Nvidia Reports Results… And Stocks Bounce Back As Rate Surge Cools Off 5/20/26

Summary

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CNBC "Fast Money" Podcast Summary

Episode: Nvidia Reports Results… And Stocks Bounce Back As Rate Surge Cools Off
Date: May 20, 2026
Host: Melissa Lee
Panelists: Tim Seymour, Dan Nathan, Guy Adami, Michael Koh
Special Guests: Leslie Picker (CNBC), Chris Rolland (Susquehanna), Mike Schumacher (Wells Fargo)

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Overview

This episode of "Fast Money" dives into a whirlwind day for markets, highlighted by Nvidia’s hotly anticipated earnings, SpaceX’s just-filed blockbuster IPO, and a broad stock rally as interest rates and oil prices retreated. The team of top traders and reporters dissects the numbers, strategies, and sentiment shifts investors need to know, with lively banter, key industry insights, and a head-on look at market psychology in AI, tech, retail, energy, and macroeconomics.

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Key Discussion Points and Insights

1. SpaceX Files for IPO: Financials, Structure, and the Elon Factor

[01:53–07:22 | 38:15–42:40]

• Key IPO Financials:

  • $29B in long-term debt; $10B in Q1 2026 CapEx, mostly for space infrastructure, connectivity, and other investments.
  • Ownership: Elon Musk controls 12.3%, Antonio Gracias 7.3%.
  • Goldman Sachs is lead underwriter; Morgan Stanley is stabilization agent ([01:53] Leslie Picker).

• Investor Sentiment:

  • The panel anticipates a frenzy: “If you want to bet on Elon Musk, this is the way to do it.” ([03:23] Guy Adami).
  • Starlink generated 75% of 2025 revenues but only ~50% of implied value—a signal of optimism about other lines.

• IPO Structure:

  • Lists on NASDAQ (SBCX) with dual class shares.
  • Lockup is “drip, drip” (vs. traditional 180-day cliff), allowing gradual release of shares based on earnings dates and price targets (e.g., up 30% from IPO price unlocks another 10%) ([38:15] Leslie Picker).

• Elon Factor:

  • “No one gets the benefit of the doubt more than Elon. No one probably deserves it more in terms of adding and creating value literally out of thin air.” ([07:39] Tim Seymour)

• Macro Vision:

  • Early-stage VCs see space as “the economy of the future,” analogous to how the Internet became fundamental ([05:44] Guy Adami paraphrasing Lux Capital’s Shane Farshi).

• Rotation Implications:

  • “It’s kind of hard to see why some money wouldn’t come out of Tesla and into SpaceX.” ([41:46] Michael Koh).
  • Dan Ives speculates a future merger between SpaceX and Tesla to create a mega-cap company ([42:24] Melissa Lee; Dan Nathan).

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2. Nvidia’s Blockbuster Earnings: Buyback, Margins, China Risks, and Customer Concentration

[08:02–15:47 | 16:00–21:52 | 44:50–46:43]

• Headline Numbers:

  • “Beating on revenues, authorizing an $80 billion stock buyback, [and] a dividend hike from $0.01 to $0.25.” ([08:02] Melissa Lee).
  • OPEX up 42% YoY (driven by compensation, R&D).
  • Gross margin steady at 75%.

• Stock Reaction:

  • Despite a stellar quarter, shares dipped ~1%.
  • “I feel like it is the victim of its own success [...] The stock doesn’t respond to that much anymore.” ([10:05] Melissa Lee).
  • Options market “implying a move of just over 5% [...] premiums coming out of it.” ([14:07] Michael Koh).

• Buyback Analysis:

  • “It’s a big number, yes, but 1.5% of their $5.4 trillion market cap.” ([12:19] Guy Adami).
  • “A sign [...] of some fiscal discipline—not pouring all kinds of money into CapEx” ([13:06] Tim Seymour).

• Customer Concentration:

  • Three clients make up over half of all quarterly revenue (21%, 17%, 16%).

• China Dynamics:

  • “There’s nothing there. There’s no China in any of the forecasts.” ([11:06] Melissa Lee).
  • Shipments were halted by Chinese provincial bans, not central CCP action ([18:14] Chris Rolland).

• Analyst Perspective:

  • “Nvidia is the cheapest of the AI names—deserves a 30x multiple, trading in the 20s.” ([17:27] Chris Rolland).

• Margins and Competition:

  • Susceptible to memory price increases; competitors (e.g., ARM) may lure customers on price ([19:20] Chris Rolland; [20:33] Melissa Lee).
  • “Markets probably look through a lot of this stuff.” ([21:37] Dan Nathan).

• CEO Commentary Post-Call:

  • GPU rental prices soaring, next-gen Vera Rubin chip widely adopted and likely to be supply-constrained ([44:50] Christina Parts Navalis).

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3. Retail Reactions: Target, TJX, Walmart, Nike

[23:27–26:24]

• Earnings moves:

  • Target beat top/bottom lines, raised sales outlook; shares dropped ~4% anyway (CEO warns of upcoming headwinds as tax refund boosts fade).
  • TJX jumped over 5%, best day since 2024, on strong branded merchandise demand.

• Market positioning:

  • “Walmart’s a tech company. That’s why they’re given the valuation.” ([24:14] Dan Nathan).
  • Target’s inventory now “finally in line” after years of struggles.

• Options action:

  • Bullish bets for TJX; Target seeing sales of downside puts (market may view as bottoming risk, not breakout potential) ([25:32] Michael Koh).

• Nike:

  • “Looks pretty washed out, maybe it gets a little tailwind into the World Cup.” ([26:03] Guy Adami).

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4. Energy, Oil, and the Travel Trade

[28:30–30:51 | 32:32–37:48]

• Oil Prices:

  • WTI crude dropped 6%, dipping below $100, catalyzed by “President Trump’s suggestion Iran war will end quickly” ([28:30] Melissa Lee).

• Travel Stocks:

  • Airlines, cruise lines, Airbnb pop; Delta has “best day since July last year” ([28:30]).

• Themes:

  • Airline sector rerated higher; “supposed to own Delta for the long term” ([28:55] Tim Seymour).
  • “I think the oil trade has a ways to go—too much slack taken out of logistics, supply chain for oil.” ([29:34] Michael Koh).

• Energy Equities vs Commodity:

  • “Oil equities. Look at the long-term chart on SLB, that’s 60% of the OIH. You stay long.” ([30:22] Tim Seymour).

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5. Rates, Macro, and Fed Watch

[31:37–38:11]

• Big market rally:

  • “Dow jumped 645 points, S&P up 1%, Nasdaq +1.5%. 10-year yield back below 4.6%. Crude falls nearly 6%.” ([31:37] Melissa Lee).

