Power Lunch - Stocks falter on Wednesday as oil prices and treasury yields tick higher 6/3/26

Episode Date: June 3, 2026

Brian Sullivan and Kelly Evans explain the market move that has the S&P 500 in danger of snapping its 9-week winning streak. They are also joined on set by Cipher Digital Founder & CEO, Tyler Page, as shares of his company hit a new all-time high, and Fortune’s Editor-in-Chief, Alyson Shontell, sits down with Kelly & Brian to explain the biggest surprises from the annual Fortune 500 list.  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Stocks, they're under pressure today, but trying to hold on to weekly gains, the market trying to make it 10 higher weeks in a row. Welcome to Power Lunch with Kelly, I'm Brian. If you think stocks run one of the greatest comebacks of all time, you're right. We'll lay out where we are now and just how far we have bounced back from Iran and oil fears. And key to the market, the tech trade, the billions being invested in the AI revolution. We have two big interviews ahead. Sung Cho, the co-head of U.S. public tech investing at Golden Sachs Asset Man. He'll talk about where he's putting money to work, plus Cypher Digital CEO Tyler Page to talk AI, Power, and the Data Center boom.

All right. It is going to be another big hour. And as we said at the top, stocks right now, they are a bit lower. Call it a rare down day for the markets lately. And even with these moves, the S&P 500 down a little bit lower for the week. So why are we pointing out relatively small moves? Because remember, if the S&P 500 could end the week higher, It'll be 10 higher weeks in a row. And that, my friends, a streak we have not seen since December of 1985 over 40 years ago. And if that is not enough, creative planning's Charlie Bellello lays out even more. On March 30th, the S&P 500 was down 7% for the year. That was actually one of the worst starts to a year ever. But then the buyers came in.

And they came in in a big way. and with the monster rally that we have seen the last nine weeks, even with today, the S&P 500 is up 11% this year, which is actually double its average return for a year at the start of June. We also ran the numbers and discovered that right now this is the 21st best ever start to a year out of 104 years. We're top 20%. That is not bad for a year that started out so badly. We'll show you the top three, starts two year ever at the end of the show. But now let's talk about all of this with our friend Chris Grisanti of MAI Capital. I know we're down a little bit today. But hopefully we made enough for this run and we'll see what happens this week. What do you make of this, I don't want to say impossible because it happened? Sure. Bounce back in the stock. Well, first of all,

check your screen. Are we, stocks can go down. I was surprised to see that. So, but what I think is investors should not look a gift horse in the mouth. And, and, and, and, you know, and, you know, and, And not get excited because everything's going up, but rather take some money off the table. I mean, I sound like my grandmother used to sound. But like, this is great. We own Dell. We only bought it six months ago. Now, it's better to be lucky than smart.

We've made 10 years' worth of returns in about six months. So you sell a little Dell. Sure. You sell not maybe a little, maybe a good chunk of Dell. And then, Brian, what I think people should do, and this will be unpopular because I'm a value guy, and that's what we do, is you go towards the the places that are losing the capital because it's all going to AI, places like health care, places like logistics. And I'd wait for some energy maybe when the, then the war gets resolved and those stocks go back down.

So capital has come away from there and that's kind of where you should be planting the seeds. Not exclusively, but have some of these in your portfolio for when AI stops working, whether it's in a month or two years from now. I always love, we talk to you about contrary. Remember the famous Verizon over Tesla trade, which let's remind people, worked out for the following. Very well. There are some big IPOs coming. The semis have been amazing. The software names are on. I'm just curious, when you look around at all the prices, do you see an area where you think there's actually a really interesting opportunity?

Yeah, a couple of places. Some are AI related, some are not. In the not AI related, which I really like, because everybody hates it, I really like healthcare. So you've got AVV, you've got Merck. I like Boston Scientific, which I'm about to bring out the hook and just pull you off. You can't want to talk about health care. Right, right, right. And they're going to. devices trade. It's been terrible. It's been horrible. And so what I'm saying is, look, medical devices aren't going away and they're growing less quickly than they were. But that doesn't mean Boston Scientific deserves a 12 multiple when it usually has a 25 multiple. Help me remember, Kelly, we had a guest on a couple days ago that recommended FedEx freight. Yes, that was David Waddell.

David Waddell. Thank you. I believe. So I heard you say logistics as well. Right. I like UPS there. You can get a safe six and a half percent yield while you're waiting. The war ends and oil. goes down, UPS goes up 15%, and they're weaning themselves off Amazon. And again, the most important thing here is that stock will work even when, and it's a when, not an if, the AI trade starts to go sell. It's a when. It is a win. Why are you so confident it's a win? Five to ten years away. Oh, because, you know, I heard the stats we just gave. Right. Now, I'm the only one sitting. Maybe that's why. Maybe that's why. Right. I mean, I hear that, and I want to be clear. Is it E. F. Hutton? I want to be clear. I want to be clear. I want to be clear.

