LIVE Now: Expert coverage of Nvidia's Q1 earnings

Added: 2026-05-21

[00:00:06]Hello and welcome to Market Domination.

[00:00:08]I'm Broo Pomama filling in for Josh Lipton. We are live from our New York headquarters and there is lots to get to. There's just one hour to go until the closing balance. Stocks are rising as oil prices drop and investors look ahead to that big Nvidia earnings out after the bell. Jared Booker standing and sitting in studio with me, not standing, sitting down. I mean, there are such high hopes. What are where are we ending as we make our way towards the close?

[00:00:32]>> Well, first I was out the last four days and it seems there was a little bit of a slowdown in the stock market. Three-day slump, but we are back. Let's go to the Wi-Fi interactive. I will chart the intraday price action. Here's the Dow up uh over 600 points, one and a quarter percentage points. NASDAQ composite uh close to its highs, same as the Dow there, up 1.3%, just a little bit more.

[00:00:53]S&P 500 also a very bullish looking chart though a little bit less than the NASDAQ and the Russell 2000 up double that is the small caps are up 2.23% 23%.

[00:01:03]So just jumping there. Even the S&P 500 equal weighted index is up over 1%. That just means that this is not a concentrated rally. And we've been uh seeing a lot more of those concentration issues come up recently, but not today.

[00:01:16]We got to talk about the bond market real quickly. Uh that's because we the 10-year Tote yield backing off nine basis points. A lot of pressure coming off the market because crude oil prices are off about 9% here. That is the biggest drop that we've seen in a month.

[00:01:31]30-year yield still above 5% but it is down six basis points. That is a lot too. So I think a lot of the pressure in the market had to do with the bond market and uh that is just kind of reversing today. U let me just close with this. These are the sectors and the large cap sectors and consumer discretionary is leading up two and a half%. Big day for retail. TJX, Target although Target trading to the downside.

[00:01:54]Uh >> despite a beat.

[00:01:56]>> Yes. Yes. despite a ve and then tech is in second place. It is a huge day for semiconductors and we're going to get into those more. Just want to point out that the three sectors that are not working today, healthc care, staples and energy, those are defensive sectors so nothing to get too worried about.

[00:02:10]>> Yeah, we are seeing a pullback in oil prices which we'll also get to. But let's talk about Nvidia because the world's largest most valuable company is reporting after the bell today. We are we did see a pop of about two 2.2% this morning. Now we're seeing investor optimism maybe back down a little bit.

[00:02:24]still up about 1% into the close. What sort of moves are we expecting when we make our way to that report and maybe even after?

[00:02:31]>> Yeah, I got some history here. Let me just show you a chart of the uh uh Nvidia on the Wi-Fi Interactive. This is an intraday chart. Let me just show you the year-to- date because I want to show you where it is in relation to its recent highs. It is clo pretty close to its all-time highs. Here you can see it's up 20%. That is respectable. Um but nowhere near what we've seen from some of the other chip stocks. Uh, let me show you what the data that I've been digging through is showing here. And that is not it. Here we go. Um, this is Nvidia. You buy before earnings and then you hold for one day, one week, one month, one quarter, one year. And that's a little bit hard to read. Let me just beef that up. There we got another one there. And you can see the results are kind of lackluster until you get up to about a quarter. That's when you get an 11% return. Um, and then if you hold for one year, it goes all the way up to almost 90%. So, you know, you invest uh if you're investing here, it's more of a long-term story uh as opposed to a short one. You're going to get better odds there. In terms of win percentages, if you only hold for one day, you got a 55% of chance of being right. That's basically a coin flip. You hold for a quarter, that's 78%, you hold for a year, that's 84%. So, it just goes to show you that the short-term traders have their work cut out for them here.

[00:03:44]And Jared, I think that the big question right now is what sort of guidance will the company put out that sort of leads that long-term optimism for maybe investors to even get into it. Right now, we've seen a pullback on investors jumping in and instead they've been going to semi-chips. We've seen a surge in Micron, in SanDisk, and other names year to date, even over the past few days, even ARM popping as much as 13% today. So, what are you seeing there?

[00:04:07]Yeah, I the number that I'm going to be watching and I'm going to be writing about this is buybacks because I think investors are almost expecting a big buyback number. I don't I can't say that the market's going to be disappointed if that doesn't come through. But if the if Nvidia is able to reward investors by by announcing a huge buyback and there are whispers of something 100 150 billion um we I think that would be very bullish for this stock. But we know that Nvidia has a lot of commitments. Um, you know, there's been a lot of talk about these circular financing deals. They're showing out a lot of of money for private and public companies and that's the other side. So, when we talk about where Nvidia is deploying their cash, you know, the hyperscalers, they have to buy those Nvidia chips, but Nvidia is uh kind of funding a lot of companies that are building these data centers. So, it's all intermixed, >> all connected.

[00:04:55]>> All connected. Yes.

[00:04:56]>> I do want to get to what we are seeing within Brent and crude today because we're seeing a bit of a pullback and that's impacting bond yields. So, so what are you seeing? What are the numbers and what sort of implications could we see there?

[00:05:06]>> Yeah, as I pointed out earlier, energy was the only sector that was or one the biggest sector that was did uh trading to the downside here. Let me get our crude oil futures up and you can see uh they are back below $100 per barrel here and we're talking about a pretty big move today. We're this is only 6%. Um depends on which contract you're you're looking at here. I've seen uh contracts down as much as 10%. But here is the longer term chart and this is the one that matters. This is year-to- date.

[00:05:33]Crude oil has basically been trading in a big range between just above $80 all the way up to about $115.

[00:05:41]And on an intraday basis, it spiked above, maybe spiked below. But we're kind of in the middle of this range here. So, it's hard for me to get too excited about a one-day drop, especially when the headlines can change as quickly as they are.

[00:05:53]>> But at the same exact time, we are seeing investors react to this because we're seeing a uh, you know, a a pop within airlines, cruise lines. So, walk me through what we're seeing there.

[00:06:02]>> Sure. Let's go back to the interactive one more time here. I'm going to pull up our travel board. And you can see some really big outperformers here. United Airlines, Delta Airlines, both of those are up almost 10%. Carnival Cruise almost 10%. I'm going to sort by performance so you can really see what I'm talking about. So, there you got UL, CCL, Alaska Airlines, Delta, looks like, uh, Frontier, Norwegian Cruise Lines, all of those.

[00:06:26]>> Pretty significant pop there.

[00:06:27]>> Yeah. All they're leading the S&P 500 today. So, that's a pretty big movement for a lot of these. Some of these, we haven't seen a movement that big in uh since August. So, we're talking about nine months. You put it all together, there's a lot of uh short-term movement off of this big drop in crude oil prices. But, it gets me back to my original point that these headlines uh change so fast and crude oil could easily spike up again to again tomorrow.

[00:06:50]So, it's about the trend, >> right? And that war is still ongoing.

[00:06:52]So, so many so much uncertainty around that. Yes, Jared Blick. Thank you so much. I do want to get to the global bond sell-off appearing to ease slightly as those oil prices fall. Here with more is Vashal Kanduja, Morgan Stanley senior portfolio manager. Uh Vashall, I do want to get to what we are seeing within this today, some relief when it comes to these bond yields. Walk us through what exactly is driving that reversal and are investors not necessarily as worried as they once were about higher inflation here?

[00:07:24]>> Uh hey, good afternoon Brooke. Um no they are still very worried. Um I think the relief headlines that came through uh overnight and then first thing in the morning are the ones that are clearly driving this. Now if you go back to since the sell-off started off uh very directly was a wardriven energy shock that was coming through. You were pricing in about three cuts for the Federal Reserve and now you're pricing in two hikes by the end of next year. So dominated by the energy shock was the first sort of Lego selloff. Then you got into a phase where the expectations were that the market was expecting that given the energy shock you will start seeing some demand destruction that never materialized or you had to squint into the data to actually find out some weakness. So the last probably the 3 weeks worth of selloff is led by much better than expected growth, resiliency of growth at least here in the US that you've seen through.

[00:08:23]>> Yeah, go ahead please.

[00:08:24]>> I do want to get to that that Fed outlook that you do have because you had said that we started the year we thought we were expecting rate cuts. Now you're expecting rate hikes at the by the end of the year, but not even just one.

[00:08:35]You're expecting one to uh one and a half to three hikes. So what does this mean necessarily for the Fed moving forward, especially for a Fed under Kevin Worsh?

[00:08:45]>> Fantastic question. I wanted to clarify the comment that I made about two hikes being priced in by the end of 2027 is not our base case. I think that is what the market is pricing in. We do think that the market is overpricing the hawk.

[00:09:00]We strongly believe that the next move by the Fed will be a cut. It might be pushed back to end of 2026. maybe all the way back to like December or early part of 27, but the next move will be a a cut. Now, again, coming back to Kevin Walsh taking over, we think that there will be very clearly the three-point agenda that he has to focus on. First, I think he has to come in and calibrate policy in the face of a war-driven energy shock that is pushing inflation higher while the White House is pressing for rate cuts. I think the second one from our perspective is that he's getting this chairmanship with the slimmest margin of votes 54 to like 45.

[00:09:43]So you're coming in in a in a time where the Fed independence is significantly at least perceived to be uh under duress.

[00:09:51]And then the last one from our perspective given the commentary that we've heard we've read through what he's spoken about whether he is truly a balance sheet hawk and an interest rate dove. So I think that that policy clarity again going back to my first point has to be clear. Again a tough tough situation to come in. Uh but yes I think those will be the three points that we'll be watching closely.

