nvidia is top of mind.ou will see nvidia, so much coverage but the reporting on the doj according to sources issuing subpoenas to that name. the market seems calm about it. intel is a slightly different story. it continues to lag. it's had a choppy session. some bloomberg reporting is a part of it. the biden harris administration's big bet on intel to lead the u.s. chipmaking renaissance is in trouble with the mounting financial struggles this could create a potential damaging setback for the country's most ambitious policy in decades. i think in simple terms mackenzie sources tell us intel's frustrated because they want access to the money. on the government side the white house is frustrated because intel is not doing what they need to in order to get access to the money. >> 30,000 for perspective, the u.s. set aside $39 billion in grants to bring chipmaking back to the united states. to revitalize mastic production of these critical electronic components. intel is was to be the biggest winner. they trave

it took nvidia about seven years took nvidia about seven years to get — took nvidia about seven yearsn six weeks. in a large part of that is because what nvidia did they— of that is because what nvidia did they created some amazing models — did they created some amazing models that people want to use, but because we run them so much faster— but because we run them so much faster and — but because we run them so much faster and because most of the applications are built to use the al, _ applications are built to use the ai, there has been incredible to man. to the reason _ incredible to man. to the reason that we are here in saudi _ reason that we are here in saudi arabia is because we need to build — saudi arabia is because we need to build out a lot more compute and they— to build out a lot more compute and they have the financial resources and they have the energy _ resources and they have the energy. in resources and they have the ener: . ., resources and they have the ener: . . , ., resources and they have the ener. . . , ., ., energy. in a question about bein: in energy. in a que

nvidia, i've been saying, let it come down. i love nvidia, everybody knows that. hate to love, i shouldn't say that, it's just a stock. i have been saying ever six since the quarter, you got to let it come down. don't be a hero. i tried to compare last night to the cowardly lion because counting on you guys to stop me before we go into it and i feel that's the way it is, i really do. >> we talked about the michael semiblis note out of jpmorgan, not just the argument that competition is coming for nvidia and their historic margins and market share, but it sounds like he thinks there should be more progress by now on some of these use cases. >> i think that's really great because there are a lot of people who told me why it was down yesterday, and they were all wrong. it's down because michael is one of the most powerful strategic thinkers right now on wall street. at th he is a friend, but so what? his son's a great fisherman just like his dad. he does say there's competition, and he signals it's amd. i think lisa su is doing a remarkable job. i don't think she wou

there's one story, nvidia.he steep decline in the s&p500 that had echoes of the austin meltdown, the worst day we saw since the crash a month ago. the s&p futures points to further declines. maybe this is not over yet. a bit soft on the dollar. we did see the gain overnight. you can see how it's rippling through into anything that seems risky on dmod sis. look how u.s. crude futures, just a day ago, declined by the most in about a year. extending those losses. this is tied in to what we see on demand concerns given the data surrounding u.s. and china. let's dig into today's market selloff with bloomberg strategist mark kranfield. mark, we knew september would be tricky. did you see it coming in this bad? we're just in the early days of the month. mark: it feels like we had this conversation before. >> it's a deja vu kind of thing. mark: i think it's somewhat different. i don't think we'll get the rebound we saw in august. we saw that setoff triggered by ja pab this. time around, we've come back from labor day.

for nvidia, one focus is the report from bloomberg, the department of justice has sent subpoenas to nvidia and others as part of an antitrust investigation. the doj is investigating whether it's making it harder for customers to switch for others and don't use nvidia products. this is not the first $200 billion plus value for nvidia. it's the fifth time nvidia has lost 1$1200 billion in one session. most recently it saw a market cap wiped off and $208 billion in june. it's incredibly volatile and incredibly important as you said. despite that volatility, despite the fall, the stock remains up 118% this year as investors bet it will remain the leading ai chip player. back to you. >> now it trades at roughly 32 times forward. valuations have always been a concern. it's the reason why the options market was pricing in such volatility ahead of its earnings report. now that the earnings report is done, what's going to be the driver? sit going to be the macro or is it more about what nvidia's going to say about its own products? >> i think a lot of it is going to be on what nvidia says. one of t

nvidia dropped 10% this week, shedding a record of $279 billion in market cap, the first time nvidia lost more than $200 billion in a market cap. the shares are down 20% from their all-time high in june. now the company is getting hit with a subpoena from the notre dame. sema has those details. >> reporter: overnight, a report claiming that the doj has sent nvidia a subpoena, so a series of kquestions on if the chipmakr is pressuring customers to use their artificial chips over competitors. nvidia saying it wins on merit, as reflected in our benchmark sul results in. they generate these ai models. in second place is amd. and in the private world, there are two startups gaining traction. nvidia rallied about 20% in the three weeks going into its earnings report. it's now given back about 23% from its june high. the two things that will drive the stock in the next six months is not necessarily the subpoena, but the blackwell delay issue and whether gross margins have weaked. nvidia did acknowledge that gross margins would come down as it ramps up blackwell. and then there's jpmorgan, c