I'm not, we didn't give those stats because we're cheerleading the market. Right. We give those stats because we're trying to say to people. This is an exceptional moment. This is history. We are living. Right. Right.

And if you're a young analyst, I'll say this to the watchers. If you're a young analyst and you're 25, you will remember this moment for your entire career. You're seeing stocks like Dell, like Micron, like AMD, go up one to 300% in six months. That is really unusual. To that point, Yardeni, very bold. bullish, but cautious in the near term. He says we're cautious for the next couple of weeks. Even though he says this is a FEMA, a fabulous earnings momentum led stock market. We've had the market cap S&P outperforming the equal weight by eight points during this rally.

We've had more laggards than gainers in five out of the past 10 weeks. I guess if you wanted to build a more cautious case, you could build it on that. But why bother? Why bother being cautious about, let's say, on the prospect of holding the S&P 500? Sure. You can be more cautious, obviously, on some of these. Right. Believe me, I'm not saying go take your cash and put it up. under a pillow. I'm saying, look, if you own Dell, if you own some of these stocks, they have doubled or tripled in your portfolio, and they've taken a more enormous percentage of it.

Trim that back and then go to some places to diversify. That's all I'm saying. Stay right there. Chris, we have some breaking news from the Fed. They just released their latest report on current economic conditions. Rick Santelli, give us a look. Well, you know, if I had to summarize, it seems as though the Fed is definitely underscoring the case-shaped economy. And it's what many of us have been talking. about. And if we consider that this is going to be Chairman Warsh's first meeting, and of course we're going to see Mr. Powell still there as a governor, it's going to be interesting. Some of the key facts that are coming across, it certainly seems though on the week of employment, and today

we had a fairly strong ADP. This week we've had fairly strong jolts. When it comes to employment in this report, they saw basically little to no change in most regions. And of course, everybody wants to talk about pricing pressures, and they were moderate to strong across most of the country. I think we would expect that. On the growth side, moderate growth. Now, there's been lots of anecdotal evidence that the underlying economy beyond the conflict and all the questions that brings forth is still doing pretty well. That doesn't seem to be disputed. And if we consider that today, I do believe it was Fed's Williams saying, you know, the Fed has it about right. that's kind of hard to disagree with. The conflict in the Middle East makes trying to really navigate the inflation picture super tricky as if it wasn't super tricky before that even happened.

What are we now? Over five years above the Fed's 2% target, that's key. And this week's jobs report is not only going to be important, but it still won't dispel the notion that down the road, how much more inflation are we going to see than we saw prior to the February? 20th started this conflict, I can't answer the question, but one thing I can say. You see that chart on the 210 spread? Basically yesterday it closed it the flattest in 14 months going back to April of last year. Why is that so important? Why do I concentrate on it? Because think of the yield curve. The

short end is kind of grading the Federal Reserve. And what's it grading? It's saying that basically the eases are gone. Maybe we're going to have increases. And the long end, as you see on the charts, it's following oil. And never forget, the day before the conflict, 10-year yields closed at a yield of 3.94%. Are we going to go back and test it? The charts say it's possible. Brian Kelly, back to you. That'd be nice.

That'd be amazing, especially with government spending being what it is. Rick, thank you, Rick Santelli. Turning back to Chris, Chris, we also, just a pick up on Rick's point, had New York Fed President John Williams saying in an interview today that monetary policy is, quote, exactly in the right place. Do you agree with that? I do agree with that. I think the drama is coming now from AI.

In the second half of the year, I think it's coming from the Federal Reserve. I think there's going to be such tension and drama that you can see between Kevin Morse and some of the more legacy members of the Fed. So in that could, you know, Brian spill over. So that would be bad. Well, yeah, that was good. Yeah. And I do think that the Federal Reserve,

will set the tone, and I think that the surprise for the second half is they'll be more hawkish than expected. Fair enough, right? And I would not want to pour cold water on anything. No, no. But I would, we're making jokes because I spilled a drink about two minutes ago. I just want to be honest with the audience. Transparent.

I'm soaked, but I'm still here, and my brain is lucid. So let's talk about this, Chris, but good one with the spillover kind. Which is, when will the Fed matter again? I'm not saying it doesn't matter to anything, but let's be clear. Does the Fed really matter to Dell? Does it matter to Mike Ron? Oh, I think it matters a lot. Oh, I think it matters a lot. Okay, connect the dots, big boy. Mr. Mr. Spillover? So what you're seeing here is everybody, look, discounting all the good news, but none of the bad. And I think the single biggest possible bad news that's coming is a more hawkish federal reserve and a higher tenure and rates not getting cut when we thought they'd get cut.