[00:10:12]>> For so so to just to clarify you are actually expecting a rate cut because we're going to hear from Jennifer Shawnberger our reporter here at Yo Finance in just a bit but based upon the latest Fed meetings it seems like they're implicating more likelihood of a hike. So what sort of data are you watching out for that could lead to a cut in this environment? I think right now the data is not showing it. So I think there are two things. One, I think the initial shock of the oil price is not yet showing up in demand destruction. But we do think that what the market has done almost like a self-correcting mechanism, it's almost priced in two and a half hikes for the Fed into the market. So if you were a potential homeowner today buying a new house, you are paying in much higher mortgage rates. you're paying in much higher oil prices which are already restricting some sort of growth element within the US economy that will start to show up in the next uh two to three months economic numbers and then we should expect to see some sort of like labor market slowdown coming through from cyclical factors or more from AI in the back half of this year. So I think again inflation normalizing uh consumer uh demand destruction showing up and then growth uh as a byproduct slowing down and then the market softening. Those will be the key data points that we will be watching uh towards the end of the year as we get more clarity from this conflict that we are still very live into at this point.

[00:11:41]When you think about the ripple effects that this does have, we are expecting Nvidia after the bell today. And there's some concern right now about credit risk, about all these AI players taking on an abundant amount of debt. How concerned are you about that in this sort of environment?

[00:11:55]>> I think we are definitely very concerned on the long end resiliency of these um the amount of debt that has been raised and the spreads on these debt uh on the on the bonds that they've been raising uh or pricing are extremely tight. So the probability of excess returns meaning the return that you make over and above the treasury return of equivalent maturity that you would have bought is very slim from our perspective. So from a bond holders perspective, there's not good riskreward to be buying these 30 40-year sort of bonds from some of these companies that have sort of out of the next like two to three years the path gets very blurry on some of these infrastructure spend that they are that they're going to going through. So we do think that we are actually underweight that sector within our portfolios and we do uh and we are approaching it with a lot of caution at this point. Michelle, take us back to the start. Where do you see the 10-year headed from here? And if the street never reopens, it doesn't reopen. How should investors be positioning themselves right now in this environment?

[00:13:02]>> So, I think we come back to the basics of bond bond math. I think if you think about take a big step back as a bond investor, you were putting money in into fixed income. You're getting your coupon and power back. So if you derive that math, yield at which you put your money in into fixed income becomes a very clear determinant of total return from that investment in the next three years.

[00:13:25]So today you have to see if you put in money in a 2-year note today in the treasury market in the US, you need a sell off of about 250 basis points for that to become a negative return in one year. So the probability of negative returns is extremely low because your starting yields are extremely high. Very different than what it was in 2022. The starting yield in 2022 for the 2-year was at 78 basis points. Today the starting yield before the selloff was basis points. So the probability of positive returns is extremely high. So yes, volatility is high. But then the outcome as the compelling entry point has shown up is is very positive. If you are an investor who can hold on to some volatility from fixed income in the next one to three years breaking down into allocation, we do think this 450 to 5% on the 10ear is an extremely compelling entry point in US yields uh that you're getting as an investor.

[00:14:25]>> Are you nervous at all with all this momentum that we're seeing within the market, especially over the last few days leading into this Nvidia report this afternoon, that there's a a big risk coming up because of these higher bond yields? I think absolutely we are in that danger zone where some of these yields I think you saw a little bit of that in yesterday's price moves. We thought that yesterday's price moves were were the first or the second time that we saw in the last like two and a half months of the selloff that you saw forced selling coming through the US Treasury market where very idiosyncratic through the US market here where US agency MBS is a sector that extends out or negative convexity starts to show up as your prepayment risk is reducing as your yields are rising. So you have to have sort of force selling in in treasury market that you saw yesterday.

[00:15:14]So you're already in that danger zone of it not affect not only affecting growth and some of these sort of debt capex that you're seeing from the tech companies but also starting to show up in some of the market functioning uh on the other side. So yes uh on the alert but this is the time that opportunities start to show up for active investors.

[00:15:34]>> Michelle thank you so much such great insight. Appreciate your time. Thank you.

[00:15:38]>> And coming up, we'll be unpacking the latest Fed meetings, uh, meeting minutes that we just spoke about from Drone Pal's final meeting as Fed chair. Don't go away. You want to let Hey, hey, hey.

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[00:18:07]Hey. Hey.

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[00:19:52]The Fed's latest minutes shows a divided FOMC as Fed officials debated the path forward on interest rates. This all comes as Kevin Wars is set to be sworn in as Fed chair on Friday where he'll inherit a pretty cloudy economic picture at the Fed. Jennifer Shawnberger has been tracking the minutes. Jen, hey there, Brooke. Yep, we do see some division within the Fed about down the road perhaps later this year, what Fed officials could do. However, for right now, the consensus seems to be that they're looking to hold rates steady for longer than previously thought with the prospect of looking at a rate hike if inflation remains sticky above their 2% goal. Now, remember these minutes are released with a 3-w weekek lag. those minutes reading quote participants generally judged that the continued elevated inflation readings together with uncertainty related to the duration and economic implications of the Middle East conflict could necessitate maintaining the current policy stance for longer than previously anticipated.

[00:20:57]Now several thought they could still lower rates in fact later this year if inflation were to get back on track. Of course, in that scenario, you see the war end relatively soon, energy prices coming down, tariffs no longer contributing to inflation. The other scenario for rate cuts would be if you saw a deterioration in the job market.

[00:21:18]So, several officials held that viewpoint. Now, a majority, and I'm I'm underscoring a majority here because majority is more than several, highlighted that quote, "Some policy firming, which is Fed speak for a rate hike, could be appropriate if inflation were to remain persistent, to use their language, above their 2% target." Now, according to the minutes, many officials thought that they should have changed language in the policy statement such that it would reflect and signal to markets that the next move could be not just a rate cut, but perhaps a rate hike. And we know that there were three members of the Federal Reserve who are voting members and did dissent as a result of the language, but the minutes are enlightening us that there were many. So, it was a larger group than just those three people that objected to that language. We do know that Boston Fed President Susan Collins was in that camp because of a speech she gave a couple weeks ago. I also want to just briefly draw attention to the fact that there was a large debate here on inflation, not just on the impact of oil prices on inflation, but other factors.

[00:22:29]Number one, there were several officials who see that productivity could push down inflation and could lead to a path for rate cuts. And we know that that is the argument that incoming Fed chair Kevin Worsh has made. So that was interesting. On the flip side, there were several who raised the flag of you've got a lot of investment in AI which is creating demand for those materials and so that is increasing input costs. So that could contribute to more persistent inflation. So you have two sides of the coin here. A very divided vent on how this inflation is going to play out. Bottom line here though, Brooke, looks like we've got a Fed that's going to be holding for longer than previously thought.

[00:23:08]>> Jen, you have the divided Fed at the same exact time. You're still getting some pressure from President Trump. I mean, Kevin Worsh is walking into this very clouded picture here. Walk me through the road ahead for this fair Fed chair here.

[00:23:22]>> It's certainly become a more complex picture for incoming Fed chair Kevin Worsh, hasn't it, Brooke? But uh surprisingly today the president seemed to give a little bit of cover to Worsh.

[00:23:34]He mentioned in an interview with the Washington Examiner that I'm going to let him do what he wants to do and that quote he's a very talented guy. He's going to be fine. He's going to do a good job. And so that I see that as the president saying look if Worsh needs to hold rates for longer because that is what the economy calls for. I'm not going to give him heat. Of course, we'll see how this plays out. I also think it's telling that there were several members of the committee who sort of thought, well, look, if inflation gets back on track, we could cut rates later this year. And I am of the views point that perhaps Wars would be in that camp given his previous comments before being nominated. And if that is the case, I wonder if he tips that several into the majority or not. It's going to be interesting to see how this plays out.

[00:24:24]He's going to have to create consensus though because while there are several who see the possibility of rate cuts later this year if inflation is back on track, there's still a majority who's looking at the prospect of perhaps even a rate hike if inflation remains sticking.

[00:24:39]>> Lots of implications here. All that as he tries to maintain the Fed's independence. Jennifer Shawnberger, thank you so much.

[00:24:45]>> Thanks, B.

[00:24:46]While AI leaders like Jensen Wong point to the growing opportunities out there for graduates, Americans are struggling to feel that same optimism about the job market. Recent data from Glass Door revealing employee confidence plummeting in April to new record low. Here to discuss is Daniel Xiao, senior economist at Glass Door. Daniel, I want to start off with these announcements that we got today. We had Meta announcing a pretty significant layoff that's taking effect today. About 10% of its workforce. At the same time, we heard that Intuitit shared plans to cut 17% of its workforce. You also saw that techs are the largest largest decline in employee confidence. So, walk me through that report and how all these headlines are playing into that.

[00:25:30]>> Glass Door has a really great insight into how employees are feeling about the job market and feeling about their employers. And currently, what we're seeing is that employee sentiment, employee confidence is very low. It's in the lowest since our data begins back in 2016. And that's especially true for entry level workers, which is significant as we are in graduation season right now. And I think that has a lot to do with the fact that we are seeing many of these headlines out there about layoffs or restructuring, people don't really feel like there is a lot of job security right now. And on top of that, even for workers who are in a job and they do feel like they are secure in that job, they don't feel like there is the same career growth opportunities. So they can't uh go on the open market and find a better job, one that offers higher pay or better title, and they also don't have the leverage to negotiate for that better job internally. So really, I think what's going on is this sluggish hiring environment means that people can't get their foot in the door at all. And for the people who are on the career ladder right now, they can't climb it.

[00:26:34]>> And getting your foot in the door is half the battle here. I mean, we heard from so many over the weekend. We heard, you know, Jensen Wong saying, "Don't walk, run to AI." We heard uh former Google CEO Eric Schmidt get booed at a college graduation during his commencement ceremony when he was talking about AI. It seems like we're hearing from all these tech leaders embrace AI yet these younger grads are not necessarily willing to to jump into that same bandwagon. Do these new recent grads need to adopt AI in order to get that step into this uh labor market?

[00:27:07]I do think that AI is an important skill to pick up because it's a technology.

[00:27:13]It's a tool just like any other, right?

