Power Lunch - Markets at Record Highs, Countdown to SpaceX Earnings, OpenAI Fires Back at Apple 8/4/26

Episode Date: August 4, 2026

Stocks are rallying on strong earnings and another decline in oil prices as the Dow and S&P 500 hit new all-time highs on Tuesday. Kelly Evans and Dominic Chu chat with Raymond James’ Matt Orton to get his take on the market rally with each major average hitting 2% gains during intraday trading. Later, Macquarie’s Head of U.S. Software and Services Research, Steve Koeing, joins the show to break down his predictions for SpaceX’s first quarterly earnings report which will come after the markets close. Meanwhile, CNBC’s MacKenzie Sigalos reports live from the San Francisco Bureau to give the latest details on the ongoing legal battle between Apple and OpenAI,  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Markets are in rally mode as we hit new all-time highs. Welcome to Power Lunch alongside Dominic Chu. I'm Kelly Evans. Brian is out today. Records for the Dow and the S&P 500 with the Dow up 1,000 points today and both indices led higher by earnings winners. And the next earnings test comes today after the closing bell. Chipmaker advanced micro devices set to report second quarter results and the expectations are big.

Earnings are expected to grow more than 200% on a year-over-year basis. And then on top of that, it's SpaceX. First report is a public company. Those shares are down, yes, 50% from their record highs. Investors will be looking for a catalyst to reignite this stock and provide some rocket fuel for SpaceX killing. Let's begin with this record-breaking day on Wall Street. The S&P 500 hitting an all-time high for the first time in two months.

Catching a lot of Wall Street flat-footed, by the way. So if you're in that group, don't feel bad. Just look at these year-end targets. Goldman, UBS, Wells Fargo, J.P. Morgan, Bark. They all have targets for the end of the year below where we're trading right now. Now, in fairness, Dom, there's six months to go. So five, six, anyway, four months left in the year. I don't know.

Did many on Wall Street get this rally wrong? Or is the market justifiably going higher this year? Joining us now is Raymond James' chief market strategist Matt Orton. His target is 7750. Matt, it's good to see you. Is this as good as it gets, or are we going to have another one of these banner double-digit rally years? Hey, Kelly. I mean, it's looking like we're going to have another double-digit rally year because we've been saying it's as good as it gets with respect to earnings quarter after quarter,

and now we're in the second consecutive quarter of 20% plus earnings growth. I mean, we're sitting at over 40% EPS growth. And even if you remove some of those one-time items that you got from gains on certain tech companies, we're still at over 35% EPS growth. So the backdrop remains incredibly strong, but selectivity is, really, really important. And what matters, I think, critically for investors is being leaned into the right sectors to get enough beta on the upside, but still capturing a little bit of this idea that there is room for broadening to take place across the market. But it's sort of like don't

overthink it, right? I mean, a lot of people have been watching the moves and the semis and this and that and worrying about a bubble forming. We are and we were talking about this last hour, but the size of the market relative to GDP, again, all-time highs. I mean, there's, you could look at this and find reasons to worry. But if you position too conservatively, you're sitting on the sidelines for what's been an ongoing monster rally with earnings confirming that this is not just a bubble. That's exactly right. I've never subscribed to this notion that there's a bubble, whether it's an AI or other parts of the market, because we continue to see that the earnings and the actual fundamentals are justifying the movements in a lot of these companies. So while July,

was incredibly painful across the board. It really was positioning driven. It was just overextended investor positioning that needed to wash out a little bit. And we're clearly seeing the strong fundamental readthroughs from earnings season supporting a rebound in the trade. So AI KAPX beneficiaries, I continue to believe as an attractive part of this market. And I think we've seen a confirmation that we're at the bottom and that you can feel safer adding to these parts of the market. And again, just every morning you wake up and there's another earnings that supports that trade going forward. Matt, it's Tom. Let's talk about the second half of this year now, right? If you take a look at the way things are shaping up, we are in a midterm election year.

