Nvidia Fails to Impress Investors; Supreme Court Keeps Trump Foreign-Aid Freeze

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.240 --> 0:00:13.440 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.440 --> 0:00:15.160 are the stories we're following today. 0:00:15.280 --> 0:00:17.720 Karen, we begin with the latest reaction to the earnings 0:00:17.720 --> 0:00:21.079 report investors around the world we're bracing for. It has 0:00:21.160 --> 0:00:24.360 been volatile, but shares of nvidiam have turned higher. They 0:00:24.400 --> 0:00:27.120 are now three quarters of one percent in early trading. 0:00:27.320 --> 0:00:29.960 The chip maker at the center of the AI spending boom, 0:00:30.000 --> 0:00:33.400 delivered good, but not great quarterly numbers. It's drawing a 0:00:33.479 --> 0:00:36.160 muted response from investors who have been accustomed to blow 0:00:36.240 --> 0:00:39.320 out results. We get more from Bloomberg's Tom mackenzie. 0:00:39.520 --> 0:00:42.360 It's about expectations, and it's all about whether or not 0:00:42.520 --> 0:00:44.120 this is a company that, by the way, in the 0:00:44.200 --> 0:00:46.319 last five years has only missed quarterly result was once 0:00:46.360 --> 0:00:47.880 and this time was not a miss again. It was 0:00:47.920 --> 0:00:50.080 a modest beat. The question mark is to what extent 0:00:50.159 --> 0:00:52.920 the huge revenue growth that we've seen from Nvidia in 0:00:52.960 --> 0:00:56.279 the last two years is starting potentially to peak. How 0:00:56.400 --> 0:00:59.160 much further can they go in supplying these chips and 0:00:59.200 --> 0:01:04.160 continuing to generate the frankly eyewatering growth, almost unprecedented growth 0:01:04.200 --> 0:01:06.880 that we've seen from one individual company in the months 0:01:06.880 --> 0:01:10.000 and quarters ahead, and that question has not yet been resolved, 0:01:10.000 --> 0:01:12.200 and it hasn't been put to bed by the results 0:01:12.200 --> 0:01:12.600 that we've. 0:01:12.440 --> 0:01:15.240 Had out Bloomberg. Sam mackenzie says in video is putting 0:01:15.240 --> 0:01:18.160 its quarterly sales at about forty three billion dollars. That 0:01:18.280 --> 0:01:21.720 is slightly above the average analysts essiment Well Nathan. 0:01:21.760 --> 0:01:26.040 Many analysts pointed to a disappointment within Vidia's gross profit margins. 0:01:26.080 --> 0:01:29.800 Here's Angelo Zino, vice president of equity research at CFRA. 0:01:30.760 --> 0:01:33.479 The gross margin number was probably the one black eye 0:01:33.520 --> 0:01:36.640 as far as where we kind of were looking at 0:01:36.640 --> 0:01:39.840 the guidance side of things. It was definitely a disappointment. 0:01:40.120 --> 0:01:42.040 I think when you kind of especially look at the 0:01:42.080 --> 0:01:45.000 trajectory of gross margins over the last couple of quarters, 0:01:45.000 --> 0:01:46.760 it kind of hit a peak run rate of about 0:01:46.800 --> 0:01:50.160 seventy eight percent in the first half of calendar twenty 0:01:50.200 --> 0:01:54.080 twenty four. So the margins continue to compress here going 0:01:54.160 --> 0:01:56.760 into the April quarter. The good news is we do 0:01:56.880 --> 0:01:59.600 expect that to essentially be the trough of the cycle 0:01:59.680 --> 0:02:01.440 here in the April. 0:02:01.240 --> 0:02:02.840 Quarter, cfirays. 