nvidia and micron.decisive and so sure of what you're seeing here. really is a pleasure talking to you. thank you. >> oh, always my pleasure to be on the program. i love you guys. >> see you soon. >>> it is just after 8:00 a.m. on the east coast and you are watching "squawk box" right here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. among today's top stories, kamala harris getting ready to unveil a $50,000 tax deduction proposal for start-up business expenses according to a campaign official who spoke to cnbc. up from the current expense deduction of $5,000. >>> space-based internet company starlink will block the x social media platform in brazil. elon musk owns both businesses. x earlier defied orders from br brazil's supreme court and defied paying fines. >>> and u.s. steel will move its head equarters out of pittsburgh in the nippon steel deal falls through. nippon saying if the plan is collected, u.s. steel members majority u.s. citizens and spend about $1.7 billion inves

even the likes of nvidia taking a hit. then nvidia's premarket trade. it looks like it may continue that negativity that we actually saw then from yesterday's market picture. just remember that was also on the back of having seen the doj investigated for exploiting what it feels is market manipulation and market sense of majority as well. how much of that gets to play in all of that? we saw the u.s. futures down is where that market looks to be headed? we'll have all the details for you. let's see what ping, right? we're back tomorrow. will that's it for today. my name is arabile gumede. "worldwide exchange" is coming up next. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com. switch to shopify so you can build it better, scale it faster and sell more. much more. take your business to the next stage when you switch to shopify. >>> markets in turmoil. stocks coming off their worst s

nvidia's going to be the tyreek hill of the stock market.second most fantasy points at the wide receiver position last year nvidia speaks for itself yet both have their doubters. nvidia's now pulled back hard from its highs this summer as people worry about the durability of ai demand while hill, he's supposed to have a hand injury. guess what, i think they'll both do great, even if there might be some near-term turbulence. what else? how about this vistra? the stock soared thanks to the company's nuclear exposure and the realization we desperately more electricity in this country. i call vistra the ceedee lamb of the stock market. vistra's in dallas just like lamb who plays for the cowboys who i almost drafted. and it's one of the few stocks giving nvidia a run for its money. it's a stock i looked at for my charitable trust, up almost 100% year to date. finally, how about a new one? i know it's going to be a shocker here. how about reddit? it's been a phenomenal stock. let's call reddit the marvin harrison jr. of the market. harrison was th

they are predicting nvidia rallying to the 144 level. it is as high as 165, still 50% upside if wall street analysts are correct. the runway valuation has a lot of proving to do. from what i see, nvidia only makes 1/3 of the profit that apple and microsoft makes. nvidia is worth almost as much, twice as much in margins. they are starting to question the rich pricing on nvidia from jpmorgan and black rock that started the selloff. a record-breaking nvidia selloff of 300 billion in rest market but also to jason longer who is the world's fifteenth richest, one billion dollars in net in net worth yesterday. it was a small week to break the top ten. a year ago he was almost outside the top one hundred. there's not a lot of catalyst for the stock until the next earnings report. september is typically the worst month of the year for stocks and stock markets and they end higher from now until year end. when you have an election year in progress. david: i heard about that. of it does go below 100 even david asman might get into that. appreciate i

let's return to nvidia story.oute. $279 billion wiped off its market value. $280 million. during yesterday's trading session with the drop continuing afterhours. analysts are concerned about how long the selloff may continue. take a listen. >> high expectation which means the market taking a higher level of a disappointment. moving forward how far the nvidia or the a.i. could potentially take a step backwards. i think that will be something that i will keep my eye on. >> i think in this type of market you have skittishness. if the demand is still there on a.i. prospect first investors to come back. >> we still predict that the g.p.u. market is going to grow by 29.9% over the next five years to a market worth $103 billion. still lots of growth and upside on this market. by 2030, it's going to be close to $1 trillion. 50% of the growth is coming from a.i. so the a.i. is really fueling the growth big-time. >> reaction there to the route that we saw from nvidia. we have calls coming through in the session from black r

we've got to go to nvidia.hose subpoenas, it dropped like a stone and now it's down another 2%. what have we got? >> i i mean, are remember, market cap loss of $2800 billion yesterday -- 2800, the ceo lost $10 billion in paper money yesterday. it is all about how this doj starts to play out. this is a stock that we're watching. tour stuart we're watching it all day long. i just want to sew foo if there's -- see if there's any bounce. >> mike lee. [laughter] stuart: advanced micro devices just hired a former nvidia executive. is that why the stock's up? >> yeah. look, he was the lead of global a.i. strategy, he now joins amd to spearhead the payment initiatives worldwide. not bad if for a america d, to the take some notes from nvidia. stuart: a very important stock delivered this morning ab earnings report. it is -- yeah, look at it, that would be dollar tree, down 11%. what's the story? >> basically saying they're cutting their forecast because they are still worried about that low income consumer where the ceo

