Ahead of tomorrows key inflation data. Amazon the first record close since 2021. Thats one day after hitting a fresh 52week high. It was fresh, jim. Lets begin with the ongoing ai revolution. Last night on the social media platform x, elon musk weighed in on the Rapid Development of Artificial Intelligence. My guess is that well have ai that is smarter than any one human probably around the end of next year. And then ai the total amount of compute of ai i think will probably need all of humans in five years. Well get a lot more today, jim. Google cloud ceo keynote at note. I love tom curran. Hes been doing a good job. Dont call him tom. I will not. I spent a lot of time at ttc, the nvidia conference. We talked so much about when theyre going to be smarter. They are already. Surprised what musk said. One of the things that jensen said put your 100 smartest people together in a room and its smarter than they are already. Its just smarter. By the way, anything that can be done physically, it can do better. You keep saying this as if its already here. I made it up because i have nothing to say at 9 02. So im going for about. About the bartender who couldnt make your drink the bartender was an idiot. I was with the people that programmed the bartender. Hes going to get much better at his job. Hes not using the blackwell. The tie is good. Why are you looking at the tie . We had this conversation. I want to move on to the next one. When you came back you seemed much more concerned, similarly perhaps to mr. Musk, about what this will mean. Every time i ask you, all you want to talk about is the fact that they have a robot. The bad guys i think might be able to figure out how to imitate president obama using it. You hear it and you would be saying something negative about biden, and its made up. Its done by the chinese or whoever. Yesterday the commerce secretary said something about bioweapons. You think i heard it . I know. It was hard to hear. I think the guts of this is whenever you say anything, what i just want, people say guardrails. Theyre guardrails. Well, where are the guardrails during the great cyber hack of all our Health Care Records . The bad guys do not where was the guardrails when they shut down mgm grand . The guardrails only work if youre a good guy. Thats what im core read about. I think the bad guys might be able to do some things that we dont want. I think elon musk shares that concern to a certain extent. It hasnt stopped him from moving forward with his own efforts in terms of ai. It is a race in many ways still. Race condition under way in terms of competition between alphabet and google which was way ahead with deep mind, but had concerns then about the development of this technology in some areas. Mr. Musk has been concerned and has criticized the company he once helped to found being chatgpt or i should say open ai, chatgpt being the product. Here we are. If hes right, everything theres going to be genuine Artificial Intelligence. What happens if we try to make money off of it . We talked about thomas curran. That dang philadelphia accent. Thanks, mom and dad. We just found out that arm is going to be the backbone of google. The wall street journal story developing inhouse chips. I think thats incredibly good for arm. In the last quarter, broadcom was a big beneficiary of google in terms of making their own chips. Broadcom helping with that effort to create your own chips. Arm is already with microsoft and already with aws. So arm is the winner this morning as far as i can see. Broadcom, jpmorgan discovered there was a story i broke last week. I would buy arm on this on the cloud talk. I would buy arm because theyre in microsoft and in aws. That is big thats a big take. Now you try to be who to take it from . Possible from amd . I think they take everything from pad, intel. A shared owner. Yeah. I was confused about the commerce secretary. Obviously is an american gem. They also had 8 billion in overruns. You want to make sure they can repay the u. S. Meantime, some of the other google headlines today talk about expanded partnerships with crowd and palo alto. Crowd is amazing. Theres one where they really are trying to palo alto does on prem and also the cloud look at the lineup. Finding out about ulta versus sephora. That survey is so big. Kurtz is fantastic and is very critical of microsofts socalled security. I havent put microsoft on after kurtz savaged them. You cant savage anybody. Come on. This is cnbc. Alphabet shares recovered from that brief but fairly significant decline when we discussed a great deal how their monopoly in search might be truly at risk, and would they be able to move quickly enough to deal with that. You know what that was about . The stock came right back. That was some of the parts. That was youtube, laura martin saying it could be worth about 3500 billion. Search, the tick has lost by maybe. 2. I thought it would be much more. Its early, early days in terms of concern they will be sacrificing share. Think about what you asked me and what i gave you. Why did it come back . I said that . Thats the truth. You think paid ai search had anything to do with it . Thats been read both ways. Not yet. What i think is youtube is the hidden gem here. Now, teams teens . Teenagers. They spent an inordinate amount of time on tv, web, and they love google. Instagram, we ought to cover this, is gaining because of reels and tiktok. The teens hold the key. Theres a lot in there regarding tiktok, instagram, nike, lulu. Nike still maintains number one but losing shares. Lulu losing share. Hoke ka picking up share, dutch bro. Hoke ka is picking up shares with teenagers, not old guys like me . No. No one cares about you. No, they dont. They already know what you want. Davids mind is so made up, hes not what the teen surveys at all. He doesnt care sephora is