this is a critical report for what some have called the world's most important stock. >>> and futures are higher ahead of the results, the dow closing with its 24th record this year as investors find other alternatives to tech. >>> in addition to nvidia today, you have crowdstrike and an earnings report that will likely be overshadowed by lingering questions over repercussions from its global i.t. outage. >>> plus, warren buffett sells more stocks as his own company nears a milestone. >>> later, delayed again. spacex pulls the plug on what was set to be a historic space flight. >>> this is wednesday, august 28th, 2024, and you're watching "worldwide exchange" on cnbc. ♪ >>> good morning. so glad to have you with us this morning. i'm contessa brewer in for frank holland. let's kick off this hour with a check on the u.s. futures with the dow closing its 24th record close of the year, the s&p 1% away from its own intraday all-time high. futures green across the board. the s&p 500 by 20 p

one of the mentions is nvidia, further analysis nvidia earnings are having on global stock markets. coming up, in a first for the biden administration the senior white house official jake sullivan sat down for rare talks with the top chinese general. we will discuss that next. ♪ >> it is rare to have this kind of exchange. [indiscernible] joumanna: u.s. national security advisor jake sullivan on the importance of his rare meeting with the chinese army general. a senior white house official jake sullivan did sit down for rare talks with the top chinese general. the meeting marks of the highest level public exchange between a biden administration official and the people's federation army. both nations are trying to prevent regional spats spiraling into a conflict. let's get more with jill disis. it feels like a significant event namely because it is very rare for u.s. officials to be meeting with an army representative, so talk us through the significance of jake sullivan meeting with this top chinese army general? jill: that is right, it is significant. in addition to this being the

today all eyes are on nvidia. markets are on hold as investors are anxiously awaiting the crucial earnings report. ed: the ai earnings parade continues with salesforce and crowdstrike results also after the closing bell. >> a critical 24 hours for telegram, the ceos for day detention ends as a french judges pondering pressing charges. but first let's check in on the markets. we are under pressure down by 3/10 of 1% on the s&p 500 off by 9/10 of a percentage point on the nasdaq 100 why is that. it's because the market weightings of one particular company which is about 6% for the s&p 500 and about 8% for the nasdaq 100. >> we will hit nvidia hard. some news about super micro computer's as well. the three day chart. the stock is down 24% on track for its biggest drop at one point in session low they just drop since 2018. they are delaying the find and you're seeing financial disclosures when he four hours after short seller hindenburg issued a critical report and made numerous allegations which we will get to later

first, a lot more ahead on nvidia.t its latest report means for investors and broader markets. >>> and the one spot from turning the dow lower and a rare bright for tech. >>> and later, a.i. reportedly securing a new massive round of funding and a triple valuation go ontoalg with it. we have a busy hour ahead when "worldwide exchange" returns. pete g. writes, “my tween wants a new phone. how do i not break the bank?" we gotcha, pete. xfinity mobile was designed to save you money and gives you access to wifi speeds up to a gig. so you get high speeds for low prices. better than getting low speeds for high prices. right, bruce? jealous? yeah, look at that. honestly, someone get a helmet on this guy. get a free unlimited line for a year when you buy one unlimited line. plus, get up to $800 off google pixel 9 phones. switch today! >>> 12 minutes past the hour. let's get a check on some of the mother's top stories including another fed chief saying, look, it's time to move on rates. silvana henao joins us, great to see you.

are just as important for nvidia's stock as nvidia's is. that's how it is. it's something we've got to pay attention to. that's not uncommon in semis, but this is important for nvidia. >> when you think about it in that context, stacy, barring some significant belt-tightening from the hyper-scalers, there's no reason that it sounds like, in your mind, to have any bit of concern of a meaningful nature about nvidia, even if there's a modest delay in blackwell? >> from the demand side i'm not worried at this point. and we'll see if there's a delay, if that causes issues. hypothetically let's say we roll to the end of the year and it's not as strong. it just makes next year look better. as long as that demand for blackwell is there, i think if there was any weakness in the stock at that point, it would probably get bought. i think the danger is if the demand signs start to lag. if one of these large hyper-scalers blinks, that could be a problem. we're not anywhere near that. and finally, everybody asks what's priced in. josh and i have talked a

he and decatur are nvidia investors.you frank. >> we heard what that retail investor had to say. are you a believer in the fundamentals of nvidia, chips, huge when i comes to the a.i. space or are you more invested in the vision of jensen huang? >> we think that's a good strategy because we're using the ability index and it quantifies a ceo's contribution to a company's operating efficiency and we see with jensen he has led this company for 31 years and we expect a high ability ceo to produce higher quality earnings based off their knowledge of the industry. >> so a lot of it for you is the confidence in jensen huang he's become an icon. you heard the other person call him jensen, he's on a first name at this point. investors sky high on nvidia after the bell tomorrow, more than 100% revenue growth, eps growth at the same time we're getting whisper numbers about their guidance. i want to show this to the audience and you. the street estimate is $31.5 billion in revenue, the whisper number is 33 to 34 billion. now, do you