There's a midterm election cycle that's getting, really going in earnest right now with primaries and whatnot. We know that there are some seasonality factors around some of those midterm elections. We know that there's some rate uncertainty regardless of what happens with what happens in Iran. I'm not sure exactly what the positive catalysts are. Or do you take your 70s, $7.50 target and re-rated higher because there's new data to support all of that re-rating higher. Yeah, Dom, I think we're going to see a little bit of choppiness, at least for the end of the summer, because as you pointed out, there are seasonality effects. We are in a midterm election year, and we don't exactly know where this peace process is going to go. Is this going to be MOU 2.0

that ends in the same position that we had happened a couple months ago? So investors still need to be on guard with respect to some of these potential downside catalysts, but that doesn't mean you can't lean into the upside potential of the market. And that's why capturing some higher beta areas of the market, like leaning into the semiconductor AI cap-ex beneficiaries that are working, owning smaller cap companies where we're seeing earnings revisions continue to tick higher because of the strong fundamental growth of this economy, those are places investors can capture the upside,

but also look to areas that have worked and provided a little bit of a cushion during the month of July, like healthcare where there's growth, biotechnology. And if we can get a little bit of a reprie from rates, that's a good place to be. Speaking of earnings, Matt, stay right there. Let's talk about the biggest winner in the S&P today, which is Palantir. Best day in more than two years after the company delivered a blowout. Is this my? Yeah, see, I'm like, I don't need to say this.

Seema's right here. She can tell us what happened with Palantir Caterpillar Seema. these are some big movers going back to the theme that was just talking about, which is real earnings. Yeah, and it's underscoring that enterprises are actually investing in AI. Let's start with Palantir. No other software company, Kelly, and Dom, is delivering the magnitude of sales growth that Palantir is. At least so far, this earning season, a 93% jump in quarterly sales. But what the market is really fixated on is that commercial opportunity.

So that's the software that allows companies to integrate AI on top of their existing systems versus exporting their data to the frontier labs. That grew 150%. And it sort of coincides with CEO Alex Karp, who's been saying that, you know, companies need to pivot to the open source models. He was saying it's like the biggest, now he didn't call it theft,

but he was basically on our air. He was saying it's stealing. I spoke to him yesterday. He said that, listen, companies should not be exporting their data to their frontier labs. He's sort of doubling down on his attack of open AI and anthropic. Here's what he said.

What every enterprise we interact with, and that includes some of the biggest the most important government enterprises in the world, is saying, why would we token max pay people for something that's not useful and then not control the means that allow us to advance our business while keeping the value of the business inside? And so, listen, that's translating into some bigger customer wins. And it's providing fuel to the whole software trade on this idea, Kelly, that the enterprise software story isn't dead. Clearly, companies are being selective about how they're spending money on software, but Palantir, a beneficiary, and that's reflected in

the big stock mover is seeing today up 30%. It's huge, but this is, and Palantir is a more direct kind of software, AI native type play. The one that's caught a lot of attention these days is Caterpillar. It's a Dow component. They make dump trucks and earth movers and construction equipment. But these days, the story is so much more about AI. It is about power generation for data centers. It's about construction.

And these results were big, and they flew in the face of an analyst downgrade. this past week that said that because of the data center moratorium in New York, that that could be a precedent for other jurisdictions. How does Wall Street reconcile those two narratives? Obviously, the price action is decidedly to the upside. You're exactly right. I mean, they defied expectations that there would be some type of slowdown in the artificial intelligence buildout following that downgrade.

But also, results we got from GE-Vernova, which missed and then inverted the HVAC player that powers all the data centers with their HVAC equipment. they talked about supply constraints. Caterpillars call did not mention any supply chain constraints. It actually talked about how demand from their AI customers is speeding up. That was a commentary from CEO Joe Creed on the earnings call. He says, all I can tell you is that from our discussions, we're not seeing any slowdown in equipment orders. Remember, they have gas turbines.