0:02:02.880 --> 0:02:06.800 Angelo Zeno also says Chinese start up Deep Sea Cas 0:02:06.800 --> 0:02:10.120 spark fears that chatbots can be developed more cheaply, potentially 0:02:10.160 --> 0:02:13.280 reducing the need for Nvidia's powerful chips for AI. 0:02:13.520 --> 0:02:15.480 In the meantime, Karen, we have some sad news to 0:02:15.560 --> 0:02:18.640 report this morning, the death of a Hollywood legend. Oscar 0:02:18.639 --> 0:02:21.880 winning actor Gene Hackman and his wife were found dead 0:02:21.919 --> 0:02:24.960 in their New Mexico home. Their dog died as well. 0:02:25.360 --> 0:02:28.400 Authorities did not release any details of the circumstances of 0:02:28.440 --> 0:02:31.040 their deaths, but they do say foul play is not suspected. 0:02:31.400 --> 0:02:33.720 Gene Hackman appeared in more than eighty films, including The 0:02:33.720 --> 0:02:37.760 French Connection, Unforgiven, and Hoosiers. He was ninety five years old. 0:02:38.639 --> 0:02:40.960 Well, Nathan, let's turn out to some breaking developments on 0:02:40.960 --> 0:02:44.760 the Trump administration's push to freeze foreign aid payments. We 0:02:44.800 --> 0:02:48.240 get the latest with Bloomberg's John Tucker. John Good Morning, ed. 0:02:48.120 --> 0:02:51.799 Morning, Karen. Chief Justice John Roberts has handed President Trump 0:02:51.880 --> 0:02:55.200 of victory, at least for now. He temporarily blocked up 0:02:55.240 --> 0:02:58.960 to two billion dollars in foreign aid. Roberts paused a 0:02:59.040 --> 0:03:02.400 lower court's order that had lifted the administration's freeze on 0:03:02.480 --> 0:03:05.920 foreign assistance. Humanitarian groups say this freeze is having a 0:03:05.960 --> 0:03:10.760 devastating impact, offending hundreds of projects, forcing USA partner groups 0:03:11.000 --> 0:03:14.800 to lay off or furlough thousands of US workers, and 0:03:14.880 --> 0:03:17.400 putting people who depend on the assistance at risk of 0:03:17.480 --> 0:03:20.400 disease and even death. The group say the money includes 0:03:20.440 --> 0:03:24.640 payments for work already completed. The humanitarian groups challenging the 0:03:24.639 --> 0:03:28.600 freeze now have until Friday afternoon to respond. I'm John Tucker, 0:03:28.639 --> 0:03:29.480 Bloomberg Radio. 0:03:29.680 --> 0:03:32.519 Okay, John, thank you. President Trump is warning federal workers 0:03:32.560 --> 0:03:35.520 who haven't responded to Elon Musk's email asking what they 0:03:35.560 --> 0:03:37.880 did last week, they could be out of a job. 0:03:38.320 --> 0:03:40.200 And I think it's a good idea because you know 0:03:40.280 --> 0:03:42.600 those people, as I said before, they run the bubble. 0:03:42.760 --> 0:03:44.600 You get a lot of people that have not responded. 0:03:44.600 --> 0:03:47.280 So we're trying to figure out do they exist, who 0:03:47.320 --> 0:03:50.160 are they? That is possible that a lot of those 0:03:50.200 --> 0:03:51.600 people will be actually fired. 0:03:51.840 --> 0:03:55.400 In cabinet meeting remarks heard on Bloomberg Radio, President Trump 0:03:55.440 --> 0:03:58.480 spoke after the White House told federal agencies to submit 0:03:58.560 --> 0:04:02.720 large scale workforce reduction plans by March thirteenth. The President 0:04:02.760 --> 0:04:05.640 says the Environmental Protection Agencies looking into cutting up to 0:04:05.680 --> 0:04:08.760 sixty five percent of its staff. One agency. The National 0:04:08.840 --> 0:04:12.160 Oceanic and Atmospheric Administration is putting together a list of 0:04:12.200 --> 0:04:14.840 workers who have yet to respond to Musk's email. 