Live from new york city, good morning, good morning. Equity futures positive on the s p 500 by. 5 . Coming into thursday, looking to reclaim alltime highs. It is a beat, it is a raise. Nvidia does what nvidia always does. Morgan stanley, overweight. No signs of slowing down. Another quarter of excellent growth. Wedbush, outperform. No signs of any pause in demand. Lisa we always talk about how much the share price has gone up in the last 12 months. Profit rose 628 in the last year. This is a company that relies on amazon and alphabet, and that is a feature at this moment. Jonathan that stock in the premarket up by 6. 6 . Dan ives joining us later on. Annmarie he says that is a masterpiece that needs to be hung in the louvre. What you are seeing this morning is not just everyone continuing to say bye, but Goldman Sachs saying we are going to raise our price target. Even though it was just this week they raised their price target. What was so clear on this call last night is that demand is outstripping supply. There is this insatiable demand, even for some of the older models that nvidia has. Jonathan north of 1000 in the premarket. It will not be for long. We are getting a to and from one stock split as well. I take the snobbish view on stock splits. It doesnt matter. Lisa from iso when it matters because it becomes a little bit more affordable. Basically is a nod to Retail Investors. He also increased their dividend by 150 to . 10. But it is 150 gain. Jonathan i was listening to manus cranny this morning. It is the direction of travel that matters. The direction is pretty obvious. Everything is moving up into the right on the charts. We are up by more than 6 in the premarket on nvidia. On the s p 500, positive by. 5 . In the bond market, a bit of price action off of the fed minutes. Some of the fed minutes, i have to say, was there any news in this . And how dated was this . Many officials expressed uncertainty over the degree to which policy is restraining the economy. Various officials mentioned willingness to raise rates. Was that a reason to sell or an excuse yesterday . Lisa this has been a rorschach test. Pretty much all of the notes that came afterwards reaffirmed previously that they thought this is evidence why. Various officials talked about her willingness to raise rates if it was necessary as being something that indicated maybe the specter of higher rates ahead is not totally off the table. Were these really changing anything significant . We have heard that from individual officials. Im not sure it moves the needle, but it was an excuse to sell. Annmarie i think there is some nuance there where it says, many participants comment on the degree of restrictiveness. I look at jay powells testimony from may 1, one of his first sentences was, our restrictive stance is putting downward pressure on economic activity. Is he really representing the committee . Jonathan we have been asking that question a few times. How much distance is there between jay powell and the rest of the fomc . Coming later, nvidia delivers once again. Anwiti bahuguna giving another boost to equities. Michael shepart on the latest antitrust suit out of d. C. Nvidia delivers another beat and raise, sparking a 140 billion stock rally. Also rewarding investors with a high dividend and upcoming stock split. Angelo zino covers nvidia for cfra. Joins us now. First of all, once again, a beat and a raise. Your reaction to this one . Angelo not surprised, right . It was definitely some concern going into the quarter about what the guidance would look like. I think everybody knew it was going to be a beat in terms of the quarter. In terms of the guidance, i think there was concern going ahead of that blackwell launch later this year, whether the momentum, you know, for these chips, would be able to hold up. Not only are we seeing at hold up, but the momentum continues to get Even Stronger than it had been earlier this year. I think that is a testament of kind of where, you know, the enterprise space is. Where these Cloud Service providers continue to significantly invest, which we told investors we do believe there is kind of an ai war going on. All of that is continuing to drive this Strong Demand for nvidias gpus. Jonathan that is microsoft, alphabet, amazon. When we talk about runway, how long is that here . Angelo i think that is the answer everybody wants. It is kind of like, when do we start seeing a soft batch in terms of some of these Cloud Service providers . Our view is what these Companies Just cited after they reported q1 results. I dont think you will see a soft patch in 2024, and for all intents and purposes, all of these companies have alluded to higher spending in 2025 as well. When you kind of look at the trajectory for the four biggest suspenders in the u. S. Over the last six, seven years, those companies have essentially tripled their capex spend. There is no reason to believe the capex spending environment is going to soften any anytime in the near future. As long as you continue to see improving dynamics from an end market perspective, Free Cash Flow will continue to grow, and they will continue to invest heavily on the ai side of things. You are looking at growth in terms of a hey i spend, spend. Here probably decelerates, but still a very healthy trajectory. Lisa nvidias market share in ai chips is estimated somewhere around 80 . Do they face any real competition . Angelo listen, they are not going to be able to sustained their share position within the broader accelerator space. We have told investors, expect them to lose share over time. Incremental share to the likes of amd, and potentially others, some of these cloud providers. Just from an affordability perspective. That said, nvidia will continue to dominate the overall accelerator space. The gpu environment. More importantly, we think they continue to take share in terms of the Broader Data Center dollars out there. What is going to happen is, you migrate toward blackwell, you know, greater