taking share. You think he knows what sephora is . Typer, you say it moves stocks . I think its fantastic. Celsius moving up over monster. Celsius is a publiclytraded company. By the way, birkenstock did quite well. Really . Yes, really. No, next lie. Vf worp ncorp not doing well. This is selfreported i thought the teens were gloomy. Look, i think like everybody like some of the people at the end of the show thats before us, squawk, the teens are down. Its not just tiktok brainwashing because theyre switching to reelz. Maybe because they dont have 401 k s. They sdront 401 k s. They have youtube. And employment. You can get a job if you want. The notion of the survey is figure out forward thinking where the stocks are going to go. I dont want to own crocs after this. I dont want to own lulu. Do you not want to own nike as well . Absolutely sell. Sell, sell, sell. Like key is losing share. Youve turned on them. Did you see the stock . That actually makes sense. Nike lost share in athletic brand performance. Nike gave the clothes of the nfl away, the worn jerseys. To rubin. To rubin. People are not happy with it. Look at nike. This is the survey is showing you what thats about. Under armour, also, not good. Hoka many, many years ago when the teens turned on under armour. What am i . A dictionary . You and i both know. You tweeted about this this morning and i came in with my team and we pulled this thing apart. We think this is one of the most market moving surveys that we get. Its generally considered to do some rigorous work. The backdrop of viewership for the Womens National championship game. Did you see those ratings . 18. 7 million. Unbelievable. The biggest basketball game, pro or college, men or women ever. Is that right . I watched. At the peak of espn when they had 100 million people, my old friend john walsh, come up with a plan to have an all womens sports station. He said one day people will watch that more than they watch men. That was 15 years ago. Boom. Right as rain. Since 2019, any basketball game. But for womens its a record. I think it is a very positive thing, but it also is indicative ahead of the olympics what we want to watch. Im out on thin ice with you and i dont know what to do frankly. I would love it to be 8 59, like superman when they ran the movie. It goes backwards. You think its not going well. Unfulfilled . I feel like im on quicksand with you. I dont know what to do. Weve got a threeminute break, maybe 2 1 2. Well take care of that. Well also talk to matt boss of jpm. This time aeo upping pbh. Interesting action in europe which well talk about in a moment. Squawk on the street is back after a break. My name is oluseyi and some of my favorite moments throughout my life are watching sports with my dad. Now, i work at comcast as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. Giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. If youre hoping for fed rate cuts for the fed, maybe dont hold your breath. This economy doesnt need them. Just be glad we arent getting anymore rate hikes. Yikes thats jim on mad last night saying the economy doesnt need cuts because rates fall to the lowest level sinceoctober with new inflation data coming up tomorrow. Of course, cpi, ppi the day after. These yields are just reflecting better growth. Yeah. I had ferguson on last night. A lot of people feel thats highend plumbing, no, only abil about 15 of their business. Its data piping. I was talking with the ceo about what Gina Raimundo said. They want to hire 20,000 people. He said, look, we dont have the people to do this. We dont have the plumbers to do it. We dont have the technicians to do anything. Were out of people. Thats what i think could be a very big issue, especially when you have travel and leisure highing 50,000 people, health care hiring 70 where are these people going to come from . Remember we asked Lael Brainard about the number of permits. They wont tell us. Its a number in an Election Year youre not allowed to know. You have to bus people everywhere, wherever there are some trades people, theyll bus them in. I think the idea that we are that this is all federal blasted. When you have tsm building something for 65 billion, thats federal. The federal government overcreated jobs. It is running hot. Morgan stanley today, im sure you saw katy hubertys spot, its titled do we spy an infl inflection . It measures shipper sentiment, highest in 11 quarters. Bullard saying the base case is three cuts. Look, i love this economy. Dont get me wrong. This economy is robust, doesnt have all that information. But the idea that the people keep talking about cuts, well, show me where we can find workers. We have no surplus of workers. We have 3. 8 unemployment. Who were these people who make these numbers up . I love bullard, but honestly, you want to go through the roof and have we have to import workers from other countries . David . Well, we already are. But thats not thats more people getting into the country. And working. So in a way we are importing their workers. They dont have jobs where they are, but they get them here. I would argue the reason wages arent going through the roof is because we have a level of immigration that is well underreported. Even though technically many of them are not able to get employment, right . Which is an issue. They get green cards and you high automatic data and they look into the green card. So there is a level of authority. But i understand a lot of resta restaurants. Sure. Meantime well get cramers mad dash, countdown to the opening bell. More on what the markets and the rate discussion tomorrow. One more look at the premarket as were hanging on to gains. Dont go away. Ysis, help make trading feel effortless. And its customizable scans with social sentiment help you find and unlock opportunities in the market. E trade from morgan stanley. With powerful, easytouse tools, power e trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from morgan stanley. Do you have a Life Insurance policy you no longer need . Now you can sell your policy even a term policy for an immediate cash payment. Call Coventry Direct to learn more. We thought we had planned carefully for our retirement. But we quickly realized we needed a way to supplement our income. 