So if you start seeing that Kevin Warsh's rate cutting, agenda is being impeded, that's going to matter to Adele and to a micron, because that's going to say, hey, these animal spirits may have to slow down some. And quickly, because I had to cut you off earlier just to get that report, but you were mentioning healthcare, we're talking about a couple of those names. Where else, just if you had to rattle off a few of your favorite. So I'm really kind of poised to take advantage of the end of the war, because I think some of these energy names will come back.

And this, your viewers might love because it's half AI and half, you know, Falling oil will give us an opportunity to come in because especially the natural gas names like Williams, for example. Those will be long-term AI beneficiaries and they may have a sell-off once oil goes back. Second time in two hours, we've heard people real hot on the net gas trade. Chris, thanks very much. Good to see you. Good to see you. And we're just getting started here.

Coming up, the CEO of one of Wall Street's hottest AI plays joins us live. Saver Digital, a standout winner in the AI infrastructure trade with shares up nearly 700% in the past year. But after the break, a closer look at the explosive rally in chips and memory with Goldman's co-head of tech investing. He'll join us right in a moment. Stay with us. Stocks are under pressure today. Dows down about 400 points, but the chip and memory trade shows no sign of slowing down, she said. The stocks semi-ETF hitting a fresh record high, fueled by continued strength in names like Marvell, Western Digital, Sandisk, and Intel, they're all higher today. Some of these stocks have seen truly eye-popping gains. They're up quadruple. digits over the past year. Here to discuss as Sung Cho, he's the co-head of public tech investing

at Golden Sacks Asset Management. It's great to have you here. Thanks for inviting me. I don't think anyone really sort of saw this coming. Now that it's here, now that it's this crazy fact sitting in front of us, what do we do about it? So look, I think you need to take a step back and figure out why this rally is happening. And I think, like you said, like it's been sharper and broader than anybody would have anticipated. But why has been so sharp? The biggest reason is agents are finally coming into the enterprise, and enterprise AI adoption is happening. And we're talking about like Claude and those open clause

for coding, right? But the agentic features around it is really accelerating enterprise adoption. So there was this concern around this ROI, our enterprise is going to use it, we're going to spend all this money, but there's no return associated with it. Enterprises are now adopting it. For the last three months,

the token usage on enterprises have accelerated, just to give you a little bit of context and put some numbers, around it. In 2025, token growth was about 10% month over a month on average. Token growth over the last three months is 50 to 100% per month. Wow. So enterprises are finally using AI, adopting AI, and that's what's sparking the semi-trade? Because what are tokens? Effectively, tokens are processing capacity.

But then they're putting caps on it already. We were just speaking about this, Uber, all these different companies who are saying, we're going to have to limit this now because it's too costly. And that goes right back to the semi-trade, right? Because there's putting caps on it because there's just not enough processing compute capacity out there. And who benefits from that, all the semiconductors? And so I think there's this recognition that, hey, we managed supply to a certain extent. We're getting ahead of it. And then it just got shocked into the system. 50 to 100% growth. Nobody saw that coming. Semis once again are being tight from a supply demand perspective. And that's what's sparking the around. You know who hasn't

benefited that much? Invidia is up 15% this year. The Philadelphia's semiconductor index is up 96%. Let's call that a double. Yeah. So, Nvidia's up. It's done well. If you've owned it, you've made 15%. It's good. But it hasn't doubled.

Yeah. Should we sell Micron and buy Nvidia? So look, I think it's probably right to take some profits from the memory space. But also, you correctly point out that Nvidia is the only company where multiples have actually contracted within the semiconductor space. You know, if I asked you what? If I asked you what's trading on a forward PE basis, what would the answer be? Well, we know the answer.

It's 17 times. That's it? It's cheaper than the S-NP-500. I was double. And that's not the kind of double I want to be right on. Exactly. So the multiple is actually contracted. Why? Whereas the rest of the semiconductor growth is extended.

Their earnings estimates have come up that much because the stock is still up this year. It's not fallen. Typically when multiples contract is when you start seeing a deceleration in growth. But you've actually seen an acceleration in their top line. Four quarters ago, they were growing a year on year 50%. This most recent quarter, they grew 80%. Wow. So it's not necessarily about the near-term.

dynamics that's causing the stock to lag, what's happening is inference in this transition to inference from away from training, there's some skepticism that Nvidia is going to play as large of a role in inference as they did in training. And Nvidia has several new products that are coming out over the next six months, which I think are going to start to give confidence, whether it's CPUs, you know that Nvidia made CPUs, SRAM with GROC architecture that they're bringing online, their new Vera Rubin, they're going to show once again that they all have dominance in inference. And once that transition happens, we think that the multiple can rewrite. Because the growth is spectacular relative to the earnings.