• Rate Moves Drivers:

  • “Today was clearly an oil move [...] If oil moves 1%, bond yields move about a basis point.” ([32:40] Mike Schumacher).
  • Global bond ‘indigestion’ also a factor.

• Japanese Yields:

  • “BOJ is in a tough spot [...] clearly behind.” ([33:27] Mike Schumacher).

• Debt Issuance & Pressure:

  • Ballooning global government and corporate debt is weighing on long-term yields ([34:35]).

• Oil & Inflation Risks:

  • If the Middle East “deal” happens, it would take many months for oil price pressure to ease—markets underestimate this risk ([35:52]).

• Earnings vs Macro Risks:

  • “Earnings growth has been amazing. But if rates go up and inflation sticks, that can’t be positive for equities; this risk is underpriced.” ([36:56] Mike Schumacher).

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6. AI, Labor, and Productivity: Jeff Bezos Interview

[42:56–44:43]

• AI and Labor Market:

  • Bezos: “AI-driven productivity gains could drive down prices and create a shortage of workers.” ([43:25] Melissa Lee).
  • Panelists openly question this logic; struggle to connect greater productivity with a labor shortage ([44:03] Tim Seymour).

• AI Investment:

  • Bezos downplays fears of an AI bubble: investment now will advance tech long-term.

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Memorable Quotes

• On SpaceX IPO investor psychology:

  • “If you want to bet on Elon Musk, this is the way to do it.”
    — Guy Adami ([03:23])

• On ‘the Elon factor’:

  • “No one gets the benefit of the doubt more than Elon. No one probably deserves it more in terms of adding and creating value literally out of thin air.”
    — Tim Seymour ([07:39])

• On Nvidia’s status:

  • “I feel like it is the victim of its own success in some ways. It’s raised the bar every single quarter... Stock doesn’t respond much anymore.”
    — Melissa Lee ([10:05])

• On markets and AI hype:

  • “He makes outlandish remarks, a lot of times that come to fruition, sometimes not so much. But the market rewards him for that.”
    — Dan Nathan (re: Elon Musk) ([05:25])

• On future of the space sector:

  • “Space, and the stuff that goes into it, [is] going to touch everything. In 20 years, it’s just going to be the economy.”
    — Guy Adami ([05:44], quoting Shane Farshi)

• On options sentiment:

  • “The options market’s expectation is we’re just not going to get the big moves one way or the other.”
    — Michael Koh (re: Nvidia) ([14:07])

• On long-term tech valuation:

  • “Of all the AI names out there, Nvidia is the cheapest... deserves a 30 times multiple.”
    — Chris Rolland ([17:27])

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Notable Timestamps

• SpaceX IPO Details – [01:53–07:22], [38:15–42:40]
• Nvidia Earnings Deep-Dive – [08:02–15:47], [16:00–21:52], [44:50–46:43]
• Retail Roundup – [23:27–26:24]
• Travel & Oil – [28:30–30:51]
• Macro/Rates Discussion – [31:37–38:11]
• Bezos Interview/AI Labor Commentary – [42:56–44:43]

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Final Thoughts

This episode offered a front-row seat to two transformational events: SpaceX’s route to the public markets and Nvidia maintaining its AI chip leadership—even as the market begins to show signs of wariness amid massive expectations. Retail and energy sectors provided important context for broader economic trends, while interest rates, global debt, and oil remained central macro variables. The panel’s frank exchanges—particularly around founder-driven investing, competitive dynamics in tech, and the real impact of AI—gave investors of all types clear food for thought.

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Transcript

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Shatterproof and the AD Council live in the NASDAQ marketsite in the heart of New York City's Times Square. This is fast money. Here's what's on tap tonight. Nvidia in focus, shares of the giant see sawing after earnings. We are bringing you all the numbers from the quarter. Diving into the details of the trade and countdown to lift off. SpaceX officially filing to go public tonight. What we know now about the blockbuster IPO and the other behemoths waiting in the wings hit the market. Plus, rates pull back after their recent rally. Two retailers move in vastly different directions after their earnings and airline stocks flying. What's behind today's boost to the travel trade and can the gains keep coming? I'm Melissa Lee, come to you live in studio. Be at the nasdaq. On the desk tonight, Tim Seymour, Dan Nathan, Guy Adami and Michael Koh. We will get to Nvidia in just a second. But we start with that long, long awaited IPO filing from Space X. Leslie Picker has been picking through the document, has the latest details on it.

[Leslie Picker]

Leslie, I probably should have put it through grok, but I'm doing it myself. Melissa and I just wanted to share a couple more details that we've learned from this multiple hundreds of pages of filing here. First of all, we're looking at 29 billion in long term debt in terms of the capitalization here. Total Cap X had some kind of interesting details showing about 10 billion in total in the first quarter of 2026. A billion of that was for space, About a billion three for connectivity and and $7.7 billion of that first quarter capex was due to I also looking at some some shareholder ownership here. It appears that Elon Musk owns about 12.3%. Antonio Gracias has about 7.3%. The rest of those details will fill in a bit closer to when this company starts its roadshow. We talked about last hour the banks that were managing this offering. I also see that in addition to Goldman leading having that lead left position which often involves allocation and pricing and valuation so forth, Morgan Stanley is listed in this filing as the stabilization agent and they're also running the directed share program. So we continue to dig in. There is a lot of information here and we will continue to bring you the latest guys.

[Melissa Lee]

Okay Leslie, thanks. Keep us posted there. Again it's going to list on the NASDAQ SBC X dual class shares. That's not a surprise. What are you looking for?

[Guy Adami]

I think a lot of investors are excited about this, right? I expect a lot of cash to come out of Tesla. We've been talking about that for a while. If you want to bet on Elon Musk this way to do it. I think the XI and the money losing there is important in the near term but I think a lot of what this company is going to be built on is on the back of that and those investments. One of the things that's interesting though when you look at the filing, you know Starlink revenue was probably 75% of 2025 revenue but it's only about 50% of the implied value there. So at some point you're going to see whatever the space stu is ramp and you know, if they ever get the spend down on xii it's going to obviously have a larger contribution. So again there's so many moving parts on this one. It's going to be a really interesting one. I don't think the street is going to be too particular about a lot of those metrics. I think they're going to be all in because this is one of the first really interesting stories that come to market in a very long time.

[Tim Seymour]

You know, it's interesting after kind of the courtroom drama it does seem as if X I might be treated as with with a discount when in fact it may be quite the opposite. I think this is what Dan saying, at least in terms of the opportunity here. I think the opportunity to X at least given where other cops are and again not totally knowing how the different pieces and the sum of the parts are adding up here. I think it Makes it interesting. I do think, you know, record ipo. I do believe there are a lot of folks that believe this to be a holding company for all that they want to own for tomorrow and they're willing to override valuation. Boy, isn't that consistent with the Elon Musk companies?