[00:27:14]So, we've had um examples like the internet or computers in the past where those just become integrated into what we expect workers to know moving forward. I think AI in part feels different because of marketing.

[00:27:29]Essentially, we've had uh folks talk about how AI is going to result in mass unemployment, and I don't think that's really true. I don't think that's how technological change has really played out in the past. But clearly, workers are taking that to heart. They're hearing this kind of marketing speak and they're feeling like AI is coming for them. It's coming for their jobs. And so, it's understandable why there's some push back, why there's some hesitancy to actually take advantage of AI, to implement it, to learn about it. um from the perspective of workers. But I do think that uh in the long run, this is going to be just like any other tool, any other technology. It's going to be something that workers want to have in their tool in the in their toolkit.

[00:28:10]>> Within your report, you also noted that senior level employees actually have seen a lower confidence in the last year as well. Is there a fear here that they're going to be also replaced by AI just like those recent grads?

[00:28:24]Well, I think that for senior leaders really probably what's driving that decline in confidence over the last year has more to do with policy uncertainty.

[00:28:32]We've seen that over the last year there's been an enormous amount of uncertainty and even right now as we're dealing with this energy price shock and the the war with Iran, there's just a lot that is on the plates for senior leaders as they figure out how to plan things moving forward. But more specifically for AI, senior leaders are under pressure to figure out how to make AI work, right? They're hearing from investors. They're hearing from their CEOs. Hey, we need to figure out how to implement AI or we're going to have our lunch eaten. And so there is pressure on senior leaders to figure out how to to make this happen. It's not so much, I think, fear that their jobs will be replaced so much as they fear they are going to be replaced by somebody else who figures out how to do AI.

[00:29:14]>> Something to watch for sure. Daniel also too what you said about the higher energy uh prices right now and the implications of that on the workforce that's also bleeding into other sectors like hotels transportation what are you seeing within employee confidence within those sectors particular >> so we are seeing that sectors that are negatively impacted by higher energy prices are starting to see employee confidence deteriorate and I think that is an early sign that we might start to see some impacts on consumer spending in travel for example. Uh conversely, we are actually seeing that employee confidence is a little bit higher in energy and that could be a sign that these employees are expecting higher energy prices to to produce a bit of a windfall for them. But um broadly speaking, I think that this is a maybe a concerning sign for consumers and uh what that indicates for the economy if that means that we're going to get a slowdown in consumer spending. Daniel, do you want to take a step back? Because despite all this concern about layoffs and the impact of higher energy costs and inflation on the workforce as well as AI, at the same time, we're not necessarily seeing that show up within the jobs report. We have two months of positive gains, quite significant gains, in fact. Are they are these tech layoffs just not showing up yet in the jobs report because of severance packages? I mean, do you expect this to to show up maybe months from now?

[00:30:36]>> It's an interesting question. So for one thing I would say that tech layoffs they sound very large and in fact for people who are affected of course they are extremely impactful but when we're talking about the numbers here if we look at the Jolts report from the BLS for example uh roughly 1.7 1.8 8 million people are laid off on a monthly basis.

[00:30:57]And so if we're talking about a layoff that affects 10,000 people, yes, 10,000 people is a lot, but it doesn't necessarily budge those nationwide figures, right? So, uh, this is just a place where there can be a disconnect between what we see in the headlines and what actually shows up in the data, especially because many of these layoffs are at small to medium-siz businesses that might not attract those same headlines.

[00:31:21]>> Daniel Xiao, thank you so much for joining us. appreciate your time.

[00:31:24]>> Thanks for having me.

[00:31:26]>> Coming up, we check in on what retail investors are trading with Robin Hoods for. That's next on Market Domination.

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[00:35:37]Retail investors are back in a big way.

[00:35:40]Robin Hood trading activity surging in April with the company seeing one of the strongest months on record and semiconductors emerging as a dominant theme there. Join me now is Steve Cork, Robin Hood chief brokerage officer.

[00:35:52]Steve, great to have you on set.

[00:35:53]>> Thank you.

[00:35:53]>> I want to start with that. April being one of the strongest months despite the fact that there was just so much uncertainty not only about the war but also AI, the implications of that. Walk me through what caused so much momentum for your investors. Well, I think what you what we saw is um some of this uncertainty drove some pricing down in some of the more popular names and um like we saw during the the tariff um situation um some of the more depressed names are are the more popular names and and our customers are quite young so they loaded up and uh they bought dips and those dips you know that dip buying has been they've been rewarded for doing so. um they're probably a little more aggressive than um than than retail customers that maybe at other financial institutions because they're young and they have a long investing path ahead of them. So they um they're opportunistic.

[00:36:50]>> Walk me through what is what is the average age there and is this new investors coming into the market for the first time over the past few months or is this someone who's maybe just investing more into the market? It's it's probably more of existing customers that are doing this. We do al also have a funnel of new investors that come in.

[00:37:09]Of our 27 and a2 million customers, half of them are new to the market.

[00:37:13]>> Um but you know, they are they're sort of moving up the investing curve and getting into retirement and yield and all the things that are uh you know that life takes you on in your in your investing journey. So maybe they started with GameStop and now they're investing there >> or they started in crypto or they started in, you know, event contracts and it we always say it's not it's more important where you go than where you start.

[00:37:39]>> Interesting.

[00:37:39]>> Um sadly, I mean, for some of them, they probably don't want to hear this.

[00:37:42]They're becoming investors like their parents, right? And this is I have daughters. They're like, "Please tell me I'm not going to be one of those finance people that lectures everybody about what they should do." I'm like, "Oh boy, let's hope not." So, would you say that retail investors are becoming more in like institutional investors? Because I I do want to pick your brain on something. We >> we got this announcement today that GameStop is taking an even deeper take into eBay. And of course, Ryan Cohen trying to acquire GameStop for that exponential amount of money, >> but it doesn't seem like he's getting that same sort of excitement that maybe he was in the past from the retail investor community. Why is that? Uh, I don't, you know, I don't I think that was something that happened and I don't I don't know if it's really drawing the attention that it it did the first time around.

[00:38:26]>> I also think to your point um the retail investing community is you're spot on.

[00:38:32]They're they're really savvy. They're almost like um individual portfolio managers. you know, when they when they, you know, buy a dip in a name and accumulate and have some gains, you know, if they think it's an opportunistic time, they're going to roll out of that and roll into something that's underappreciated.

[00:38:51]>> One thing that we do have our eye on as well is SpaceX potentially filing for their IPO this week. We also know OpenAI potentially filing for this week as well.

[00:39:01]When you think about those, are your investors already trying to get in around maybe the space economy, the AI uh unfold, unwind here or whatever, whatever is going to lead to this, what are they doing in order to prepare for these big moments within the IPO market?

[00:39:14]>> Well, we have a product called IPO access. So, we if we get an allocation, they they will get um some of that allocation. Um we've probably done 40ome IPOs in the past and we've had strong interest from customers on many of those and um to your point they just want access. They want the ability to participate the way retail or institutional customers do you know um historically >> are you seeing that demand already? How is Robin Hood preparing for these for these?

[00:39:44]>> Well I mean first they're I mean I think the S1 is dropping I heard today >> reportedly potentially >> today. So then I think then then we'll see um how it all unfolds. But I think your question is the the narrative around retail is they really want to be able to participate in these early stage companies and in the IPOs um in the way that institutions have participated in the past because they see the appreciation that's happening um either early or even before it becomes an IPO.

[00:40:15]>> Okay. So they have their eye on what exactly is driving the market right now for sure. But they also are taking a second look at their portfolios and maybe they're moving away from some safer names that have been in the past like Costco, Anovo, Nordis, United Healthcare, I believe. So, so how are they positioning themselves heading into this this year?

[00:40:34]>> Um, I think what we've seen more recently is, you know, a a continuation of of the what I'll call the halo that surrounds AI. you know all the all the names that are associated the chip makers and and all the other names that um provide the capabilities for for AI because I think um you know as as young in retail investors they're very tech-savvy >> and uh we see that you know previously we would see strong interest in the EV space >> you know in um you know in all the areas where they think the economy is going from a technology standpoint we tend to see our customers uh overindex Now to add another fold into this market, prediction markets are just soaring in interest. What's your take on that? And I guess >> where do you see regulation falling into this? Because I think that's still a big concern right now perhaps for someone even looking to get in or for overall.

[00:41:29]>> Yeah, I think um so there's been tremendous interest in event contracts and prediction markets and many new participants coming. Um we are about to stand up uh our uh DCM Dco which is the equivalent of an exchange so we can have control over the product that we deliver to the customers the experience and the economics. Um, I think we'll continue to see this space grow and proliferate um, with the contracts that are available and there'll probably be a gravitation to things that are closer to our core, which is the asset classes that we already trade >> um, and an expansion in the capabilities for customers there.

[00:42:11]>> What sort of interest are you seeing?

[00:42:12]Are you seeing any people, you know, are they betting on crypto predictions?

[00:42:16]What's the what's the most that you're seeing? Well, I mean, sports has been dominant, but you're seeing the faster growing ones are crypto, on price action. Um, there's tremendous interest in geopolitical things, in economic indicators, in weather. You know, it's kind it kind of spans. All right. All right, Steve.

[00:42:36]>> Well, I mean, think about it today here.

[00:42:37]Who would imagine?

[00:42:38]>> It is almost 90 degrees in New York City. Steve Gorg, thanks so much for joining us. Appreciate being on set.

[00:42:43]Thank you.

[00:42:44]And while consumers are voicing concern over rising prices, they're continuing to spend on that lunch bowl. Cava reporting a blowout quarter with 9.7% rise in same restaurant sales and also boosting its guidance. Market Catalyst host Julie Hyman and myself. We got to speak to Cava's CEO Brett Chilman about these results this morning.

[00:43:04]The narrative out there is that, you know, people are feeling stressed.

[00:43:08]They're paying higher gasoline prices.