0:04:15.400 --> 0:04:18.279 Now, Nathan, the latest on Trump's trade war. The President 0:04:18.320 --> 0:04:21.240 says tariffs on products from the European Union will be 0:04:21.360 --> 0:04:24.760 twenty five percent. In his first cabinet meeting, he used 0:04:24.800 --> 0:04:26.760 strong language to attack the EU. 0:04:27.400 --> 0:04:29.880 It was formed in order to screw the United States. 0:04:29.920 --> 0:04:33.159 I mean, look, let's be honest. The European Union was 0:04:33.160 --> 0:04:35.560 formed in order to screw the United States. That's the 0:04:35.600 --> 0:04:38.120 purpose of it, and they've done a good job of it. 0:04:38.200 --> 0:04:39.279 But now I'm President. 0:04:39.920 --> 0:04:42.640 Well, Trump's proposal for a twenty five percent tariff on 0:04:42.680 --> 0:04:46.200 the EU is new. Officials later clarify that all options 0:04:46.240 --> 0:04:49.200 are being considered on whether those would affect all exports 0:04:49.200 --> 0:04:52.200 from the block or only certain products or sectors. 0:04:52.400 --> 0:04:55.120 We have breaking trade news crossing the Bloomberg terminal Karen. 0:04:55.360 --> 0:04:58.800 Officials in India are exploring ways to lower tariffs on 0:04:58.839 --> 0:05:01.919 a wide range of imports, including cars and chemicals, in 0:05:01.960 --> 0:05:06.040 a bid to evade President Trump's threatened reciprocal levies, sources 0:05:06.040 --> 0:05:09.120 tell Bloomberg News. Officials in New Delhi are discussing reducing 0:05:09.200 --> 0:05:14.000 duties on automobiles, agricultural products, chemicals and critical pharmaceuticals. 0:05:14.440 --> 0:05:17.960 Well Nathan. Trump's announcement on EU tariff's come as UK 0:05:18.080 --> 0:05:20.520 Prime Minister Keir Starmer heads to the White House to 0:05:20.600 --> 0:05:24.000 meet with the President. We got to London with Bloomberg's 0:05:24.120 --> 0:05:25.040 James Wilcock. 0:05:25.200 --> 0:05:28.120 Good morning James, Good morning Karen and Nathan. Since the 0:05:28.160 --> 0:05:30.560 Second World War, the UK has framed itself as having 0:05:30.560 --> 0:05:33.920 a so called special relationship with America. So with Europe's 0:05:33.960 --> 0:05:37.640 leaders scrambling to change Ukraine's fate, Prime Minister Kiss Starmer's 0:05:37.680 --> 0:05:40.159 visit to the White House today is a test how 0:05:40.200 --> 0:05:42.680 strong is that alliance and will Starmer be able to 0:05:42.720 --> 0:05:45.440 sway a US president who has been willing to upend 0:05:45.680 --> 0:05:50.080 transatlantic relations. After watching France's leader Emmanuel Macron's trip this week, 0:05:50.320 --> 0:05:53.440 Starmer's aids told Bloomberg they would be delighted if they 0:05:53.440 --> 0:05:56.000 can get through the week without any public disagreement with 0:05:56.040 --> 0:05:59.600 Donald Trump in London. James Wilcock, Bloomberg Radio, All right. 0:05:59.560 --> 0:06:01.680 James, thank you on Bloomberg. Will bring you live coverage 0:06:01.680 --> 0:06:04.279 to the news conference with President Trump and Keir Starmers 0:06:04.279 --> 0:06:06.960 schedule to begin at two pm Wall Street Time, here 0:06:07.000 --> 0:06:10.400 at on Bloomberg Radio and on the Bloomberg podcast page 0:06:10.440 --> 0:06:11.520 on YouTube, Karen. 