Nvidia as it lives up to the expectations. Plus the department of justice takes aim to breakup live nation. Tesla ceo elon musk prepares to take the stage. First, lets check the markets. More broadly on these two singular names we want to highlight for you. Front and center, we are focusing on live nation down within 5 . The u. S. Justice department and almost 30 states suing live nation because they want the company to sell off ticketmaster. Live nation saying it is not them but the artist teams that set prices, not ticketmaster and they dispute the fact that they are a monopoly power. We have so much more as we go to the doj live. Nvidia up more than 9 . Extraordinary and eclipsing 1000. We therefore have a share split that will be music to investors ears. More music, a jump in revenue with you on your growth. No wonder the share price is up. So much to digest in terms of revenue, future revenue potential. They will double yet again to 28 billion in the next quarter. Ed this chart shows the market value or market capitalization of nvidia. It is currently at almost 2. 6 trillion. What that chart on the screen is showing you is that nvidias value is more than tesla and amazon combined. Interesting in light of the fact that tesla and amazon are both customers of nvidia. In this session alone we are up more than 9 . We have added almost 220 billion of market cap in a single session. Nvidia has added almost two intels worth of market cap in a single session. Lets get the reaction to the numbers. The story is pretty clear. They are selling to hyper scalars but the growth is that they will move beyond. That seems to be the read. Exactly. We want the enterprise beast to grow. It grew fast for the very first time because enterprise is much more diversified and sticky. Caroline when we are thinking about the stickiness will be ultimate value many are worried about the air pocket will be the shift to the lacqua architecture. Is that something that we have seen a hint of . There are two aspects. In a normal cycle you would expect these h 100s to last about four years but what we are seeing right now is the biggest customers are racing. I want to use the analogy of a pitstop in racing. If you want to go cheaper or higher, you cannot afford to spend a few seconds when youre fighting for milliseconds. That is what is happening with customers. They cannot afford a slowdown and not purchase the most greatest and latest product that nvidia puts out because everyone is competing against each other. Caroline we know where the market share is ending up. Thank you for the latest from Bloomberg Intelligence. For more, jp. Talk to us about what was the most important line coming from investors yesterday. Jp thank you for having me. We no longer own nvidia in my midcap fund. I dont think it will qualify. The most port thing that we heard was that hopper is doing quite nicely. Hopper 200 is coming and has started shipping and before the end of the year we will see blackwell 100 falling. They are putting up such velocity in production that they are making it difficult for challengers to keep up with that. There are they are a plant fear platform company. All of the networking. Semiconductor analyst, we dont see a lot of these and that is why you are seeing unprecedented numbers because this Artificial Intelligence opportunity is a secular one and perhaps one of the largest in our lifetime. The only person i can think of over the last years who has had as much success is someone like Patrick Mahomes of the chiefs. Just incredible. Ed franklin has a lot of exposure to nvidia. I know a lot of people at your firm call you mr. Nvidia and you will probably keep your job for the time being. You have done a good job so far. He has a lot of momentum and an answer for everything. I want to be accurate on this. He is also a little bit inconsistent. The cadenced of the product cycle is one new generation of accelerator per year and he talks about how the h 100 generation is designed such that you can just swap it out when a new generation comes along and that all customers have great visibility but the data center guys, we have to ask when this slow down slows down at some point. Give us your most objective assessment of that timing. Jp certainly. You make extremely important and valid points. At Franklin Equity Group we try to maintain discipline. Do not let my youthful look surprise you. Ive been around since the 1990s. The tech sector is known for this. Ive seen these booms and busts. For those who have been doing this for years, nvidia, it is a cyclical business and you do get these boom bust and people do miss quarters. If i were to wager i would be on your side that there will be a quarter or two quarters where these cloud guys decide that we have enough gpus right now. We will pause for right now. You are absolutely right. It will not be linear and up to the right which wall street loves. There will be a time where shares get hit and where an air pocket does happen. You have to remain disciplined. You have to your dcf, your modeling, talk to customers and competitors and be very disciplined. Caroline stick with us, jp scandalios of Franklin Equity Group. Lets go to the duo j holding a press Conference Regarding the showing of live nation. Exorbitant fees and technology will failures have been criticized by fans and artists alike. But we are not here today because ticketmaster is inconvenient or frustrating. We are here because that conduct is anticompetitive and illegal. Our complaint makes clear what happens when a monopolist dedicates resources to entrenching its monopoly power and insulating itself from competition rather than investing in better products and services. We allege that live nation has illegally monopolized markets across the live concert industry in the United States for far too long. It is time to break it up. Live nation ticketmaster has made itself ubiquitous in the Live Entertainment industry. It controls at least 80 of primary ticketing at major concert venues, directly manages more than 