[00:43:10]The vibes are not good. And yet here you come in here blazing with this 9.7% same restaurant um sales increase. What what do you think are the drivers of that?

[00:43:18]And and do you think the narrative is wrong out there that people are are stretched at this point?

[00:43:24]>> I don't think the narrative is wrong. I think the gas prices are real. People are challenged. There's a a large part of the the population that's that's struggling. And so that goes to our long-term strategy. We we talked about this last year and in prior years why we've worked to improve our relative value proposition each and every year.

[00:43:40]Underpricing inflation, underpricing CPI by almost half, underpricing uh our industry peers by over half, and then delivering that great differentiated Mediterranean cuisine at a real value, right? Not just the lowest price, but a reasonable price for the fresh uh Mediterranean ingredients we're serving versus freezer to fryer food. and our guests are finding real value at Cababa and they're coming back more frequently.

[00:44:04]>> I was going to say because you did raise your guidance for the outlook for 2026, but yet you're posting this strong nearly 10% seam store sales growth, but you only raise your guidance between expectations about 4 and a.5% to 6 and a half%. So why be cautious there? What are you expecting in the second half of the year?

[00:44:19]>> Well, as we saw last year, a lot of headline risk, a lot of uh you know exogenous factors whether it's geopolitical or macroeconomics. So we just want to be thoughtful and conservative in our guidance. Uh we did note that quarterto-day trends in Q2 were holding in line with what we saw in Q1. So very pleased with the momentum we've started uh the year with, but just want to be mindful, you know, with if the uh conflict is prolonged and the prices at the pump persist uh that that could erode spending in the back half of the year.

[00:44:47]>> And what about also sort of margins for you guys? I know you've raised prices on some items, but you've mostly held the line, right? But we know that input costs are going up for you. It's not just gasoline. I mean like we were covering the CPI report to the cost of tomatoes alone was up 40% year-over-year.

[00:45:02]>> Yeah. Yeah. Well, that's another thing we noted uh in our earnings call is that while we raise same restaurant sales guidance and those increase same restaurant sales give us some flowth through on our fixed costs, expanding our restaurant level margin, we're taking that restaurant level margin expansion and using it to absorb some inflationary prof uh inflationary pressures we believe will manifest in the second half of the year so we don't have to increase prices to our guests because we think that's been a a big part of what's been able to sustain our traffic over time. You look just at the April report, right? 3.8% 8% CPI. Uh food away from home 3.6%, food at home 2.8%. For us, we only took 1.4% menu price increase at the beginning of the year with no plan further increases. And that price increase was uh among premium and attachment items. While we kept our base cabba uh chicken and falafel and roasted vegetable bowls and pas the same price as it was last year, so the price of admission hasn't changed. really trying to bridge the K in a sense, the K-shaped economy where we have great value every day for people who want entry into the brand. And then if people want to really trade up into a premium adventure, we have that whether it's our grilled steak or recently uh launched pomegranate glazed salmon.

[00:46:09]>> Yeah. With that salmon in mind, how is that impacting your margins moving forward? And also, we've been talking a lot about the delayed effect that these fuel costs will have. How many more months until this shows up in your bottom line?

[00:46:21]>> Yeah. So, in regards to salmon, we talked about we believe it's going to be about a 100 basis point headwind to margin rate, but it's penny profit neutral. So, again, we didn't want to just price it where it was so expensive to our guests that we were maintaining a margin rate. We wanted to make sure it was penny profit neutral, but put it at the lowest price that we could give to our guests. Now, in terms of uh inflationary pressures, we do have some visibility that we expect some fuel search charges just to manifest in the coming months. Then obviously it remains to be seen just how long the conflict persists and how long those uh petroleum prices stay elevated and then may flow through in some packaging costs.

[00:46:56]>> It was really interesting on the call because you seem to indicate that some of the lower income stores or consumers actually seem to be performing better than higher income. Like what's what's up with that? What's going on there?

[00:47:08]It's been counterintuitive, but I think it's just a testament to the broad appeal of our Mediterranean cuisine and the accessibility that we've really built to our guests being able to to uh to come into our restaurants at a reasonable price. The lowest income strata uh median household income restaurants actually performed the strongest. We had strength across the country, but those those cohorts uh perform the strongest, which again I just think speaks to the whites space opportunity we have to welcome more people to our table, which we continue to work to improve that relative value proposition every year.

[00:47:39]>> Are just just a quick follow on that.

[00:47:42]Are the folks in those stores choosing the lower priced proteins, >> right? Or are they splurging for steak and salmon? Well, that's the other interesting aspect is we haven't seen any deterioration on our premium or attachment items and we see it consistent across all restaurants. So, you know, again, giving people different pathways to choose their adventure and and their uh their meal on their terms to fit their dietary needs and preferences.

[00:48:05]>> Yeah, reminds me Starbucks CEO telling us it's a little luxury. People are willing to splurge that $9 coffee. So, maybe similar at Cava as well. When we had spoken in the fall, Gen Z was under significant pressure and now we're hearing from Challenger Gray and Christmas that even teens are or not necessarily working this summer. What are you seeing with that younger consumer right now?

[00:48:24]>> My teens are working this summer. Um we're we're making sure that they they they uh they have a job and work and um you know what we're seeing is is that uh we saw a firming up toward the end of the year and then that momentum has carried over into this year. And I think what you're just seeing in in the dispersion in in our industry in particular is that people are still outspending money, but they're being much more discerning about it as they've felt those inflationary pressures around us. So that's why we're focused on delivering real value to them so they feel like they're getting great bang for their buck when they come to Cabba.

[00:48:57]>> In terms of expansion plans, you guys are expanding pretty rapidly. You raised guidance on that as well. What markets are you looking at and what have you learned within these new markets?

[00:49:06]because it's different than a New York City or maybe a Chicago area.

[00:49:09]>> And again, that's what gets us so excited is the broad appeal, whether in the city, the suburbs, the exerbs, every region in the country. We talked about this last year, we've seen it again this year where our 2026 new restaurant opening cohort is performing as well or better than our 25 cohort, which performed at record levels. So, really excited what we're seeing. We just opened in the Midwest, in Cincinnati, in Columbus, Ohio, and St. Louis, uh, let alone our existing presence in the Sunb Belt. So, we're just trying to bring Cava to more communities across the country and uh really excited about the reception we're receiving.

[00:49:39]>> Okay, here's a here's a a strange comment or question for you. When I get one of these bowls from AA or wherever else, like you talk about the value proposition, usually I'm cognizant of the weight, like not that I'm weighing my bowl, but like you get the bowl and you're like, "Oh, this is a feels like a pretty hefty hefty bowl of food right here." like how do you guys guide your staff in terms of like how much you put in the bowl and how they how do you think about that sort of tactile feature of when you get a bowl?

[00:50:10]>> Absolutely. And I I really appreciate hearing that because we work with our teams on that. Uh, one of our values is generosity first always. And we want abundant, generous portions. And so we we guide our teams and if you ever watch our teams and even when they scoop our chicken, um, we say, you know, don't shake anything off on the spoon, we don't want people to feel like you're shortch changing them. If you get a big scoop, put it in the bowl. So we build that into our our model because we want to empower our team members. And those team members are delivering. I want to give a shout out to our 15,000 strong team members who have delivered these exceptional results and really delivered on our mission to bring heart, health, and humanity to food and they're generous with those portions and we want to make sure you have a substantial bowl that you get a great cava meal or maybe even have a second meal out of it.

[00:50:53]>> Brett, I have to ask Chipotle CEO saying just ask for more.

[00:50:56]>> Should you ask for more?

[00:50:58]>> I think we want to make sure our team members give you the appropriate portions and you don't have to ask for more.

[00:51:03]>> Okay, that heavy bull walking out of the store. Uh Brett, thank you so much for coming in. It's good to see you, Brooke.

[00:51:09]Thanks a lot.

[00:51:11]>> Coming up, we dive into how rising bond yields are impacting the housing market.

[00:51:15]That's next on Market Domination.

[00:53:26]While mortgage rates remain elevated, pricing many potential home buyers out of the market, Washington is working on legislation to tackle the affordability crisis in housing. Y Finances Claire Boris Boston joins me with a closer look. Okay, so Claire, we're now sitting at mortgage rates well above 6 and a half%. Walk me through the implications.

[00:53:44]What led us to this moment? I know, Brooke. I wish I had better news.

[00:53:47]>> I mean, every time Glam >> so bad. Um, so we have just seen mortgage rates rise because we are having this absolute bond market route right now. We are seeing the 10-year Treasury yield rise really quickly because investors are really worried about inflation. And the 10-year Treasury yield and mortgage rates are really closely linked. And so, as a result, today mortgage rates 6.67%.

[00:54:08]Yik, >> that is actually better than yesterday.

[00:54:10]They were like 6.75%.

[00:54:12]These are the highest levels of the year though essentially and we're in the peak spring home buying time. So, it's definitely not good news.

[00:54:19]>> Now, remind us because when we before the war started, we were sitting around five.

[00:54:22]>> Yeah, we got below six very briefly. So, that is long gone. And we do know that when rates get below six, people come out and buy. So, I think it kind of remains to be seen. Is 6.7 a really scary number? You know, maybe.

[00:54:33]>> Maybe. Yeah. And the spring home and buying season supposed to be super robust. People are going to be selling their homes. Maybe not so much. Now, I did chat with Low CEO and Home Depot CFO, but LO CEO actually told me this, Marvin Ellison. He said that the this is arguably the most difficult do-it-yourself housing environment that I can remember since the financial crisis. He went on to say that they've been able to deliver four consecutive quarters of positive comps with the DIY customer. That makes up about 60 to 65% of their revenue. But what are you seeing in specifically or what are you hearing from your sources about these mortgage rates impacting this current environment with homeowners maybe not even moving out because they're locked in?