[Melissa Lee]

Yeah. Mike and I were just talking the last hour because this thing just crossed, you know, like 15 minutes ago that a lot of this is, is sort of the, the Elon Musk magic of promise the future. Right. And so within the filing it says space, Space X expects space efforts to catalyze transformative breakthroughs that could reshape terrestrial industries and lead to the emergence of new trillion dollar markets on the moon, Mars and beyond.

[Tim Seymour]

Oh boy.

[Melissa Lee]

So talk about promising. Well, it's beyond is. I mean that really everything at that point. But that's the kind of investor that will be attracted to this filing.

[Dan Nathan]

And they've, and they've been attracted to Tesla now. Billion, a trillion and a half dollar company. Yeah. He makes outlandish remarks a lot of times that come to fruition. Sometimes not so much. But the market rewards him for that. I think amongst the many winners here, the NASDAQ is a big winner here as well. Congratulations to them because the stock is being listed here.

[Guy Adami]

You know, it's interesting. I had a conversation last week with a brilliant VC investor. His name is Shane Farshi from Lux Capital. They are early space investors. And said he made a really good, you know, analogy to what's going on here with space. He said, you know, 25 years ago, 30 years ago, people used to call it the Internet economy. Now it's just the economy. And we think about space. He's like, space and the stuff that goes into it is going to touch everything. And in 20 years from now, it's going to be the economy.

[Tim Seymour]

Right.

[Guy Adami]

When you think about how many different businesses are going to be, you know, kind of intertwined and I think that's an interesting way to think about it. I think that you saw the Antonio, Gracias. He's a, you know, investor and look at the shareholder he is. He's been there the whole time. And I think a lot of these folks who have these sorts of visions, this is what they see. They're not looking five, seven years out if you're a VC. These people are looking 30 years out

[Melissa Lee]

if you are an investor. Mike Co, though, I mean, would you be an investor? I guess is the first question in, in small size.

[Michael Koh]

Why not? Because I think you're backstopped by A lot of people who have tremendous enthusiasm basically for this whole area and for Elon Musk specifically. You know, Guy was pointing out that he has promised the moon and the stars forever in a lot of his other enterprises. And, and sometimes those didn't get delivered on time, but a lot of them did end up getting delivered. I mean, it would be a very difficult thing to imagine starting a car company from scratch, starting an EV company from scratch, starting it in California and making it profitable, making it the only one that was profitable in the country selling EVs. So that kind of performance, even if it did come a little overdue, is the kind of thing that people are betting on when they're betting on Elon Musk. And they're not looking for the valuations because if they were, Tesla wouldn't trade where it is and we wouldn't be looking at an IPO of the size.

[Melissa Lee]

And you've got to accept the bumps in the road that come along with it on that journey because we've seen plenty when it comes to Tesla. Not just the ups and downs of the business cycle, but the ups and downs of Elon Musk himself in his personal life, as well as the statements that he makes in relationship to the companies he governs.

[Tim Seymour]

You know, funding secured. I mean, we all remember that headline. And there's been a whole lot of ones that. No one gets the benefit of the doubt more than Elon. No one probably deserves it more in terms of adding and creating value literally out of thin air.

[Dan Nathan]

Think the markets learn how to discount. A lot of the rhetoric comes out, which is probably a good thing at this point. Five years ago. It's a much different conversation than today.

[Melissa Lee]

Yeah. All right, we'll get back to Leslie as she's coming through that as one may be running it through Gemini. See that would turn out. We'll keep you posted. Let's turn out to in video's latest earnings report, shares the chip giant we're really seesawing in the after hours upon the release going up as high as a percent. It is now down by just about a percent beating of revenues, authorizing an $80 billion stock buyback. The call kicked off top of the hour. Christina Parts Navalis has been all over it. Christina?

[Christina Parts Navalis]

Yeah. The call is underway right now. The CFO is speaking, providing the same commentary that was just released. She's also breaking down how the businesses are going to be changing data center revenue and then edge computing. Edge computing will be composed of gaming provisions, robotics as well. And I wonder if that's almost a marketing strategy. It's a smaller subset. And so when you start to see growth there, like let's say 30, 40%, you can go with that. If data center revenue is just continuing at a flatter growth rate in regards to just the buyback that's substantial, the buyback 80 billion. And to go from $0.01 dividend to $0.25 dividend maybe tells the market too that there's some confidence in their future cash flows and just sustainability in cash flow. The OPEX the operating expenses did increase 42% year over year because of compensation as well as R and D. The CFO reiterated there's been no shipments to China, even though we heard from Jensen Huang at GTC saying that there were Chinese orders. So I'm sure that she's going to explain what happened during that time.

[Melissa Lee]

There could be orders without them shipping shipments.

[Christina Parts Navalis]

But he was very. I spoke to him myself. He was very confident they were going underway, that they had revenue coming in from that. He told an entire audience. And then I asked him again in the hallway. So something happened between mid March to end of April during that time frame coming from the Chinese government side to stop it. And so just in regards to just the signaling too, they also had in the notes too, that are the comments, I should say they secured inventory and capacity, which is another strength for those concerned about memory prices. And how would it impact Nvidia? Nvidia is able to secure things, you know, one to three years or even longer compared to a lot of other companies.

[Melissa Lee]

Yeah, the Stock is down 1 1/2 percent. I feel like it is the victim of its own success in some ways. It's raised the bar every single quarter. It's done quite well every single quarter in relationship to consensus estimates. Stock doesn't respond to that much anymore.

[Tim Seymour]

Well, maybe that's good news. And so we've seen kind of the progression of the beat or it's been a massive beat and raise typically for the last two and a half years. But in 2024, what we saw is that that that outperformance actually led to the stock outperformance in the aftermarket. The last three quarters actually I think were kind of minus 4, minus 4, minus 8. The fact that we're kind of flat here does the numbers that had to be there gross margin at 75% up about 340 basis points in line sequential. In other words, flat quarter over quarter. But we're kind of in line. I still think that the China Dynamics around 200 are the big deal. And they're at least headlines out here that they're still not sure they're going to be allowed into China. Even though we all came off the jet and felt like we were ready to roll.

[Melissa Lee]

I mean, there's nothing there. Don't. There's no China in any of the forecasts, any of the consensus estimates.

[Tim Seymour]

So. And they make that clear too. And that's great. And that's why I think this is probably upside. And I think that's why we felt that once, you know, Jensen was picked up in Alaska that this was a good sign for the stock and that the stock.

[Melissa Lee]

Maybe that was.

[Guy Adami]

Yeah, but, but I hope he got air miles because he didn't get anything out of.