supermicro, not nvidia. is it also negative for nvidia? do you think any of the people who are new to the stock bothered to ask whether supermicro's delay has anything to do with nvidia's future? it was shoot first and ask questions later. what was truly incredible was how the contagion rapidly spread. all of the semis that i follow. almost every company involved in enterprise software. the quarter itself, the actual nvidia quarter that was reported, it felt like insult added to injury, when there was no injury to nvidia. blackwell goes fullbore and we see renewed expectations. i hope they don't get excessive like they were tonight. and you know what? i just hope this is it for national nvidia day. can we just call that a day? what is the solution? it is simple. as plain as the nose on your face or at least a letter purloined and posted right in front of you. it is an important part of investing. i'm talking about diversifying away from nothing but technology. the reality is diversification is a total drag. why would anyone want to own us

how about nvidia earnings. they influence the bottom market given the modest movement we've seen to the s&p 500 this year. what are the potential ripple effects on the tech sector if earnings fall short of expectations? as it stands, we're seeing some buying in premarket nvidia trade, up by 0.08%. we have to watch and wait to see what happens here because this could ultimately determine the next move. the market looking like this as well. the currency trade has been interesting to watch as we see broad usd weakness continuing to driving money into these other curb encys. eurodollar at 0.01%. the swiss franc at 84 u.s. cents,sterling tracking at a 2 1/2-year high as we speak. two others were asked for their take on the fed and what's driving this market. take a listen. >> if you think about what the fed has beening down and how it usually reacts, it was to be doing this sort of very deliberately, so in my read, that would be 25 basis points and a series of 25 basis points would be appropriate at this point given

godfather of ai, nvidia.i super cycle starting off on the iphone 16 and what is happening with redmond. lisa: in fairness to the bears, the bears weren't exactly coming out and saying the stock is going to tank. they are saying maybe just cash and a few chips. every question here of how big the addressable market is any question about whether they can essentially go into some of data centers that their buyer base the fund. how much did they keep become competitors at a time where bigger and bigger companies are gaining the scrutiny of regulators? how much are you factoring that in as a ceiling for how far this godfather of ai can know? >> it is a little bit of a cohabitation that is happening here. regulatory is 40 miles per hour in the right lane, a minivan. the technology is 100 mile per hour the left lane, and i just think this will be self-regulation. openai and terms of what it looks like that next round of funding is. you will start to see those eventually. but this market in the first, second inning. t

a lot of focus in terms of investors on nvidia.u're going to see some, you know, wild reactions after. but overall we view it as an a+ quarter. the outlook threatens to tamp down an ai frenzy that has transformed nvidia into the world's second most valuable company. as anticipated, nvidia gave an update on the production delays and design flaws on its blackworld chip, which caused market volatility several weeks ago. nvidia acknowledged that there were issues with production, saying that it was making changes to the number of functioning chips that come out of factories. at the same time, the company expects to bring in several billion dollars of revenue in the fourth quarter from the product. ben barringer is a global technology analyst at investment advisors quilter cheviot. thank you forjoining us, ben. investors can be a funny bunch. record sales, but what we are seeing here is basically all of those bets that they placed on the stellar period of growth continuing certainly have not paid off in this quarter. certainly have not

and apple and nvidia, because apparently, reportedly, apple and nvidia are both in talks to invest in openai. perhaps the biggest a.i. player out there, at least right now. kate rooney joining us with the market intelligence on artificial intelligence. kate? >> the wall street journal today reporting that apple and nvidia are looking to get into openai's latest funding round. microsoft is also expected to put more money in. we have not heard back from those companies, but this is all tied to a multibillion dollar funding round for openai, which we've been reporting on for cnbc. i'm told by a source that openai's valuation will be at least $100 billion in this new funding round. that source telling me that the venture firm thrive capital is going to be leading the round and they're putting in $1 billion in new investment into openai, and the sky high valuation, it really puts the a.i. darling just behind spacex in terms of the most valuable companies out there, also, a lot of other public companies valued at more than $100 billion, i did speak with an investor who is looking to get in

nvidia's report late wednesday. the reaction thursday morning, maybe their earnings failed to live up to the extreme hype. the stock is down. revenue was up 120%, and the ceo says demand for chips is, quote, incredible. apparently, that's not good enough. the stock is down $4, that would be 3. 3. we're going to to follow it all day long. expect volatility. big gain for the dow, looking at new record highs odd. the economic growth revised higher from 2.8 to 3 percent. the market like it. the dow up well over 250 points, s&p up 15, and the nasdaq, despite nvidia, is up 55 points. if let's get to politics. this is kamala harris' big day. she and her running mate are taping an interview with cnn which will be broadcast tonight. heavy criticism. the "wall street journal" calls tim walz her interview crutch. how will she explain if her flip-flops on countless issues? her campaign is playing defense. she is not appealer alone, and the -- appearing alone. trump takes to the road today. he will be in michigan and wisconsin.