400 artists and controls more than 60 of concert promotions across the country. It owns and controls more than 60 of large amp theaters in the United States. We allege that to sustain this dominance live nation relies on unlawful and anticompetitive conduct to exercise its control over the live Events Industry in the United States and over the fans, artists, promoters and venues that power the industry. The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out and venues have fewer real choices for ticketing services. As detailed in our complaint live nation ticketmaster locks out competition and ticketing through the use of longterm exclusive ticketing contracts with venues that can last over a decade as well as by acquiring venues themselves. With exclusive agreement that cover more than 70 of concert ticket sales at major venues across the country, ticketmaster can impose a seemingly endless list of fees on fans. Those include ticketing fees, service fees, convenience fees, platinum fees, per order fees, handling fees and Payment Processing fees among others. For fans in the United States this illegal conduct means higher prices. In other countries where venues are not bound by ticketmasters exclusive contracts venues often use multiple companies for the same event and fans see lower fees and more innovative ticketing products as a result. We also alleged that live nation ticketmaster uses these agreements then use and has controls over those venues to unlawfully pressure artists to agree to its Promotion Services. Live nation often sacrifices profits it could earn as a venue owner by letting its venue sit empty rather than opening them to artists who do not use live nation Promotion Services even during peak concert season. Live nation has not only deployed anticompetitive tactics to artists and venues into using its services and to charge excessive fees, it has also worked strategically and illegally to eliminate the threat of potential rivals from emerging across any of its businesses. As detailed in our complaint live nation suffocates its competition using a variety of tactics from acquisitions of smaller, regional promoters and venues to threats and retaliation to agreements with rivals designed to neutralize them. This has included acquiring or coopting key independent promoters even with when the economics did not make sense for the business. As recounted in our complaint live nation acquired a controlling stake in ac entertainment, an independent promoter in tennessee. Live nations chief Strategy Officer assured executives that even though quote the numbers are not super exciting and this feels like more of a defensive move, the acquisition helped quote grow our moat in the national market. When faced with another additional competitor live nation took action to ensure that the competitor would not threaten its dominance in the live music industry. Live nation initially categorized that competitor, a venue operator, as one of its biggest competitive threat. Over time oakview and live nation morphed from competitors into partners. Live nation executives repeatedly scolded them for trying to compete. In one instance live nations ceo warned oakview that competition would only lead to artists demanding more compensation. Lets make sure we dont let them now Start Playing us off, referring to an agency. In a similar instance live nation, scolded oakview kaspersky and saying who would be so stupid to do this and play into the artists arms. Oakview again backed down. We have never promoted without you. Ed that is u. S. Attorney general Merrick Garland speaking at the department of justice and talking about the action against live nation. The accusation is that live nation has a monopolistic hold on the market and has made illegal practices to maintain it , heavy emphasis on what live nation does to influence fees. The pushback from live nation is that the artists themselves control the fees. Lets go to luke ashore in new york city. He leads our screen time coverage of the entertainment industry. Something the attorney general said was about illegal actions trying to protect a dominant market position but what is it that the doj is accusing live nation of doing to keep the competition down . Luke that is something we will have to see as the case continues. Live nation is the number one promoter. Ticketmaster is the number one ticket seller. What the government is arguing is that live nation has used those businesses to reinforce each other and strengthen. For example it would tell a venue that if you want to book a certain artist that live nation promotes, you need to use ticketmaster. Or vice versa. You also heard that it has acquired potential competitors and done so to consolidate control in certain markets. It also has issues with these exclusive deals that live nation and ticketmaster strike with venues that lock in a relationship for a long period of time. They believe there should be multiple ticket sellers at venues. They have make claims like this in the past and it will be interest to seek whether the court is open to them. Caroline there has been a response from live nation saying that the dojs action will not solve the issues that they are concerned about and they are calling ticketmaster in monopoly might be a pr win in the shortterm but will lose in court. This will be a very high bar to having originally signed off on a deal and to then unwind it in this horizontal matter. Luke the government approved this deal more than one decade ago. Live nation has been under scrutiny. There has been a Consent Decree for most of their existence since that deal. There is this looming threat of federal investigation. This is the first big suit we have seen in a while. I think investors will see it as an overhang on the stock because there is uncertainty as to what this will mean. Most will probably still err on the side that it is unlikely it will get broken up but there needs to be remedies to set five government. Caroline it is so good to have you right here in the