nvidia is the problem. like apple down more than 2% you start to ask, what is the bigger thing happening here? it is probably the chips, right? caroline: we atak about and rec. you know the podcast. you can find on apple, spotify, the bloomberg platforms. buckle up. i think it is going to be a busy one. this is "bloomberg technology." ♪ . you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >> welcome to black crypto the people transactions and technology. live from bloomberg in new york. we are 62 days until election day. crypto companies are major contributors to the races. we will talk to a coin basis as his philadelphia emerges as the top political. and we will talk with

nvidia was like -- no offense to nvidia, a low-level chip maker for video game companies. less than $1 stock, i think. no one cared about nvidia. what did you see in it? >> when i was -- by then i started the trading the stock. okay, you know what. nvidia just started gpu and it was like booming. and i said, okay, i believe in semiconductors because my background, i'm electrical engineer. >> oh, you are, wow. >> you know what all this internet boom and iphone boom happening, so semiconductor is the way to go, but i'm just learning training. so i was using the company who has the least amount of dollar value. so if i lose money, it is okay. and since i was believing in semiconductor, okay, you know what, even though something goes wrong, i can hold that company. and that's how -- >> it was a 50 cent -- you paid 50 cents, i think, for the stock. >> yeah. the split, yeah. >> even more impressive to me than buying at 50 cents -- do you still basically expose the entire position today? >> so, i did sold something like 10% couple of weeks ago. but beside that, i'm planning to ho

we start with al chip maker nvidia. record rise to one of the world's most valuable companies has wowed wall street. now, it's breaking records again, but not in the way it wanted. on tuesday, nvidia lost the most stock market value in a day of any company in us history as part of a steep sell—off that hit tech shares particularly hard. nvidia continued to fall after hours as bloomberg reported that it has received subpoenas from the department ofjustice, which is investigating whether it has been abusing its dominance of the market for al chips. let's just show you the numbers because they are pretty staggering. almost $279 billion — that was the amount wiped off the value of nvidia over the course of the trading day. it adds to losses last week after the company's forecasts disappointed investors. nvidia has been the cornerstone of the tech rally on wall street. is it all about to come unstuck? dan ives is managing director at wedbush securities. he's been one of the biggest enthusiasts for the tech sector on wall str

you look at nvidia.re's a blockage of nvidia's chips being sold to china so there was a story i read about a week ago where an entrepreneur went and built a data center in australia with a bunch of nvidia's chips that is now accessed by chinese firms. look, they are an adversary. i know this administration just wants to call them competitors or strategic competitors. they're adv adversaries withouta doubt. maria: the ceo of motorola walked me through a situation where they had chinese employees working and downloading patents and information about the flip phone they came out with they had were selling to the u.s. military. and i wrote about it in the cost, which was out in 2020 with james freeman. it's such an important issue that we don't see any pushback. you mentioned it surveillance balloon, fentanyl flows regularly into america, covid, a covid coverup. intellectual property theft, propaganda, and yet what do we hear from the democrats about another adversary accused of trying to influence the outco

it is called the nvidia factor. they all have to sell. they can not get a firm fitting until they do. we don't know how quickly they can get it rolling or how it can get the gross margins going up. that was the real reason it pummeled. how about something else, your bank put out a list of the previous big drops in the market. great buying opportunities. for example, platform, $250 billion in february of 2022. since then, valued at 110%. the gain over the same period. april 29th, 2022, amazon lost the market gap. since then, 39%. s&p, up 33% and change. on september 3rd, of 2020, apple lost market cap. since then, sored 83%. on october 25th of 2023, google dropped $180 billion. since then, 25% gain. not bad. the only stock on the list to beat it. the index dropped 32 in that time. finally, microsoft lost in march of 2020. then a rampage. the win for the s&p500 after the same period. you can argue the real winners have a degree of volatility. it scares people out of the stocks when they should be buying. only a terrific price to buy, not se

is led by nvidia. it is too positive. they don't believe it. it's kind of like the emerald city in the wizard of oz. come to think of it, i feel this has evolved into the cowardly lion situation, where the stock just seems too dangerous for professional investors to walk into. all right, i'll go in to nvidia for jensen huang, wicked witch or no wicked witch, guards or no guards, i'll tear them apart. i might not come out alive, but i'm going in there. there's only one thing i want you fellas to do, talk me out of it. to be this whole decline, which again, i said it's not done. it will end up being too extreme. the situation isn't as bad as we think when it comes to all a.i. tech. at the same time the people bought the consumer product, which happened in all sessions, betting on the recession, that they have gotten ahead of themselves in a moment. and let me give you an example of what was confusing today on what we saw. apple, now apple isn't spending a boat load on a.i. i thought therefore it should be going higher. apple is basically borrowin

margaret: no, from -- tell us the story of nvidia. nvidia and you. jensen: we were in silicon valley, engineers in silicon valley designing computers and we observed that there was a better way of designing computers. if you -- the current computer we use, it was invented the year after my birth. 1964. by i.b.m. the i.b.m. system 360. it described a central processing unit, c.p.u., multitasking, separation of hardware and software by this layer called operating system. things like that. and those basic technologies are used today. it's a lot better, a lot faster. but the basic architecture of it is the same. so general purpose computer that can do things. we observed 30 years ago, it was 1993, we observed that there are problems that are quite specialized where a general purpose approach is not necessarily the best. and it's no different than if you had generalists do something. and it turns out that software's kind of the same way. there's a field of software called simulations and if isic simulations and data processing and computer graphics and th