we're on wait and see mode for the equity market for nvidia. the market is doing something a little bit wonky. this is still pricing in a lot of cuts going into september. after a very strong two-year option yesterday. the currency markets to me are really interesting cable hit another high 132 handle great for ex-pats leak myself. the cuts over in the state are pushing dollar lower and lower keeping currency at the elevated level. we're still monitoring what's gong nonmiddle east and venezuela and what the chinese demand picture looks like. all of that feeding into the crude picture. not a lot of action. just an $80 handle we are seeing on brent crude. that is what's going on in your cross asset picture. avril hong standing by in singapore. >> we're seeing asia markets watching out for the event, the countdown continues to nvidia, not just because it it is the implication on the broader ai supply chain. catching a bit of a bid today. also because this is a stock that could move huge direction either way. given its weight it has turned into a m

i did speak with the nvidia c.e.o.s kind of seen as a disappointing earnings report. so bizarre to say that out loud. he laid out his and the company's expectations for next year surrounding production. listen to this. >> we made a mass change to improve the yield, functionality of blackwell is wonderful. we're sampling blackwell all over the world today. we show people giving tours to people. you can find pictures of blackwell systems all over the web. we have started volume production. volume production will shift in q4. q4 we will have billions of dollars of blackwell revenues. we will ramp from there. we will ramp from there. the demand for blackwell far exceeds its supply, of course, in the beginning because the demand is so great. but we're going to have lots and lots of supply, and we will be able to ramp starting in q4. we have bill i don't understand of dollars of revenues, and we'll ramp from there into q1, into q2, and through next year. we're going to have a great next year as well. ed: what is the demand f

susan: not enough for nvidia. nvidia did what the market expected which is beat and raise but didn't raid guidance by enough. it is 18 months despite the fact that they doubled profits from a year ago, nvidia buying back 50 billion in stock and raising the dividend by a penny a share with increased return not enough to take eyes off of the margin squeeze so the next generation ai chips get production that might cut into profit margins to 75%. those profit margins are phenomenal. it is around 46% in comparison but nvidia is priced to perfection up 1000% since chet gpt was introduced and believers of ai will change everything. >> continuing to scale the ai models that will reach a level of extraordinary usefulness and open up, realize the next industrial revolution. lauren: despite the selloff, wall street is bullish i count it ten investment banks raising price predictions to the 160 price target area with $1 trillion ai spending, trillion dollars from companies and countries the next few years and in conversation,

the bottom line, i say to nvidia, let us say that nvidia is excelling. nvidia excels at each mortal thing. to her, lettuce parlance and upside surprises bring. let's talk to eric in new jersey. eric. you are up. well, perhaps we should go to john in kentucky. john. >> hey, jim, thanks for having me on. a real fan of you and your show. we appreciate it. i appreciate you. i've owned this cybersecurity stock for the last three or four years. bought it on your recommendation and over most of that time i made really good money on it, but the last six months has been dead money. jim, should i continue to hold or should i sell it and buy another cybersecurity stock? palo alto network. >> palo alto is not shabby. it's probably up the most of any cybersecurity company now that crowdstrike has stumbled, though i think it has bottomed as i said. i think palo alto is worth holding out. we bought so much on that big breakdown that we don't want it to be our biggest position, but i say stay with palo alto. i think the stock is a winner. steven, in illinois. steven. >>

turns out nvidia's mortal after all. even though it reported a great quarter last night it wasn't able to deliver its key product fast enough to allow the company to do what it's done so many times before, blow away the earnings. yeah. raise its forecast to unfathomable levels. nvidia didn't define today's trading because it failed to dazzle in the way that so many money managers have come to expect. didn't even seem to matter to the averages, though. dow advancing 244 points. s&p basically flat. nasdaq dipping .23%. my response to all this, all i can say is goodness gracious -- ♪ hallelujah ♪ with this quarter's results the albatross and perfection is now gone. the mill sstone shredded. as much as i love nvidia i'm thrilled that we can finally return to a market where there are many important stocks representing many important trends instead of one stock that's captured the attention of legions of investors, many of whom have no idea what it does let alone where it fits into the technological food chain. i stand by my v

no, we'll do nvidia. thanks, charles. we're beginning in final hour of trade with fox business market alert. you're watching all of the record high slip away at this hour. i'm taylor riggs in for liz claman. it would be a record close and slipping off the one-half of 1% and s&p 500 and nasdaq off on the 1% and nasdaq turning negative for the month. but, the only stock that this market is focused on is nvidia. dan ives and web bush calling nvidia the most important earnings of reporting this year. goldman sachs the most important stock on planet earth and ameriprise financial saying it could have more impact than jay powell's whole speech last week. if that's not pressure, i don't know what is. last week daniel newman of the future group told us all of wall street dependent on how this earnings report goes. take a listen. >> the entire market is at risk. you could almost cross off every other economic indicator going to come out this week and nvidia not showing up and that's not just hitting the number. that means beating