[Melissa Lee]

He went over there just for half a trip.

[Guy Adami]

All right, Alaska, like 7,000 miles. But you know, but the one thing I'll say is while he was over there, China put their gaming chip on a blacklist. I mean, like, you know, this was again disappointing on so many different levels. I think the good news about the China stuff, it would be only incremental. If there was anything that came through last year at this time, I think they took a charge against some of the inventory that they couldn't sell over there. And so, you know, on the buyback thing, we talked about it a little bit last night. I mean, there was a Wall Street Journal article talking about mega cap tech and their kind of lack of buybacks. They're using a lot of their free cash flow to buy back stock. You know, this $80 billion, I mean they had $95 billion in free cash flow last year. This is going to be spaced out over a period of time. I cannot imagine they're buying this stock up here, but it's about 1 1/2% of their $5.4 trillion market cap. So that's not something I think investors, you know, are going to get behind right here.

[Dan Nathan]

We are fortunate to have Christine on the beat.

[Melissa Lee]

We're going to let her go though, because there's a.

[Dan Nathan]

She's got to go.

[Christina Parts Navalis]

Listen, everybody saw my. I don't want to leave, but yes, okay, I'm going to look.

[Guy Adami]

Well, you'll be back.

[Tim Seymour]

You'll be back later.

[Dan Nathan]

Dan's point about the buyback I think is spot on. It's a big number. Yes, but in the context of a five and a half trillion dollar company, not so much. However, you got to give them credit where credit's do. They continue to beat top line and bottom line, which is extraordinary. They continue to guide higher percentage wise in Terms of the guides less robust than have been historically but the absolute numbers are huge. What I'm most impressed by continues to be the fact that after beginning I think the first quarter last year when margins decelerated and they told us in the second half they'd pick back up, that's what's happened. And They've maintained the 75% gross margins in the face of some competition for some other factors as well. Good for them.

[Tim Seymour]

I also think that you know, a buyback and a div which we're all acknowledging means very little in terms of market cap on a relative basis is a sign possibly of some fiscal discipline. It is a sign that they're not pouring all kinds of money into Capex or becoming even more vertically integrated. I mean this is, this is another big issue with Nvidia. Over the last year and a half it's been more about the other businesses that they're buying into or the other piece of, of kind of them becoming the air infrastructure trade. The fact also that Ruben will be shipping second half fiscal is positive that they're reiterating that they're not affected by global supply chain for now. So I, you know, and again with a relatively muted stock reaction here so far, yeah, I call this a win.

[Melissa Lee]

I'm getting some more detail about the revenue diversification or lack thereof. More than half of its revenue in the quarter came from three customers representing 21%, 17% and 16% of total revenue in the quarter. Michael, I'm wondering what the, what the options action has been like leading up to this moment.

[Michael Koh]

Yeah, I mean it's a great question. Well first of all, you just mentioned those three customers when Tim was talking about Capex. Obviously when we think about the Capex that's going on in the air trade, it's going to in video, not out of it. They're the recipients of the Capex largesse. That's, that's basically what the whole whole trade is about. The options market was behaving a lot like the stock is now. So it was implying a move of just over 5% as we are coming into the print. On Monday the options market got net shorter by about $1 billion, not huge relative to the overall size of the company the last two days. So Tuesday and today also was very similar. So somewhat muted volumes, huge of course compared to almost every other stock but relatively muted compared to its own volume. I think it traded about 3 million contracts today. Calls out pacing puts by about 2 to 1 and there was a big near dated call spread about 50,000 contracts went up that way. But it does seem like the options market's expectation is we're just not going to get the big moves one way or the other. And you know, premiums coming out of

[Guy Adami]

it when you think about that customer concentration. And Tim just kind of spoke to this a little bit. Right. So all the investments they've made also using that free cash flow, 60 billion over the last two years, where did it go to? All right, well, you know where it went to, it went to xi, went down, went to Core Weave, Nebulous Cohere. I mean the list goes on and on. Every single one of those companies are their customers, but they're not even in the top three. Right. So how do you keep them going? How do you get them into that CUDA sort of ecosystem and keep them locked in? So you could say that's a great use of $60 billion over the last two years rather than buying back their stock at these sorts of level because it's not doing a whole of a lot for them to buy back $80 billion worth of stock up here.

[Melissa Lee]

For more on the quarter, Susquehanna's Chris Rolland joins us now. Chris, what do you make of the quarter and how does, how does that stack up to how the stock is moving in the after hour session, which is right now down about a percent.

[Chris Rolland]

Fantastic quarter, be it our number by to be the guide by 4B, this was actually a nicer quarter than they typically put up. So you know, I give it right now in a minus. We have the rest of the call to go. But this is a solid report.

[Melissa Lee]

I mean down 1% is not a minus. So I'm just wondering, and you know, you can replay this quarter after quarter after quarter at this point where they put up good numbers and the stock reaction doesn't necessarily reflect what all the analysts are telling us about how the quarter actually was. So why do you think that is at this point?

[Chris Rolland]

Yeah, I mean buy side expectations probably got a little bit ahead of themselves. And we're also talking about the largest market cap company in the world. And just finding new flows to put into this name gets difficult when we're talking about the law of large numbers here. So there are some technicals beyond this report that might be playing in here, but the report itself is really solid. Solid gross margin, a solid OPEX numbers really across the board here. We thought it was a good report.

[Dan Nathan]

You know, Chris, your price target to 75 suggests you believe, and probably correctly by the way, that they deserve a valuation that they haven't been in terms of price to earnings that they haven't really been granted for a while. Can you walk us through that?

[Guy Adami]

Yeah.

[Chris Rolland]

I mean of all the AI names out there in video is the cheapest. Again we have this law of large numbers problem, maybe putting a cap on that multiple, but we think it at least deserves a 30 times multiple. And it's trading in the 20s to get, to get to our price target. We'd be at just 30 for next year. So you know, we, we think among the names it really is the cheapest.

[Tim Seymour]

So Chris, then what do you do, what do you do with the valuation and certainly the upside on China, especially as we just discussed, not really in these numbers, there seems to be a fog that might be lifting somewhat, at least in a part of their business that could be significant and at least those are the headlines last week. What does China do to your multiple?

[Chris Rolland]

It does very little. Only because AMD has already gone through this. They were able to ship again to China last quarter. It seemed to be a one and done. And we would expect something similar perhaps for Nvidia as well. I know there's some confusion as to why they're not shipping. We have heard that it's not necessarily a CCP ban, but rather a provincial ban on Nvidia GPUs that might be playing in here, but we would think it would probably be something like a one and done or a small contributor perhaps to upside moving forward.