cpurelated revenue, for instance. Like well is more of this platformoriented company. You heard them last night talk about spectrum, which is their new ethernet offering on the networking side of things. Thats going to be a multibilliondollar revenue trajectory in 2025. There is a lot more revenue potential outside gpus for this company, and that is going to bolster their revenue trajectory. Lisa you are going where i wanted you to go, which is the idea that a lot of people have been looking for what the competitive threat to nvidia is. Maybe that is the wrong question. Be nvidia is a competitive threat to amd and intel because they are broadening. They are moving into personal computers, or they are trying to, which is sort of new, since the hyper scaling aspect has been a main driver. Is that something that is an existential threat to intel and amd . Angelo i think as far as where nvidia holds their competitive mode i think most people are aware it is on the Software Side of things. They controlled the entire stack out there. But amd has been able to successfully do on the cpu side of things, in terms of taking share from the likes of intel, is really being able to have a hardware device out there to really be a second alternative. You cannot do that on the gpu side of things, in terms of a more aienabled environment, because you need the software offering. Nvidia has a twodecade head relative to the competition. Its going to be difficult for the amd, intels of the world to crack the code here on the nvidia side of things. In terms of the Competitive Landscape here, yeah, we do think nvidia is going to look to take share, specifically on the cpu side of things. That is a greater competitive threat for the amds and intels of the world. Especially when we start thinking about more Energy Efficiency issues going on as you move to these ai workloads out there. I think zuckerberg not too long ago cited that Greater Energy was more of a bottleneck at this point in time then even getting his hands on gpus. So, that kind of tells you, armbased cpus are going to be in hotter demand over the next several years. Annmarie given everything you just said, should you have a higher price target for the company . Angelo i think the debate here is really, what should be the multiple on this stock . I think a lot of people are wondering the same thing. Should this be a stock that trades at a ford multiple closer to 50 times . Listen, when we think about how to value this name and what the potential value of this company is over time, i think finance 101 kind of tells you the best predictor of the valuation of any company is kind of the present value of future Free Cash Flow. This is a company where we think it is going to generate about 60 billion of Free Cash Flow this year. Probably get closer to 80 billion in 2025. That is going to start to look like levels we are seeing from the likes of microsoft, which is the Biggest Company out there. You think about the Free Cash Flow trajectory, there is definitely upside potential to our 12month target price. Jonathan finance 101 would tell you that 10 for one stock dont matter. Do they matter . Angelo listen, if you are asking an analyst point of view, i would say it doesnt matter, right . Its not going to have an impact on the fundamentals of this company. Its not going to have an impact on my estimates. I will say this. A 10 for one split here, it does matter to the Retail Investor out there. Maybe some out there that dont have as much to invest out there. I think it is more of a perception thing. I think also it potentially gets them added into more priceweighted indexes. The one i am thinking about is the dow 30. It would make all the sense in the world for nvidia to get thrown into that index. Jonathan appreciate your time this money. Angelo zino of cfra with macron 1160 price target lets give an update on stories elsewhere this money. Here is your bloomberg brief with dani burger. Dani janet yellen has called for the u. S. And europe to Work Together to counter chinas industrial overcapacity. Speaking with the g7 finance ministers in italy, janet yellen called for a united front. G7 is has collectively recognized the need to protect our workers and businesses from unfair practices and overcapacity threatens the viability of firms around the world, including in emerging markets. I believe it also poses a challenge to chinas growth. Dani beautiful backdrop for that speech. Nikki haley has said she plans to vote for donald trump, but did stop short of an endorsement. Nikki haley had challenged the former president for nomination. She was speaking publicly for the First Time Since dropping out of the president ial primary. She said biden has been a catastrophe, so i will be voting for trump. Wall street homes are facing out working from home. An official at the Regulatory Authority said there is no rule requiring employees to come into the office five days a week. In fact, dear new rules will help preserve workplace flexibility. It was specifically responding to reports that barclays was weighing five days in a week for employees that come under finra regulations. Jonathan just a word on the g7. Should they hold it in italy every year . Given the backdrops . Lisa that would be pretty incredible. Jonathan isnt that what everyone in the g7 wants . Annmarie there are whispers where the officials alike, it is in italy. Jonathan up next on the program, the nvidia optimism goes worldwide. All eyes have been on nvidia, and i think there is opportunities outside just nvidia to play the ai game. Jonathan that conversation is coming up next. Live from new york city this morning, good morning. office chatter is it me. Or is work not working . At least, not the way it could work. Your people are buried in busy work. And you might be thinking. Can ai make it all work . Can ai help your people work. Without all the workarounds . Feel better. Make Customer Service work the way customers expect . That one. Make your old tech work with your new tech . Thank you. And todd here is wondering, can ai do all that. Now . No pressure. It can. On the servicenow platform, ai transforms your entire business. Your people work better, your customers are happier, and todd. Well. Hes practically euphoric. Practically. Because when your people work better, everything works better. So what are you waiting for . Lets get to work. Idris elba works here . Mmhmm. Ya, hes super nice. Jonathan equities on the s p 500 doing ok, up by. 5 off of betterthanexpected numbers from nvidia. We see that every quarter. The stock is up by 6. 