building in new york. We appreciate you weighing in on this case. Lets get back to what is driving sentiment. It is ai enthusiasm and it is nvidia back to you Portfolio ManagerSenior Vice President jp scandalios. Just returning to some of the enthusiasm we heard from not just ceo and cfo at nvidia and some of the concerns about air pockets and the shift to the most powerful chips but also china. I want to get groups on how much of a concern there is. Jp it has been an issue for the whole industry including equipment, semiconductor equipment. That is largely embedded or understood. The u. S. Government restrictions have certainly impeded growth or slowed growth. Nvidia and others have chips and they are making chips. The l 40 and aged 20 that are despect, that fall beneath government restrictions. The unknown for people like me is that the government might lose the gold mine goal line. Just another variable to consider. That headwind has already been communicated and is understood by the market. Ed the pushback is that there is unanswered demand around the world that will make up for the shortfall. Take a look at dell and intel. Moving to the downside. I wonder how much they will be between nvidia and the people like dell, rivals. Jp as i said earlier, they consider themselves a platform company. They will sell individual gpus or gpu cards. But yes, with the software, they consider themselves systems or a platform company. Caroline we want to thank you so much jp scandalios for holding over to keep giving us your expertise of Franklin Equity Group. Lets shift to telecomms. A billionaire is exploring a bid for miller, which values the company at 4. 1 billion. They are exploring financing offers but it cannot guarantee an effort will materialize. We want to dive deeper into this industry and talk about it from the u. S. Perspective and globally. One of the Biggest Telecom providers is at t. The ceo john t. Stankey joins us from the Jp Morgan Technology conference. I want to weave in the area we are in at the moment. The fact that we just heard from justin wang at ai. We talk about Energy Efficiency and in many ways you are having a similar conversation in the world of telecomms at the moment, innovation. You have a 14 big dollar spend 14 billion spend wireless network. John we are excited about what we heard before. We like carrying those around on our networks. It is an exciting time to be in telecom and our point of view is if you will scale at the level we are talking about, we need more cost efficiency. We need to be able to scale more dramatically, separating hardware and software in our infrastructure starts to give us that cost curve and that flexibility. That will be critical to have the ability to move forward in this environment. Caroline agile at a time where wireless demand is plateauing and slowing . John not at all. Wireless demand is up 30 per year and no slowing down. If you look at where we are with what is occurring from a uses perspective, you start getting workloads that come out of ai that will continue to fuel that. It is one of the key things this country needs the l with. If you will continue to see usage go up 30 , 35 per year, you have to build highways to take that. That comes on the foundation of spectrum and we need to make sure we have the policy right in this country to get more spectrum out there to deal with the rising workloads. Demand for handset might be coming down a little bit but the utility of connected devices, how people are using those handsets and the demand for the traffic they generate is not coming down at all. Ed good morning. This is ed in san francisco. My head is often outside the bounds of our atmosphere and open space. I was interested to see your deal with ast. Star link is doing a lot with the other carriers. I wondered if you have a really creative view of what the Addressable Market is for constellation direct to sell. John i think we have a view of it. I dont know whether or not we will understand exactly how consumers will use this. We have done a lot of work to not only understand who is the segment of the population that truly needs always on connectivity. That is truly what we want to do here. Most people wake up in the morning and say they cannot afford to be off the internet. Some folks have a lifestyle that takes in the places where they get to the bottom of the grand canyon and cannot continue to post to their website about whats going on with their family and it is really important to them or they have an important business call. There are others who do it incidentally. Maybe they are on a road trip on the interstate somewhere and they drive off the network and they need it for a day. We know those kind of behaviors in our Customer Base because we run the networks and we know what our customers are doing. We think there is a good up occasion for this just like when someone leaves the United States and needs to roam on a network outside the u. S. To make sure that they are connected when they are in europe or asia or wherever they are going. This is the next step in simplified connectivity and ensuring that customers are connected wherever they go. Ed why ast and not star link and spacex . John it is a nascent area where technology is starting to develop. We think ast has done a remarkable job of getting the technology right where it is consumercentric. The customer does not have to change anything they are doing with their handset and they can still avail themselves of the service. That is really important in our view. What we have going on in other parts of the industry is we are taking satellites and services that were fit for fixed wireless connections or fixed satellite connections and trying to make them mobile. It is more clunky as a result of that. But we are looking at is cost performance. How do we make it easy for the consumer. I dont think there will be more one winner. There will be multiple opportunities for providers. That is good for us especially when we have partnerships where we can have the right relat