High, thanks to more ai optimism. Microsoft kicks off a big event, unveiling new ai pc. Well talk more about that. Any kind of advance in ai is going to be good for those chip stocks. Analysts are getting even more bullish on nvidia. Up 91 so far this year. Lets begin with that existential question about dow 40k. Michael santoli is over at the New York Stock Exchange. Reporter indexes making record highs are generally a feature of a strong, underlying trend. Trends tend to persist. Its not necessarily the case when we get to a big number, all of a sudden you have have to start raising the alarms. The dow does hit one of these round number thresholds, although who knows if the several size is big enough. To me, what matters is all the inputs that you would look for are also generally also in a positive state. Earnings are high, and also forecasts going higher. Credit conditions extremely strong, and it seems as if the market believes the economy can with stand, lets say ten year treasury yields in the fours. To me, the argument is, are we paying too much for this happy scenario in the short term, and not accounting enough for the variables that could come along, such as whether the slow down were seeing in some consumer activity, domestically, is not just this happy deceleration to a strong landing, or something worse. And the other things that could just throw things off course. To me, its about tactically, we can say maybe we have to rest or give something back. But longer term, most things would say dont stress the market. I want to ask you about mike willson, kind of throwing in the towel and raising that s p forecast i think to 5400 now. I think its just one of these saying, it hadnt worked. Then we skidded for three months to the october low. So maybe history repeats here. Yeah, look. If it were a case where everybodys bullish, and the one remaining bear throwing in the towel, i would be more concerned. He sort of markets his opinion to mark it. This is an inherently impossible job to forecast the index. I do think he concedes that he was evaluation sensitive. 5400 is 2 up from here. Not even. So its not exactly as if hes a raging bull. If i look at the opinion right now, its very lukewarm. The median and average forecast for this year for the s p, are basically where we are right now. So its not the case to me. And there were some in the year 99 and 2000, when you had these prominent bears that were fired or just left the business. That was a little bit in receipt spentive a signal, people were getting a little too qualified. I want to keep the conversation going. Our next guest says that rally can continue. Shes stephanie lang, at hightower and a cnbc contributor. Always good to see you. Lets play a game of would you rather. I would rare higher growth and inflation not exceeding these levels. As you know, we topped out about 9. 1 , and were running in the 3s. We all want to get to 2. I dont think were going to get there, because the growth here in the states is pretty strong. 3, 3. 5 . Thats above trend. Thats driven by the secular stories that are happening in manufacturing, like onshoring and the energy transition. Its also a little bit of pockets of strength in housing. But its also globally, were seeing strength. I dont think thats getting enough attention. Its China Growing 5. 5 . Its india growing 7 . Uk doing a little better. I think inflation is going to stay elevated, but i would rather, to your question, i would rather a little better growth, because that means earnings can continue to grow, and we know that stocks follow. Ill touch and go that point, one last time, then i want to switch to india. In other words, if youre willing to tolerate slightly higher inflation, that would suggest youre probably willing to tolerate Interest Rates roughly where they are today, and dont expect a big series, certainly, of Interest Rate cuts beginning at the end of this year. Yeah, i dont think were going to see any Interest Rate cuts. Even if we get one or two, thats not going to do anything, really. We put in place so much already at 550 basis points over the last 15 months. The point being that the fiscal stimulus that has been put in place over 8 trillion, is more than offsetting the higher Interest Rates. So eventually were going to slow, but for now, were growing and growing quite nicely. Do i think its going to grow another 11 from here . Were up 37 in the last 18 months. So we could grind higher, and thats kind of what im expecting, nothing really very heroic though. Lets talk about bill brown. Do you think hes going can to be a household name one of these days . I do. I think he already is, and welcome back kelly, we havent been on in a while. Its great to see you. So bill brown was at alfrey harris, and the stock was up over 400 . He has an outstanding record. He was able to not only focus on growth, but also on Margin Expansion in a five year span. What i think hes going to do as the new ceo of 3m, i think hes going to focus on growth, focus on margins, and free cash flow. To me, the stock is trading at kind of a troughish kind of number. They already cut the dividend. I think this is ge2. 