so i think it is keeping pace with nvidia, but at the moment, nvidia is still the go-to.course, the other outside contender is owned and begun by the cloud service providers, the chips that they use and some of the microsoft products as well. so, you know, it's not a complete moat, but i would actually note that nvidia's mode has gotten stronger, not weaker. >> ben, we appreciate the conversation. global tnt analyst. >>> and moving on openai, also tox on a funding round that would value the a.i. startup at more than $100 billion. cnbc has learned one source with knowledge the matter was told the round would be earned by thrive capital. "the wall street journal" has reported that microsoft which is openai's bigger backer will also participate in the round. openai and microsoft failed to decline. what's your take on this. >> well, look, a.i. is expensive. i think that's the bottom line. these nvidia chips are not chip. openai needs to buy them. microsoft needs to buy them so that's probably some rationale behind it but openai has shown itself to be one of the leaders right

>> the ceo has been selling stock in nvidia.easons why a ceo could want to sell the name. >> yeah. >> there's only one reason why they want to buy it. i wonder if that ever comes up in a conversation or interview, what were your better options in selling the stock, are you doing it just to, you know, diversify -- >> estate planning. >> his kids need braces, too. >> true. >> come on. >> so, you -- you wonder about it, but i really would say for people to look at the technicals, look at the 50-day, look at the 100-day and you're caught between that right now. you're about 110, let's call it, and 120. and probably going to be a lot of conversation on your desk tomorrow at work talking about the same thing we talk about tonight. >>> all right, we're going to take a quick break. coming up, bitcoin feeling the squeeze, as investors dump out of the crypto-currency. what's next for the coin, as it falls back below $60,000? more "fast" in two minutes, we'll beig bk. rhtac is it possible to count on my internet like my customers count on

it was for nvidia a really solid scorecard.so high and investors were so used to it, beating lofty expectations that what came in failed to impress, so we are seeing some of these chip means and the rest of the region those declines, and that is the big decline there, and it is lawson about three weeks. we are keeping a close watch on the currencies, the japanese yen at 1.445 at the moment. paul: let's get some more from bloomberg technology's exclusive interview with the nvidia ceo, talking about sovereign ai. >> it is not necessarily -- sometimes it is deals with particular regional service provider that has been funded by the government. often times that is the case. in the case of japan, the japanese government came out and offered subsidies of a couple billion dollars i think for several different intermittent companies and telcos to be able to find their ai infrastructure. india has a sovereign ai initiative going, and they are building their infrastructure. canada, the u.k., france, italy -- i'm missing somebody. singapo

chatgpt uses nvidia hardware.a became the leader by advancing technology design for games but valuable to industries. they knew to succeed they needed gamers. ed: bloomberg originals taking a look back and how nvidia game dominated the ai industry. check out the full version at youtube or bloomberg.com. let's look at what shares of nvidia have been doing. five days, we are down by around 9%. it is the biggest weekly decline going back to april. that is the kind of response we had. the bar was so high, a stock up 150% year-to-date, almost 1000% from its 2022 bear market i do not think i have experienced one week like this but it has been a ride, let's say that. caroline: $300 billion wiped off almost in terms of market capitalization. sources telling bloomberg that nvidia is in talks to join a funding round that would value the start about more than $100 billion. let's get right to it. why would nvidia want to take a strategic stake in openai? >> it is nvidia, microsoft and apple, the three most viable technology c

nvidia tonight after the bell. jonathan fahey. >> two questions, will this be kamala's only interview curl this campaign -- during this campaign and, two, will dana if bash ask her what the plan is for the 20s plus million illegal ail agains in -- aliens in this country. is the plan for amnesty? maria: i like the question. president trump told me he has to deport them all. >> tiana lowe derek everybody. >> i want to hear what she lied about, but how much money the ev mandates are costing. maria: yeah, that is a big deal. thank you so much, jonathan, john and tiana. great to be with you all. have a great day, everybody, "varney & company" pix it up. stu, take it away. stuart: good morning, everyone. let's call this nvidia day. arguablyies it is the most important earnings report of the season, and it arrives this afternoon. he's going to influence the whole market. if nvidia disappoints in any way, watch out below. if it continues to the outperform in a spectacular way, we bay off to the races again. premarket the s

check nvidia.ck going to $160 a share and he'll make his case after this. ♪ (♪) is bad debt holding you back? ♪ the only limit is the sky ♪ ♪ it's our time ♪ ♪ you don't want to miss it (just a little bit louder) ♪ ♪ it's our time ♪ ♪ you don't want to miss it ♪ ♪ it's your moment in the spotlight ♪ all your ambitions. all in one app. low fixed rates. borrow up to $100k. no fees required. sofi. get your money right®. it's pods biggest sale of the summer. save up to 25% on moving and storage for a limited time. and see why pods has been trusted with over 6 million moves. but don't wait, use promo code big25 to save. visit pods.com today. (aaron) i own a lot of businesses... so my tech and my network need to keep up. thank you, verizon business. (kevin) now our businesses get fast and reliable internet from the same network that powers our phones. (aaron) so whatever's next... we're cooking with fire. (vo) switch to the partner businesses rely on. they get it. they know how it works. and most importa