[00:55:11]>> Yeah, definitely. We talk about this lock in effect all the time. If you've got that 3% mortgage, why would you move now if you're going to have to pay 6.7?

[00:55:18]>> We need you to move now. We need housing availability.

[00:55:20]>> No, no, we need that. But but they're not moving. They know they know what they have. Um and then on like the do-it-yourself side, uh if you're taking out a home equity loan or something like that, those rates have risen, too. and just the cost of construction is higher and so it's just a really tough time to do anything with your home.

[00:55:34]>> Right. Right. So, we're seeing that implications there. But at the same exact time, something else you're watching is the House House of Representatives, they did pass their own version of a bipartisan housing affordability uh bill. What does it entail? Will it make it to President Trump's desk?

[00:55:49]>> Yeah. So, we have seen both the House and the Senate take a stab at passing big housing affordability legislation.

[00:55:55]The bill does a whole bunch of things.

[00:55:56]It is going to cut some red tape, make it easier for builders to build. It's going to make it cheaper to build manufactured homes. But um the issue is that there's some big difference between what the House passed today and what the Senate passed in March. And it's a little unclear if they're going to reach a resolution and send this bill to President Trump. Specifically, what the differences are is there's this industry called build to rent. So these are developers and they're building homes and they rent them out instead of selling them. And this has been a really growing part of the market because quite frankly people can't afford to buy but you know maybe they want to rent that single family home. But the Senate bill said that actually those developers need to sell those homes in seven years and the developers are saying look we can't really do that. It would wreck the margins and and just the way we do business. And a lot of housing affordability people actually say hey we like build to rent. It contributes to the housing supply. It helps rents fall.

[00:56:45]And so the house version said okay that seven-year disposal thing that doesn't happen. So there's a really big mismatch there between those two bills that will need to get resolved.

[00:56:53]>> So looking like some likelihood. But really quickly, Claire, Wall Street looking to get in on these higher home assets. What can you tell us there?

[00:57:00]>> Yes. So Wall Street has started doing these things called home equity investments and they are sort of like a loan but not a loan. Basically, they will give you money up front and they will take a future cut of your home equity. So similar to a home equity loan, but you don't have to make regular payments. So some people like this, but it's a new area. It's not very heavily regulated and people if their homes really appreciate can end up owing these huge bills down the line. So I'm watching this space not really sure, you know, if this is a solution that's really going to help people, but if people need cash right now and they want to tap that home equity, this is another option to do that.

[00:57:33]>> All right, definitely something to watch. Claire, thanks so much for joining us on set. Appreciate it. Coming up, we have you covered through the closing bell on Wall Street and the video earnings coming up. Don't go anywhere.

[01:00:08]We are moments away from that highly anticipated Nvidia report. Stocks ending the day a bit mixed here, a bit higher at the end of the day. Yahoo Finance's Jared Blickery joins me now with a closer look.

[01:00:19]>> Yes, the world is on pins and needles.

[01:00:21]But let's start with the Dow. It's up 600 almost 650 points, 1.31%.

[01:00:26]You can see uh ending well, let's put an intraday chart on there. There we go.

[01:00:30]ending the day near the highs of the day. Very strong finish. Most of the majors bucking a three-day downtrend.

[01:00:38]So, snapping that. In other words, NASDAQ Composite up one and a half%. S&P 500 just over one. And the small caps really knocking it out of the park today. The Russell 2000 up 2.336%.

[01:00:50]Even the midcaps looking good, up almost 2%. That's the S&P 400. Well, let's skip over to the large cap sector action and we can see consumer discretionary finished in the first. It had been there most of the day, followed by tech and also materials, industrials, real estate, all of those gaining more than 1% today. All of those outperforming the S&P 500. Oh, I should add financials to that too. That was up 1.08%.

[01:01:14]Energy uh off 2 and a.5% as crude oil got whacked about 6 7 8% down depending on uh what time of the day it was.

[01:01:22]Healthcare and staples also finishing the day in the red. And here's the NASDAQ 100. There's Nvidia in the upper left. It gained 1.3% today. We're going to get those earnings results in minutes. Apple up 1%, Amazon up two, Tesla up three. And I mentioned consumer discretionary was leading sector. That's where you find Amazon and Tesla. That's part of the story there. Another part of the story of all this green you see on the board is in the semiconductors. Look at all that dark green there. uh the socks that is the Philly uh chip index that was down about 9% at the lows only a day ago and yet we're seeing some really outsized gains here. So once again the dip in chip stocks has been bought. AMD up 8% and let me sort by performance because we got some real big uh looks like uh NVTS up 18%, ARM up 15%, Super Micro up another 10, AMD up eight. So some really big winners there.

[01:02:16]Then we look at software. software was doing pretty well uh as chip stocks were flagging and we're not seeing a terrible day here but we're probably seeing a m about the same number of red as green squares or rectangles. Oracle up three, Crowd Strike up 5%, Shopify up nearly 4%. Turning to the Dow and we see besides those mega cap names, all the mega caps in the Dow looking green. We saw some uh some red from Walmart 2 and a half% to the downside. J&J down about one quarter of 1%. Both of those are the consumer staples trade arguably defensive and so uh that really not knocking out the bullish picture here for uh the stock bulls today. Chevron down 3% as energy was flagging but Home Depot up 2% Boeing up 3% and I'm going to leave it there. Brooke >> Jared thanks much. Some things I want to point out too. Home Depot did responding maybe from that lows report yesterday.

[01:03:10]We also got Target out today despite the beat. We are seeing some downward pressure down about 4% as we make our way to the close. Also guys, look out for Walmart before the bell tomorrow.

[01:03:18]Thanks so much Jared. Appreciate it. All right, let's look at what investors are seeing ahead of Nvidia's latest earnings report. Mark's G Mark Gibbons joins me now. He's the president and chief investment officer of Gibbons Capital Management. Mark, walk me through what we are seeing within these coming moments of that Nvidia report. We saw stocks rebound from declines on Tuesday.

[01:03:38]Is this a market that is just anticipating that report more and more Mark?

[01:03:44]>> I think it is. So I think you know maybe a little positive movement is probably baked into the price a little bit but yeah uh you know we thought uh uh semiconductors were going to come down.

[01:03:54]They did for a few days but they bounced right back. So again the demand for compute uh the interest in the AI trade uh continues to move along here.

[01:04:04]Mark, you say that investors are expecting a beat and a raised quarter out of Nvidia. What's the key number that you think would satisfy investors?

[01:04:12]What should they be looking out for?

[01:04:15]>> I really think it's the gross margins number. So, if it comes in, you know, significantly uh being that 75%, it's showing that they're managing cost. So, they're starting to get just a little bit of competition coming in. So, we're talking about the hyperscalers basically, you know, making their own trip uh chips. We're talking about Cerebrus. So, if they can maintain that gross margin level, I think that's really key. Um, you know, top line looks like it's going to come in at around 75 or 79% growth. Um, so if they can do well on the top line and the bottom line, which is supposed to come in a buck 76 on EPS, then they should be looking pretty good.

[01:04:48]>> At the same time, year to date, Nvidia has been largely underperforming some of the other names like SanDisk, like AMD, like Micron. What do you anticipate going into this report given that we have seen that pullback in relative stock performance?

[01:05:03]>> I just think you know it's the stock itself Nvidia has been up about uh 10% or so over the past month. So there is quite a bit baked in. I think the implied move is you know something around 6%. Uh typically it does trade down you know day or two after uh reports earnings. It's just because we have so much information going into the report because the hyperscalers have already reported themselves. So, we have kind of an idea of what we're going to get. Now, I think it's going to be a beat and raise quarter, but again, that's already what investors are expecting. So, we may get, you know, uh a small pullback um tomorrow and Friday, but uh the long-term uh view of the company looks fantastic. So Mark, are you sort of saying investors pause, take a second, assess how the next few days go and then maybe jump in on this?

[01:05:50]>> You know, it's almost it's almost never a bad time to uh uh purchase Nvidia stock just the way it's performed uh over the past several years. But, you know, the company trades at around, you know, 25 or so times forward earnings, which is pretty low when you think, you know, of what they've done in the past.

[01:06:07]So, we're looking at 25 times earnings pretty cheap. um it's, you know, broken out over its high of last fall. It looks really good. So, um it's definitely the bell weather in AI. It's going to tell a story this afternoon. So, when we look at Nvidia, we're going to be looking at it, you know, kind of in encompassing the entire AI trade and how that's going to be going uh moving forward.

[01:06:26]>> Mark, this is one of the most This is the highest valued company on the street right now, crossing that $5 trillion market cap. You don't seem to be too concerned about the valuation here.

[01:06:35]>> I I'm really not. Uh so you know their earnings continue to power forward. So you know as far as data center revenue we're expecting around 400 billion billion or so in 2027. Uh they're unveiling the ver Vera Rubin uh chips um uh system later this year. Um Blackwell still selling great. Um there's they just don't really have you know they're they're starting to make some inroads on competition from other companies but just not enough. Um, so you know the the pathway forward uh for Jensen and crew looks really good.

[01:07:06]>> When you think about your S&P 500 target, you're now expecting the S&P to reach 8,200 by the end of 2026. Is this all this momentum around AI driving to that year-end target?

[01:07:19]>> That's certainly probably the largest part of it. So we are expecting about 8,200 on the S&P by year end. We moved that up from 8,000, but we've been constructive most of this year. So, you know, while other investors um you know, might have been um overly concerned with uh geopolitical events and while we do take that into consideration and those that can certainly move markets, when you look at the fundamentals underpinning the stock market, we're looking at solid economic growth and we're looking at corporate earnings. Um earnings for S&P 500 companies look like they're going to come in around 27% this quarter and 50% in tech. So, uh that AI story is really driving the train here.

[01:07:56]Despite these gains that we saw today, we have seen a fair amount of pullbacks as of late. You call them healthy. What should the investor be looking out for?