0:06:11.560 --> 0:06:14.080 Secretary of State Marco Rubio is laying out a strategy 0:06:14.120 --> 0:06:17.479 for managing Russia's relationship with China. He says he wants 0:06:17.520 --> 0:06:20.560 to dilute ties between the nuclear powers, but not have 0:06:20.640 --> 0:06:21.839 them at each other's throats. 0:06:22.160 --> 0:06:23.880 The big story of the twenty first century is going 0:06:23.920 --> 0:06:27.080 to be US Chinese relations and if China and if 0:06:27.120 --> 0:06:30.080 Russia becomes a permanent junior partner to China in the 0:06:30.120 --> 0:06:32.680 long term. Well, now you talk about two nuclear powers 0:06:32.720 --> 0:06:34.120 aligned against the United States. 0:06:34.320 --> 0:06:37.800 Secretary of State Marco Rubio tells the conservative outlet Breitbart News, 0:06:37.839 --> 0:06:40.400 Russia wouldn't be able to improve relations with the US 0:06:40.440 --> 0:06:43.120 even if it wanted to, if it became completely dependent 0:06:43.200 --> 0:06:43.760 on China. 0:06:44.520 --> 0:06:47.240 Well, Nathan, Russia is using ties with North Korea at 0:06:47.240 --> 0:06:50.080 a boost it's war effort in Ukraine. According to South 0:06:50.120 --> 0:06:52.960 Korea's Yon Have News, North Korea has sent more than 0:06:53.000 --> 0:06:55.919 one thousand more troops to Russia this year. That's on 0:06:55.960 --> 0:06:57.920 top of the thousands deployed last year. 0:06:58.000 --> 0:07:00.680 I'm back in Washington, Karen. The Trump administry making a 0:07:00.680 --> 0:07:03.240 move that could affect the next flu season. It's canceled 0:07:03.240 --> 0:07:06.200 a meeting of the Food and Drug Administration's Vaccine Advisory 0:07:06.200 --> 0:07:09.680 Committee that had been tentatively set for March thirteenth. The 0:07:09.680 --> 0:07:12.440 committee was planning to discuss how to make next season's 0:07:12.480 --> 0:07:15.360 flu shot. It's usually a routine step to ensure that 0:07:15.400 --> 0:07:18.720 manufacturers have enough time to produce the proper houses and. 0:07:18.760 --> 0:07:22.040 Nathan Bloomberg News has learned US health officials are reevaluating 0:07:22.080 --> 0:07:24.800 a five hundred and ninety million dollar contract for bird 0:07:24.880 --> 0:07:28.480 flu shaw So the Biden Administration awarded to Maderna. The 0:07:28.560 --> 0:07:31.320 review is part of a government push to examine spending 0:07:31.360 --> 0:07:35.560 on Messenger RNA based vaccines and shares a Maderna, they're 0:07:35.640 --> 0:07:41.480 down more than four percent. Time now for a look 0:07:41.480 --> 0:07:43.120 at some of the other stories making news in New 0:07:43.200 --> 0:07:44.880 York and around the world. And for that we're joined 0:07:44.920 --> 0:07:47.320 by Bloomberg's Michael Barr Michael, Good Morning. 0:07:47.120 --> 0:07:50.800 Good Morning. Karen Kama says it is ready to negotiate 0:07:50.880 --> 0:07:53.640 the next phase of the ceasefire in the Gaza Strip 0:07:54.000 --> 0:07:56.960 after handing over the remains of four hostages in exchange 0:07:57.000 --> 0:08:00.000 for the release of hundreds of Palestinian prisoners held by Israel. 0:08:00.520 --> 0:08:03.760 The truce is set to end this weekend. Former US 0:08:03.840 --> 0:08:08.200 Deputy Assistant Secretary of Defense for the Middle East Mick mulroy, since. 