They've got backup generators and engines. All three of those specific equipment are being seen as one way to play the whole. And Kelly, they added $9 billion more. right? And to their order backlog, just during the quarter. Yeah, just during the quarter. So it's like $72 billion in terms of order backlog. And even construction sales up 35%. Again, all a regulatory pushback you're seeing on the local and federal level for data centers, at least you could say from this earnings report tells you that's not slowing down the hyperscalor investment in the buildout. They say they think that they're going to get through it. It's not always easy to meet a huge demand

search when you're making things like excavators, but yet they are trying to do that. Matt, jump in here. And what, you know, again, give people the broader playbook then. It just sounds like it's a little bit of industrials at all time highs, financials at all time highs. It doesn't just have to be an opinion on what's going to happen with the memory stocks. Kelly, that you can play this. And I think what's really interesting from Palantir's earnings is that it's an AI monetization story. So yes, Palantir had fantastic results, amazing growth across the commercial business. But it also is a reminder that sovereign AI is something that we don't talk enough about. And that's going to be a continued push for the AI KAPX trade going forward. But even more so, what's important

is that you're seeing companies actually generate ROI, which came through from what Alex Karp was saying. So I think we're going to see more of that, which benefits the broader market. And also speaks to the fact that seeing margins at record levels across the S&P 500 isn't just a story of the AI trade. And similarly for Caterpillar, the growth in the power generation business was incredible. But again, the traditional construction business, while some of that is levered to data centers, a decent portion of that is also levered to energy, energy buildout, and the broader, I'd say industrial expansion that you're seeing across this economy, which has been corroborated by financials, where you saw the biggest loan growth in their commercial and industrial books,

not just around AI CapEx. It's crazy. I mean, the NASDAQ is up 2.5%, 675 points. The Dow is up, a thousand points, nearly 2%, so it's a broadening trade for sure. Simomodi and Matt Orton, thank you guys very much. We appreciate the conversation. Now, we are just getting started here. Stocks are at record highs, as Kelly points out, but will two mega-cap earnings keep their rally aloft? A deep dive into AMD and SpaceX ahead of their earnings results after the closing bell.

Plus, the AI payday, how do hyperscalers turn massive capex spending into massive returns? Morgan Stanley's Brian Noak is here with the ROI that could reach 50 percent. When it comes to generative AI, that story is coming up next. All right, as you can see on that ticker below your screen, the major averages have been surging higher all day long, but some investors remain concerned over how long this rally could actually last. But our next guest says the technical charts are showing support for the durability of this current bull market.

Joining us now on set to discuss. This is Ari Wald, Oppenheimer's head of technical analysis, watches charts for a living. Let's talk about, Ari, just what you feel about what's happening with the S&P 500 and the Dow at record highs, the NASDAQ, not that far off from there as well. Can this rally be sustained? And what exactly is the evidence to say that it can? Yeah, great day to have me on. We have the, not only are we up today, it was, it's a breakout day for the S&P 500. We're moving above the early June high at around 7620. And you, I think the key

positive, you kind of hit on it a little bit, the broadness of it. You were talking about all these market averages near new highs. And to us, that does support the durability of this. We've had the percentage of stocks on the Russell 3,000 at around 68%, which is a very healthy number. And so typically how we think about it, rallies with more stocks participating are the rallies that do continue. Do we need, we talk about the broadening out trade, the equal weight S&P 500 doing what it's doing, small caps doing what they're doing. But for the longest time, since the great financial crisis, it's been that small cadre of stocks. We've labeled them magnificent. seven in this day and age. They've done all the heavy lifting in half for years now.

When do we ever return to that kind of a construct where just a handful of stocks are going to do all the heavy lifting? Yeah, well, that was used as a bearish point for the market there for all those years. So the fact that it's almost the complete opposite should be a bullish thing. And generally, I don't know if that's a call we're making when we're going to return to a more narrow market. I think the fact that we have had this rotation trade does. support higher highs. And I think a little nuance here. I would argue that the outlier, the disruption between the big and everything else was just been how poorly everything else is done. So for us, the convergence trade was always catch up. And now we're seeing it. And I think

that does pretend to higher price levels. Your favorite stocks really jump out of me. Because yesterday we were talking to Travis Prentice. And he said, we were saying, where's the next bottleneck? Like, you know, we've moved from Nvidia to the memory names. And he thought maybe around agent traffic, specifically the influx people are having to deal with on the security and the networking side. Some of your favorite stocks just so happened to be cloud flare, data dog. These are the exact same names that he was highlighting. Now, I know you're looking at this from a technical point of view, but I can't help but wonder

is his fundamental explanation in your technical view coming together here? Birds of the feather. I think I saw that bit. Inform momentum. Please don't tell me this was after he said. Yeah, yeah, yeah, yeah. No, but we see I'm, we are advocates. You're right.