[01:08:05]All this uncertainty with the war. We have still some concerns about this AI momentum that we're seeing. So, when exactly is the time that investors should be getting into this market?

[01:08:17]>> Well, I I mean, I think uh you know, now is now is actually a pretty good time.

[01:08:21]You do have to keep an eye on uh the memory trade just because this runs up so quickly so fast. But again, that's that's really backed by earnings. So, it's backed by fundamentals. So, it's, you know, it's not just price price completely running a muck. Um that's maybe one area that could, you know, kind of give you pause along with, you know, um anything anything else on the inflation front, you know, if that's going to continue to push up yields a little bit higher. If we're talking about 5% of the tenure, um you know, that could bring up some issues. But, you know, when we drill down on what we can see and what's visible to us and we're talking about fundamentals and we're talking about earnings, we're talking about economic growth, um, you know, now now seems like just a fine time to to invest. So, that's that's what I would do.

[01:09:01]>> Mark, looking out to the end of the year, there is some rising uh mentions or investors thinking it's more likely that the Fed will raise rates. How does this play out into your year-end target?

[01:09:12]Yeah, that is probably um it's arguably the most most visible uh you know macroeconomic risk. So, we're talking about the inflation coming out of the straight of her Hermuz and we're talking about you know, adding you know, multiple you know, tens of basis points on top of the 10-year. Um we're just going to have to see what happens. You know, we have Kevin Walsh, new Fed chair, and kind of see how he addresses that. So th that's probably the yeah the largest macro risk is one, you know, the inflation, but also how the Fed reacts to it. And that's just something that's going to have to play play out over the course of the year. But when we look purely at the fundamentals of the market, we're seeing uh uh things that look good to us.

[01:09:51]>> Lots of implications here. Mark Gibbons, thanks so much. Appreciate your time.

[01:09:55]>> Thank you.

[01:09:56]>> We are drum beating to Nvidia's first quarter results, and expectations are pretty high. Here's what we've heard from experts in recent days.

[01:10:04]>> We're continuing to hear unprecedented demand in the space. Um again, they among all names remain severely uh supply constrained. So again, their their limitation is is she surely their ability to get more wafers and and and and manufacture more chips with their foundry partners. Um we don't think anything structurally changed in this, right? Then the numbers continue to go up and to the right as a growth story.

[01:10:27]Um so so we still think they're structurally very strong again because this dollar tam is growing and compute equals money and that is the one thing right holding back the frontier labs the hyperscalers from truly monetizing inference at scale is really just getting more compute. So that directive compute to dollars just continues to benefit Nvidia at every level. I would say these are going to be the important topics CPU memory and inference speed because we know they're going to do well. They've already told us they have another uh 750 billion over the next 18 months. That makes next year's estimates very safe there. We know that they have that in the bag. So investors are comfortable with that. They want to hear about how Nvidia is dealing with bottlenecks and with speed and staying ahead of the competition.

[01:11:17]>> Nvidia doesn't actually make chips. They design chips and then have Taiwan Semi create them. So Taiwan Semi had a fantastic quarter and although they do a lot of people's chips, you know, Nvidia are probably the highest margin chips and they are probably getting a pretty good margin for themselves on those too.

[01:11:36]And it was a eyepopping quarter for Taiwan Semi. So we're thinking um that it's more or less the same for Nvidia.

[01:11:45]But let me tell you, don't expect the like two to three times higher than you expect. In the old days of Nvidia, um, analysts know what the company can ship and, you know, their products are so difficult to make. It's not like they can bring up a, you know, a line and uh, surprise the investors by saying, "Wow, we sold this much more." But I do believe it's a beat and a raise and Nvidia is still uh at the top of the heap of desired AI chip.

[01:12:18]>> Well, yeah, I think everyone's expecting a beat and raise and I guess if that's the case, maybe it's not a beat and raise, but no, I think numbers are going to be very strong. Um I think the numbers themselves probably a little bit less um consequential here. I think what's going to matter more is um is how management's framing the opportunity, any any update they provide on the kind of longerterm revenue forecast they gave in March. Um, and maybe any forward-looking commentary on next year and even on 2028 as well.

[01:13:30]Heat. Heat.

[01:14:01]Heat.

[01:14:22]Hey. Hey. Hey.

[01:14:51]Heat.

[01:15:11]Heat.

[01:15:26]Heat. Heat.

[01:15:51]Heat. Heat.

[01:16:57]We are just moments away from Nvidia's first quarter earnings report. Joining me now is Bob O'Donnell, technical analysis, research president Dleski, founder and CIO at Spear Invest. I'd like to start with you, Bob, because Bank of America said in a note that Nvidia is sort of like a oneofone here.

[01:17:14]They said that they are software developer support. They have product customer breath. They have multicloud availability and they create an unparalleled standardized infrastructure that any other chip merchant out there would be hard to recreate. So do you think that Nvidia is one of one heading into this report this afternoon?

[01:17:35]>> I absolutely do. I mean the thing with Nvidia is the fact that not only have they built all these tools, all this hardware, all this software, they've also built up the supply chain. They right now one of the biggest challenges all these companies are facing is do you have access to the foundaries to make your chips? Do you have access to the memory that you need to use these chips as well? And Jensen has done an amazing job of getting together. He's got enough wafers. He's got enough memory and that's going to be increasingly important. So, not only do they are they a one of one in terms of their technical capabilities, they're a one and one in terms of the supply chain uh that they've put together and I think for the next several quarters, that's actually going to be as much as important, if not even more important than their technical capabilities. So, to me, that's what I think is going to be a big part of their story moving forward. And and I think it really is something that people need to think to think more about. I mean that $5 trillion valuation, it's pretty impressive and hard to believe that we're here right now. Avana, when you think about what exactly the street's reaction could be here, we're going into this report and the expectations are extremely high. What do we need to see in order for the street to really be impressed here?

[01:18:49]>> Well, thanks for having me, Brooke.

[01:18:51]Usually with Nvidia, everybody expects expects a beat and race. The question is going to be by how much do they beat?

[01:18:57]Anything above two, I think closer to four would make the stock go up.

[01:19:02]Anything in line with that would make the the stock kind of stall here. So, I think that's more or less what we're expecting. But I agree with Bob. I think this is a very unique opportunity. So, no matter what the price reaction is on the quarter, I think we are ahead of the next Agentic AI wave and they're going to sell a ton of their products because they are still significantly in the lead and ahead of any other company doing this. At the same exact time, Bob, there are concerns right now that that Vera Rubin chip that we're expecting in the later half of 2026. We're wondering when exactly that will roll out. Are you concerned about that at all given that there's such high hopes right now?

[01:19:41]>> Uh, absolutely not concerned at all because people are doing amazing stuff with their existing chips, right? So yes, obviously people are excited about Ver Rubin and the additional capabilities it will bring and the reduction in you know uh tokens per or the improvements in the tokens per watt uh and all the kind of metrics that people are looking at these days when it comes to AI infrastructure. But I mean look we already know that a lot of their biggest customers have committed hundreds of billions of dollars next year and a huge percentage of that is going to go to Nvidia. So, we kind of already know some of what's going to happen. And that's, you know, if Ver Rubin ships early, if it ships a little bit late, none of that is going to matter because the momentum is headed that way. The dollars have already been announced as having been spent, you know. And one other thing I'll mention as well that most people also don't think about just this week, earlier this week.

[01:20:36]It looks like we lost Bob there for a second. And Ivana, I want to go to you because we are expecting that by 2027, there will be $1 trillion in sales.

[01:20:44]Jensen Wong forecasting this for Blackwell and Vera Rubin. Bob, I'll get you back to you in just a second as well. I would like you you to complete your thought.

[01:20:53]>> Yeah, sorry about that guys. Uh good.

[01:20:55]Obviously I'm at Google IO and trying to get Wi-Fi and anyway um bottom line is um you know I'm not worried at all about the event you know when Ver Rubin ships because people are doing stuff with their existing chips and that's going to continue to move forward and what I had started to say was that at Dell Technology Summit this week Jensen was on stage with Michael Dell talking about an opportunity that most people haven't even considered yet which is the fact that companies themselves are starting to buy GPU equipped servers. So now all of a sudden you have these what they call enterprise AI factories on top of the hundreds of billions of dollars in capital you know expenditures from the hyperscalers. So when you bring in that enterprise piece that's a whole new opportunity that I think has several years worth of legs to run on as on top of the hyperscaler commitments. Avana, because what I was getting at before is that when you think about those chips specifically, Jensen Wong forecasting about$1 trillion dollars in sales, but you don't think that that's necessarily going to come under uh margins necessarily will come under pressure because of that. So, walk us through that scenario and what do you expect to see in this report when it comes to that margin? Well, for Marginsburg, I think one important thing for people to keep in mind is that the Vera Rubin transition is much simpler than what it was from Hopper to Blackwell. That requires significantly different infrastructure. This will be a much simpler transition. And I think even though there are concerns about component prices going up, I think the fact that it's not as complex of a transition will make it easier for margins to be maintained at these high levels. Bob, what do you make of this recent trip that Jensen Wong had to China? Because it seems like the US cleared China be able to buy chips, but it doesn't necessarily seem like they're getting the buyin from Beijing. Do you think we'll hear anything about that?

[01:22:50]>> Uh, I doubt we will to be honest with you. I mean, the amazing thing about the Nvidia story right now is all of this is without anything from China. So, anything that happens in China is gravy on top, right? So it becomes, you know, a nice thing to have, but it's not critical and essential. I'm sure if Jensen can, he'll try and talk about it.

[01:23:08]I'm not sure he's going to because I still think there's too many questions uh that remain in the air. But you know what he is going to talk about is things not beyond the GPUs. It's their new CPUs. It's all the networking business which grew uh became a big part of the business last quarter. So you're going to hear them expanding the range of options they have beyond just the GPU story to the CPUs. And so they're, you know, at at their GTC conference a couple of months ago, they talked about the entire system of these multiple racks, one with storage and networking and then GPUs and then CPUs. So it's more than just selling the GPUs and even the GPU racks anymore. It's these huge data center sized systems that they're starting to sell and they're starting to integrate to make it easier for large organizations uh to put these things together. And again, as I said, eventually we'll see enterprises do some of this type of stuff as well.