0:08:08.080 --> 0:08:10.440 They haven't agreed to enter into the second phase, that 0:08:10.480 --> 0:08:13.640 means the cessation on hostilities could be over and fighting 0:08:13.640 --> 0:08:16.680 could resume. And we've seen steps taken by the idea 0:08:16.720 --> 0:08:21.440 of both mobilizing units in calling up reservist that indicate 0:08:21.480 --> 0:08:22.720 that might actually happen. 0:08:23.520 --> 0:08:26.320 A school age child in Texas has died of measles, 0:08:26.320 --> 0:08:28.320 and outbreak in the state has grown more than one 0:08:28.400 --> 0:08:31.400 hundred and twenty cases. Almost all the cases are in 0:08:31.560 --> 0:08:35.839 unvaccinated patients. Epidemiologist doctor John Brownstein. 0:08:35.640 --> 0:08:38.640 It's not just a rash. It can cause pneumonia, brain swelling, 0:08:38.720 --> 0:08:39.320 even death. 0:08:39.559 --> 0:08:41.200 We're seeing that now in Texas. 0:08:41.400 --> 0:08:43.559 It's a safe, effective vaccine and that's the way you 0:08:43.640 --> 0:08:46.680 keep your kids safe and really the communities around you safe. 0:08:46.880 --> 0:08:48.000 It's really that simple. 0:08:48.640 --> 0:08:51.880 Allies a former New York Governor Andrew Cuomo have formed 0:08:51.920 --> 0:08:55.080 a super pack. It comes just days before Cuomo is 0:08:55.120 --> 0:08:58.199 expected to enter the New York mayoral race and again 0:08:58.240 --> 0:09:01.600 recapping Academy Award Winnergyan Ackman and his wife were found 0:09:01.679 --> 0:09:04.160 dead at their new Mexico home, along with their dog. 0:09:04.240 --> 0:09:06.840 Police do not believe foul play was the factor. Hackman 0:09:06.920 --> 0:09:09.480 was ninety five Global News twenty four hours a day 0:09:09.520 --> 0:09:12.000 and whenever you want it with Bloomberg News Now Michael Barrn, 0:09:12.080 --> 0:09:12.720 This is Bloomberg. 0:09:12.760 --> 0:09:20.319 Karen, all right, Michael Barry, thank you time now fild Bloomberg. 0:09:20.400 --> 0:09:23.480 Sports Update brought to you by Tria State OUTI. Here's 0:09:23.520 --> 0:09:25.839 John Stanshawer, John, good morning, Good morning. 0:09:25.600 --> 0:09:28.400 Karen Nixon. Sixers at the Garden. The two teams at 0:09:28.400 --> 0:09:31.560 a memorable playoffs series last year, but this season's been 0:09:31.600 --> 0:09:34.040 a nightmare in Philly, especially lately. They came in having 0:09:34.040 --> 0:09:35.400 lost eight in a row. We're on their way to 0:09:35.440 --> 0:09:38.040 another lop side and lost. When they rallied, Sixers went 0:09:38.040 --> 0:09:41.439 from down nineteen to up four, but Jalen Brunton, a 0:09:41.520 --> 0:09:43.720 big three, made a bunch of free throws. He was 0:09:43.760 --> 0:09:46.120 fifteen of sixteen from the line. Brunson finished with thirty 0:09:46.120 --> 0:09:48.439 four points. Nicks pulled it out one ten, one oh 0:09:48.440 --> 0:09:50.680 five at Barkleys looked like an upset and Nets led 0:09:51.000 --> 0:09:53.200 West lead in Oklahoma City by fifteen and a half 0:09:53.240 --> 0:09:55.719 back came the thunder to win one, twenty nine, one 0:09:55.800 --> 0:09:58.240 twenty one, the Celtics six game wins streak ended in 0:09:58.360 --> 0:10:02.000 Detroit to much improved Pistons, won by twenty Colorado Avalanche 0:10:02.000 --> 0:10:03.720 four goals in the third period to beat the Devil's 0:10:03.760 --> 0:10:07.080 five to one. In college basketball, the madness is usually 0:10:07.080 --> 0:10:10.000 in March. We're not quite there yet, but a mad finish. 