You were saying maybe it's time to take some profits in memory. And so I don't know if you said that about chips specifically. But Nvidia, it sounds like you'd still, you'd own it here and have no qualms about that. I think the demand for compute is insatiable right now. So I do think that the semi-trade overall continues to power on. It's just you have to remix within what you think are the best risk rewards at any of the point in time. On the memory side, the one thing that causes us to be a little bit more cautious is if you look at the amount of capacity that's being built,

up until this, up until now memory, demand has been accelerating, but there has just been no capacity. Capacity for memory is about 1.5 to 1.6 million, wafer starts per month. We think about 300,000 of new wafer starts per month is going to come out of China over the next 6 to 12 months. We think another 300,000 is going to come out of the existing players over the next 6 to 12 months.

And so the industry is going to add 30 to 40% more capacity for the first time. And so Micron's up. a lot because pricing has more than doubled or tripled, and we've been the beneficiary of that. And investors have been the beneficiary of that. But like new capacity is coming in. That's something. I want to focus on another M. Yeah. And that is not Micron. It's Mirion. M-I-R-I-O-N. Atlanta-based nuclear sort of testing company. No one's ever heard of. Stocks gone from 30 to 18. So it's fallen. Even as nuclear power, we did a story on yesterday, how the FERC, Federal Energy Resource Commission,

is basically regulatory commission is pushing forward three-mile island. The stock has gone down, but nuclear testing is going up. Why hasn't this stock benefit? Yeah, you know, I know you know a lot about this topic, but, you know, if you look at the overall power demand that's necessary to be able to build out all the data center compute that's necessary to support the trillion-dollar-plus annual CAPEX, we think that we're going to need about 240 gigawatts of power.

And just to put gigawatts in perspective, because not all of your listeners might know how much a gigawatt is, to power all of New York City is 10 gigawatts. So we're going to have to put 24 New York cities on the grid over the next 10 years. A gigawatts roughly 750,000 average-sized homes in an average climate. That's another way to be able to put it. But just going back to Miriam, one of the things that we're going to need to be able to solve that bottleneck is the nuclear capacity that we need to bring on. And what Mirriant does is a lot of measurement and testing devices, radiation testing at nuclear sites. And their business has been declining in that for the better part of 10 or 20 years as we've been decommissioning a lot of nuclear sites. But now we're bringing those plans back online.

The reason why the stock has lagged is because there's some frustration that this isn't happening quickly enough. But when the whites of the eyes start to see, the stock's going to be a lot higher than it is today. All right. I like it. Some real world names. Mirion. By the way, Mirion, if you're watching, Got to get them on the show. A great idea. Let's talk nukes. Why not?

Sun Joe, really appreciate your time. Thanks for coming in. Thank you for having me. All right. On deck, is the upcoming SpaceX IPO a big sign to buy or maybe a good reason to sell? I'll talk about both sides. Next. Welcome back.

We're getting the new details today about SpaceX's highly anticipated IPO. They're targeting a $1.75 billion dollar valuation, no trillion dollar valuation. Joining us now with more on the pricing is Leslie Picker. And I guess, Leslie, like you were saying, they already know what demand should kind of look like. And so they're already trying to go ahead and set that price. It speaks to that. It speaks to just all of the different work that goes in before we even get to the roadshow launch. It also speaks to just the level of price and sensitivity around this one as well.

And this is something that a lot of people have been talking about, just what is that Musk premium? Because when we got the filings, you remember this, Kelly. It was like $19 billion in revenue last year, $4.7 billion in losses, about $29 billion in debt. I mean, the actual historical financials of this company is not one that necessarily suggested a $1.75 trillion dollar valuation. But then you add on top of it the various deals that they have in the works, whether it's for cursor, whether it's for the spectrum of Echo Star, whether it's for all of the tank. and the deal with that they have with Anthropic, all of that going forward feeds into the valuation, as well as just the total addressable market that they've laid out

in terms of their space and AI and all of the various businesses that they're in. How do you price something like that? I think this fixed price is kind of a microcosm of that question. Right. Meantime, Leslie, we have the private credit stocks, selling off a little bit today, more redemption concerns resurfacing. We haven't really talked a lot about that space as software the tone and vibe around it has improved. And a lot of managers have taken steps to try to keep

a panic from building. Could this reignite that? Well, right now is when we start to see the redemption numbers come out. So what we've seen so far certainly feels like it will reignite that. What's interesting, Cal, is when we got the bank earnings in mid-April, all of the CEO commentary seemed to really assuage those concerns that there were credit quality issues or structural issues with private credit, and so sentiment kind of shifted. Now, the publicly traded alts, though, their performance never really did. Even as you saw software rebound about 20%, the publicly traded alts, which had been so correlated to software for much of the last few years or so, in April and May, that correlation broke down, according to research by Evercore ISI, and you saw software

rebound, but the alts kind of stayed flat or even declined. And so that brings up these concerns that It's really the sentiment driven by these private wealth issues that we're seeing kind of highlighted from redemptions and the old's growth prospects if they can't really grow that part of the business. This retail high net worth part of the business that they've been so focused on. Yeah. And there are the shares under some pressure, as you say, some more headline risk maybe in the days to come. Leslie, for now. Thanks. Appreciate it.