He's in for momentum. He might be earnings momentum. We're priced momentum. And for us, if you'll, I think as you think about how technology has moved higher through the years, it has been this intersector rotation from internet to fang to mag to software to software. And so these beaten up areas, software, which has been out of favor for much of the year, I think it is so encouraging that even now that group is picking its head up and turning higher. Now, for us, we're always going to be keen. on relative leadership. But is that what this is to you, is more of a software play than it is specifically a cyber

or a traffic play, or is it a little bit of everything? It's the group as a whole that's finally moved back above its 200-day average. Now, the leadership has been in the cybersecurity names, and that's what we want. We're looking for the high momentum stocks in that low momentum industry. Will that come at the expense of, say, hardware companies like semiconductor stocks? For the longest time over the past year, we talked about the divergence, the pairs trade of, you know, selling the software stocks, the IGV, and then buying the SMH software stocks. It was a massive outperformer. That gap has kind of closed a bit now.

So does one necessarily have to be the bigger outperformer than the other? That's always going to be the case. We've never been fans of trying to pick the best performing industry at all times. We have been against that trade. We've said, own them both. because of the rotational nature of tech. For us, it's kind of putting the high momentum lens on semiconductors and software, buying the best of each of those groups, because for us, we still think tech for the long run. And if you look at those stocks that have held up as well as they have, beneath that industry malaise, I think it's so telling.

So I think that, you know, those stocks are positioned it to work well. And I think for the semi-trade, finding it's funny, obviously a great start to August, I think that group looks more of a shakeout to us. We don't see that distribution like we saw in the 2000. So I think as we think about year-end strength coming back to the market, semi's also a place to be. You also like biotech, the big banks and brokers, oil refiners. Look at marathons.

Where do they just put out? So you're saying don't jump out of that, you know, just yet. Those are areas where you think there is momentum. And where are some areas that aren't on the list or don't make the cut? Yeah. It's been so broad. There's even some of these areas that aren't necessarily relatively strong. but they're working.

Yeah. But it's really, I guess, countercyclicals at the end of the day, consumer staples that have held in there, but still have that very long-term relative downtrending. This is still a bull market that is favored beta and cyclicality and wanting to own the stocks that outperform on the upside. Things that do well in the AI trade or the strong economy, basically, or this little piece of the oil. So, I mean, the oil one just feels a little bit risky because you never know what the next day's news could bring. Well, I think for the oil, I think why the refiners and the infrastructure place stand out as much they do is that they're less impacted and less correlated to oil.

So I think amid fluctuations in the oil price, which we see, I think these are, the stocks are to be less influence and can rise against that. All right. Ari Wald, Oppenheimer's head of technical analysis. Thank you very much. We appreciate the conversation. Thank you. All right. Well, bonds are also reacting to Secretary Scott Besson's comments today on oil.

It's coming down more than 5%. The 10-year yield is down and so are the probability. for a September interest rate hike. Rick Santelli, what do you make of all of the macro headlines vis-a-vis what we heard from Secretary Besant today? Well, I think what we heard from Besson's what few traders seem to be grabbing onto, but maybe more every day. And that is it's the war, it's not the warsh.

And what I mean by that is, is that interest rates, the day after the war began on the 28th started to zoom to the upside. And as things start to potentially look better, They come down. Maybe not as aggressively as before the MOU fell apart, but definitely a pretty good move, as you see, on the six-hour chart with twos and oil. And we have twos and tens down each about five basis points.