0:10:10.120 --> 0:10:12.559 As Michigan State and Maryland were tied. 0:10:12.800 --> 0:10:17.360 Go and speak for three years. Coloman looks the clock. 0:10:21.520 --> 0:10:26.679 My goodness. 0:10:26.760 --> 0:10:29.560 They attend network to call the Trey Holloman half court 0:10:29.600 --> 0:10:32.600 shot for the Spartan Saint John's got twenty four points 0:10:32.640 --> 0:10:34.960 of R. J. Lewis and one at Butler's seventy six 0:10:35.000 --> 0:10:36.920 to seventy. The Red Storm had clinched at least a 0:10:37.080 --> 0:10:39.600 tie for the Big East regular season title and win 0:10:39.679 --> 0:10:42.040 Saturday at the Garden over Seaton Hall, and they went 0:10:42.040 --> 0:10:44.560 it outright. The NFL Players Association had their rank and 0:10:44.559 --> 0:10:48.120 file to a survey of their employers. The Dolphins got 0:10:48.120 --> 0:10:50.719 the highest grades, the Cardinals the worst. When it came 0:10:50.760 --> 0:10:53.360 to team ownership, the only owner that got a grade 0:10:53.360 --> 0:10:56.439 of an F was the Jets. Woody Johnson, John Stashiawer 0:10:56.440 --> 0:10:58.119 Bloomberg Sports Karen Eathan. 0:11:00.240 --> 0:11:04.240 Coast to Coast on Bloomberg Radio nationwide on Serious Exam 0:11:04.520 --> 0:11:07.360 and around the world on Bloomberg dot Com and the 0:11:07.400 --> 0:11:10.480 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:10.640 --> 0:11:13.800 Good morning, I'm Nathan Hager. The morning after and Nvidia 0:11:13.920 --> 0:11:17.920 earnings Day, the most hotly anticipated earnings report arguably of 0:11:17.960 --> 0:11:21.160 the week, if not the month. This morning, it seems 0:11:21.200 --> 0:11:23.920 investors are still trying to figure out how to react 0:11:23.920 --> 0:11:26.080 to it. The AI chip giant came out with a 0:11:26.160 --> 0:11:29.640 sales forecast that beat the average Wall Street estimate, but 0:11:29.720 --> 0:11:32.400 not the blowout result that a lot of investors have 0:11:32.400 --> 0:11:34.520 gotten used to over the last couple of years with 0:11:34.600 --> 0:11:37.800 this company. For more reaction, let's bring in Dan Ives, 0:11:37.920 --> 0:11:41.080 Global head of Tech research at Webbush Securities. Dan always 0:11:41.120 --> 0:11:44.960 great to talk with you, particularly about AI. Your reaction 0:11:45.320 --> 0:11:47.080 to these results from Nvidia. 0:11:47.120 --> 0:11:51.600 Good morning, it's bullsh I mean, if you look at 0:11:51.640 --> 0:11:55.880 Blackwell the next gen chip eleven billion, that's basically three 0:11:55.920 --> 0:11:58.040 to four billion, then I think most in the street 0:11:58.080 --> 0:12:02.360 we're expecting, even the bulls, the deep seek fears you're 0:12:02.400 --> 0:12:05.280 not seeing it. It's smoked no fire, and I think 0:12:05.320 --> 0:12:08.079 this is one is the street digestics, and this stock's 0:12:08.120 --> 0:12:08.760 green today. 0:12:10.400 --> 0:12:15.080 The forecast for forty three billion dollars in sales this quarter, 0:12:15.480 --> 0:12:18.880 as I mentioned, just above the average estimate, but there 0:12:18.880 --> 0:12:21.760 were some analysts who are calling for something like forty 0:12:21.760 --> 0:12:25.520 eight billion or more. Does Nvidia need to continue to 0:12:25.720 --> 0:12:30.560 produce the kinds of blowout results that investors had been 0:12:30.600 --> 0:12:31.319 getting used. 0:12:31.120 --> 0:12:34.080 To, Yeah, I actually don't think so. I think we 0:12:34.160 --> 0:12:36.719 were