[Guy Adami]

Chris, how should we think about margins? You just mentioned it. You know, fiscal 25, there were 75% ish and they saw a downtick to 71 and a half percent. Fiscal 26 now they just put up a 75% number. That's basically the expectation for the balance of the year. What would be some of the things will put pressure on it and would that be something that you'd start to rethink that 275 price target if you did start to see more competition leading to pressure?

[Chris Rolland]

Yeah, that's, it's a great question. I think memory prices as they continue to climb here in video is going to have a hard time essentially quadrupling the prices that they're getting for that memory and passing that along. So we would expect as memory prices continue to climb and it's a large part of the bill of materials on these GPUs, we would expect gross margin. As Nvidia does not make memory, we would expect their gross margins to decline on those memory price increases. I don't know how investors are going to react to this? I think they'll probably look through it. The gross profit dollars still should continue to climb for Nvidia. But gross margins could in fact come down over time.

[Melissa Lee]

We're seeing some commentary across the wires, Chris, from the CFO about Vera Rubin saying that the Vera CPU opens a new $200 billion markets. They are expecting $20 billion in CPU revenues this year. They are on track to start predict production shipments of Ruben in the second half of the year. Is that all on track for you?

[Chris Rolland]

It is. I think we've talked about this before, Melissa. With AAM holdings, for example, we are in a CPU renaissance right now with agentic AI. The only issue for Nvidia is they're going to want that 75% gross margin on their CPUs. Guys like AAM are actually going to have a chip out with probably 40% gross margin on their own chips. I think people, if they're really just looking to do a gentic AI on a cpu, they might favor arm their own chips as opposed to Nvidia. But this is a new opportunity for them for sure.

[Melissa Lee]

All right, so so basically they would choose on price.

[Chris Rolland]

They would choose on price. There's not a huge difference in performance in our opinion.

[Melissa Lee]

All right, that would be a headwind. Chris, thank you. Keep us posted on all the details as they come from the call. Chris Rolland of Cesspool Ohana. That is a good point. We are seeing the stock down by a little bit more than a percent of this at this point.

[Dan Nathan]

Well, what you speak to is the inevitable competition that's going to come and what it does to margins and prices. Which all makes sense. Which is something, by the way, I thought was going to happen a long time ago. It has not yet. Now maybe this is a glimpse of what the future holds, but again, he just said it. Markets probably look through a lot of this stuff right now.

[Melissa Lee]

All right, coming up, the real read from retail. What we are hearing out of Target and TJX in the latest earnings reports, what to expect expect from Wal Mart tomorrow. Plus drop oil prices, the drop in foil oil prices, feeling the travel trade, all the stocks taking flight. And whether it's all smooth skies and calm seas ahead for the group, do not go anywhere. Fast money's back in June.

[Discover Advertiser]

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[Melissa Lee]

I learned it from my adoptive mom.

[Ad Council PSA Speaker]

Hold my hand. You hold my hand. Learn about adopting a teen from foster care@adopt USA kids.org you can't imagine the reward brought to you by Adopt Us Kids, the U.S. department of Health and Human Services and the Ad Council.

[Melissa Lee]

Welcome back to Fast Money. To retail heavyweights moving in different directions after earnings this morning. Target beating top and bottom line expectations, raising its full year sales outlook. Same store sales jumped 5.6%, the first positive number in five quarters. Still, shares were down almost 4%. TGX meantime, jumping over 5% after reporting better than expected expected earnings for its Q1 management, saying the buying environment for quality branded merchandising remains outstanding. Those shares are having its best day since 2024. All of this, of course, ahead of Wal Mart's report tomorrow morning. Those shares hit a record yesterday, but were down two and a half percent today. I mean, part of why Target turned around was a commentary from the CEO saying, you know, they're not going to have the tailwind of the tax refunds anymore. It's going to be a little bit of more of a difficult environment.

[Dan Nathan]

Yeah. Which I think we all expect. I think that's reasonable. The valuation suggests that maybe that's going to create a little bit of a headwind. But Wal Mart's a tech company and I think that's why they're given the valuation that they're given. I expect great things out of Wal Mart. Maybe it's run too much in earnings. We just made a new all time high. But as we've said many times on the show, you don't run away. I'll say this quickly, good for Target. And I've been a hater for a while. It's right about 50% off the recent lows, which is extraordinary. But they finally got their inventories in line. Just look at that inventory number against sales. So at least they're finally doing something right.

[Melissa Lee]

It does seem like There is traction to this turnaround story at this point.

[Tim Seymour]

There's no question, especially on the merchandise front. And also just some big changes in the. In the ranks. A lot of people thought this was going to be more of a status quo continuation. In fact, there's been some aggressive shake up in the C suite. I think the market likes it. I was surprised at this. I'm buying weakness. But of course this is the. The T and Timbo.

[Melissa Lee]

Yeah, of course it is. I mean, everybody knows that except Tim

[Dan Nathan]

who, I mean last week forgot what the T and Timbo was.

[Melissa Lee]

Did you really forget? No, I thought. You didn't think I was playing Koi. I was. Or something like that. Yeah, I'm not sure what that is. Intel?

[Tim Seymour]

No, it's Idio. My etf. But it's. It's the B. I didn't remember last time.

[Melissa Lee]

That's right. No one else did either. Micah, where do you go in retail?

[Michael Koh]

Yeah, I mean it was interesting. So both Target and TJX saw very heavy options volume on the back of those two respective reports. And kind of consistent with the stock price action, TJX did see its bullish bets outpacing its bearish ones by about 20%. But interestingly, in Target's case, some of the bigger prints that I saw were some sales of some downside puts. So is that a hugely bullish bet? No, but what it is doing is drawing a line in the sand and saying, you know what? I think this thing has been beaten up enough and people are looking to start dipping their toe in the water.

[Guy Adami]

Yeah, talk about beating up enough. Look at Nike. I mean this thing had a day today for really no good reason. Obviously a lot of retail stocks or apparel names did rally today. And this is one where. You know, Tim just mentioned turnarounds. I mean this could be in the very early stages or not just because the stock was up today, but looks a bit washed out. Maybe it gets a little tailwind into the World cup that's coming next month. So again, Nike looks pretty washed out.

[Tim Seymour]

Guy, you can't wait for the World Cup.

[Dan Nathan]

Wait, you can be riveted.

[Tim Seymour]

Who's your favorite team?

[Dan Nathan]

Ecuador.

[Tim Seymour]

The Cosmos.

[Chris Rolland]

Cosmos.

[Melissa Lee]

Did you just blurt out a random country?

[Dan Nathan]

I don't even know if they're in it.

[Guy Adami]

But they should be so disappointed that Italy didn't make it.

[Dan Nathan]

Italy? It's a joke. That it house Italy, not in a frickin World Cup.