Leslie Picker. All right. up next. The CEO of a stock, Morgan Stanley just said could double in a year, and the stock has already doubled. That's next. With the Strait of Hormuz virtually at a standstill, Israeli Prime Minister Benjamin Netanyahu says the global energy market isn't without options. They're already developing alternative routes. So instead of all the energy going through the, I have a mapper that you can't see, going through the Persian Gulf, it's also going across Saudi Arabia to the Red Sea.

Just last month, UAE industry minister, Dr. Sultan al-Jabber, said a second pipeline designed to bypass the Strait of Hormuz is now about 50% complete. And you can see Sarah Eisen's entire interview with Prime Minister Benjamin Netanyahu tonight at 7 p.m. Eastern here on CNBC. All right, and staying with energy, your next guest company has been red hot and just got a price target raise at Morgan Stanley today. The bank pushing its target on Cipher Digital, 5350 a share up by 11 bucks. That folks nearly double the current price, even with a stock that has basically doubled already this quarter. Ciphered as power projects for data centers and Morgan Stanley likes that it's adding about 500 megawatts to its power portfolio. By the way, in the same call, analyst Stephen Byrd, who has been a guest on this show many times, also boosted his price target on Terowulf to 6650 from 42.

And if you remember, Tara Woolf's founder and CEO, a guest on this show a few days ago. Let's welcome back in Tyler Page, CEO of Cypher Digital in a CNBC exclusive. Tyler, good to have you back on. Part of Byrd's note here is that a lot of these, what they call Bitcoin to Data Center conversions, which you guys are, like a HUD-Aid, kind of like a Tara Wolf, are going to rely on big deals from the biggest hyperscalers, the Googles, the Amazon's, the metas of the world. You have visibility in your pipeline. Is that pipeline robust?

It's extraordinarily robust. So, yeah, I mean, I think that the market is catching up with our story. For years, initially as a Bitcoin miner, we developed a lot of expertise on finding places that were naturally suited for large power interconnects. With the growth in AI and the continued desire for larger campuses to do more complex compute functions, more power is needed, more land is needed. That's turned what we're traditionally, what might be teamed like tier three locations,

independently tier one locations for AI data centers. We've spent years developing the team and the expertise to build data centers in those locations. We're ahead of the curve. Now that everyone is moving to places like West Texas, we have a very deep land portfolio. So what did you see? And I've asked the same question, by the way,

of some of your competitors. What did you see that got that right to go from tier one or tier three to tier one? It's like somebody owns a plot of land. It's worth whatever. Then all of a sudden they find out a Walmart is going in next door and the land value goes up by 500%. That's kind of what you're talking about. Right. Well, what's interesting is to make Bitcoin mining work.

You have to have really cheap power. So where is there cheap power in locations where there's an abundance of generation? and not a lot of demand. And so what made us see the potential for this trend to change was we saw the explosive growth in AI. I mean, a completely convex adoption curve. And suddenly, people wanting 200, 300, 500 megawatts at a single campus. And we started asking the question as a non-incumbent, where are you going to find that in

Northern Virginia? Like, there's not enough power there. So what's going to happen? And so we naturally thought the only conclusion, if you believe in the continued adoption of AI, is to go to places that were considered Tier 3. And I think the whole market is starting to realize that maybe that was actually backwards. Is there any latency or like, so the farther away these data centers are, does that affect how quickly Gemini gives me an answer or help someone at work?

So, you know, initially that was the pushback from the incumbents. And so what we, the questions we asked were like, well, let me ask you this. if a massive fiber line runs east to west across Texas under I-20. And we can get access to that fiber line. Data travels at the speed of light. So I think we're not close enough necessarily to do like traditional cloud services, which require really low latency. But for the purposes of either training or inference,

we're sub 10 milliseconds to the major metros in Texas. Is that how it works? Did you literally run a fiber under that? It already was sitting there. It was built out 25 years ago. and we had to find unoccupied capacity in those fiber lines. But when the data goes at the speed of light, I think initially everyone thought,

oh, this is going to be like search. No one's going to wait. What happens now if you do a search? You wait. It's thinking. It's thinking about it. It's looking for compute resources sometimes. That's why our portfolio has a lot of potential.