is it a reasonable price after the game for nvidia -- gain for nvidia itself?ffect valuations of big tech companies? at one point it was thought to bolster them but it did not better weather the rates were low or rose because they were still making money. now, do rates matter to big tech at a time when they are investing their cash piles in bonds and on the margins higher yields are benefiting them? emily: yeah, they don't matter as much to tech. i think it is pretty well insulated. these companies have so much cash, great balance sheets, great return on equity. we look at different regimes, whether different regimes for inflation or rates or political regimes, the technology sector in the united states comes out on top every time. again, because of the earnings growth, we are bumping up on 30 times forward earnings for the s&p 500 tech sector. yes, that certainly feels frothy, nowhere near the 50 times forward earnings we saw during the peak in 2000, but the earnings are delivering. just looking back at the last earnings season, of course we still have this on

for example, i'll mention nvidia. >> affirm? >> i'm going to mention nvidia first.ardly any difference between their gap and nongap, which, quality of earnings -- let me finish -- noncash compensation is very small. i think it's four cents a share. salesforce, i believe, gap is expected to be only 60% of joogsed eps. >> that's why when we thought that the buyback -- >> huge noncap company, noncomp. noncash compensation. excuse me. >> i like amy weaver. retiring cfo. i obviously like marc, and -- but they have paid people, and they got hit by that. colette kress, the cfo of nvidia, is a little like luca. don't mess with her. she's going to -- you're going to get a real number from her. >> does that matter to you? >> yes, it does. >> goes back to multiples and things of that nature? >> i feel like i can very -- i think i can pay 25 times earnings, which is the procter & gamble multiple, on nvidia. i don't know whether i should pay a little bit less than that. salesforce has got the momentum. and you know how much people love the momentum and the growth model. >> they

nvidia was up 16.4%.hat was, of course, the blockbuster when everything -- many things changed, and the broader market was up a lot. the ndx was up 3%. i thought we had that, but i guess -- >> look, this is the underperformer that's not underperforming, so to speak. i think that it has moved up. it's number one stock in the s&p. it rivals super micro, but that was the case. we get into that. david, i think that this became the szeitgeist. that bothers people because it was a $500 billion company in 2023. then it goes to $3 trillion. no one likes that. i call it a parvenue. >> given the need for a triple lindy, are you confident it can pull it off, that it can get the scores needed to be on the podium? >> i think what you have here is the extension of when apple's late with a handset. >> there's what i was discussing, by the way. >> i think that blackwell is going -- >> wait. bring it back. i want to see that again. >> they're late with blackwell, but that just means you can extend very high margin product

the you guys the biggie is nvidia. implied move up 10% in either direction tomorrow give the high expectations for the stock. that is something we're going to be watching. markets here to the downside in anticipation of the biggie event just after 4:00 p.m. the biggie event at 2:00 p.m. is "making money" with charles payne. charles: got it covered at every angle. you can feel the tension in the area. got you covered. good afternoon, i'm charles payne. this is "making money." breaking now some say nvidia's financial report after the bell is the most anticipated in years and honestly i cannot remember the last time there was this much excitement and anxiety as i just said. we got you covered from every angle. the value proposition for investors, the monumental technology shifts and detrimental impact we're already seeing to the jobs market. why has wall street written off chance of recession. the last time the street was this confident bass back in 2023 when they said there wouldn't be a esession. the price is right. an

what's your trade on nvidia?> well, we've been a sell for a long time in the sense that we just believe the valuation issue is insurmountable. if the company executes perfectly for years to come, which, of course, they will not, this stock is overpriced. and it's 1999 cisco lesson for me. a little bit of ptsd. i think tyler remembers that era well. and i will say that nvidia seems to me to be cisco of the next generation. >> very interesting. i mean, i think of the stock that i associate with the 19 -- the late 1990s is cmgi. just went up and up and up. but nvidia is a real business. i don't know that cmgi ever really was. nvidia is a real business. you're not bias, but your portfolio management style is, what, to chase dividend growers or what? >> it's to pursue dividend growers and to hold companies that have the free cash flow that is sustainable and growing and then they are distributing more and more of that to the owners of the business over time. and so it is a bias, but it's embedded in our philosophy of

nvidia?tory that you're already telling clients that the rotation away from mag 7, away from ai and big tech has already begun and should continue? >> that's really the narrative. we're not going to position the portfolio day-to-day. with 55 billion, it's tough to do. i will say that if you look at the big drivers of return over the last two years, it's really debt to ebita. the higher the debt you have to the cash flow that you generate every year, the worse you are. so if you look at large cap stocks between 4 and 5 times their ebita in terms of debt. small caps, 4 to 6 times that. the mag 7, less than 1 time. these companies generate so much cash, they could pay off their debt in less than a year. that's really been a benefit to those companies as rates are high. once the fed starts to ease, the 10-year treasury moves down in sympathy. financing costs, who is that going to benefit? the higher market sectors. >> what is spooking the market today? nvidia? something more fundamental than that

