Nvidia Earnings Lead to Share Slump; SpaceX IPO Details

Bloomberg Audio Studios, Podcasts, radio News.
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Well, Caern, we begin with the lukewar market reaction. We're
seeing to another blowout from Nvidia. Sales at the world's
most valuable company gained eighty five percent to eighty one
point six billion dollars in the latest quarter, and in
Vidio forecast sales in the coming quarter of about ninety
one billion and also boosted its quarterly dividend and announced
an eighty billion dollars stock buyback. And Video CEO Jensen
Wong says he expects demand to come from ordinary businesses
outside the tech sector.
This was an extraordinary quarter. Demand has gone parabolic. The
reason is simple. Agentic AI has arrived. I can now
do productive and valuable work. Tokens are now profitable, so
model makers are an erase to produce more. In the
AI era, compute capacity is revenue and profits, and video
is the platform of this era.
Video CEO Jensen Wong says he aims to rely less
on giant data center operators and predicts other businesses and
governments will become a bigger source of revenue for the
company's chips and computing products, Paul Meeks covers in VideA
for Freedom Capital Markets.
He says he's not concerned with the numbers.
I'm not necessarily worried about what they printed or even
this guidance.
But this guidance is not disappointing.
I think it's fine because you know what, it'll be,
ninety one billion dollars and then they're going to upside
it like they always do, so this will be much
better at the end of the day than.
The whisper Paul Meeks at Freedom Capital Markets right now
in videos trading down about two tenths of one percent
pre market.
Well, Nathan, there's also a couple of high profile IPOs
on the way for investors and Bloomberg. John Tucker joins
us with the very latest John good Morning.
Good mor and Karen Elon Musk. SpaceX filed publicly for
what stands to be the largest ever initial public offering.
Filing with the SEC also reveals the company has billions
of dollars and losses and the way it's set up
right now, it would give Musk the power to outvote
anybody else and give him as many as a billion shares.
Now.
According to the filing, Musk would have to hit certain
goals for the rockets, satellite and AI company. These goals
include a human settlement on Mars with at least one
million inhabitants and oh yes, SpaceX would first have to
build data centers in space.
All right, John, Well, if that's not enough to absorb
this morning, there's another Wall Street debut that appears to
be on track as well.
Yeah, Karen, this one is OpenAI, the maker of chat gpt.
Our sources say the company aims to file for initial
public offering in the coming days or weeks as it
tries to make the transition to a for profit company. Now,
the plans are falling in place after judge dismissed Elon
Musk's legal battle against Open Ai of The decision to
push ahead with a listing this year could help it
beat its rival Anthropic to the public markets and compete
for investors. If you or come, John Tucker, Bloomberg Radio, All.
Right, John, thanks, So, Anthropic is bulling an IPO as
soon as October.
I'm the head of that.
The company's on pace for its first profitable quarter after
experiencing a surgeon revenue driven by a demand for its
artificial intelligence software. Bloomberg News has learned the cloudmaker expects
to post ten point nine billion dollars in revenue for
the second quarter, more than double the prior three month period.
Nathan, Let's get to the latest now in the war
in the Middle East, the US and Iran are trading
threats once again as the standoff over the Strait of
Horror Movez drags on. President Trump says he's in the
final stages with Iran, while warning he could resume attacks
in the coming days if it doesn't agree to his terms.
The only question is do we go and finish it
up or are they going to be signing a document.
Let's see what happens.
And that was President Trump delivering the commencement address at
the US Coast Guard Academy. We get more from Bloomberg's
Paul Wallace in Dubai.
This could be just more clustering from Donald Trump. He
has given plenty of signals that he is desperate to
sort of extricate himself in the US forces from this war,
and all signs point to him really trying to avoid
a return to hostilities given the surgeon energy prices globally.
And Bloomer's Paul Wallace reports Iran has threatened to retaliate
beyond the Middle East if the US or Israel resumes strikes.
Now this morning, around semi official students and news agency
is reporting Tehran is reviewing the latest US peace proposal
and says it's narrowed the gaps to some extent. The
report says further narrowing quote requires an end to the
temptation of war on Washington's part.