But you also, like the fiber line under I-20, you also need to tap into an actual pipeline of natural gas. And basically imagine a pipeline. You guys put kind of a straw in it. It's called a lot of. lateral, you go out, you build a new power plant. That's kind of what you're doing, right? And the idea is there needs to be not only the, you need to be able to have access to the gas itself. So the gas owner needs to say, all right, Tyler, you can have some like gas,

but the pipeline owner also has to say, okay, Tyler, you guys can also add on to our pipeline. Sounds like they are willing and able to do that right now. Well, I mean, as always, power launch is one step ahead of the curve. So our 4.2 gigawatt pipeline is just grid connections. Separately, probably the hottest trend right now is that in this quest for faster access to power, hyperscalers and neoclouds are looking for other ways to get the power faster. The easiest way in a lot of cases is, what if we tapped the pipeline that's right by our property, and we generated our own electricity, and we built our own generation, how long would it take to get the gas molecules and the pipeline access

and the necessary permits to just have our own electricity? And rather than getting in the queue for a grid connection, you can potentially have that in 18 months. And so if you build your own. If you build your own. And all of our major. B-Y-O-P. Bring your own power. It's true.

All of our major properties literally sit adjacent to an endless ocean of natural gas. I mean, you must feel like you won the lottery. I mean, because you couldn't have seen, as intelligent as it was to make all of those moves, you could not have foreseen it would play out exactly like this. What an incredible moment to own these assets. with this future, I mean, unless it all goes to space. Well, I mean, I guess what I'd say is like a lot of lottery winners, they tell you, well, I've had a system. I've been playing birthdays for years and years.

I think we do have a system. We were thoughtful, but we also got lucky. There's no doubt. I'm not worried about competition from space for the next day. But competition is going to be my next question, because now everyone and their mother and father is going to race and say, if you can do it now that you, that's the playbook, could we do it too? And maybe it doesn't matter because there's so much demand.

I think you needed to plant the seeds. like three years ago when we were assembling the portfolio we've got right now. Otherwise, you're going to get in line for 2033. At that point, it's really hard to forecast. I mean, AI is evolving so rapidly. The data center industry is moving so rapidly. It's hard to see that. And that was kind of, I think, Stephen Byrd's part of his thesis today was sort of rearranging his ideas about where the revenues are going to come from very quickly. I know I was watching the exchange yesterday, 1 p.m. Eastern time with Kelly Evans. And you guys did a segment on crypto under 70. Bitcoin's at 65-8. Is Bitcoin? Is crypto dead? I don't think Bitcoin is dead. I mean,

I definitely separate it from crypto. I think there's stable coins and there's Bitcoin. I think Bitcoin's not going anywhere, but it's taking a while to digest some of the things that have happened lately. And frankly, all the attention span right now is getting sucked up by AI and what's going on in that space. But at these prices, it's not economical to mine. Is it? You know, it depends on your cost of power. We have one legacy Bitcoin mining data center, which still generally generates positive cash flow even at these conditions, but that's because it's got an extraordinarily cheap power cost. There's a natural self-correcting mechanism there that will bring things into balance. You still positive on Bitcoin's future? Yeah, on the long term, I'm always positive

on Bitcoin. But as regards Cypher, we will be out of the Bitcoin mining business over the next 12 months. Understandably, given the potential ahead in AI. Thus also probably the name change from cipher mining to cipher digital. Tyler Page, CEO of Cipher Digital. Thank you. Great stuff. Thanks so much, guys. All right. So if you can't get enough of the story behind Bitcoin miners, powering the AI revolution or other things, sign up for my new weekly intelligence piece called Power Insider. And this week, I lay out three reasons why oil prices while up aren't even higher. And why 50 bucks a barrel is probably far more likely than 150 a barrel, exclusive interviews, analysis, energy stories, and more. You can hit that QR code in the bottom right at your screen or visit cnbc.com power dash.

Inside, don't leave out the dash. Dash is important. Let's get to Angelica Peoples now for a CNBC news update. Angelica? Hey, Kelly. Democratic Senator Mark Warner asked Majority Leader John Thune to use his influence with President Trump and to get him to pull the appointment of Bill Pulte as acting director of national intelligence. That's according to our sister network, MS now, citing a source familiar.