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And get to jims mad dash. Opening bell seven minutes from now. We talked a bit about the move in gold which continues higher. Bitcoin also has had quite a nice rally as well. Yes, it has. By the way, commodity, also, in general. Right. Theyve had a big move. If you look at this, you say why havent the stocks contributed, and why did they just get started now in the last few weeks . The answer is their finding costs have gone up dramatically, from around 800 in 2018 all the way, david, to 1,380. David, i know you want the fabled head and shoulders. Thats not procter gamble. The reason these havent kept pace is because they cant find enough. Because they cant find enough, thats jacked up the price of bullion. They used to replenish a percent per year. Costco, try getting the gold. We try every week to buy costco gold on the website, three times a week, sold out, sold out, sold out. This is going to add 1 . I want to go back to the miners. You can take a look at the gdx. Why . The metal keeps going straight up are they going to start catching up . Yes, the delta has been reached. The cost at 1300, if you get 2600 a couple reasons its gone up, you cant use arsenic. Caterpillar trucks go up, labor go up, environmental damage go up, insurance go up. Thats how they went from 800 to 1300. 1300 making a lot of money with gold where it is. You cant find gold at costco as much as i try. Thank you for that. Please have a deposit box. Dont put the gold under your mattress. Bad guys know that its there. Its very heavy though. Weve got opening bell a little more than four minutes from now. Dont forget. You want to catch us any time, anywhere, by listening to and following the squawk on the street opening bell podcast. Trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. Get an expanding library filled with new online videos, webcasts, articles, courses, and more all crafted just for traders. And with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. Trade brilliantly with schwab. Amazon is aiming for its first record closing high in almost three years, jim. Got to go back to july of 21. Theyre doing a lot of things behind the scenes that are excellent. Still lowering the cost of things coming to your house. Beginning to see an inflection in europe because of prime video which is extraordinary. Turns out thats a way to be able to get europeans. Europe is very, very important. David, there is a surge in Amazon Web Services where, remember, they were down, down, down. Then its no longer we say down, down, down, the growth rate was coming down. They dont talk about it much, but its good. I think the work theyre doing with nvidia is extraordinary. Explain what you mean when you say that. They are the biggest adopter of the new chips which are gigantic. The super computers, amazon, adam sal lipsky who runs aws said [ bell ringi ]. The big board, half nia at the nasdaq, the u. N. General assembly ahead of the u. N. Sustainability group. Kind of interesting to chart amazon versus apple in the last, say, six months because 165. 67 would take you back to the october low. Apple is a little exhausting. What were getting is stories saying the Service Revenue, the app store is better in the month of march than it had been january february. I think the Service Revenue is going to be good. They have to embrace the business. Steve jobs didnt and so far tim cook hasnt addressed the b2b. Thats where vision pro which not a lot of people are talking about, thats where vision pro could shine. People keep thinking theyll do the deal with google. That was supposed to happen in seven days, and hasnt happened. I dont know whats going on at ap ul. I continue to say own it, dont trade it. We need a phone that has ai in it like samsung. You just wait for the leaks to come out about june 10th . Yes, you have to. I know its tough. I know there are people who say why should i hold this thing. I think it should be held. I have great faith in tim cook. There is a bold case not embraced by that many, but i did run into one yesterday, significant holder, everybody is underestimating apple and siri. Theyre going to come with a cycle that blows people away. Im looking at my notes here. Siri has got much more by the way, apple has your location and your text messages. They can use that for training their ai dont underestimate what they will do once they do it. Thats why i say own it, dont trade it. You dont know what theyre going to release. You know siri, from the people i deal with, siri is going to be far more fers tall than alexa. Alexa listens to me, i hate that. Listens to me when im talking to my wife. Siri woke me up this morning at 3 20, very politely. A little nudge. All that said, even if this bold case is correct, there could be an air pocket between now and then because of china demand and concerns there. Dan ives embracing that a little bit as well, one of his endless notes about so many different companies. China is not good. Maybe craft beer. Secretary yellen, having a beer made with american hops. I cant relate those two, molson if you believe the bull case is being underestimated in terms of what it will be able to eventually do, in terms of a product, in terms of fueling a huge cycle and upswing in terms of iphone sales, there there still could be between now and then bad news in terms of an earnings report. I agree with that. Apple is still v