at that point right in terms of the hypergrowth 0:12:37.200 --> 0:12:40.840 going from one trillion to three trillion. But now for 0:12:40.920 --> 0:12:43.920 this stock one seventy five, two hundred, you're not going 0:12:43.960 --> 0:12:48.160 to need these massive blowouts. It's actually the trajectory is 0:12:48.200 --> 0:12:52.319 so historic because they are the only game in town 0:12:52.400 --> 0:12:55.200 when it comes to these next gen chips and there's 0:12:55.200 --> 0:12:58.120 only one Red phones godfather b Ai Jensen Nvinion. I 0:12:58.120 --> 0:13:00.560 think you start to have gout six seven dollars earnings 0:13:00.600 --> 0:13:03.160 next you know, called one two years and there's a 0:13:03.160 --> 0:13:04.640 stock that I could have a two in front of 0:13:04.679 --> 0:13:06.080 it as we go into next year. 0:13:06.800 --> 0:13:08.680 You say that in video is still the only game 0:13:08.720 --> 0:13:12.960 in town. There had been a lot of questions raised 0:13:13.080 --> 0:13:16.040 about Deep Seek. It sounds like you're putting Deep Seek 0:13:16.160 --> 0:13:18.880 on the back burner. Here, But how much of a 0:13:18.920 --> 0:13:21.320 threat could deep Seek be down the line if it 0:13:21.360 --> 0:13:25.319 continues to produce an AI model that is potentially a 0:13:25.800 --> 0:13:27.800 much lower cost than in VideA. 0:13:28.160 --> 0:13:32.080 Yeah, look, deep Seek's a great model, but so is 0:13:32.320 --> 0:13:34.400 Chad GBT and so as well. I'm and there'll be 0:13:34.440 --> 0:13:38.720 other models and they'll get cheaper. But for large scale 0:13:38.880 --> 0:13:42.840 enterprise deployments, there's only one chip that you're using. 0:13:42.880 --> 0:13:43.520 It's in video. 0:13:44.040 --> 0:13:47.480 And I could also argue as the models get cheaper, 0:13:47.920 --> 0:13:49.319 it's more GP capacity. 0:13:49.360 --> 0:13:52.000 It's actually bullish for in video. 0:13:52.160 --> 0:13:55.000 So I don't view it that way. But remember, look 0:13:55.080 --> 0:13:57.080 right now, everyone's trying to find a crack in the 0:13:57.160 --> 0:13:59.040 arm or AI bubb well, remember a lot of the 0:13:59.040 --> 0:14:01.520 bears they've missed, you know, this massive run in tech 0:14:01.559 --> 0:14:04.760 for the last three years. They're not finding it. I 0:14:04.840 --> 0:14:09.200 actually think, you know, this is the fuel for really 0:14:09.280 --> 0:14:11.680 the book is not just in Nvidia, but really the 0:14:11.840 --> 0:14:15.240 broader AI revolution across the rest of tech, max having others. 0:14:15.559 --> 0:14:19.120 So do you continue to see the hyperscalers, these big 0:14:19.120 --> 0:14:22.680 companies continuing to spend on AI the way that they 0:14:22.720 --> 0:14:26.000 have tens of billions of dollars every quarter. We've seen 0:14:26.120 --> 0:14:29.280 some companies talking about at least trying to scale back 0:14:29.320 --> 0:14:30.120 some of that cap bax. 0:14:31.040 --> 0:14:33.680 Look, it's you have three hundred and twenty five billion 0:14:34.480 --> 0:14:37.960 of cap backs between you called the top six tech players. 