[01:24:02]>> Avana, are you worried at all about competition from say a Google or an Amazon heading into this report?

[01:24:08]>> Not really, Brooke. And the reason why we're not worried is because basically Amazon and Google play in a completely different field. So really, if you're going to be using an Amazon or a Google uh GPU or a TPU, you really need to build your own infrastructure and software on top of it. So you're really just getting the bare metal. So a lot of customers aren't really able to do that.

[01:24:30]So for general purposes, uh for general purpose computing, Nvidia is going to remain in the lead and and maintain over 90% market share. Now uh you did mention Bob that that conference that moment that a Dell CEO had with Jensen Wong earlier this week and during that conversation there was also discussion of tokens of tokenization token consumption. He said that the worldwide AI infrastructure spending could reach three to four trillion dollars by 2030 and token consumption is projected to grow by 3400% in that same window. I mean are we in the early innings here? We absolutely are in the early innings and that's the point that I think a lot of people are are still struggling with. I mean look when it comes to Nvidia the traditional metrics I think go out the window. This is a question of do you have trust and faith in where this technology is headed and it's a big radical change and it's a hard for a lot of people to accept it but the people involved the people deep in the weeds building this stuff uh they see where this is going. That's why they're willing to make these incredible, you know, announcements in advance of how much money they're going to spend. I mean, we've never seen this kind of these kind of numbers before and they just continue to grow. So, again, I I think we're very much in the early innings. We're we're just beginning to see all these services, you know, uh, Claude Co-work and and all these other services. Google just announced their, you know, agentic AI platforms as well.

[01:25:59]And by the way, you know, Google uses Nvidia stuff as well as their own stuff.

[01:26:03]And same with Amazon, right? It's not those guys of course are going to do custom silicon and that will be a big part of the story but the pie is absolutely large enough for there to be a ton of Nvidia some custom stuff and oh by the way let's not forget AMD who is also a player in this realm.

[01:26:18]>> All right Bob Ivana stick with us more to come. Coming up, we'll bring you Nvidia's latest results next on Asking for a Try Heat. Heat.

[01:27:34]Do you Heat. Heat.

[01:30:13]Hello and welcome to asking for a trend.

[01:30:15]Nvidia's first quarter earnings just now crossing the wire. Let's get to Yo Financ's Dan Howie on the latest. Dan, what are you seeing? Yeah, Brooke, they obviously beat on the top and bottom line and they provided a better than anticipated Q2 outlook, but the stock initially fell around 2%. Right now, it's just hovering around uh 1%. Uh in the quarter they uh said for Q2, they said they anticipate between 89.1 and 92.8 billion in revenue. Uh Wall Street initially was looking for 87.3 billion.

[01:30:44]That's for Q2. For Q1 though, uh the company came in with EPS of $187 in revenue of 81.62 62 billion. Uh the estimate was for $1.77 and 79.18 billion. So obviously a big beat there.

[01:30:57]And then on the data center side, obviously the most important business for Nvidia, they had revenue at 75.2 billion. The projection was for 73.47 billion. Just give you uh uh kind of put that into p perspective. The company brought in 39.11 billion in the same quarter just last year on the data center side of things. Now, CFO Colette Crest said that they didn't see any Hopper product revenue out of China during that quartering. You recall that Jensen Wong, the CEO, was just in China with President Trump trying to get more chips or at least ship any chips into the country. The US has offered Nvidia licenses to ship, but China has to then allow them to be imported. And so far, we're not seeing that, though reports indicate that that could change in the near future. It's been kind of a touchandgo situation for them there. Uh and I just want to point out that uh Crest also said that about 50% of the revenue in the data center continue to come from hyperscalers. Those are the Microsofts, Google's uh Amazon's metas of the world. The other 50% came from a variety of sources. That includes AI clouds, uh industrial enterprise and sovereign customers. Sovereign AI, uh where countries buy up AI chips for their own needs is something that Jensen Wong has been talking about a lot as being another step for the company going forward. So obviously a big beat here.

[01:32:15]Uh you know they're dealing with a lot of competition. Uh Cerus uh Cerebrris rather just had their IPO last week with their own AI chip. We have Nvidia with their own AI chips and then obviously Amazon and Google continuing to push further into the space.

[01:32:28]>> Dan Hi, thanks so much. You can see right there on your screen that right now investors a bit of a mixed reaction mostly flat. I do want to bring in now CFR research equity analyst Angela Zeno and still with me here is tech analysis is Bob O'Donnell and spear invest Ivana Deleki. I want to get to you Angelo because what do you make of this report?

[01:32:46]What's your initial indication here? And are you surprised that we're not really seeing a larger reaction from the street?

[01:32:54]>> Yeah. So I I think overall the results were as you would have been expected. I mean it was a nice beat and raise for the the uh the July quarter. Um it'll be interesting to kind of see what Jensen has to say about the the launch of uh Vera Rubin clearly for the July quarter and to what extent if any of it is thrown into the guidance there. Uh as far as kind of the the reaction to the to the numbers I mean listen this is a name that had performed pretty well over the last couple of weeks. Not as well as maybe the rest of the chip industry but that's also should be expected just given the size of this company. But I think most importantly for you know the the numbers here is the fact that hey listen everything remains intact as far as this AI infrastructure build is is concerned and um you know we're kind of running slightly ahead of expected.

[01:33:41]>> Angela that's right heading into this report over the past month we did see Nvidia stock up about 10%. Avana I want to get to you because the forecast is pretty much in line with expectations but also well above what initially was anticipated in the prior uh outlook that the company had provided. We're now seeing about $91 billion in revenue expected for fiscal 2027. What do you make of this report? What do you make of the guidance that the company put out?

[01:34:06]>> Well, the guidance is stronger than expectations. However, people usually the buy side expects ahead of that, right? So, this is why you're not seeing the stock react significantly to the upside. To Angela's point, I think the report is very solid. It proves that everything is on track. We are going to be looking to hear more about Vera Rubin and specifically for us Vera itself the CPU is going to be a very important driver. If that can add several billion dollars of revenue in the second half that would be an incremental positive to the street expectations. So those are some of the things that we're really going to be focused on learning on on the call. Bob uh Dan Howie had just mentioned this that we are seeing data center revenue about half come from those hyperscalers about half come from other uh segments as well. What do you make of that momentum that we're seeing given that we already got all those reports from say a meta and a Google and now heading into support? We already kind of knew that. Well, you know, as we were I was starting to talk about at that Dell event, Dell and Nvidia together announced they had achieved over 5,000 enterprises that had purchased GPU equipped servers. So to me, that's a sign that this technology, which they started this process almost three years ago, is really starting to take hold. So again, we're going to see this AI infrastructure spread because really realistically companies are going to want to have access to their own compute because there's concerns about constraints in terms of power as well as compute capacity from the hyperscalers.

[01:35:37]Even though they're building like crazy, they still don't have the capacity they'd like to have and need. So companies are going to start purchasing some of this stuff on their own. So I think that's a big deal. The CPU point is also a big deal. As we move to a Gentic AI, one of the key points that Jensen and others have made is that we're moving from, you know, it used to be a 40 GPUs to one CPU down to close to one. So that's a huge increase in the number of CPUs that potentially are going to be sold for systems that are designed to do Agentic AI. And that's where all the action is these days. And I think that's going to continue to drive this story forward. I want to point out this from the release because Jensen Wong did say that Agentic AI has arrived. It's doing productive work, generating real value, scaling rapidly across companies and industries. He also said this. He said that the buildout of AI factories is the largest infrastructure expansion in human history and it is accelerating at extraordinary speed. Angelo and I know prior to this report you had said that you believe that Nvidia's increasing content growth story within future data centers is underappreciated by investors. What do you make of Jensen's comments and do you think Angela that it's under underappreciated right now still?

[01:36:51]>> Oh yeah, absolutely. I mean and I think you know the the others kind of highlighted that right I mean this is no longer a GPU company, right? is the fact that they are an infrastructure company and it's the content growth that they're going to get outside of GPUs and these servers. Right now it'll be CPUs. I think you'll hear a lot about that on this call. If Jensen's got to roll out all CPUbased servers, that's what he'll do. And you know clearly um when you look at the configurations that um you know these Nvidia based servers have the most popular ones are the ones with the you know Nvidia based CPUs attached to them. as you migrate later this this year, you're clearly going to see um Grock get embedded within this ecosystem, right? I mean, as you go into the third calendar quarter, you're going to look at at Grock potentially and that those LPUs um into more of these configurations and that's going to also provide some really nice upside in terms of the content growth story in these AI based servers. And then of course, as you go into 2027, you're going to have Reuben Ultra and then obviously thereafter there's going to be Fineman.

[01:37:52]And if you look at each of those configurations, there's going to be a lot more content, semiconductor content, and even potentially, you know, obviously more upside potential uh in terms of a pricing perspective for these future servers. So, um, as you continue to see an explosion of these tokens, um, which, you know, I would think everybody anticipates will take continue to take place um, that continues to vote favorably. If you kind of believe that Nvidia will continue to be that toing king and offer the lowest TCO relative to its competitors.

[01:38:23]>> Avana, what are you going to be hearing for specifically around that Vera Rubin CPU? What do you think investors need to hear on this call this afternoon in order to convince them that this momentum will continue? What's the key metric here?