Here in the US is facing protests in Greenland's capital
as a new consulate opening fuels concerns over Washington's designs
for the island. The US will inaugurate the new consulate
building in Nuke today. It's first in Greenland since the
nineteen fifties. It marks some more permanent American presidence on
the Arctic island, where unease has grown since President Trump
revived to of acquiring the territory Nathan.
The Trump administration is putting new pressure on Cuba as
the economic standoff over the island continues. The US has
charged former Cuban president Raoul Castro with murder over the
nineteen ninety six drowning of two aircraft run by a
Florida based Cuban exile group. Four people were killed in
the incident, when the ninety four year old former president
was Cuba's defense minister, Acting Attorney General Todd Blanche announced
the indictment.
For the first time in nearly seventy years, senior leadership
of the Cuban regime has been charged in this country
in the United States of America for acts of violence
resulting in the deaths of American citizens.
The announcement by Acting Attorney General Todd Blanche could raise
speculation about military action against Cuba, like the ray that
captured Nicholas Maduro in Venezuela earlier this year. President Trump
is indicating there won't be further escalation for now.
Karen JP Morgan JA CEO Jamie Diamond is criticizing New
York's Mayor Zorn Mumdannie and his plans to slap more
taxes on the rich. In an interview with Bloomberg in Asia,
Diamond said the move risks doing further damage to the
city's business hub status.
They think that somehow being anti business is going to
help a city.
It's not.
So we all want to pay fair taxes. That's not
the point.
But at one point people owed defeat and there are
a lot of studies that have shown that all these
people moved out and they're obviously the tax obviously New
York booming, so not gonna see in this year's taxes,
but a lot of people are paying billions dollar taxes left.
Why do you want that? How does that help the
lower paid person in New York.
Jamie Diamond's comments followed a recent meeting with Mom Donnie.
He has criticized Wall Street bankers and other executives, and
is pushing for tax hikes to plug New York City's
budget shortfall. Catch the full conversation with JP Morgan's CEO
Jamie Dimond on our new video hub on the Bloomberg
Business app.
Time now for look at some of the other stories
making news in New York and around the world. For that,
we're joined by Bloomberg's Michael Barr.
Michael, Good Morning, Good morning Karen.
Two police officers who helped defend the US capital during
the January sixth riot, ares suing to block anyone from
receiving payouts from a new one point seven to seventy
six billion dollars settlement fund for people who claim to
be victims of politically motivated prosecutions. There's the possibility that
rioters who assaulted police that day would be eligible for
fund payouts. Former Capitol Police officer Harry Dunn, a co
plaintive in the lawsuit, spoke to ABC.
He's trolling us with the seventeen seventy sixth thing. He's
trying to make this some type of patriotic symbol, but
this could be the most unpatriotic thing, rewarding terrorist and insurrectionist.
Former officer Dunn is currently running for Maryland's fifth congressional
district President Trump and says the fund is needed to
help people he claims were mistreated by the Biden Justice Department.
People would destroyed they went to jail, their families.
Were But there is outrage on Capitol Hill among a
growing number of Republicans and Democrats rejecting the idea of
taxpayer payouts to rioters. The WHO says the Ebola outbreak
probably started months ago in Central Africa and spread undetected
until a super spreader event in early May, possibly a funeral. Meanwhile,
health officials gave an update on Peter stafford. The American
doctor infected it with a BOLO while working in the
Democratic Republic of Congo. Doctor setische KLi is the CDC's
incident manager for Ebola response.
The American has landed in Germany and is at the
hospital and in stable conditions.
The WHO says almost six hundred suspected cases and one
hundred and thirty nine deaths are linked to the outbreak.
We didn't need this. With millions traveling for the Memorial
Day weekend, planes were haulted after a sinkhole opened up
on the runway at New York's LaGuardia Airport. More than
two hundred flights were canceled and hundreds more delayed, shutting
down one of LaGuardia's two runways. Airport officials are rushing
to make repairs. Global news twenty four hours a day
and whenever you want it with the Bloomberg News Now
Michael Barr and this is Bloomberg Herry.