[Melissa Lee]

There's a lot more fast money to come. Here's what's coming up next.

[Tim Seymour]

Oil prices Pulling back today, why that

[Guy Adami]

could mean it's time to pack your bags. The moves across the travel trade that

[Tim Seymour]

are catching our eyes today. Plus, stocks rallying as the interest rate rally cools, why yields are retreating and

[Guy Adami]

what the latest Fed minutes tell us

[Tim Seymour]

about the central bank's next move. You're watching Fast MONEY live from the

[Guy Adami]

NASDAQ market site in Times Square.

[Tim Seymour]

We're back right after this.

[Discover Advertiser]

It's smart to always have a few financial goals. And a really smart one you can set is earning cash back on what you buy every day. And with Discover, you can get this. Discover automatically matches all the cash back you've earned at the end of your first year. Seriously, all of it. And we trust you to make smart decisions. After all, you listen to this show, see [e-mail] credit card. The world of business is constantly evolving. And Comcast business keeps you in step with secure AI backed networking in more than 100 countries with powering 90% of the Fortune 500 and millions of small businesses. And behind it all, thousands of experts answering your call at 2:00am like it's 2:00pm One partner. That's it. Powering how business gets done for companies around the globe. When you add it all up, no one does business like Comcast Business.

[Leslie Picker]

Courage.

[Melissa Lee]

I learned it from my adoptive mom.

[Ad Council PSA Speaker]

Hold my hand. You hold my hand. Learn about adopting a teen from foster [e-mail] you can't imagine the reward brought to you by Adopt Us Kids, the U.S. department of Health and Human Services and the Ad Council.

[Melissa Lee]

Welcome back to Fast Money. WTAG crude dropping after President Trump's suggestion that the Iran war will end very quickly. That move giving travel stocks a pop. Cruise lines, Airbnb, online booking sites, all ending the day in the green. Take a look at the airlines. Delta having its best day since last July. United, American, JetBlue, Southwest also seeing outsized gains. I mean, it feels like oil down these stocks up. It's very reactive at this, very reactive.

[Tim Seymour]

But, but the, the rerating that's been slowly going on in the airline sector is, is something that I believe is a trend and I believe we're getting the kind of numbers out of these folks. But United and Delta specifically, I, I don't think you are going to see oil prices necessarily down tomorrow. You might, but the point is we're still in an environment where this is a trade. Airlines historically been some of the greatest trading stocks except for I think you're supposed to own Delta for the long term.

[Dan Nathan]

Oh made a multi year high today Close unchanged. But the fact that it hangs in there in the wake of oil going lower today speaks at least tells me that the oil trade is far from over. We've been saying that for a while.

[Melissa Lee]

Yeah, Mike.

[Michael Koh]

Yeah. I think the oil trade has a ways to go. There's just too much slack that was taken up out of the logistics out of the supply chain for oil as a result of the constrictions that we've seen in the Strait and it's going to take a while for that to rebound. One thing that did surprise me a little bit on the airline trade was that Delta had been given the benefit of the doubt because of course they own the refinery that they bought back in 2012 from Phillips 66. And so they were better positioned to accommodate higher oil prices and more importantly a wider crack spread. And yet they were the second best performing airline today. I'm kind of surprised that some of the more beaten up names didn't catch a better bid in say for example the jets etf.

[Melissa Lee]

What would you rather be in at this point? Oil itself, the commodity or oil equities?

[Tim Seymour]

Oil equities And a guy's point on the outperformance of the to the XLE today was notable. I mean this is a day when it was, it was a negative oil story but the rerating going on and I, I'm happy to just belong SLB because I think that's 60% of the Oih and certainly look at the long term chart on that. Look back where we were in 2015 and 16 and look at the earnings power of this company and the operational levers they have at a time when people are going to be drilling everywhere. So I think you stay longer.

[Dan Nathan]

Love the way you slid that. Would you rather in there? I unfortunately have to agree with Tim on this one. I think because sometimes it's better television if I said you know what Tim is wrong.

[Melissa Lee]

No, no. What you actually feel for the audience.

[Guy Adami]

But we don't do that.

[Melissa Lee]

We don't do that here.

[Tim Seymour]

They do that on other shows.

[Dan Nathan]

I agree with Tim.

[Melissa Lee]

Okay, coming up, stocks jump and rates drop. What is behind today's pullback in yields? What we heard out of the Fed minutes that may shine some light on the central bank's next move. A top market strategist will join us next to help break it all down.

[Guy Adami]

Fast money's back in to missed a moment of fast. Catch us anytime on the go follow the Fast Money podcast.

[Tim Seymour]

We're back right after this.

[Melissa Lee]

Welcome back to Fast Money Stocks rallying as Both rates and oil prices pull back. The Dow jumping 645 points. The S&P 500 up 1%. The Nasdaq leading the gains climbing more than 1 1/2 percent. Benchmark 10 year yield back below 4.6%. WTI crude falling nearly 6%, settling below $100 for the first time since May 11th. And some more after hours action. Shares of L3 Beauty higher after topping earnings and revenue estimates. The company also saying it will walk back some tariff price increases amid high gas prices and consumers quote suffering. And tax software maker Intuit dropping after missing of revenue expectations. The company also planning to cut its workforce by about 17% as it deals with slower growth. By the way, don't miss Jim Cramer's exclusive interview with the CEO of Intuit. That is tonight on Mad Money. Top of the hour. Let's get some more on the move in rates now with Mike Schumacher, head of macro strategy at Wells Fargo Securities. Mike, it's always good to see you.

[Guy Adami]

Great to be here.

[Melissa Lee]

It seemed like 4.68% that was like a cap. Do you think we're going to stay within a range that is below that?

[Mike Schumacher]

Honestly, it's all about oil. You look at the move not so much yesterday, but today, today was clearly an oil move. There's no doubt about it. Yesterday was really a global, I'd say case of indigestion for bonds, uk, us, Japan, you name it. But today things tracked oil really well. Basic rule of thumb is if oil moves 1%, bond yields move about a basis point sometimes something like that, pretty simple. It's been reliable.

[Tim Seymour]

Michael, we mentioned and guys been particularly worked up about Japan and JGB yields. But you know, last week was to me a seminal week for the boj. And it seems like I coined it as it was their 2021 Fed moment when it was obvious how far behind the curve they are. Do you believe that and do you believe that independent of your view on Treasuries, JGB yields will trade on their own? And is, is the, is that okay?

[Mike Schumacher]

They're in a tough spot. I think they probably sort of want to hike, but they're not terribly comfortable and they are clearly behind in my opinion. So I suspect they'll get off the dime fairly soon. But right now questionable. You saw the best in a way to back and forth and bass and didn't really radiate confidence either. So I think the BOJ is in a tough spot right now.

