Bonawyn eye sonson, karen finerman, dan nathan, and guy adami. Ceo jensen huang of nvidia speaking right now. Hes announced new partnerships and unveiled a new gpu. Shares up 5 earlier in the day, but closed up less than a percent, currently trading down by a quarter of a percent. Kristina partsinevelos joins us now with the very latest. Kristie anyway . Nvidias ceo reiterating we are just at the Tipping Point for a. I. , and all that means is that youre going to need bigger gpus. Nvidia revealing its new generation Artificial Intelligence platform. Key word platform there, to run a. I. Models. They are calling it blackwell, and it comes with the blackwell bh200 gpu, the graphics processing unit, the latest one weve been waiting to hear about. Its going to be four times the training performance of the h100. 25 times lower in energy use and 30 times the inferencing power, compared to the previous hopper architecture, or the h100 chip that weve all talked about constantly. Inferencing is a big driver. The fact theyre mentioning that, we know just in the last earnings call, inferencing contributed data center revenue. The fact this chip is going to be Even Stronger with inferencing allows nvidia to maintain that lead. The blackwell will also be manufactured by tsmc and set to be launched later this year. You have amazon, google, microsoft and oracle, all selling access to this play chip through their cloud services, as well. We havent received costs on this chip. Usually nvidia doesnt reveal pricing. But the previous older chip was between 2,500 to 40,000 per chip, and you need a lot of them to build your entire a. I. System. So, it could cost up to 200,000. That was the older generation, so, you can only imagine that this one will probably be a little bit more than that for a lot of companies, if they can get their hands on it. On the partnership front, we know theyve talked about partnerships so far with ansys, synopsis, weve seen those stocks and cadence. Right. Have there been the star appearances yet from any ceos or luminaries in the tech world . Well, i was just told theres some celebs right next to me right now, but im not dur. Swing that camera around, ch kristina theres security everywhere, and thats why my eyes darted when i was going live. But its just a rumor so far, but they happen to be right behind the camera, i havent seen any ceos just yet, but you ment mentioned ansys, tsmc. Look out for oracle, amd, a few others that may move soon. All right, kristina, thank you. Kristina parse lef nous on the ground in san jose. Its funny, we were listening to jon fortt talk in overtime about the similarities between this event and apples event, and how when apple launched a new product, it was sort of like this, and typically it was a sell the news kind of event. What did you make of the stock action in todays session going into this event . Im glad you said that. So, blackwell is replacing hopper, right . Uhhuh. As you know, mel, because we watch it, hopper is the sheriff in Stranger Things and the price action has been really strange over the past couple weeks. From fridays ago, that reversal in nvidia, where from peak to trough gave up a quarter of a trillion dollars. And today from peak to trough was probably close to 100 billion. I mean, to me, thats not an encouraging sign now. Its a great company, this new chip, four times more efficient, i get it. Price action is everything. And over the last week and a half, when you see moves like that you absolutely have to take note. Its really interesting, when you think about that comparison to the apple events, and they were fabulous, right . There was a whiz bang new thing that a consumer could go out there and buy and they could have it in their pocket. And it happened in and around, i think it was 2012 or so, the events were just kicking off. Tim cook had taken over, the Company Started buying back their stock. Consumers were buying the products and buying the stock. One of the biggest differences here, most consumers dont have a clue what a gpu is. They dont understand what i dont mean that in a con desensing way, a data center, all this stuff. This is a product that is powering something they havent used that well yet, because theyre still hallucinating, a lot of these things. I bring it back to the company, their earnings, their sales. In my career, on any sort of scale, i have never seen a company go from 3 3 in earnings to 12, to 24 in expected earnings. From 25 billion to 50 billion to an expected 100 billion. Its never happened. Are you saying you dont think its true . It did happen. So, what im saying is, what comes this year, this is the one where its up again, up 80 year over year after weve already seen so, what im safing is that in the last 2 1 2 months, weve seen this company, this stock, double, okay, on expectations of all this stuff that were just hearing about right now. All the names that dont mean anything to most consumers. We dont know what the demand is going to be like when they finally come to market. We tonight know what the margins are going to be, we dont know what the competition is going to be. I think were at a weird spot. A lot of folks said you could have said that a year ago. And ive said, whats happened here, weve never seen happen before. If you are going to make that same bet right now, right here, at 900, then its going to continue to go that way, thats a bad bet. Lets play the game that amd is making a product, that intel is making a product, they are offering soft ware solutions. Nvidia has the lead at this point. You two are nvidia holders, so, what is your take . At what point do you start getting concerned that that competition is actually real, and that share will actually i mean, shares already going away from nvidia. Its still dominant share at this point. True. I think this is a situation where the pie is growing tremendously, right . Theres room. I remember early on in amazons Cloud Business, thinking, well, eventually there will be competition. Okay, so, that was years ago now, and the Cloud Business has just continued to grow and