Warner, the ranking member on the Senate Intellectual. Committee reportedly said all options are on the table over Pulte's appointment, including blocking a bipartisan deal to extend the Foreign Intelligence Surveillance Act. Meanwhile, President Trump told the New York Post today that he believes he'll make acting attorney general Todd Blanche the permanent AG. The president did not say when he might put forth a nomination, which would have to be approved by the Senate. And Ford is recalling nearly 420,000 vehicles over seatbelts that may lock inadvertently,

potentially causing injuries in a crash. According to the National Highway Traffic Safety Administration, the recall includes certain Ford Expeditions and Lincoln Navigators from model years 2018 to 2022. Kelly, back over to you. All right. Angelica, thank you very much. Still ahead, the Fortune 500. The new list is out and will break down the year's biggest companies

and the biggest changes in rankings. With a spoiler, there's a new company at number one, ending a 13-year reign at the top. It's only Wednesday. We've got two more full trading days left, but the S&P 500, not the only record that may be at risk if we fall this week. We want to take a look at Apple. Now, Apple has been super red hot. In fact, Apple coming into this week was up 10 weeks in a row. The S&B up nine weeks in a row. If we can finish higher on Apple this week, it'll be the longest weekly win streak since November of 2004. Now, right now, Apple is down a bit on the week. So like the S&B on Pace to snap, it's record run, Kelly. But we've got two days and what, an hour and 15 minutes. You've got to stop jinxing it. Everything, I just do the opposite.

You know, well, if we start on Monday, it's got a lot of room still. We'll see how it plays out. Meantime, this year's Fortune 500 list is out. And for the first time, in 13 years, there's a new number one. Amazon taking the top spot, ending Walmart's 13-year stretch. The Tech Giant debuted at number 492, 24 years ago. Now, tech is also super dominant on the list this year with Apple and Alphabet toward the front of the pack now. Let's bring in Allison Chantel, Fortune's editor-in-chief

to discuss. Great to have you here. Welcome. Thank you. Great to be here. So in the Fortune 500 ranks it by revenue. Is that right? So, which is kind of a refresher because it just reminds you what are the biggest revenue companies in the country. Yes. And this year, it's Amazon. Yes. And that is actually a big change because it took 13 years for Walmart to get toppled. They'd been the king of the list for the last 13. There's only ever been four number one companies ever in the history, 72 years history of us doing this list. There's only been four number ones? Yes, GM, Exxon, Walmart, and now Amazon. Wow. So up until this year, in 72 years, there had only been three different companies that were the biggest revenue companies in America.

That's hard to fathom. Correct. Yeah. So once they get there, which takes a lot of work, they can stay there for a while. So yeah, this is big news for us. And I think big news for Amazon. If you asked Jeff Bezos, he's like, we always knew we would do. Right. And you know what? You see it now. You're like, of course he did. So we mentioned some other tech names that have moved up the list. What does the top 10 now look like? So if we rank this by profit, alphabet would be at the top. And that actually is a pretty new change. Last year, the year before, it would have been Apple. Apple had been the king of profits for about a dozen years.

And just alphabet is on a tear between AI and between advertising. It really can't be beat. Navidia, of course, is very high up. This is definitely the year of AI. You see that in the list. I think that will continue as well. It's also the year of efficiency. In 2024, a lot of CEOs were saying,

we're going to cut middle management. We're going to make our teams more efficient. And you're seeing more revenue, poor employees. increasing over time. So we're looking at the wall. We're looking at the top 10. If you're on the radio driving, don't worry, we got you. Number eight, though, is a company called McKesson. Number 10 is a company called Senkora. I had no idea who Senora was. It's the old Amerisource Bergen. They had a name change and kind of a rebrand. At the top of the show, your buddy Chris Cresanti recommended, right before I spilled something on my lap, recommended healthcare. These are both

health care companies. They're huge. Giant. Healthcare continues to dominate the list. It's like no matter what, it just keeps getting bigger and bigger. It's a huge sector of economy, huge sector in the Fortune 500. And yet they dominate by revenue, but they don't really dominate by earnings quite as much. And I find that interesting as well. So the earnings list that you mentioned is all the tech names and the high flyers that are up and coming. And so that's where I, it's like size isn't always the best predictor. But it is size. I mean, in health care, such a regulated space, it's so hard for incumbents and everyone to get a footh. It feels like in that list, UNH, how many years is United Health been? It's number three now. Always. It's always in the top five. Very hard to dislodge. That one CVS, it kind of goes back and forth. Exactly. So I wonder how much now it's going to keep changing with the semi-names that are on the up so much in the past 12 months in the markets has changed that I feel like this list could start to look very different. Yeah, and I think you're starting to see things like data centers taking effect and chip makers have had a great year.

So we saw big spikes in Intel. I mean, they're up like 500% year over year. Broadcom is a trillion dollar market cap company that sticks out like a sore thumb compared to like the Navidias. There were actually only four or five companies that had a market cap of over a trillion dollars five years ago, and now there's nine. So everything, especially in tech, is just on fire. Brian will like the regional angle to this as well. We have Texas adding, do you see this? Three Fortune 500 companies.