Thanks Michael.
A time now for our Bloomberg Sports updating. For that,
we bring in John Stashaur.
There's there.
In Game two of the NBA's Western Conference Finals, Victor
wembin Yama was coming off a forty two point effort
in Game one, this time half of that he scored
twenty one and the Spurs lost at Oklahoma City on
twenty two to one thirteen. The series is title one.
Game one in the West of the Stanley Cup Playoffs,
Vegas took a three nothing lead and went on to
win four two At Colorado.
Aaron Rodgers met.
The media in Pittsburgh getting ready to play for the Steelers.
He confirmed that twenty twenty six will be his final season.
That's a Bloomberg Sports fifty.
Stay with us. More from Bloomberg day Break coming up
after this.
Coast to coast on Bloomberg Radio, wide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business Apple.
This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager.
Was the earning story investors awaited for weeks and it's
getting a lackluster reaction this morning. And Nvidia came out
with a revenue forecast right around the middle of Wall
Street estimates. But CEO Jensen Wong says the future is
here and his chip Giant is right where it needs
to be.
The world is rebuilding computing for agentic Ai and robotic
physical AI, and Vidia sits at the center of these transitions.
I was in Vidia CEO Jensen Wong on the company
earnings call.
Joining us this morning after is Neil Campling, senior strategist
with the Bloomberg Markets team.
Great to have you with us this morning, Neil.
So we saw the numbers in eighty five percent jump
in sales in the quarter gone by even bigger forecast
in the common quarter.
Why the lackluster reaction this morning? Good morning, Good morning.
I think is a bit of a travel and arrive
here in terms of in Video being the largest company
in the world, it's fueling obviously a entire AI ecosystem,
but investors in its very very narrow market that we've
seen in recent months in terms of their strength, It's
likely that it is as a lack of new investor
money coming into this stock itself and looking into play
the AI three through other sort of other plays in
this space. And as you mentioned, the guidance was solid,
but it was within the range of Wall Street estimates,
so it didn't surprise to the upside. There was no
mic drop moment like we had two years ago, and
it's really kind of maturing now into that mature growth
tech leader, where as we've seen before the likes of Apple.
But to grow those revenues, as you mentioned, eighty five
percent year on it is a substantial number by anyone's metrics,
but by Side has now got used to these kind
of estimates, and so we are above some of the
whisper numbers. But there are questions that analysts are now
having about the sustainability of such growth going forward, especially
in my higher competition from the likes of Google creating
their own internal chipsets in the future.
So is this a moment where the moat that in
Nvidia had built around itself when it comes to the
chips that it puts out there that they're starting to
be cracks in that molt, what can it do to
seal them?
I think the way it's looking at this now is
to extend that ecosystem into other parts of the AI market.
As you mentioned, Jensen talked last night on the call
about one hundred trillion dollars of industry that hasn't yet
but is about to be affected by AI. This is
taking the AI into the physical AI system. To you
and I, it's about in the real world and with
robotics and those kind of applications of AI. They are
diversifying into other areas of the market that could be
many times the size of existing AI infrastructure. And I
suppose the other thing to think about is that Bloomberg
News overnight had an exclusive on Anthropic. Anthropic a key
partner of in Nvidia and others. But the growth rates
that Anthropic are talking about now are ten billion dollars
in sales for this current quarter. I mean, this company
had no products less than three years ago. So in
videos helping fuel the entire agentic AI revolution that we're
witnessing today.
And the last minute I have with you, Neil, I
got to get your reaction to what we learned from
the filing of the IPO for SpaceX. Billions in losses
and some big plans from Elon Musk.
Some quite incredible statements in as one overnight, not least
the ambitions to have a one million people on Mars
in the future. But as you mentioned, the increase in
the losses is a tenfold increase of those losses to
help to sort of fund the exceptional growth trajectory and
opportunity they see in the future. It's no wonder they
need to come to the market though, because they are
burning through a lot of cash.
But yeah, we're It's.
Going to be highly anticipated and with Open Ai ananthropic
likely to come to their market as well, this year
could be a great year for ten.
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