nvidia shares are slightly higher today. can see they're up by about a percent and still up 10% so far this week, but bank of america says buy the dip, saying recent headwinds provide an attractive opportunity to get into nvidia and finally, broadcom is reporting its results after the closing bell today. about two hours from now, for more on what to watch from broadcom and all of the other chip choppiness out there, let's bring in ben wright. the head of technology research. ben, this is a scenario where nvidia is rightfully in many people's minds, the stock that is driving the entire market right now. how scared or optimistic should we be about the chip sector? >> hey, dom. well, look, seasonally, this is a time where a lot of folks digest big first-half expectations and the chip stocks, just like actually last year ran ahead of a lot of ai hype and now it's time to deliver, and we're see something cracks in terms of pc demand and a few of maybe the applications that investors wanted to see take off such as microsoft co-pil

nvidia traded poorly as if it delivered bad earnings, it didn't. it delivered very strong earnings against elevated expectations, but that's another story. the oath myth i would say in the market right now, this economy is headed for maybe once again a recession and bad data is terrible, but is it really terrible when not a single economic indicator that the mber looks for to determine a recession, not a single one is actually in contraction, so it seems the market is trading on an emotional september is going to be bad, but that's not the right reasons. >> this is more on where to be in the market growth raids? stocks are up a lot, and do we have want to be more sensitive to the economy? i don't know. do you? do i want utilities and staples? i'm not saying we're aheaded for a radio he session, but we're going into the first rate cut. what typically does well three months before and three months after is the defensive sectors lead the way. the core of the portfolio if you're scared about the payroll report on friday, buy some bonds. that allows you

subpoena for nvidia. the we have the details. zb >> reportingly sending a subpoena to nvidia asking for more information from the chip mayber amid antitrust concerns. getting potentially a step closer to a complaint, this according to bloomberg. the dominance of artificial intelligence chip gained more attention and inviting regulatory interest in recent months. the main competitors in the public market, a many. d and intel. in a private market, there are two main players. three risk which confidently filed to go public this fall and groc. it is backed by blackrock. nvidia declined to comment on this story. we're seeing shares down another 2% in after hours. >> all right. thank you. so, another strike potentially against nvidia. i mean, everybody wants nvidia chips for a rvenleason. if they don't have that lock, for whatever reason -- >> i think partially that's why it accelerated to the down side. but to have this resolved in the short term seems highly unlikely to me. >> this is such a joke. there's bee

nvidia had a good number, but it fell. when stocks fall on good news, it's a crowded trade or something bad could be coming. then they led the downside this week. i think it is part of this pull for the seasonality. it's a political aspect. investors will be tough on china, which would be bad. part of this could be fears that a trump gaining is bad for semis. >> maybe too much priced into the stocks at this point. valuations have gotten a little too rich. even if they are the greatest stocks in the world, which you've made the argument that they are, this is the place you want to be. maybe more than any other. i think it's possible. nvidia's last ten years of history, there have been 30% drawdowns. it was higher at the bottom of those drawdowns. nvidia scored in the mid-20s. so to me, this looks like a normal profit taking. maybe it takes it down to the 90s. but two years from now, that's going to be a gift. >> are you a buy er on the dip? are you urging people to do that? >> we're close to that point because let's say we

it's great to point out that nvidia is not just this pure play on chips.s trying to be the end-to-end player, everything a client needs from the stats to the technology they want to be the dominant player they are right now >> exactly kind of leveraging that position seema, thank you john porter, bringing you back in what do you want to hear from wong tomorrow? >> well, i think partnerships is something we would love to hear more of, because as i mentioned earlier, seeing the use cases, there's something that is going to drive the next leg of the story. as you see that partnerships with leading financial services and health care companies, really companies across all corners of the economy, i think that's going to be the fuel that helps answer your earlier question what takes us from a $3 trillion mark to 5, 6 and beyond >> as we leave it there, i know you like to have a view on the macro, but do you have a view on whether the fed will, should, might do a quarter versus a half point next week? >> do i have a view on next week i don't have any real expertis

you saw this with nvidia. nvidia also raised above the consensus, right, by a couple billion.ll down every day since he reported. that is like broadcom. people expected the ceo to raise 11 to 12. that's good. the overall revenue guidance of 14 billion slightly missed, right? in semis, especially if you are the second most owned name behind nvidia, you can't miss the top line even though you raised your a.i. number. that's going to be the question people have. the other thing i would say is similar in nvidia, the expectations for the earnings, peak earnings, coming up in the next year or two did not go up after this report. valuations are kind of high right now. that is the other issue. you need earnings to be surprised to the upside. they have yet to do that. >> you mentioned nvidia. a lot of people are seeing similarities with the setup to nvidia with expectations had to be high. goldman sachs is out with a note yesterday that i want to bounce off you. to buy or not buy is the question. in our view, the technology sector is not in a bubble and continue to dominate returns. ho