accelerated at various points. So, i dont think there will be no competition. I think there will. Im sort of more curious about, all right, they have all these imbedded h100 gpus, which were from 40,000, some of them. What are those worth now . Im wondering, if you are meta, and you own 8 billion of these, if you mark those down, what happens to that . I dont know. Do they im curious what happens to that, before they get to now, these may be wildly more efficient, im confused also by that 25 times more efficient, does that mean theyre 4 the power usage . Is that what that means . Or are they 25 less powered . I dont exactly understand. So, theres i mean, the other thing that im sort of intrigued by here is, aside from being a genius at this business, jensen huang is also a genius at being a ceo of a company that is in the middle of a huge wave and how to manage expectations and sort of how to manage the stock price, which is a very difficult thing to do. And the higher it goes, dan, the harder that gets, of course, right . Right. So, hes done a masterful job so far. I am long, im staying long, i do think that we are still in the early innings of this story. Theres a lot left to play out. I think that absolutely amd, im long amd, as well, which is actually more expensive. I do think they will have some share, but i think the pie is just growing tremendously. Yeah, i would agree, the pies growing, and dan mentioned the fact that most consumers dont know what it is, but a lot of the knock on the stock, they had that consumer concentration, and what youre seeing with the partnerships, they are bolstering and addressing that issue. I think a lot of the knock on the Company Going in was that, listen, when it comes to training the Large Language Models, this is really the only show in town. Once we get an opportunity to pivot away from them with inference, were really going to see cutting into margins and diver if i case away from them. Youve seen 40 of their revenue last was inference. So, the fact they are starting to broaden out their Revenue Streams and become a bit more of a household name, not to mention the software, and to me, thats where the moat is. So, im with everyone in terms of, yes, expecting them to continue to grow at this rate, no. At some point at some point, thats not going to happen. The question is, at what price . Okay. As i said before, i do expect there to be some consolidation in the name, but there are a lot of unknowns. We may not know what a gpu is, we dont know what the overall target adjustable market is, or what this whole a. I. Thick really is. And until we get her of a grasp on that, saying that we dont understand the opportunity, but that we do understand the risk, to me, is really kind of like speaking out of one side of our mouth. So, im willing to grasp the unknowns. Right now, as things stand, they are if ecthe picks and shovels this gold rush. This is a developers conference, right . They want people to develop their models on the back of on their hardware, on their software, they want to make it harder to switch. And thats sort of, you know, the comparison to apple. I dont you didnt like it. It was fine. It was fine. But thats the whole point. So, thats their advantage, right . Thats probably three to four, fiveyear head start with everybody else. But again, price action is important, and we outlined the price action over the last week and a half, and at some point, youre going to look at peak margins and maybe this last quarter wasnt it, but 70 margin, and again, we tried to do the math, karen does it very well, but price to earnings, cheaper than amd, without question. Price to revenue, a lot more expensive than amd, without question. So, at some point, thery are outkicking their coverage in terms of their revenue and in terms of their earnings, which means, in my opinion, that 77 is going to start to come down. The question is, is that just a natural progression . Will the market give them sort of a pass on that, or is that sort of the Inflection Point for the stock . It clearly, its been heading the right direction. At some point, that 77 stops, starts going down, thats when people get concerned. And thats been the i mean, thats been true with technology and chips all since chips were started to be made and traded. For more on what this could mean for a. I. , lets bring in brett winton. Good to have you with us. Have you heard anything out of jensen huang so far that, you know, changes your mind about the story . No, but i mean, i think a lot of the panel covered the key issues here. Its clearly an Amazing Company you i , i think 14 trillion will be spent on a. I. Software by 2030 and youre going to need trillions of dollars of a. I. Chips per year to power that. And we underwrite that into the stock, and still, its a difficult Valuation Case to make over the course of the business cycle, relative to other opportunities that are out there in the market. How do you think about the sort of halo effect that spending on a. I. Chips will have in terms of broader tech spending . Web bush said that for every dollar, they estimate is spend on h100 chips, theres 10 to 12 being spent on software and other parts of the tech ecosystem that you need to make the a. I. Chip work. So, what is that sort of trajectory, in your view . Yeah, both on the kind of powering ecosystem of tooling to have a. I. Chips work, and on the soft ware that needs to be generating revenue on the back end, to justify the Capital Investment in the a. I. Chips. You know, we think the Foundation ModelLayer Companies are really profoundly interesting. I think that thats probably a new emerging operating system for come pewation, and it puts a lot of the tech heavyweights at risk. There was news today that reportedly google and apple might team up for apple to license googles gemini model. I think thats a sign that these companies dont get that this is a new operating system thats emerging, its not a feature to layer on top of existing tech platforms. Brets, its karen, thanks for being on today. It sounds like there are other names that