0:14:38.640 --> 0:14:41.440 That's one hundred billion increased year of a year. Well 0:14:41.440 --> 0:14:45.080 that moderate going into next year, of course, but it's 0:14:45.120 --> 0:14:48.000 the start that you're essentially building out a new city, 0:14:48.640 --> 0:14:50.360 and it starts the vidio, but then it goes to 0:14:50.360 --> 0:14:52.720 the hyper skills, goes to the rest of software, goes 0:14:52.800 --> 0:14:57.160 to cybersecurity, consumer data centers, and that's really where this 0:14:57.240 --> 0:15:00.200 is playing out. Look, are there certain things like Trump 0:15:00.560 --> 0:15:03.320 in terms of export controls in some other words, of course, 0:15:03.760 --> 0:15:06.560 but the reality is is that we're talking about once 0:15:06.640 --> 0:15:08.240 in a forty to fifty year build out. 0:15:09.400 --> 0:15:11.520 We've got Nvidia in the pre market trading around one 0:15:11.560 --> 0:15:14.440 hundred and thirty two dollars to share. You adjusting your 0:15:14.560 --> 0:15:16.320 price target for Nvidia. 0:15:17.040 --> 0:15:20.920 One seventy five base two hundred bull and I ultimately 0:15:21.000 --> 0:15:25.160 think this is one where you know, there's a lot 0:15:25.200 --> 0:15:29.000 of worries going into this. They produce flying calls in 0:15:29.080 --> 0:15:31.920 terms of coming out with this. Now you digest what 0:15:32.000 --> 0:15:35.200 this means going forward, China is going to be a player. 0:15:36.000 --> 0:15:40.200 But ultimately, you know, in Vidia continues to be that 0:15:40.320 --> 0:15:43.200 only game in town. When it comes to next ten chips. 0:15:43.120 --> 0:15:46.480 Just thirty seconds left, Dan, how much does Nvidia have 0:15:46.640 --> 0:15:49.880 to get past Wall Street estimates to get to that 0:15:49.960 --> 0:15:51.280 two hundred dollars ball case? 0:15:52.160 --> 0:15:54.960 Look, I think if they continue on this trajectory, especially 0:15:54.960 --> 0:15:57.480 with Blackwell, I mean, I think you could be there 0:15:57.520 --> 0:15:59.960 in the next you know called two three quarters. But look, 0:16:00.080 --> 0:16:02.680 haters hate. That's what happens in video. They've missed every 0:16:02.680 --> 0:16:04.720 transmission tech dot plast twenty years. 0:16:05.040 --> 0:16:06.560 The missing video were bors. 0:16:06.880 --> 0:16:10.280 This is Bloomberg Daybreak, your morning podcast on the stories 0:16:10.360 --> 0:16:13.400 making news from Wall Street to Washington and beyond. 0:16:13.640 --> 0:16:16.040 Look for us on your podcast feed by six am 0:16:16.080 --> 0:16:19.480 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:16:19.680 --> 0:16:22.560 You can also listen live each morning starting at five 0:16:22.560 --> 0:16:25.280 am Wall Street time on Bloomberg eleven three to zero 0:16:25.280 --> 0:16:28.200 in New York, Bloomberg in ninety nine to one in Washington, 0:16:28.280 --> 0:16:32.200 Bloomberg ninety two nine in Boston, and nationwide on serious 0:16:32.400 --> 0:16:34.120 XM Channel one twenty one. 0:16:34.360 --> 0:16:37.080 Plus listen coast to coast on the Bloomberg Business app 0:16:37.120 --> 0:16:40.320 Now with Apple CarPlay and Android auto interfaces, and. 0:16:40.320 --> 0:16:43.240 Don't forget to subscribe to Bloomberg News Now. It's the 0:16:43.320 --> 0:16:46.480 latest news, whenever you want it in five minutes or less. 0:16:46.760 --> 0:16:49.840 Search Bloomberg News Now and your favorite podcast platform to 0:16:49.840 --> 0:16:53.360 stay informed all day long. I'm Karen Moscow. 0:16:53.160 --> 0:16:55.680 And I'm Nathan Hager. Join us again tomorrow morning for 0:16:55.720 --> 0:16:57.640 all the news you need to start your day, right 0:16:57.680 --> 0:16:59.120 here on Bloomberg Daybreak