0. A lot of people wanted to grab that one the first time around. Lets get back to india. You just bought an indian etf. Why . Whats the thesis . So i bought the etf, because you get the list of diversified companies. Its fairly concentrated. Reliance industries is their 8 position. I really like that story very much. Its energy, its power, its grid. Its telecom. Its infrastructure. So we know that enda needs to build their infrastructure. We know theyre going to grow earnings about 15 over the next couple of years. Maybe even more, tyler, depending on the margin story. But the sale side is going to be very powerful. Thats because of the fiscal stimulus that has been put in place. I like it very much. The etf is behind the s p 500 in terms of year to date performance, i think it can play catch up, so its a long term theme for me. Interesting to see what will happen with target later this week. Walmart grew a lot of attention and praise last week. Target. So i own target. I like target. I like this announcement. Theyre announcing lowering prices on 5,000 goods items. I think theyre going on the offensive. And balancing profit versus growth. I dont think were going to see that same growth this quarter. Its all about operating margins. If this company can get back to 6 operating margins that will get you Something Like 10, 15, 11 a share in earnings. That means the stock is trading at 15 times. Ten multiple points lower than walmart. Walmart talked about private label strength. Target does 30 of their revenues in private label. The margin story, theyve got to either do a 6 number, or have an outline to get to 6 , i think for the stock to do well, if its weak for whatever reason, im a buyer. Again on the evaluation and the Growth Prospects down the road. Stephanie link. We appreciate it. And well see if we can turn this market around this afternoon, as the dow is near session lows. Coming up, the next wave of ai. Microsoft revealing its new line of ai pcs. Well hear from a top exec about what to expect. Plus hims and hers in good shape. News it will start offering access to weight loss injections on its platform. Shares are up 27 . Well get the trade in free stock lunch ahead on power lunch. Every shot is an opportunity. And success requires drive, resilience, wow. Get it there. And sometimes luck. But what if luck had less to do with it . 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You could save up to 70 on your wireless bill. So you dont have to compromise. Powering smarter savings. Powering possibilities. Welcome back. Microsoft is unveiling new pcs today. Theyre ai pcs. And Ceo Satya Nadella calls them the fastest, most ready windows pc. Which makes sense, because ai is only about half a year old. Welcome to both of you, steve. Hello, youssif, fresh off the stage from this big copilot pc announcement. We knew there was going to be more ai features and really focused on hardware. I guess my question for you is, now that we have this ai pc moment happening with you, you guys are calling it pc moment. What are you telling the people who you said this is going to be an upgrade moment for a lot of people. When people are looking at these devices and say i may have bought a computer two or three years ago during the pandemic, why do they need to upgrade again now . First of all, the computers they have today will be great, and were bringing things like copilot to these pcs. These are the most advanced pcs weve of will. Their faster than a mac book by a long wile. You can get essentially a photographic memory of anything youve ever seen on your pc called recall. You can create in realtime with ai. Fast, private, and free, and the ability to do live translation. While you and i are talking, you can literally switch language and understand. Much of this, because of these chips, specifically qualcomm was part of the announcement, were used to seeing ai being run on cloud services. Can you talk about whats being done in the cloud, versus whats being done on these pcs to make them stand out . Reporter the chapter of Ai Innovation that were unveiling is on that on device action. We have 40ai models that are on the device, that allow you to do that creation in realtime, or recall. All of that happens locally. Its all very private. But we still can go do the cloud to get updates. Well update these models through the cloud. Finally, copilot will run with the latest gpt 4. 0. You get the best of both. Then folks today, who might have a computer and looking at these features, they may not be ready to buy a new device, are they ever going to get features like you just mentioned . Some of these devices do require this new pc with the new mpu. You need that new performance. You need that new ai model on that device, so this will be a reason to go buy a new pc. Qualcomm is obviously the new chip maker here. You also mentioned amd coming out with similar products. The one chip company i didnt hear was nvidia. They continue to play an important part. What we announced today was the gpu, cpu and these npus. Nvidia provides these fantastic gpus. In addition, of course to the amazing npu we have from qualcomm and others. I believe kelly has a question back in the studio. A very pragmatic one. How much will these new pcs cost . One of the great things about how we built them is they are very affordable. They start at 999. If theyre 200 cheaper than the mac book, it sounds like theyre meant to compete with them. But what about where the real competition is taking place these days on the iphone. Is there ever going to be a hand held device to that category killer . Today the focus is definitely on the pc. I think what is great about what weve shown today is the ai models, that architecture is now the future of how these devices will take place. Think of that as eventually being able to go to any device, but today, the focus is definitely on the pc. You mentioned openai and that gpt 4. 0 is eventually going to make its way to windows, sooner rather than later. Theres this kind of concern going around with, you know, are they taking safety seriously there . You guys rely a lot on openais technology. Microsoft is a major investor. Are you confident in the safety of these products . Yeah, we have great confidence in sam altman and the team there. They have great work. Thats the whole focus of openai is to really build a great future of ai for the world. We work with them quite a bit, and we also add our own extra efforts that we put on top of that. Your own safety efforts on top of those, youre saying. Then last question. Apple got a lot of mentions in that presentation. I assume that was deliberate. Do you feel like theyre behind . Well, i feel like we definitely have a very clear value prop. We have 60 faster than a mac book. 200 cheaper. I think we have the lead now in the world of ai