And if you open up the charts to two weeks, we can clearly see that over the last five or six sessions, literally very few wiggles in the yield curve as there was in the previous couple of weeks. And the main reason for that was, of course, the Fed. Once the Fed came and went, a major steepening occurred as two-year yields dropped more dramatically than tens, but everything seems to be moving rather parallel these days. And do remember, you pointed it out, down we're down, what, over 5% in oil. So we're following oil, but not the intensity of the oil moves in terms of the drops in yield.

Right now at 419, we're about 15 basis points below the high yield close at 435. and on tens, hovering right now around 4.63, we're about 11 basis points below. Their high yield close at 474. Many continue to watch what's going on in Japan, not so much the end, which is floating up just a little bit after the positive intervention flows. But what they're looking at is what the response is and the interest rate feedback. If you look at the chart there to the left side, that is the high yield close on the 9th of July at 286. We're hovering about a half a basis point below that right now. So interest rates seem to be firming up, almost begging the Bank of Japan next meeting,

to raise rates because intervention only takes you so far. Kelly, back to you. All right. For now, Rick, thanks, Rick Santelli. Coming up, SpaceX reporting its first ever earnings in, or I should say, quarterly report probably, in less than an hour, more than, anyway. After a 40% pullback from its recent highs, can the results relaunch the stock? We will get into that with the shares up 8.5% today next.

Welcome back to Power Lange. Shares of SpaceX are rocketing. Yes, I said it, rocketing higher today as investors count down to the company's first quarterly earnings report as a public company. Now, despite today's gains, shares are still down from where they were trading in those first few sessions post-IPO and now sit nearly 50% off of their June post-IPO highs. So what should investors expect from this afternoon's big earnings report? joining us now with his take is Macquarie's head of U.S. Software and Services Research and co-lead on SpaceX coverage, Steve Kainig. Steve, thank you very much for joining us. Maybe we'll just start with a broader open-ended question first. As a fundamental analyst covering SpaceX, first earnings report, lots of paperwork, lots of commentary coming out.

What's going to be the big driver of the next move in SpaceX shares? Hey, Dom and Kelly, thanks for having me. Yeah, you know, I think big picture, people are going to want to just hear more about their progress towards their long-term story. And I think the launch business and the ability of that starship to get into space and to lower launch costs, that's key leverage for them going forward. And Starlink is their profitable business driving over half their revenue now. So continued momentum there. And then, you know, the engineering side of the AI story, getting those GPU racks into space on the new AI satellites, which they expect, you know, investors will want to hear about that.

And I think that the value here is really in the long-term story. And so that narrative about the progress in leveraging their launch business and their satellite technology to get to AI in space, that's really the key to the story. These are all converging, all of these stories and themes for SpaceX overall. But if you had to kind of isolate, if you really had to isolate, what's going to be the bigger driver for the investor's sentiment story? Is it going to be the more space-oriented stuff or is it going to be more the AI data center and rack solutions type narrative that they're putting together? I understand that they're all going to converge at some point together. But from the first quarterly report is a public company, which one's going to be the big driver? Yeah. Well, there's not going to be a lot of quantitative stuff to show in terms of the orbital data centers.

But the contracts they have with Anthropic in Q2 and then layering in with Google and reflection AI in Q3, you know, those will drive big terrestrial AI revenue. But investors will also be looking at Starlink. And the subscriber ads, I think, will be an important number in terms of current progress and current momentum. You know, we're looking for about 1.6 million ads to get to about 12 million subscribers, which is about a double year on year. Steve, can you guide the souls in these prediction markets? Let me give you some odds on, what is this on Kalshi right now. More than half a percent think he's going to say Colossus, Optimus, Anthropic Open AI,

Tesla, Mars, Grock, and AI. Only 20 percent think the word merge or merger. will come up, although 64% of people think that could happen before 2028. Game this out from your point of view. Yeah. Well, I think the Tesla question may come up, but I think Musk will defer answering that, just like he did on the Tesla call. So I think it's a pretty good bet that all of those topics will come up on the call.

That all are. All right. And I guess that's why prediction markets are pricing them in at this point. You don't think he'll say merger, merger explicitly? Well, only if he gets the question will he even touch the topic, and he'll defer commenting. As a public company, he just won't comment. Well, I'm expecting some fireworks. Let's see if those odds shifted based upon this conversation.