don't buy nvidia at $118.50 and then sell at $116. >> nvidia up 13% for the week.t comes on the heels of the discussion at oracle and we do have an analyst meeting with oracle today >> well, this is where i expect them to raise numbers, perhaps substantially. the oracle narrative of 162 datacenters going from 1,000 to 2,000 was the beginning of this move to be able to return to a group of stocks that had been considered suddenly pariahs. we had someone on our air talking about the bear market and nvidia it's up the most in the s&p this year, but holy cow, what a -- >> it's terrible, yeah rough. it's been rough. >> you're jensen huang, and jensen is sitting there saying, okay, on the one hand, people say i'm getting -- i've gotten a letter from the government, from the justice department the justice department, which is like, by the way, when you get the letter from the justice department, not good suboptimal when you get the justice department letter. but he didn't get the letter but then it turns out if he didn't get the letter, maybe he's not powerful. if he's no

then you had nvidia. two notes talking about this idea that ai will not be a light switch. it will not be quarters. it will be years in terms of where we could potentially see that growth. of course there have been a lot of commodities impacting the market as well, this concern around china and weakening demand. jonathan: you mentioned nvidia. let's get the update. one of our top stories in the last 12 hours. the u.s. justice department sent subpoenas to nvidia as it seeks evidence that the chipmaker by antitrust laws. officials are concerned nvidia makes it hard to switch to other suppliers and penalizes buyers that do not exclusively use its ai chips. the stock is down by another 1% in the premarket after dropping by almost 10% yesterday. this coming after the close. more pain. annmarie: this was the final blow for nvidia yesterday as we saw shares falling. what they estimate sums up why the doj has these concerns. nvidia controls between 70% and 95% of the market for ai chips used for training and depl

nvidia, two charts of nvidia. first, well-defined trend lines and you can see arrows to the penny, to the penny. we sold off to the penny to trend today. change the iteration and put in the moving average of this mechanism. the exact sail level you'll see here and we stopped to the penny again. and so the question is, do you play for tactical bounds. nvidia's relative performance to the smh and this is the really orderly thing. if you have to be in this space or you want to be in this space, i think nvidia is the play. >> interesting. >> he is our smoothing mechanism. >> by the way, i love how -- >> we do this stuff together. we're going to figure it out. >> the technicals, to the penny. you nailed it. the one thing about the fundamentals we've been talking about customer kong sen trace, a theme we'll start hearing more and more. it was one of the reasons why broadcom was down as much as it was considering it was a good quarter. the guide was a little below expectations and it becomes a game of expectations, right

caroline: nvidia back in the red again. has been anxiety we have put too much into too few companies. when you say diversify, what into? kristina: other types of companies. if all goes well, the thesis for a soft landing holds and we see the fed start to cut, that could create a supportive environment for risk assets. that does not mean tech will outperform. it will keep up or follow closely behind. cyclicals, smaller caps are more sensitive to the economy. this could be a positive environment. i think one investors will appreciate even if we see spasms of fear and lack of confidence. ed: you talked about durations. in the context of nvidia, investors after earnings were long-term investors who say we accept short-term volatility but we are holding because we understand the data center buildout. is it important to be diversified even if you take that mindset? kristina: it is critical to recognize there are companies that will benefit from ai. if you are feeling confident about the story, that will help companies in a variet

broadcom is no nvidia, but the third best performer.e are watching the bond market and 10/2 inversion. after the ten-year yield jumped ahead of the two-year yield since 2022. you see the two-year treasury at 3.77%. the ten year-at 3.77%. it is important to note the 30-year is at 4.07. this is a read on inflation expectations. we're looking at the energy market. oil holding just under $70 a barrel. wti right now. $69.80 a barrel. it is up this morning. coming off the lowest close since december. brent crude is up 1%. really key here sentiment level back below 70 bucks a barrel. >>> that is the money set up. let's see how the europe trade with arabile gumede in the london newsroom. good to see you. >> good to see you, frank. it has been some time. the european market around two hours since the opening trade here across the board. we actually moved sideways across the day's trading. a lot of the movement in the semiconductor sector. we see movement in that space. you see gains across the bourses. the swiss market is managing to move lower.