7 in the premarket. The nvidia optimism goes worldwide. There is a lot of attention with the stock up as much as it is your today. All eyes have been on nvidia, and i think there is opportunities outside of just nvidia to play the ai game. I like looking under the surface at lessdiscovered names. Jonathan nvidia producing another bullish sales forecast, helping the u. S. Futures. In europe, tech stocks are performing other sectors. Around the table with us here in new york, Anwiti Bahuguna of Northern Trust. Stocks of bronze, that is your call. Stocks over bonds, that is your call. Anwiti thank you for having me. This was not the driver of the call, though. Looking more on growth factors, u. S. Gdp Growth Continues to get upgraded and growth is broadening globally. We are seeing that happen in other parts of the world also. That was the main driver, but i will take this. Jonathan is happening in europe, happening in china too. Looks like the growth policy mix is going to pick up there. Is that catch your eye as well . The continent, the euro zone . Anwiti absolutely. We have added to em. It is a broadening story globally. Lisa just to build on what jon is a saying, is that already priced in . We have been listening to people say, europe is going to be a bright spot. Now we get betterthanexpected activity get a coming out of the region. Is it fully priced . Anwiti certainly not in europe or em. When we look at our date of the one area of the globe where markets look slightly extended is, indeed, u. S. And not abroad. I dont believe it is priced in internationally. Lisa a lot of people argue that this was going to broaden out only when we saw the rate cutting cycle began. We do have some conviction from the ecb that we are going to see rate cuts starting in june. In the u. S. It is a completely different picture. You can read the minutes however you want to read them, but a lot of people are read them reading them as regular gently as relatively hawkish. Do you see the broadening out hinging on the idea of u. S. Rate cutting cycles Getting Started on an earlier basis . Anwiti yes, and i think the minutes yesterday were certainly interesting in that respect. That policymakers are actually debating whether policy is restrictive or not. I think it helps that the messaging so far, at least from leadership, has been that policy is restrictive and they are not looking to hike. So, clearly it will be quite disruptive if we saw Inflation Numbers continue to edge higher and the talk changes from policy is restrictive to that question we saw in the minutes yesterday. But is it really restrictive at these levels . Lisa which is something people have been debating. Maybe we are asking the wrong question. Should we be asking, which country is going to stimulate . Which country is going to invest dramatically in new technology . What money is going to be put into the economy that has a stimulative effect that offsets any potential change in the right cycle . Anwiti that is the debate of, do we need even more policy restrictive policy if fiscal is still loose . We are not seeing that in in any of the regions, except maybe some more stimulative policy from china, which the markets were waiting for. In the u. S. , an election year, you are not going to see any restriction. You are going to see some concern, is the policy restrictive enough to counter that fiscal . Annmarie when you are overweight stocks, does that include china . Anwiti doesnt indeed. It is part of the emerging market index. Annmarie and the risks that are out there, how high are they on the list . Anwiti i think those risks are very well known. They have been well known. It is reflected in the valuations we see in the markets. Again, it is not im disregarding them. We are not overweight china. It is part of the overweight of the entire complex. Very concerned about geopolitics on that front, but something we are going to take at these prices. Jonathan help me understand the call on Natural Resources. Where are you on Natural Resources now . Anwiti we are seeing better opportunities elsewhere in the equity markets at this point. Jonathan could you explain whether that is taking a bearish view on Natural Resources or a relative story . Anwiti it is a relative story. More that there are better opportunities elsewhere. Lisa you have been overweight stocks, more underweight bonds for a while. More neutral on credit in particular because of the risk capacity. We have seen that for a while and a pretty significant rally. When do you know that valuations are going to test the ability to gain more Going Forward . Anwiti gain more on the stock sign . Well, we get this question often from clients that are not valuationsrich. This happens not just at the overall stock market level, but for example nvidia. Or looking at any particular segment of the stock market. And we have done some research on that at the stock market level. When you look at the current p e s, and the current return of the stock market, the correlation is 3 . It was very little Predictive Power in expecting one year returns based on current valuation. It becomes extremely meaningful when you extend that horizon and look at five years or 10 years. In the correlations rise to above 50. It is very hard in the short term for valuations alone to be a driver of the selloff, but other catalysts matter more. Does growth slowed down . Does inflation become more worriso