Venture global, I think, got added. Total of 57. LNG company. Venture Global, we've had on the show a number of times. They're back to number one, top state. California is often up there, though, because it incubates so many of these successful companies. New York is on the list as well. But there is a big rivalry now going on where people are moving.

to Texas. They're moving from Delaware to Texas, moving from California to Texas. Yeah, so Texas and California have been neck and neck for a few years, but Texas beat it out this year by a couple spots, and then New York is about 53 companies on the list. So the three of them combined make the majority. Impressive. So something that really shocked you, Allison, like when you look at this list, what kind of pops out to you? Health care obviously popped out to me. Yeah, I mean, I think actually one thing that popped out to me was the last two years we've seen the total number of employees employed by these companies of the Fortune 500 in decline, which we haven't really seen very much in the history of the list, except in recessions. So it's a notable trend. Some of it is

caused by companies that fell off the list that were big employers, like a Walgreens, had 200,000 employees. But this year, there's about 30 million people employed by the full Fortune 500, as opposed to 31 a couple years ago. So I think we'll see that number coming down as companies continue to pursue efficiency, more revenue per employee is showing up in things like tech and in finance industries. So I think that trend will continue as well. You would have thought, though, that that would be more common in history, that, you know, bigger companies, you know, that they would pursue that over time, but you're saying it's kind of a break from that. Yeah, it is. That's interesting.

They can make more money, unfortunately, with fewer people. Right. Because it's not about profit. To your point at the very top, it's about revenue. Just pure sales. Pure size. Yep, yep. And we're not even really saying agentic AI in any of these numbers. So if those predictions come true, I think you could see this shift quite a bit over the next few. But I've got to bet, and please tell me if I'm wrong, Amazon being number one for the first time, and you said it was only three companies in 75 years, Amazon Web Services has got to be putting it over the top. I mean, that just spits out profit to do everything that it wants. But it's actually about one-fifth of the revenue that Amazon produces is AWS.

A big chunk of it is the e-commerce business. It's just like that's 60% of the bulk of the revenue. And 1% of the earnings. Yeah. That much? Yeah. Great to have you here. Thank you so much.

Alison Chantel, Fortune's editor-in-chief. All right, we are not done yet. And coming up, we have got that mystery chart for you. A bit of a plot twist. Stock is down today. It's been lower the last eight days. So unlike the market, this has been in a downtrend. Who is it?

The mystery chart revealed right after that. It's time to check some market movers. The quantum computing stocks are sinking after yesterday's rally, including Rgetti, D-Wave, and Ion-Kee. IBM shares are also in the red after the company announced they'll invest over $10 billion in the space into quantum. They're down 6.5%. Energy is leading all sectors today as oil prices move higher again. In fact, energy sectors having its best day in nearly a month, some of the names moving higher include Texas Pacific, Diamondback, and Marathon. One part of the energy trade, though, that is lower today is nuclear now.

shares, as we told you, yesterday surged after regulators granted a waiver to speed up. the reconnection of the power plant, formerly known as three-mile island. As you could see today, though, Constellation, Uranium Energy, and Oaklo are all lower, but they did have big moves yesterday. You also have Netflix. That stock was our mystery chart. It continues to slide. Netflix is down eight straight days, and that actually matches a losing streak not seen since 2022.

Netflix, also down nine of the last 11 or 10 months, rather, erasing Kelly, about a third of its value. I'm just surprised after they abandoned the Warner Brothers acquisition. Those shares had really sold off hard into it. In fact, you can see on that chart the pop when they walked away, that they've continued to be under pressure. When's the last time, and I know you're not a huge scripted content consumer? Well, you're a bunch of kids. I'm not either, really, by the way. When's the last time we really talked about a Netflix show?

Like, everyone was talking about a Netflix. I agree. I listened for it as a data point. And it shows you that at the time, people said, why does Netflix really need to do? this. The share performance since they walked away suggests they knew why. That's a good question for the X. Folks, what is the hottest Netflix show that you've recently watched? PowerPull. More power lunch after this break. Big interview coming up on closing bell, Goldman Sachs, president, and chief operating officer John Waldron. You'll hear from him with Scott around 3 p.m.

Before that, a quick check on shares abroad com. The company reporting earnings after the bell today. shares hit a record high today up 40% this year. Earnings and revenue are both expected to grow 50% year on year. All right. Finally, at the top of the show, we showed you so far this year, the S&P 500 ranks 21st in all-time performance by this part of the year. We're up about 11%. So what would it take to make the best ever of the year? Well, we're not even close.

The third best start to the year, 1943 S&P 500 up 25%. Next up, 1975. A 33% jump of Kelle. the best year through June 3rd was all the way back in 1933, even before I was born, with a staggering 57% boom. Uh-oh. We're up 11%. We're 21st, not even close to the top, and don't give me the 33 references.

Well, that's the problem. I don't want to be up that much because you know what happened next. What happened? At least with the economy, it doubled up. I think the stock market did too. Something happened. Thanks for watching Power Lunch, everybody. Closing about starts right now.