let's talk more about nvidia he said they are good earnings and a lousy performance.erally they doubled earnings a company that huge is incredibly unusual and investors sold. >> the numbers with nvidia are amazing and the stock was down 8% predict a hundred% over the past are 150% over the past 18 months. this is the fifth straight quarter were revenue was up more than a hundred% first time the top 30 billion of the last 12 months just under 100 billion in sales up almost 200% the numbers continually get amazing. it starts to generate the questions of how long this can go on. the one thing that i find fascinating for companies account for 40% of sales, roughly speaking that is my kazaa, meta, amazon and off of or if you rearrange. 40%, those for companies are going to spend 200 billion on capital equipment basically building the a.i. infrastructure route. that's up fivefold since 2017. the numbers are amazing. >> it may not be sustainable can you see cisco in 2000 and literally the stock is not gone back to where it was on march 31, 2000, 24 years. >> good news bad ne

not just nvidia. bell after this. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ your shipping manager left to "find themself." leaving you lost. you need to hire. i need indeed. indeed you do. sponsored jobs on indeed are two and a half times faster to first hire. visit indeed.com/hire ordinary problems are for ordinary companies. we're here to fight the big, intimidating, impossible-to-change problems. [beeping] from developing treatments at unprecedented speed to addressing threats to global health. we're leading the way with a revolutionary mrna platform that could teach our bodies to do extraordinary things. we're here to do something more than make medicine. we're here to change it. moderna. this changes everything. >>> we're at the beginning of a new industrial revolution and this industry is going to be producing intelligence it takes energy and of course a lot of great computer science and large computing systems that are being made so we've got to make sure that everybody understands the need's coming, the opportunities o

nvidia being the prime mover there. because those stocks are no longer quite dominating earnings growth, but this rotation into other types of stocks has been complicated by the fact that economic numbers look like they're dicier, at least they're consistent with the idea that some fear we might be slowing a little more than hoped. that's the jolts data. perhaps feeds into that i think in general, this is what a soft landing or the path to a potential soft landing looks like, which is constant doubt that the soft landing is going to happen and you have to test the premise against every incoming piece of data. we got back above 21 times earnings last week. didn't quite take out the july highs. rotation is quite defensive. if you look at consumer discretionary versus staples, staples have had this big run against them. dividend stocks against semis. you've seen those dividend stocks make a move. does that mean the economy is in trouble or just trying to stay on balanced footing in case the fed's rate cuts are need to have

nvidia at $140 would be a bigger question, right? you would have pulled forward a lot of those returns for us we're doing what other managers get paid to do. we've had a good year. the market is up a lot we're just managing our risk until we get these cards turned over, the election, rate cuts, economic growth. >> let me ask you one more question before we go, outside of a.i., the most exciting position you think you have -- because you have a couple dozen positions, right, is what? >> you look at companies like mercado libre, there are a lot of companies that people have kind of forgotten about as they moved into the mag seven, right? i think there are going to be a lot of internet companies that are benefited by a.i like i said not only margin expansion but re-acceleration at the top where they can acquire customers, improve their products in a way that make it easier for customers to buy. take friction out of the system. i'm excited. the improvements we're seeing in instagram and the core products at facebook, nobody would have ev

we have nvidia ceo jensen huang, nvidia's largest individual shareholder.any's stock. separately ubs intelligence out with a new a.i. note today they believe that semiconductors like nvidia, broadcom and tsmc remain the biggest beneficiaries of big tech's robust spend on artificial intelligence. we sort of already knew that but we think that trend continues. just looking at the price action nvidia up 13% from that dip earlier this month the average wall street target on nvidia, $148. i would point out, shares are trading at $120 and change >> appreciate that real quick to you, bob semis have not traded well of late that's one area of concerns in this market. >> we'll see micron could change that that's going to be out on wednesday. of course, that's in a very specific space, the memory space. not necessarily the same space nvidia works in. just the fact we've had this dip in semis and the market is sitting at new highs shows you the rally, the rotation that goes on. some days we see consumer stocks -- consumer staples do better, health care and defensive. t

shana: the postmortem of nvidia is that nvidia is a great company doing great things, and it has really attractive growth. just not the attractive growth they had before. so, when you were experiencing 300%, 400% increases in revenue and you decrease to 150%, that is a decrease. but it is still a 150% increase in your revenue. overall as a long-term holder of nvidia, personally, i believe the stock wins in the long term. i followed the stock forever. in the short-term what you are seeing is that disappointment, and the stock coming back to reflect more closely its fundamentals when you start to look at price to earnings and things of that nature. postmortem i think long-term nvidia good, short term we will probably have volatility. in terms of the fed and what happens next i think today's data and the comments came from waller suggest that the fed is still in-line to make a rate cut this month, and it will be the first of many. and the question really becomes how big will that rate cut be? there is nothing that came out in today's data that suggest it should be anything more than 25 bas

notable moisturizers nvidia up to -- movers, nvidia up. we're watching auto stocks, too. morgan stanley out of jonas, downgraded the space including moving general motors to under perform. that stock down by 5%. it takes us to the "talk of the tape." how much more can stocks rise? tom lee is fund strat's head of research, cnbc contributor. live at post nine. nice to see you. since the fed did the jumbo cut the market hasn't done much except for last thursday. why? >> you know, i think the fed unleashed us on an easing cycle, and that's going to be positive. we know it's actually historically positive, three months, six months out. what stocks do in the next month is a coin flip. i think that's what we're seeing because there's some repositioning that took place. and we're thinking about the 40 days until the election. >> so does the fact that the election is but 40 days away sort of ruin the perfect scenario for stocks to get that post fed bump? >> i think it delays it. just because -- in the conferences that i'vebeen speaking to -- speaking at and seeing wealth managers