pcs, and we have these superpowers you can do on the pcs, you just cant do on a mac book. Tyler kelly, ill send it back over to you. Steve, thank you very much. Yusuf, thank you as well. Ai is going to make a boone putting chips in those pcs. Well hear a lot more about those chips over the next few weeks, and who better to explain it than kristina. Windows 10 is set to expire or lose support in 2025. The average pc cycle is four years. Our company bout laptops during covid when everyone was working from home. The assumption is at the end of this year, youre going to see a lot of buying. What better time to offer an ai pc than at this time . You buy locally, and they also argue too, theres a new chip in there, the npu, which is a neuro processing chip. Npu, gpu is for graphics and images. Nvidia realized hey this is also good for ai. Then the cpu, that does all the back end work. Then this new chip, npu. I say new, apple has been using it a long time, that focuses solely on ai. So theyre really focusing right now on battery life and power, because theres no killer app. Thats whats missing in this conversation. That thing he said about recall sounds wonderful. So youre buying in the hype. They have this power that would basically allow you to go back and check hey, someone scatter brained like me, where was the file that had the thing in it . Im asking for a friend. There might be some people who wouldnt want that. Just saying. Its all local. Youre willing to give up personal stuff for convenience, which is what weve done throughout all the internet. I dont think its going to stop anytime soon. To your point, thats going to be the major benefit. You can find an email tyler wrote to you seven months ago on a very specific topic like industrials, for example. Its all saved there. Thats why he brought up privacy. Security is a big thing too going forward. But 1,000 is not cheap. Its no the nothing. Lenovo, theres are priced at 1200 minimum. Thats a delay. Did i ever send you an email on industrials . Im not sure. Rings a bell. Industrials are back in vogue almost in a way. I just wanted to switch it up there. You do wonder if they can make the case for changing the hardware. Nvidia, that stock is moving higher. The report wednesday, weve got some analysts raising their price. Im calling it a love fest, just because every day, theyre actually increasing estimates which helps the value of nvidia. Thats considered, hey, nvidia is still a good value when you look at it over the course of the last three years or when you compare it to the s p 500 when were talking about growth rates, nvidia just keeps growing like crazy. Everyones expecting a b, because Data Center Demand is still so strong. You have all of these big hyper scalers spending money. Spending money on creating ai infrastructures within their on countries and then that supply has actually improved on the current chip theyre offering in the market. And they have another one coming out, blackwell. Analysts believe theres going to be so much demand, even leading up to the next iteration, that the love fest will continue on. I should say, jeff is not part of the love fest. Momentum trade. Heres a name that everyone is already in, and thats why you havent seen as Much Movement leading up to the earnings date, which previously, i think it was just last quarter, you did see more of a negative result going into it. So i think the magnitude, were going to see a b. Its the magnitude. If theyre going to increase their guidance going forward, thats really going to be the barometer of where the stock is going in the short term. Then june 2nd and 3rd. Thats the big one for our audience. Theres going to be something. Thank you, kristina. Great to have you here. Eang ospkif ai, openai announcing risks. Well get the key details in tech check up next. And electricity. Are forever in bloom. Welcome to beyond. The mercedesmaybach eqs suv. vo what does it mean to be rich . Maybe rich is less about reaching a magic number. And more about discovering magic. Rich is being able to keep your loved ones close. And also send them away. Rich is living life your way. And having someone who can help you get there. The key to being rich is knowing what counts. Welcome back to power lunch, everybody. We just learned more about microsofts ambitions when it comes to ai pcs, and of course you cant talk microsoft and ai without also discussing its relationship with openai, which is going through some drama as well right now. Tyler, all of the drama, none of the answers. If it feels like deja vu, youre not wrong. Some of the people ive been talking to arent surprised at all by ilyas ouster. He lost a board seat amid the saga. But his exit was quickly followed by another openai employee, which with ilya oversaw the team seeing risks. He was not as quiet on his way out. Trillion Dollar Companies like microsoft, they really like shiny products, but amid the drama, microsoft is still all in on open ai after pouring in 13 billion. Signs of it, not sure what to attribute it to, but it could be some of that drama. I thought it was interesting when steve just asked that microsoft executive, he still had confidence in openai, and the executive said great confidence in sam altman, by name, and the team there. He said that was their whole focus, to build a great future for ai and the world, which is getting, maybe a little harder to argue with all of these departures. Yeah, how Many Companies are really vying in compared with openai does. How Many Companies kind of do what they do . Thats a good question. So openai develops chatgpt, which is really the foundational model. Its most district rival is anthropic, which was built out of openai. Theres a number of others though. An open source model, google, of course, is developing its own llm. Someone i was talking to this morning believes these closed language mods are becoming commode commodotised already. Maybe theyll start to be sold off, or youll see more partnerships like the one b