That's true, Steve, but we appreciate it. And it'll be a fun one, I think, either way, for a stock that's been volatile, but maybe finding its footing here. Steve, thanks very much. Steve Kinnig joining us there. from Macquarie. Let's get over to Contessa Brewer now for the CNBC News Update. Hi, Contessa. Hi there, Kelly. GOP congressman Max Miller is trying to clear his name by asking the House Ethics Committee to investigate. You see, Miller's ex-wife has accused him of domestic abuse. Miller denies it, saying he, quote, has absolutely nothing to hide. He's facing calls to resign.

After his ex-father-in-law, Republican Senator Bernie Marino said he should not serve and should seek psychological help. President Trump has reportedly ordered change. to the new White House helipad after weeks of construction. According to the Washington Post, the president was frustrated with its overall appearance and whether the slope of the White House lawn needs to be changed. It's not clear how much money and time the changes will cost. President Trump says Lockheed Martin is footing the bill for the more than $5 million project. And authorities in Guatemala ordered villages evacuated around its aptly named Fuego Volcano.

It began erupting yesterday, spewing ash, to the air, sending lava down the slopes of the 12,000 foot high mountain. It's one of the most active volcanoes in Central American, that ring of fire. But they have a reason here, Dom, to be worried because in 2018, it wiped out an entire village. All right, closely watched for sure there. Thank you very much, Contessa Brewer, for the news update there. Coming up here, back to basics. Our market navigator says tune out the noise, ditch the volatility, and stick with the defensive names. We're coming up next with top picks on the market navigator. it right here. All right, that woosh means it's time for the market navigator. August is off to a decent

start on Wall Street, but it's historically been a more volatile month for stocks. Our next guest has some ideas about how to stick with the basics and steer clear of some of the volatility. Chris Brigotti is the chief investment officer over at SWBC. Chris, let's talk a little bit about why you want to be just a bit more cautious during August, especially when it comes to going into September. Thanks for having me back. And of course, the situation that develops in August is a little bit higher volatility than you're typically used to. So in order to kind of dampen some of that into portfolio, maybe take some of the wind out of the sales of some negative performance, which could occur as a way to dial back and get into more stable companies, consumer discretionary,

things that have really strong balance sheets, can really weather the storm of a negative market turn. What types of companies are we talking about in particular? What stocks are you adding to the portfolio for that August to September period. When you're talking about how to dampen some of the volatility, it's like you can't go to Italy and not talk about pasta. You have to talk about what things are you going to help booing your boost your portfolio and really kind of let you weather the store. Procter & Gamble is a great example.

Really strong company, consumer discretionary, all the products we buy in the grocery store on a daily basis to live our lives and just kind of run our households. And it's something that really doesn't go up or down based on the economy. It's got a really strong dividend. and it should perform well regardless of the economic conditions, and it should dampen some of that volatility. We talked about in the portfolio. And where else would you look outside of those consumer staples types names?

Another company that really kind of can weather the storm very well. There's something in the healthcare space. Healthcare typically is independent of the economy, and Johnson and Johnson is one of those examples. Very strong company. One of the strongest balance sheets historically looking back over time. Steady earnings growth. They've always done well.

They've always continued to have good performance. and positive returns over the long term. And it's really something that can, again, weather the storm of portfolio of volatility. And investors should be very mindful of that. All right, a consumer staples and a healthcare name from Chris Brigade, SWBC. Thank you very much. We'll see you again soon, sir.

Kelly, I'll send things back over to you. Coming up, the chip rally has roared back. Now, AMD faces the next big test with earnings. After the bell, we'll give you a preview of that next. Welcome back a little over an hour away from earnings for one of the world's biggest chip makers. We're talking about AMD. And the stock is climbing sharply today after coming off its worst months since 2022. Christina Partsenevelis is standing by.