nvidia up 2.9%. that could also be in favor of vp harris given the idea that jd vance, the running mate of donald, is perhaps wanting to break up big tech. big tech for the most part doing ok today. humana down 5.5%. this health care insurance company -- this could be seen as an anti-trump trade. in addition some medicare stocks trading higher, which would go in favor of kamala harris. yesterday, the worst day in quite some time after the president of jp morgan said analysts are -- some jitters, that could be shipping market action. a completely idiosyncratic story. take a look at the shares of designer brands, down 16.6%. the parent of dsw. they missed numbers. there is some weakness here. another tell on the state of the consumer. dsw, where you can get designer shoes at a more discounted price, they are not doing so well. it speaks volumes about where the consumer is at. scarlet: thank you so much. we will check in with you later. earlier today on bloomberg television, jp morgan's david kelly gave

, nvidia, nvidia, if we start to look past that one name, there's value in the market.tient. be disciplined. you can make money coming out of this stretch of the inflation market we've seen over the last two years. cheryl: mark, you also have been watching wages and that's been important to you, been watching the wage story. >> wage is obviously throughout the biden, harris administration have been rather weak. real wage growths is actually slightly negative. but obviously if we want to have a strong consumer, we need to have wage growth exceed inflation. fortunately, it looks like inflation readings even though this week's was a bit higher than expected on the core side of the equation, seems like they're more under control and i think the fed obviously is really going to be focusing more on that other mandate which is full employment because, cheryl, the labor market has been softening. specifically with small businesses over the course of the last two months, if you look at the adp report, they have cut jobs. companies with 49 or fewer employees have cut jobs over th

look what happened with nvidia. results showed a tad bit of weakness in artificial intelligence orders. and the pin action took it all down. i don't believe a.i. is a bubble, but these stocks are still up especially august and september tends to bring out sellers in numbers. that is what we got. it was not our shortfall. they took down most of that. it is the overreaction that seemed to cascade. the pain was palpable. >> house of pain. >> to me this is about the zeitgeist and not the facts. so many companies are doing well despite the slowing economy. you can't waste time arguing with the sellers who have nothing whatsoever to do with this market. nothing is going to stop them from taking profits out of fear. i can't blame you for joining them if you do, but only if you don't have enough cash. if you have cash on the sidelines, please don't join them. for the trust we have plenty of cash because we have been selling this market since we got that weird decline in japan and now we are looking to buy, not cell, after l

you have to blame nvidia.emi stocks falling 11% for the worst week since the start of the pandemic. nvidia falling 14%. the chip maker losing $406 billion in market value last week. that is the most on any u.s. company on record and more than amd and qualcomm. we are checking the bond market and the key 2/10 year spread. it uninverted after the softer than expected jobs report. yields right now at 3.76 for the ten-year. we also want to look at the 30-year treasury ticking up a bit from last week above 4% at 4.06. this is the read on inflation expectations. we have two big reads on inflation coming up this week with cpi and ppi. we have oil coming off the worst week of the year. a bit higher this morning. remember, this is a bounce off of lows. wti, the u.s. benchmark up over 1%. below $70 a barrel. brent crude up 1%. still below $75 a barrel. that is a key sentiment level when it comes to brent. >>> that is the uc.s. setup. let's look at asia with jp ong and silvia amaro in london. jp, good morning. >> good mo

nvidia is up 3.57%. >> can it hold it? course that's the question. >> if you watch the volume, david, it trades like game stop did, a lot of 0-30 options. >> i know. >> and then grandpa said -- all i can say is i wish i was a gra grandpa. >> they go between fan dual and making the bet on the jam tonight, the jets in san francisco and zero day on informed. no difference to anybody in anyway. >> it's a knockout. >> i don't know what it says on for me because i sit next to you. >> i play daily fantasy every day here. and right now i did not start nvidia i started richardson, saquon barkley and cooper kupp, can you believe how great i am? i didn't do that. but this is the reality, nvidia cannot finish up. it's the long knives are out for nvidia and by the way, there's a -- a sense that it doesn't matter whether you buy any of the tech. amazon. >> one day the demand will -- will -- >> it should be now. >> -- diminished for their chips. >> but the spokes people. >> at some point the spending will slow. >> we had a great number f

maria: when you're successful in a success story nvidia the expectations go higher and higher so there your take on next week's data the bureau of labor statistics as we know they canceled 818,000 jobs that we thought were there, they weren't there. now the upcoming jobs report seems to take on more importance how important is a job number next week. >> i'm going to say something that some may see as unpopular and i don't think it matters. i'll tell you why it is a mess what they did they screwed up the numbers going back for the past year. we know that but the reason it does not matter that chairman powell has told us he's cutting rates he said it is time to change our policy and the time is going to be september. i don't think the jobs data that we're going to see and some would argue that i have this wrong i don't think so because i think interest-rate matter more than the given monthly job number especially since the job number seven wrong chairman powell does it in september and the market like that that's a more important story. maria: this is one of the last jobs reports before