[01:38:36]>> I mean, I think it's all going to come down to how quickly they can ramp the revenue both from Vera on its own and Vera Rubin. So that's really how they're going to drive the revenue going forward. I would say though that for investors here, Nvidia is more of a compounder. So as you see in the numbers, they're able to beat and raise consistently by a few percent and that's how the stock is going to be up 20 plus percent for the year. It's not going to be up 200% for the year, right? So if you're looking at the CPU market for some of these companies, the numbers are going incrementally higher by 100%. So I think some of the investors here need to kind of understand the riskreward here is very different because you are taking a lot less risk but you are getting compounding returns. Bob, I do want to get your take on this because within this release they also did say that they increased their quarterly cash dividend from about uh 01 per share to 25 cents per share. What's your reaction to that?

[01:39:32]>> Well I mean look the company is generating so much cash it just makes sense to be able to do that. Makes it more attractive. I mean, Nvidia now is is a household name, and it's so crazy as somebody who's followed this company for 25 years. Nobody knew used to know who they were. And now you've got everybody in their brother thinking about it. So, you could argue, hey, that some of this is in in a way helps highlight the attractiveness of the stock for traditional buyers, but obviously there are economic benefits as well to it. But to me, I think it's just a a way for them to smartly leverage some of that amazing amount of cash that they're generating. Angela, what do you think this means for investor appetite for a stock that was not seeing the same momentum as maybe its peers that were looking to gain in this last month? What do we what happens from here?

[01:40:20]>> Yeah, I mean, listen, I think this is a stock from a valuation perspective trading only about 19 times our estimate for next the next calendar year. Numbers are going to continue to go up here. Um, and when you look at the what the free cash flow potential here of this company, they're going to generate north of, you know, $400 billion in free cash flow over the next eight quarters, right? Over the next two calendar years.

[01:40:39]So, they're generating a ton of free cash flow. They're going to probably be able to return a lot more of that back to shareholders, especially as they potentially are doing less in terms of, you know, uh, investments in maybe other companies out there. So, um, we'll see in terms of, you know, how much of that they return here as we continue to look ahead, but I think that continues to be a big part of the story for Nvidia as we look ahead and the growth rates start to slow down for this company as it will in inevitably do, right? Um, so, you know, to us, we think, you know, this continues to be a fairly enticing um, opportunity for uh, invid uh, for investors out there. I think really on this call, uh, Jensen's really got to continue to focus on the sustainability of that re revenue trajectory outside of just, you know, through 2027. You've got to look past that and really be able to tell that story out there to investors and that will, you know, hopefully continue to keep the the stock going and working favorably.

[01:41:33]>> Yeah. So many of our guests today talking about Nvidia being a long-term player within their portfolio. Angelo, Bob, Avana, thank you all so much for helping us break this down. Appreciate your time.

[01:41:42]>> Thanks.

[01:41:43]>> Stick around. Much more Nvidia earning analysis still to come.

[01:44:12]Heat.

[01:44:20]Heat.

[01:45:11]Downow down Down.

[01:45:49]Hey.

[01:45:52]Nvidia reporting better than expected earnings and revenue for the first quarter. Yahoo Financ's tech editor Dan Howie joins me now with a closer look at the key themes at play. Clearly hard at work, Dan. Don't want to take you too long. I know the start of the call is soon, but we are seeing a kind of a different way of Nvidia reporting out this quarter. They mark they broke down revenue by market platform. We had data center and edge computing. That's different than maybe what they did before. What is what does this implicate to you?

[01:46:20]>> Yeah, I mean it seems as though it's a way for them to really stand out when it comes to the data center business. You know, previously they had data center and then you know they kind of broke that down with networking and compute.

[01:46:30]This way you could get a better understanding of what their networking business was which by the way they sell their networking capabilities to other companies even if they're not using NVIDIA chips necessarily when it comes to the GPU or or CPU. Uh but that allowed you to kind of get a good sense of what was going on overall. Now they're breaking it down where the data center uh is between hyperscalers uh and then uh public cloud. So uh they call that uh ACIE uh and those will include things like AI clouds, industrial and enterprise. And then on the flip side they have edge computing. And so this is where you used to have things like you know visual games, things like that. Uh it looks as though I mean to me that they're kind of minimizing their where they came from with gaming. Now this kind of edge computing side is going to include what they say is processing devices for agentic and physical AI including PCs, game consoles, workstations, AI ran base stations, robotics and automotives. Kind of like just mushing everything together that isn't data center. So it kind of shows that you know their huge focus is on data center. Obviously that's you know where it's going to be. It's that's the kind of company they are. But it does seem as though it's minimizing that kind of base where they came from as far as games go. you know, not a huge part of the business. Uh brought in, I think, uh 10 or so billion dollars uh in this past quarter. Sorry, 6.4 billion on that edge computing side up 10%. Uh but, you know, you have to wonder what the loyalties will look like for them on that, you know, gaming front. Obviously, it's not the biggest part of the story, but it is something to keep in mind considering that they are still a huge player in that space. and to see the evolution of this company now seeing gaming where they really sort of began teamed up right next to Agentic AI all sort of under that umbrella goes to show where the company came from where it's going as you noted edge computing up 29% year-over-year data center uh revenue up 92% year-over-year quite significant there now as you noted data center includes hyperscalers and AI clouds industrial and enterprise but there's so many more implications that many people are wondering what's going to be said in the call specifically about that verify anything that we're going to hear about Jensen Wong's recent trip to China. What do you what do you think?

[01:48:40]>> I mean, I think that's going to be the big question. You know, where they see kind of the China story going, right? I mean, they have in in their previous uh commentary, CFO commentary, Klet Crest, um said, "Look, we have licenses to ship to China. Uh it's just a matter of China wanting to import." Uh and then you had this kind of you know trip where he was there with uh President Trump and Tim Cook and Elon Musk. Uh and you know the result of that seemed to be at least as far as what Trump said was yeah you know they're going to focus on their own chips. That's kind of what they're interested in at this point. You're like okay well what does that mean? Will we never see Nvidia ship there again? will, you know, and then it seemed as though a few days later that we had gotten some reports that maybe we'll start to see some Nvidia chips shipped over there.

[01:49:30]Jensen had prior to earnings said that they essentially have zero uh uh market share in China at this point. And you know, there's these this two side conversations where uh it's you know uh the people who want to ship into China say look that'll benefit uh America because then you have uh an economic military rival that's dependent on our chips. it'll, you know, improve revenue overall. Uh, and then you have the folks who say, well, why would we give them the best of the best technology that we have if it's going to leak into their military infrastructure and, you know, it's it's an economic rival at the same time. So, that's been been the back and forth conversation. Uh, the folks who say, uh, we should ship it then go on to say, okay, well, they're going to just build their own chips anyway, so why shouldn't we just benefit for it? So, it's, you know, difficult.

[01:50:15]>> Dan, we're also talking about a very specific kind of chip. It's not all chips available to China. It's It's the H200. Correct.

[01:50:22]>> Yes. So, this is their older Hopper chip. So, they have uh the Hopper generation, then they had the Blackwell generation and the Blackwell Ultra. So, you had the Grace Blackwell 200, then you have the Grace Blackwell 300. That's that GB300 that everybody talks about now. And then we'll have the Ver Rubins coming out, I believe, towards the end of this year. Uh and then, uh past that, we have uh Fineman, which is their next next generation uh GPU. So, you know, they have this yearly cadence. They continue to stick by it. We'll have to see what the next one is, but you know, as of right now, we're still waiting for Vera Rubin to hit, >> right? And they're emphasizing their report data center comp revenue from China. They're not assuming it in their outlook. So standing by that despite these recent talks that might have happened.

[01:51:00]>> Exactly. Yeah.

[01:51:00]>> Dan Halley, thanks so much. Listen, more on the call. Appreciate it. And stick around because there is much more asking for a trend still to come.

[01:53:06]Heat. Heat.

[01:53:32]Heat. Heat.

[01:53:52]Heat. Heat.

[01:54:47]Down.

[01:54:57]Down.

[01:55:15]Time now for what to watch on Thursday, May 21st. Starting off on the earnings front. It's another busy day of reports including deer and company workday and Zoom. Walmart announcing results for the first quarter before the markets open, where investors will be watching to see if its value positioning continues to drive traffic even among higher income consumers and if it can navigate tariff pressures while still expanding margins through advertising and memberships like that Walmart Plus. Over in gaming, Take 2 is posting quarterly results on Thursday. analysts focusing on whether its core franchises like NBA 2K and Grand Theft Auto Online can continue to support spending ahead of the highly anticipated GTA 6 launch later on this year. Moving over to housing, we're getting a fresh data with April housing starts expected to come in at an annualized rate of 1.42 million. That's down from March's numbers while building permits are seeing a ticking slightly higher. Now, taking a look at the labor force, economists forecasting weekly jobless claims to hold relatively steady at 210,000, signaling a pretty stable job market. Something Fed's watching very closely as it navigates the path forward for interest rates. Kevin Walsh also top of mind heading into this year.

[01:56:28]Turning now to some breaking news.

[01:56:30]SpaceX S1 filing just dropped the stock to list on the NASDAQ and Texas. Uh the NASDAQ enter the symbol SPCX. No info on the IPO price per share, but this has been reported that has been reported.

[01:56:45]The valuation still being determined. I do want to file in uh dive into this filing that I'm seeing. This does come ahead of SpaceX launching that Starship's 12th flight test tomorrow. We also know that this would also incorporate recent acquisitions that the company made like XAI as well as Grock.

[01:57:01]Once again, that ticker symbol SPCX.

[01:57:05]Keep in mind, of course, CEO still Elon Musk here. And heading into this year, I mean, this has been years in the making for a company that is largely driving the momentum that we're seeing behind the space economy. Believe it or not, SpaceX was actually founded in 2002, as the S1 indicates. They also said that they since 2023.

[01:57:24]They launched more than 80 of mass to orbit for the world each year. They said they over had a 99% mission success rate with Falcon rockets. So many different details that SpaceX is touting within these results as this largely highly anticipated IPO is set to make its debut. And that's a wrap on today's show. Thanks so much for watching.