CNBC’s Halftime Report: The Nvidia Comeback (January 6, 2025)
Hosted by Scott Wapner
1. Introduction: Nvidia’s Resurgence
Scott Wapner opens the episode by highlighting Nvidia’s impressive stock performance at the start of the new year and the anticipation surrounding CEO Jensen Huang’s keynote at CES in Las Vegas. The panel includes Joe Terranova, Steve Weiss, Jim Laventhal, and Bryn Talkington, all of whom hold Nvidia shares, underscoring their confidence in the company’s trajectory.
2. Market Performance and the Semiconductor Sector
The panel discusses the overall green market performance led by the tech sector, with a notable 5% surge attributed largely to Nvidia’s gains.
Scott Wapner notes, “[02:04] ... Nvidia is a big reason why today’s stock is up near 5%.”
3. Nvidia vs. Competitors: Broadcom and Qualcomm
Comparisons are drawn between Nvidia and other semiconductor giants like Broadcom. Steve Weiss emphasizes Nvidia’s robust growth over the past year, stating, “[03:52] ... Nvidia is up 200% and Broadcom's up 122%.”
Jim Laventhal adds, “[07:56] ... The PEG ratio on Nvidia is 0.8. People overlooking this relative to its growth rate are missing the bigger picture.”
4. Expectations from Jensen Huang’s CES Keynote
The panel anticipates a "monstrous Monday" following Huang’s keynote, based on historical data from Bank of America indicating a significant stock rally post-speeches.
Scott Wapner remarks, “[05:02] ... Will he remind us tonight that this is a place you want to continue to be and be big?”
5. Broader Semiconductor Insights: Foxconn’s Impact
Bryn Talkington highlights Foxconn’s stronger-than-expected revenue growth, linking it to increased demand in data centers and potential expansions at Blackwell. This positive news is seen as a catalyst for the entire semiconductor sector, with other names like Micron and ASML also experiencing gains.
6. Evaluating Other Tech Stocks: Palantir, Salesforce, Palo Alto
Scott Wapner brings attention to recent downgrades of stocks like Palantir and Salesforce. Bryn Talkington counters with differing opinions:
- Salesforce: Disagrees with sell ratings, citing effective acquisitions and disciplined spending.
- Palo Alto Networks: Acknowledges softening momentum but points to strategic investments in their platform.
7. Bitcoin’s Momentum and Institutional Adoption
The discussion shifts to Bitcoin, with Joe Terranova affirming his continued investment based purely on momentum rather than intrinsic value.
Joe Terranova states, “[23:20] ... It's purely momentum. I don't have a single point.”
Steve Weiss underscores the growing institutional interest, citing BlackRock’s involvement as a game-changer for Bitcoin’s adoption.
8. Market Breadth, Yields, and Economic Indicators
Steve Weiss and Jim Laventhal delve into the importance of market breadth and the impact of yields on the market’s future. They discuss how the MAG7 (seven major growth stocks) are expected to grow earnings significantly, potentially leading to a broader market rally.
Scott Wapner emphasizes, “[17:54] ... Is it all about yields? Is that what matters most?”
9. Trade Updates and Strategies: Bill Baruch’s Moves
Bill Baruch shares his recent trades, including trimming positions in Apple and T-Mobile while adding to Uber and AMD. He explains his strategic choices based on momentum and future growth potential.
Bill Baruch notes, “[38:57] ... I like this as a pure play on the data center growth in 2025.”
10. Explosion of Single Stock ETFs
Bob Pisani and Will Ryan from Granite Shares discuss the rapid growth of single stock ETFs, particularly those focused on volatile tech stocks like Nvidia and Tesla. They highlight the global demand and the rise of retail investors participating in this trend.
Will Ryan explains, “[34:08] ... It's a global phenomenon with investors worldwide seeking access to high-performing US tech stocks.”
11. Live Election Certification Coverage
The podcast includes a live report from Eamon Javers in Washington, D.C., covering the peaceful certification of the 2024 election results amidst a major snowstorm. This segment underscores the return to normalcy in the electoral process compared to previous years.
Eamon Javers summarizes, “[48:52] ... Kamala Harris will preside over the counting of the ballots to certify the election of her rival Donald Trump as president.”
12. Conclusion: Forward-Looking Insights
As the episode wraps up, the panel touches on upcoming earnings reports, potential market movements influenced by economic indicators, and strategic investment opportunities. Bryn Talkington and Joe Terranova share their perspectives on emerging trends and the importance of selective investing in a dynamic market environment.
Notable Quotes:
- Scott Wapner [02:04]: “Nvidia is a big reason why today’s stock is up near 5%.”
- Steve Weiss [03:52]: “Nvidia is up 200% and Broadcom's up 122%.”
- Jim Laventhal [07:56]: “The PEG ratio on Nvidia is 0.8. People overlooking this relative to its growth rate are missing the bigger picture.”
- Joe Terranova [23:20]: “It's purely momentum. I don't have a single point.”
- Bill Baruch [38:57]: “I like this as a pure play on the data center growth in 2025.”
This comprehensive summary encapsulates the key discussions and insights from CNBC’s Halftime Report episode on Nvidia’s comeback, providing valuable information for listeners and those who missed the live broadcast.