we have seen nvidia under a 30% drop in recent weeks. are there other moves you'd make where the selloff based on the concern around broad kom, all of that is unjustified. >> all these stocks have had a really nice run. everyone and their mother owns nvidia at this point. i just think tough let the dust settle. maybe let it settle on broad kom too. and their quarter was very good. so there are places i'm picking and choosing. >> let's talk about the places you're picking and choosing. what's on the shopping list for you? still in tech like nvidia and elsewhere in the market? >> absolutely. basically, you want to stay diversified. you want to own a little bit of everything. we have talked about several. broadcom is an interesting way to place it. nvidia is compelling here. stock is trading at a multiple in line with apple and m microsoft. you think it grows faster than those names, maybe deserves a higher multiple. a couple other things to make sure you have well-diversified portfolios. chevron is trading towards the upper end of that ran

i saw nvidia. saw broadcom, which reports tonight, drop very quickly when we had that weak adp, and how this is happening is beyond me because these companies trade on inventory. they don't trade on gdp, but it doesn't matter. right now, if you have something negative about the economy, it goes right to the semis, and to computing in general. >> you've been writing and talking all week about buildouts in general and capex and infrastructure, and when you have j.o.l.t.s. show cycle lows for construction, that says something. >> we're getting the right reasons to cut if you're the fed. i don't know about a double cut, about 50. there is a growing perception that intel is doing so poorly. they're cutting back cap spending. maybe that's the reason why we're seeing asml, besides just worry about china, downgraded from top pick at morgan stanley and of course they replace it with arm, which does the opposite. they're a taker, not a giver, when it comes to some upside, and i do think that what's happened

certainly nvidia has provided leadership for the last 24 months. the event meta has the ability to crack, you're going to see more of a rotation, more of a true exposure from institutions and retail. therefore, i think tactically, you're seeing meta have the the ability to be the short-term. we are 12 days away from the fed coming out. we know the fed is going to be cutting assets of 100 basis points. it's imma material. you saw the group move up about 25%. so we are seeing that it's going to be 25 because if they go 50 basis points, that's going to spook the market. that could be a washout. >> that's how you think meta goes from 500 to 450. you wouldn't want to own it here? >> i own the puts and i'm happy to be on the puts right now. we're going to ride this a little bit longer. >> thank you as always. appreciate it. >>> nasdaq down 2.5%. worst part of the markets about 1% for the major averages. that does it here on the exchange. "power lunch" is next. ♪ (girl) wooo! ♪ ♪ >> i had 20 years of experience as an hr professional and i had reached a ce

mention nvidia is doing well at least up to this point.all kind of prepping up, we've got numbers coming out tonight from micro and technology and the space and they're all kind of silver memory types of stocks. the reason wall street is going back and looking at 20, 25% growth in tech. sorry, go ahead. charles: no, dan, i was going to say the market goes back and experts and if it make as new high, that rekindles everyone. what do you think? >> think, charles, nvidia trades off that report also and high bandaid memory and this is the there high bandwidth memory and chip that goes in compliments and expected to roll that chip into the new blackwell 100, which is nvidia's new ai offering coming in the end of october. a lot will trade, charles, charles, on that micron number and relating to nvidia because it's going to either conform or create doubts about this whole ai euphoria, and if they come in with strong numbers and on the conference call say high bandwidth memory is strong, nvidia goes up and broadcom and all the ai stocks trade up i

nvidia 140 to 98 to 125, the recovery was big.ltimately, i'm very bullish on the whole ai deployment, but i'm not surprised where when you get a question about cap ex, you get a bit of retrenchment. i don't think today is all that surp surprising. >> you think margins have peaked? >> yeah. >> are we at the begins of a earnings life. are we suggesting that earnings in the current cycle have peaked also? >> no, i don't think they have peaked. i think the market is ahead of the fed by a lot. i know i'm going to get stimulus. accelerate through 2025, and you're already willing to pay for some, not all, but some of that recovery, so to the extent you get afraid the recovery is muted, or things get worse before they get better. we're still as 5500 and change, so it's not like one day corrects it all. i think, you know, we kind of said 10% of chance as well as down. i think health care is outperforming in a down day, and maybe i'm more bullish on health care than six, eight week ago. >> you're skewed more cautious, so the health care, st

partially that is related to the comments i highlighted earlier by the nvidia ceo.hat is having influence, i should say, in the asian session. we'll have more detail on that in just a moment, too. basic resources are also trading higher by 2.3% of course, i would highlight we are keeping a close eye on the banking sector yesterday, we got news from unicredit buying a 9% stake in commerz bank there are questions if we see a full takeover later on we'll discuss that as well let's look at the losers to understand what is happening on the other side of the equation we have food and beverages as the worst performing sector at this stage marginally below the flat line. you can see we have green across the board. it is a positive mood in europe so far as we await the key ecb meeting later on today let's discuss chip makers in more detail because across the u.s. and asia, they are posting strong gains after the nvidia ceo jensen huang sees robust demand for chips huang says they are getting their hands on the semiconductors huang said there is a lot of responsibility on his