you might like more than nvidia. Can you tell us what those are . Sure, on the private side, we think anthropic is extremely interest, and enterprises are scrambling to figure out how to deploy these things. And tesla is the most compelling a. I. Story in the market. Youre not being honest if you dont think that autonomous driving is not more likely to happen today than it was two years ago, because of the advances in a. I. , and they have an amazing Distribution Network and their Business Model transforms if they can turn kind of their autonomous robotaxi software into a working commercializable product. Along those lines, brett, since you have a futurist, when you think about future ways to play a. I. , there was an analyst on this morning and he had an interesting take on it. When refrigeration was invented, it wasnt the refrigerator parts makers that became the winners in that all, it was cocacola. So, when you sort of apply that metaphor to this situation, what do you think will benefit the most . Well, theres a clear opportunity on the consumer side, and its entertainment is going to be transformed by having hyper compelling a. I. Models that captivate our attention, so, think of tiktok as the feed, which facebook or meta has coopted, well, imagine generated media content and how compelling that will be for end users. And we think that metas open sourcing of its a. I. Operating systems is actually an interesting angle that theyll be able to play, to generate that really compelling Consumer Experience across their entire portfolio of apps. Brett, thank you. Good to speak with ou. Brett winton, the chief futurist at arc. Interesting job. When do we move from picks and shovels to the Bigger Picture . Because thats really the question, if enterprise is going to continue to spend on it, you want to see that there are gains, productivity gains, product yeah. Well, i mean, listen, i think most folks that weve had over the last few months, meta has been a universally liked name, how they are using generative a. I. To aid their own business, how theyre basically monetizing the ads, that is their business. I dont know if you noticed in your instagram search feed over the last week or two, you are seeing meta a. I. As part of the thing there, its working throughout the Consumer Products there, and you are getting served better ads. I know that most people think that instagram is pretty good on the ad front. Theyre going to have better monetization. Thats why that stock keeps working. I know it was one of your early picks, how to play gena. I. And the one that continues to be disappointing was google. You know, and so, ultimately, hopefully some day theyre going to get it together, but right now, even with todays gains, it doesnt seem like thats a great validation, because apple has no strategy, is looking to them, rather than an aboutnthropic or doing a deal with openai. I think when we kind of dig into this apple google possible partnership, the headline and the initial gut reaction is for us to say, this is probably not good for apple, and i had the same type of reaction. But when i think about the distribution, the apple watch, the kind of the glp1s and all the focus on fitness, i actually think in the longterm, maybe a few generations down, they actually end up winning, again, because of Distribution Network and how ubiquitous that name is. And from an application standpoint, to me, i can see how having a realtime suggestion on what one should do to solve a certain problem that comes up in realtime, that seems to come to mind for me. Quickly, in the here and now, though, so much of the Broader Market is predicated clearly on the nasdaq, on semiconductors, more specifically, on nvidia, which is 27 of the smh, and you can pull up an afterhours chart here and injade is trading 865 or so. If we came in today waiting for something, and this is at least 5 17 at night, a sell the news event, what does this mean for the Broader Market . So, just keep your eye on the price action here. Do not miss a cnbc exclusive interview with jensen huang tomorrow, 10 15 a. M. Eastern time on squawk on the street and then with jim cramer on mad money at 6 00 p. M. Eastern. Coming up, how apple and alphabet could be coming together. And what it will mean for the iphone in your hand. More on that next. Plus, crude, copper, and rates, oh my. All three ticking higher as investors await the feds next move. How to prepare yourself ahead of this weeks policy meeting. Dont go anywhere. Fast money is back in two. This is fast money with melissa lee. Right here on cnbc. Rylee from rylees realty hi this listing sounds incredible. Lets check it out. Says here it gets plenty of light. And this must be the ocean view . Of aruba . Huh. This listing is misleading. Well, when at t says we give businesses get our best deal, on the iphone 15 pro made with titanium. We mean it. Amazing. All my agents want it. Says here. inviting pool. Come on over too inviting. Only at t gives businesses our best deals on any iphone. Get iphone 15 pro on us. personalized Financial Advice from ameriprise can do more than help you reach your goals. I can make this work. It can help you reach them with confidence. No wonder more than 9 out of 10 of our clients are likely to recommend us. Ameriprise financial. Advice worth talking about. This looks like an actual farm. It looked cute on the app. meanwhile, at a vrbo. When other Vacation Rentals arent what theyre cracked up to be, try one where youll know what you get. You can make money the hard way as a bullfighter arent what theyre or a human cannonball. Or save money the easy way, with xfinity mobile. Existing customers can get a free line of our most popular unlimited plan for a year not only will you save hundreds but youll also be joining millions who have connected to americas most reliable 5g network. Sure is a lot safer than becoming a stuntman for money. Get a free line of unlimited intro for a year when you buy one unlimited line. Visit xfinitymobile. Com today to learn more. Welcome back to fast money. Google would be on the verge o