Christina, this is a big ramp into earnings and it reflects what's going on across the sector. Maybe we could say it raises the bar. I don't know. What's the expectation here? Yeah. Today's movement is really just a reflection of the entire sector going higher. A lot of that is the momentum trade. A lot of that is seeing return on investment capital from the hyperscalers.

People believing that this rally. has more room to grow, but specifically for AMD, the two biggest focuses is the guide. Is AMD going to say that they are, you know, ramping up their latest GPU, the MI450 with new customers and everything is going to be, you know, really great out of the gates. So that would contribute to an improved guide. And then the second part is their CPU business where they compete with Intel. They were very vocal just a few weeks ago. The CEO saying that they're taking market share away from Intel, I'm paraphrasing.

So any additional comments on that. But, Kelly, to your point, the stock, yes, has is climbed dramatically year to date over well over the SMH, about 100 and, what is it, 146% year to date. SMH is just about 60%. But since that July month, July 1st, you've actually seen AMD in negative territory down about 9% since then. So it hasn't fully recovered. Yeah. And I think, look, we have Intel up nicely today. We were talking to Kim Forrest last hour. and she said, she thinks the trade is pivoting. It's not about, she thinks, NVIDIA anymore. It's about those names that can kind of be there for the next leg of this. Intel, AMD, her opinion, not mine. The market, perhaps seeing a shift here.

I mean, we all know. We haven't talked about NVIDIA in an important way in a very long time. Well, because NVIDIA is the base of everything. And I think that that's the beauty of NVIDIA. It's such a large company, but it has steady flows. I think to your point, what your guest was saying is that the market is looking for you know, catalysts to re-rate these stocks. So for AMD or Intel, it's, you know, CPU demand really driving growth, specifically for Intel. Maybe it's the foundry business. Maybe they finally sign on

some new customers. And so there's opportunity for big catalyst to move the stock forward, whereas Nvidia, granted, it's amazing. And they're constantly coming up with new specs on how they're going to incorporate memory, et cetera. But it's not the same type of catalyst that you would see in other names. So I think maybe that's why we're seeing some pivoting out of of, you know, the broadcoms and invidia as the typical AI compute names to the others. Yeah, no, it feels like a new chapter, maybe. I don't know. Christina, thank you for now. Appreciate it. Christina, parts and nevertheless. All right. And don't miss AMD CEO Lisa Sue. Tomorrow, she's going to be on squawk on the street

exclusively in the 9 a.m. Eastern Time hour must watch for anybody who's got interested, data centers, AI, and everything else out there. We got much more power lunch coming up after this break. Keep it right here. Welcome back. We have record highs for the S&P and Dow today. Intra Day highs. We'll see what happens at the close. And it does up a thousand points right now. But even in the sea of green, there are a couple stocks getting left behind. So apologies for active shareholders. That stock is plunging on pace for its worst day in nearly two years. It's down 17%. NRG, similar decline, new 52 week low. Rockwell and Vistra deep in the red, Chipotle tumbling after pulling jalapenos. Now this was not cyclospora. This was linked to a salmospora. This was linked to a salmone. Manila outbreak in Minnesota, Doc. All right, so maybe red in a sea of green out there today. Kelly, one other state is surprisingly hitting the pause button on new data center grid approvals. That's Texas, believe it or not.

Governor Greg Abbott, a Republican, has ordered an audit of every new data center project seeking to connect to Texas' main power grid before moving forward. Developers will have to disclose their power and water needs, the tax incentives, and plans to minimize their impact on local communities. The move comes three weeks after New York, remember, became the first state in America to impose a moratorium on new, larger-scale data centers, something that was big and controversial from Governor Kathy Hokel, a Democrat in New York. Interesting now that you have multiple states with different party affiliation governors who are now moving to at least tap the brakes, if you will, on this data center. In particular, is interesting. We've talked to Tyler Page and a few others from companies in Texas.

they're doing big data center projects. The key to know about the Texas effort is they're halting the approval of new data centers which are seeking to connect to the main electrical grid. As many of our guests on this program would say, they are increasingly in an era where you bring your own power.

If you can do that, there's probably not an issue. There you go. All right, thanks very much for watching, Power Lynch, everyone. Closing bell starts right now.