john: we have nvidia doing 516nps which means the stock is trading at 25 multiple and nvidia is tradeds broader group trades in kind of the low to mid 20's. i think using kind of a 35 to 40 multiple is the right multiple for one of the best position stocks to be leveraged to general ative a.i. which gets us to our $180 price bracket. vonnie: that's stunning, 66 buys, eight holds and no sells among the analyst community and more are targeting a stock price above $150. obviously you're among them. what would cause analysts to have to recalibrate? john: a number of potential risks. right now they've got dominant share and it's 90% plus. and they're looking for hyper scalic design and google has its own with gpu and merchant and a.m.d. is amping the 100 gpu and doing quite well but the share is very small. obviously those two opportunities were to gain greater share that potentially could create risks and headwinds to nvidia longer term and also china, nvidia is still shipping a compliant gpu that is compliant that is determined by the u.s. government. and there are concerns out there that

maybe not good enough when you're as big and as high profile as nvidia and nvidia with the market expected. lowest raise in a year and a half and that's 18 months and despite the fact they doubled sales and doubled profit from a year ago and nvidia is also buying back another $50 billion in stock and raising their dividend by a penny a share. increased cash return and not enough to take investor eyes off the narrowing margin squeeze. and nvidia also said that the next generation ai chips and so called black wells will hit production snags need to re-design and cut profit margins down to 75%. 75% profit margins are phenomenal and apple margins around 46% and nvidia is priced to perfection and there's pretty lofty expectations and it's already up a thousand% since chatgpt was introduced back in november of 2022. ceo jason wong believes that ai will change everything. >> we think that scaling the ai models, we'll reach a level of extraordinary use from us and it would open up and the revolution. revolution. >> it's a selloff today in the stock and wall street remains bullish on nvidia and i c

nvidia. we begin our conversation. >> we see in august, light trading. a time we typically see higher volatility. clearly hitting formidable resistance when it comes to the s&p 500 at the july high. getting over that is a really important step for this market. so until we do, we just expect to see more chop and churn. >> 5600 the number you're talking about. 5 5667 where you get a new high. tech teetering a bit. hasn't it? >> yeah. >> do you feel that's where we are? still yet to resolve the future of that trade? at least the immediate future? >> tech has certainly been losing steam. if we look at the balance off of the august lows, it hasn't been nearly as robust at the rest of the market. still is well below its july high. which means that it's making a lower high. we've seen it trade now below its 50-day moving average i think today. also you see some of that relative performance starting to deteriorate, which just suggests some of the ultra dominance we've seen in tech really over the las

let's focus on nvidia. stock beat expectations with earnings per share versus the expectations of 64 cents. revenue beating expectations of 28.the 2 billion. now -- 28.2 billion. all of this amid growing demand for its next-gen chip, but the market was far from impressed, and investors began selling. let's take a look at nvidia's earnings history. the beats have been declining on a percentage basis in each of the last three quarters. yet it remains the most influential stock in the market right now. joining me now, crossmark global investment's chief market strategist victoriaer if man -- fernandez. what's your take on the market reaction? >> well, look, they really are the bellwether for what we're seeing in this market, and they were expecting another blowout quarter. nvidia reported good results, it just wasn't the blowout that the people were expecting. look, can a company grow at 500, 400% quarter after quarter? no. so i think they were good numbers. i think people still have confidence in nvidia and t

speaking of, this is nvidia.ok at that. the last couple of earnings reports, the stock has gained more than $200 billion in the one day after the report came out. 270 $7 billion of market cap added in february, 218 billion was added earlier this year in may. this speaks to number one, how huge the company is, and number two how much embedded volatility there is in that stock. reading another statistic by our team over here. nvidia has dethroned to to become the most traded stock this year with an average of $40 billion of shares trading hands every day so far. bloomberg will sit down exclusively with the nvidia ceo jensen huang on "bloomberg technology" on wednesday at 11:30 p.m. u.k. time stay tuned for that one, it will be huge market moving, it will be a big driver not just for stockmarkets but across all assets. i want to end with a chart i thought was interesting because we spent a good chunk of the show today talking about new tariffs on chinese electric vehicles. but one of the other themes that came out f

really including nvidia. take a look at shares of nvidia. they're up almost 2%, always investors await the ai chip makers and we'll be doing an in-depth preview of what to expect from nvidia and what it means for broader ai space. the economic data this wreak, we're getting gdp core pce and fed's preferred inflation gauge and what about the nontraditional read of the state of the economy. i mentioned at top of the hour. the sausage indicator and the dallas fed and shows modest growth in sausage category. okay, what does that mean. that category tends to grow when the economy weakens and it's a classic trade down food and could the sausage indicator foreshadow a recession. get to it. with a floor show and lands chief investment officer. michael landesberg and start with you here. the recession something you're worried about. that's >> that's what the fed wanted and the fed raising rates and slowing down the economy and this way inflation will cool and starting to see that and at this points in the paint i don't think we'll be in a recession a