[Dan Nathan]

Mike, we mentioned oil being a catalyst. I agree. I think that's part of it but global debt now everybody seems to be talking about that's the other side of this and that's not going away anytime soon. So I know you're not discounting it, but the importance vis a vis oil.

[Mike Schumacher]

No, it's a good point guy. You think about the feedback loop, right? We've got all this military spending going on. You've got countries like the US seriously indebted others that are going to spend a lot more. And when you think about the price of 10 year treasury issuance effectively going up, up, up or 20 year, not today, but generally that's a problem. So that can kind of feed on itself after a while. So I think that's a good point to raise.

[Guy Adami]

Also Michael, is there any focus in the investment grade space? We see, you know, a lot of the infrastructure, it's increasingly more debt, it's increasingly kind of these interesting sort of structures here. And I'm just curious like how you think about that because there's a lot of debt that needs to be rolled over, just both sovereign and corporate debt.

[Mike Schumacher]

I think it's a huge point. Dan, you think about when the year began? I would say people generally believe there'd be a lot of issuance, but not this volume. And we could make the case, hey, they're all high quality issuers really. So it's pretty fungible. If you, you think about government debt, there's a limited universe of buyers I think that's really starting to wait. And you've got hyperscalers going to market after market. It's not all USD, it's global. So in my view this is a trend that's going to be in place for probably another six to 12 months. And it's just out there weighing especially on long term debt, not two or three year but 10, 20, 30 year, that sort of thing.

[Guy Adami]

I follow up for a sec. So you saw that Google deal there. So they're selling debt in Switzerland and francs and here and there and everywhere they can do. What does that mean to you? Like we've seen this before but not in a while.

[Mike Schumacher]

I think you want to tap every investor base you can tap when you've got to do just massive issuance. So if there are some investors who say, yeah, I've got a big preference for Swiss francs or for euros or what have you, why not hit those currencies and if you're Google, you can always swap back if you want, but some investors simply will not go overseas so why not bring it to them?

[Melissa Lee]

You said oil is the driver to a Lot of things, maybe everything in the markets. Do you think equity investors are underpricing the risk that oil remains higher for longer?

[Mike Schumacher]

I do, and I think the issue here is that let's say there are all these stories going back and forth about potentially a deal between Iran and the US and we've all heard this about a dozen times. But if something were to kick in overnight, how quickly would the strait reopen been? Probably a month or two or three, and then you've got a lot of lags in the system after that. So I'm going to guess you've got probably four or five months until inflation looks relatively tolerable. Even if things start to go well pretty quickly, that's a long time. That's a lot of inflation. It's a lot of market upset. If equity investors or anybody else want help from the central banks, well, they're not going to get it. So if you're counting on a FedEase, you can kind of forget about that in that particular environment. Yes, I think it's underpriced.

[Melissa Lee]

I mean, I'm just, you know, every single person who's bullish on the markets, which is a lot of people out there right now, that seems to be the consensus view, is that the earnings growth is there. And so therefore you say long the markets and it doesn't matter what the rest of the world does, the earnings growth is there. How do you, how do you reconcile that notion that we're underpricing the risk of higher oil and yet the earnings growth is there. And so you want to be with the market.

[Mike Schumacher]

Yeah, the earnings growth has been amazing and last quarter was terrific, terrific, no question about it. But still, you've got to think about it in broad terms and say, all right, I get a lot of people stay in kind of an equity bunker, maybe don't look at bonds that much. But still, at some point there has to be a cross market evaluation and if rates go up, up, up, and if inflation sticks, that can't be a positive. So is it today? Maybe not. But can that weigh in the equity market? I think it probably could. So I do think this risk is underpriced out there.

[Melissa Lee]

Michael, great to see you as always, Michael Schumacher. What do you think?

[Dan Nathan]

I think his points are great. I also think rates are going higher because I don't think the energy trade is over. I think it's going to vacillate. And I think once you admit, listen, there's, there's no coincidence that yields traded 4, 6, 8. The administration, all of A sudden or people talking about this cease fire or peace plan. I mean that seems to be sort of de rigueur as the French say. But at a certain point the markets look past that and I think rates go higher from here.

[Tim Seymour]

Yeah, look, it's been a tough year if you've been a bond investor and it's been a tough year in a copy of a couple of different fronts. Even though that spreads for the most part are still very tight and near where they were. I think this is a great opportunity for people looking at prefs, especially in some places that you get some, some spread widening, especially when you have this kind of interest rate volatility. I realize that's somewhat deep end of the pool, but there's some really interesting opportunities where you're looking 7, 8, 9% and this is a great time to start looking.

[Melissa Lee]

We've got some more from the Space X filing. Let's get to Leslie Picker for that less.

[Leslie Picker]

Hey Mel. Yeah. We've come across some really interesting, interesting structuring of the lockup. The way that they have structured it basically has kind of a drip, drip. Rather than subjecting everybody to 180 day lockup period which is common in IPOs, they have a bunch of conditions. Basically they say kind of the second full trading day on Nasdaq immediately following the public release of our quarterly financial Results, up to 20% of the early release eligible shares may be transferred. And then they say that if the stock that's listed on the NASDAQ is at least 30% greater than the public offering price, then they release an additional 10%. So there are a bunch of kind of conditions like that based on the earnings date and the stock price on those dates and they allow for additional shares to be sold as opposed to waiting the 180 days. Now what I think this accomplishes, just kind of reading through the tea leaves here, is in order to when you wait the 180 days, you often have this cliff where people will go into it, they'll short the stock, they'll expect there to be some pressure on supply and the stock price will go down all at once in anticipation of that day. What this is doing is kind of creating more of a, you know, a stair like approach where you're kind of allowing for various lockups in the interim there and not just doing it all at one time. Now why this is important is because as we've been reporting and as our Christina Parts Navalis has been out front on is the NASDAQ has been changing rules to Allow some of these mega IPOs to be included in the indexes on a faster basis, but you need to have a bigger float to do that. So if you are listing a smaller float, but you have a more generous lockup policy than is typical, you can achieve that float on a quicker basis to have a bigger weighting in the index if you're ultimately included.

[Melissa Lee]

Apologies if I missed it, Leslie, but there's also. It sounded like there was also a component of the stock has to trade up a certain amount in order for that additional. So they want to make sure the stock is up on steady footing, basically before they release some more shares.

[Leslie Picker]

Exactly. So it says at least 30% greater than the IPO price, the ultimate IPO price. If that is the case, they will Release an additional 10% of early release eligible, eligible shares. And they do say this is important that our founder, Elon Musk, is not party to any of the early release provisions during the extended lockup period. So presumably if he were to sell and he, he has about 12.3% stake in this company, I believe he would have to wait until that 180 days if he wanted to sell any stock.

[Melissa Lee]

All right, Leslie, thank you. Leslie Picker. That's an interesting way of.

[Guy Adami]

He's not selling. He said that he's not selling. And you know, if you go back to Tesla, I think the first ten offerings they did. And they did a lot of offerings, whether it was equity, whether it was converts. This is going back after their IPO in 2010. He actually participated buying on them.

[Tim Seymour]

Right.

[Guy Adami]

So he's not going to, like. I just don't think the location is going to matter much to him. I think he thinks this is going to be the first $10 trillion market cap company.

[Melissa Lee]

But in terms of changing the way the lockup is really, I mean, that's novel.

[Tim Seymour]

It's novel. There's a lot of structure and optionality in it. I'll just say that if you're talking about 4 to 5% of, of the company's market cap in free float, it's still going to be tiny. And I think perversely, that actually might really help how the shares trade.

[Melissa Lee]

Yeah, Mike, I'm just, I'm just wondering, you know, if it is put into the NASDAQ 100 or another index. Presumably people have to buy and they'll have to sell something else. So how do you view this sort of ATM effect and what will be, you know, ATM'? Ed?

[Michael Koh]

Well, one of the things that's gonna be ATM'd is what Dan was talking about at the outset of the show, which was that, you know, presumably a lot of the people that are investing in Space X are investing in Elon and a lot of those people are already invested in Elon because they're invested in Tesla. So it's kind of hard to see why some money wouldn't come out of Tesla and in to Space X. So I think that's probably the register is going to get rung anywhere. That might be one of the first places. I think that's that you're going to

[Melissa Lee]

see it unless you think Space X is going to buy Tesla. I mean that's what Dan Ives just, he just put out a report on Space X and he said he thinks that it's, that's going to happen, that combining Space X with Tesla is in the cards.

[Dan Nathan]

I've been out there, I don't know what the problem mean. I don't know if they do it at existing price or if there's a premium. But I think a lot of people are hoping that some sort of exit ramp and a Dan's point that creates one of the first, if not $7 trillion come, you know, make $10 trillion companies. So that's been out there for a while.

[Melissa Lee]

Coming up, Amazon Executive chairman Jeff Bezos weighing in on a number of topics in a wide ranging interview with CNBC this morning. What he had to say about AI's role in the labor market, the details from fast money returns.

[Mike Schumacher]

I think there's so many people who

[Tim Seymour]

are afraid that is going to take their job. I think that there's going to be

[Guy Adami]

a labor shortage as a result. A lot of people who have two earner income households.

[Tim Seymour]

Households, right.

[Guy Adami]

One of the people is going to drop out of the workforce.

[Tim Seymour]

That's why we're going to have a

[Mike Schumacher]

labor shortage people because of the productivity

[Guy Adami]

gains you're going to be able to

[Tim Seymour]

afford things we're going to have, I predict we'll actually have deflation.

[Melissa Lee]

There's Jeff Bezos in conversation with our own Andrew Ross Sorkin earlier today on Squawk Box. The Amazon founder saying AI driven productivity gains could actually drive down prices and create a shortage of workers. He also waved off concerns over an AI bubble saying heavy investment will ultimately drive the technology's long term advancement. Maybe now we're just in a sort of transition period where we're seeing job losses or maybe it's washing somebody.

[Tim Seymour]

Connect the dots for me on greater productivity leads to a labor shortage and how deflation leads to a labor shortage. I don't really understand that this.

[Guy Adami]

Well, I think you say people are going to drop out of the market.

[Melissa Lee]

Out of the workforce.

[Guy Adami]

Out of the workforce. Excuse me?

[Melissa Lee]

Me.

[Tim Seymour]

I mean, so technically the pool, the denominator becomes smaller. But, but, but, but why?

[Guy Adami]

Why?

[Tim Seymour]

I mean, because they can't get a job.

[Guy Adami]

It's all like sci fi stuff. Nobody, right?

[Tim Seymour]

No drop out because they can't get a job. Guy, what are you going to do?

[Dan Nathan]

Why are you yelling at me?

[Melissa Lee]

He's going to own a robot. He's going to go to work for him.

[Tim Seymour]

Yeah, it's about time we have like an agent.

[Guy Adami]

We had a whole conversation.

[Dan Nathan]

I'll save the vernacular battle, okay? No, I mean, I'm just saying it's a family show.

[Melissa Lee]

All right, well, coming up, what we're hearing out of Nvidia's conference call when Fast Money returns. Getting some more details out of Nvidia's conference call. Let's get back to Christina Parks neveless. Christina?

[Christina Parts Navalis]

Well, Nvidia CFO started by saying Colette Kress saying H100 rental prices, these are the hopper GPUs are up 20% year to date and the A100 cloud pricing is up nearly 15%. That particular chip, the A100, is about 66 years old. On the China front, we know the US government has approved licenses to ship hopper chips to Chinese customers. But the company saying they remain uncertain whether those imports will actually be allowed. So that overhang is still an overhang. CEO Jensen Huang making the case that Nvidia should be growing faster than hyperscaler Capex arguing that without compute there are no revenues and no profits. And on the next generation Vera Rubin chip, Jensen Huang says every frontier model company plans to adopt it from day one. Something he was, he says was not the case with Blackwell calling in a sign that Vera Rubin will be even more successful than the previous generation. The CEO also betting that there will be supply constraint throughout the entire life of Vera Rubin. Why is that? He's saying that there's going to be billions of agents out there that are all going to need their chips. So very bullish, especially around CPUs.

[Melissa Lee]

All right, Christina, thank you, Christina. Parts Nevelis. I'll go back to what Chris Rollin told us and that is that ARM makes a very competitive cpu. There isn't much difference between them and they're going to sacrifice price in order to beat Nvidia on this front.

[Tim Seymour]

They're up 16% today.

[Melissa Lee]

Yeah. Mike, what do you, what do you, how do you sort of see Vera

[Michael Koh]

Rubin well, I mean, I guess the first thing I would say is that as they often do, the best solution for high prices, and we've been seeing a lot of high prices based on demand in this entire complex is high prices and you start to see competition. The other thing I would say is that this sort of non move that we're getting last earnings was a sell the news event, but then it was an opportunity to buy. I have a feeling this is what this is going to turn into as well. It has outperformed the S and P by double since the last earnings and it's probably going to turn into a decent buying opportunity.

[Melissa Lee]

All right, up next, final trades. We're out of time, so take a look at your final trades. There you have them. Thank you. Thanks for watching Fast. See you tomorrow. Mad Money June Kramer starts now.

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[Leslie Picker]

I learned it from my adoptive mom.

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