to recap, yet again we saw nvidia make a record number of sales. billion in revenue in the three months to the end of june. that was up 122% on the same time last year. but it is slower than the growth that nvidia has seen in recent quarters. the forecast disappointed investors sending shares down as much as 7% in late trading. to put it in perspective, nvidia shares have risen 3000% in the last five years, more than 150% this year alone. taking the company's stock market value to more than $3 trillion, more than microsoft and second only to apple. for more on this i am joined by the managing director and senior equity analyst. what stood out to you from the company's report?- stood out to you from the company's report? the godfather of ai spoke _ company's report? the godfather of ai spoke about _ company's report? the godfather of ai spoke about this. _ company's report? the godfather of ai spoke about this. and - company's report? the godfather of ai spoke about this. and he i of ai spoke about this. and he has the best perch in the world where

nvidia, if anybody is going to pull a rabbit out of the hat, it tends to be nvidia. i think investors will focus on commentary after the fact. i would love to see earnings beat. i think commentary is important in this quarter now that ai story is cooling off a bit. >> you say the ai story cooling off a bit, the mag 7 not doing as will with as the s&p 500 or the equally weight but having a strong week. what sectors do you think are heating up right now? where would you want to put money to work? >> well, you know, i want to be clear first of all. the ai story is still quite compelling. the expectations are still also quite high right now. as rates come down, as the fed signals a cut in september, this cut still looks celebratory. meaning that the economy could continue to grow if the fed is able to save this extension. i think there are compelling opportunities outside of tech. right now with rates still quite high but coming lower, investors are selective. they're looking at other sectors outside of tech after a spectacular first half of the year for tech. i'm thinki

it's not just nvidia. it's eaton, vistra, all the ancillary plays that go into building out what is becoming the ai ecosystem if you will. nvidia at the center of it, they were to say, all right, demand is slowing, it doesn't mean everything is imploding. when you look back to 2000, stocks stopped going up and then there was a number after where the stocks stopped going up. we have not seen even a slowdown as of yet, so investors of all stripes, whether you're in mega cap tech or not, given how it's been for the market, to shannon's point and my point, i'll reiterate, we haven't seen it yet. >> we'll make that the last word. shannon, thank you. greg branch, thank you. and dan greenhaus, thank you. >>> kate rooney. >> we're going to look at netflix to close, rising at 2% after evercore says it sees more upside. the previous firm says netflix is in a historically sound position when it comes to financials, competition, and other fundamentals. on the other side of this, cava is down. they did sell off some of

nvidia's broader impact on the markets and the anticipation for some results that had some attending an earnings watch party. that's next. "squawk box" will be back in just a moment. it will take billions of solar panels to power the world today. aes is making scale like that closer to a reality. introducing maximo, our new ai-enabled solar robot, designed and built in america. with max on the team, aes is transforming how solar farms are constructed. what was once strenuous is now faster. safer. smarter. at aes, we designed max with powerful features that accelerate solar construction. high-speed robotic arms do the heavy lifting and precise installation. while safety sensors keep workers protected. advanced computer vision powered by generative ai delivers exact panel placement. and a mobile microgrid gives max the endurance to run carbon-free for extended shifts. at the heart of max, a supercharged gpu empowers it to learn and adapt. solar energy is changing the world. aes is changing the w

and negative for nvidia? in other words, at some point, we were starting to push around meta, we were starting to push around google when we started to hear the capex numbers. they're a bigger part of the waiting. i wonder. and i wonder if an nvidia failure, the other side of that, back to a lot of those stocks that are in the dow, but is rotation a good thing or a bad thing? nvidia's failure, does that lead to rotation and is that positive? was that happening anyway? and that's a big debate, because since we had that cpi, i think it was july 11th, you could make an argument that megacap tech has been faltering relative to the rest of the market anyway, and a lot of people want to see that. they want to see the broadening of this rally. so, i'm not sure what it means for, say, a meta or a google or an amazon, if nvidia falls, it maybe means they're spending less on the a.i. that we don't know is necessarily priced into their profitability. >> well, you know, of those three that you just mentioned, google is t

in this week, nvidia earnings are looming large.he company has had a historic run-up but investors will be looking to see if the company is reporting continued revenue performance and positive outlook. you can see nvidia data center segment estimated to come in at $25 billion for the quarter and we're going to be joined now by mandeep singh who clutters -- covers global technology. that is really the money number. what are you expecting relative to consensus and why? >> i mean, there will be a deep related to consensus. look, they've done that for the past six quarters, and even going into this quarter, the question is by how much. the good thing is we have received a couple of data points from all the hyper scalars raising their. those are the things that matter if they want to sell more. the one negative was black getting delayed. in the past when they have moved from one architecture to another , hopper to blackwell, they've only see price increases. the one thing is what kind of a price some are they expecting from the blackwell

his broad, doing well, what you make of nvidia the main place to win on ai. >> the reason why nvidia has been so good is because it's a platform. it's not just the chairman so they have a big ecosystem, riding on their tone and so it's called built, the ecosystem and platform. that's why it's such a defensible business. and it's available everywhere. you can have it and they got support for their chips. so i think that's largely the reason. it could be changing in terms of the complexion going forward. among the hyper scale players. they can do a lot of their own software so i think there will always be a balance between a hyper scale maker of chips with significant volumes. you see in google with their tpu and that search pray i think that will continue in other ways. >> i like that point you are making and we heard outdated tracker was saying the same thing that there is a willingness on a capital expenditure perspective from hyper scalars you're in a number of these. alphabet and meta seems to manage two new wants the argument of why they put money in their wares alphabet people w

look at nvidia. the way to think about it from our framework is they have clear product market fit for hardware they have built and clear product market for the software that enables their hardware. a lot of companies that compete with them today don't have that. so, they are racing to lock in developer interest. all of them are racing to try to commoditize that part of the stack. it has not happened yet. but that's a key point. think about year-over-year growth what nvidia looks like. all of the company to rely on it. the next part of the stack is, what do developers do? how do they train? what products will they use beyond open-source? they still have to work off hardware. similar to when apple came out, everybody had made a bet that apple devices are too expensive. other people will come compete with them. then, you had a software developers moving over to android. you had roughly a 50/50 market. you don't have a tear competitor in software. the question is, at what point does that start diverging

kevin: for us, when we look at nvidia it's interesting. we don't own nvidia. we think about the market, it's been very binary. -a handful of a.i. driven stocks. a broader valuation across the market as a whole. we certainly acknowledge nvidia. we'll understand how it could impact our portfolio. what we are in on the short term is continuation of that sort of trend and migration from a long-term perspective towards a.i. but also broader tech. and seeing how healthy it is in terms of growing. that's about it. it's sort of contextually looking at the short-term with an eye towards the long-term. caroline: i'm really interested in that. you are not in nvidia but you are in alphabet, microsoft, the likes of accenture, texas instruments. less on the a.i. side. the others are a.i. names. are why are you not in nvidia? kevin: what's interesting about our strategy, very inherent in terms of us and our quest for long term quality growth businesses, we look for companies that have high returns on exap and consistently so. we are looking for companies return in equity --

the firm buying that stock, nv nvidia. you finally decided to buy nvidia. >> it was too good to be true for us. nvidia is a stock that they are the arm supplier of this ai arms race. we have wanted to own it for a while, but for price. and we finally got that opportunity, the yen carry trade blew up. there were rumors about blackwell delays, their new chip. when the stock traded down into the mid-90s, you had a forward pe, 25, we felt like that was the right time to enter. >> this news today of amd and this deal, if you're an nvidia investor, is that a snoozer to you? is it meaningful in your mind? >> i don't think it changes anything for the next one to two years. really, what this is about is amd trying to get more competitive in these training clusters. helping big customers, the hyperscalers build out data centers and be more creative. it's something they weren't doing before. it's something nvidia is already very good at. it's not something that amd is now doing nvidia is not. i don't think it's a big threat. >>ia don

we should talk about this with nvidia. nvidia is weighing on everyone's mind.he idea that this one stock in this one report be so crucial seems fatious to me. you know there are companies doing well with a.i., meta, of course. you know there are companying trying gtps. and you know that demand is high. so what has to happen? i'm going to put the jensen law until question, which is what does it mean to be constantly so examined, so microscopic, that it carries the market? i don't think you expect that. yesterday, i got an email from someone who has said, i've had enough, this guy's cost me a lot of money which is very rare because he keeps selling a lot. well, it's true, he does sell a lot of stock. >> jensen huang sells a lot of stock? >> he has a lot of stock. any estate planner would say, good job, you're not affecting the market, you're not just slamming the piece down. but, no i'm saying there isn't anything about nvidia right now that isn't under scrutiny. and long knives. >> because of 500 billion years ago? >> thank you. because it frankly undermines all

of course we know this week's big event is nvidia.hey give us their financial reports on wednesday after the bell you know, it's amazing because right now it feels like almost everyone is saying buy it but there is some anxiety. outside we have bank of america said they're pounding the table on it! interestingly, here is what is really interesting you may not know, your average active ownership of this, in fact the big tech mag-7 type stocks it is extremely underweight right now. look how underweight these are. big tech, so, this is what folks are buying. they're buying crm, intuitive, adobe the names that have not necessarily taken off right now and so they're looking for value, they're looking for rotation and to outperform next. but in the meantime my next guest does have an outperform rating on nvidia. in fact he thinks the share price target is 138. wedbush senior vice president, enterprise hardware, matt bryson. talk about this before we go into the specifics, in fact i want to get this, break this down a little bit. before we g