WEBVTT - Nvidia Earnings Lead to Share Slump; SpaceX IPO Details

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Well, Caern, we begin with the lukewar market reaction. We're

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<v Speaker 3>seeing to another blowout from Nvidia. Sales at the world's

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<v Speaker 3>most valuable company gained eighty five percent to eighty one

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<v Speaker 3>point six billion dollars in the latest quarter, and in

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<v Speaker 3>Vidio forecast sales in the coming quarter of about ninety

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<v Speaker 3>one billion and also boosted its quarterly dividend and announced

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<v Speaker 3>an eighty billion dollars stock buyback. And Video CEO Jensen

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<v Speaker 3>Wong says he expects demand to come from ordinary businesses

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<v Speaker 3>outside the tech sector.

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<v Speaker 4>This was an extraordinary quarter. Demand has gone parabolic. The

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<v Speaker 4>reason is simple. Agentic AI has arrived. I can now

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<v Speaker 4>do productive and valuable work. Tokens are now profitable, so

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<v Speaker 4>model makers are an erase to produce more. In the

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<v Speaker 4>AI era, compute capacity is revenue and profits, and video

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<v Speaker 4>is the platform of this era.

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<v Speaker 3>Video CEO Jensen Wong says he aims to rely less

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<v Speaker 3>on giant data center operators and predicts other businesses and

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<v Speaker 3>governments will become a bigger source of revenue for the

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<v Speaker 3>company's chips and computing products, Paul Meeks covers in VideA

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<v Speaker 3>for Freedom Capital Markets.

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<v Speaker 5>He says he's not concerned with the numbers.

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<v Speaker 3>I'm not necessarily worried about what they printed or even

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<v Speaker 3>this guidance.

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<v Speaker 5>But this guidance is not disappointing.

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<v Speaker 6>I think it's fine because you know what, it'll be,

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<v Speaker 6>ninety one billion dollars and then they're going to upside

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<v Speaker 6>it like they always do, so this will be much

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<v Speaker 6>better at the end of the day than.

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<v Speaker 3>The whisper Paul Meeks at Freedom Capital Markets right now

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<v Speaker 3>in videos trading down about two tenths of one percent

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<v Speaker 3>pre market.

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<v Speaker 6>Well, Nathan, there's also a couple of high profile IPOs

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<v Speaker 6>on the way for investors and Bloomberg. John Tucker joins

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<v Speaker 6>us with the very latest John good Morning.

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<v Speaker 7>Good mor and Karen Elon Musk. SpaceX filed publicly for

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<v Speaker 7>what stands to be the largest ever initial public offering.

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<v Speaker 7>Filing with the SEC also reveals the company has billions

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<v Speaker 7>of dollars and losses and the way it's set up

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<v Speaker 7>right now, it would give Musk the power to outvote

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<v Speaker 7>anybody else and give him as many as a billion shares.

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<v Speaker 8>Now.

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<v Speaker 7>According to the filing, Musk would have to hit certain

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<v Speaker 7>goals for the rockets, satellite and AI company. These goals

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<v Speaker 7>include a human settlement on Mars with at least one

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<v Speaker 7>million inhabitants and oh yes, SpaceX would first have to

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<v Speaker 7>build data centers in space.

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<v Speaker 6>All right, John, Well, if that's not enough to absorb

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<v Speaker 6>this morning, there's another Wall Street debut that appears to

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<v Speaker 6>be on track as well.

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<v Speaker 7>Yeah, Karen, this one is OpenAI, the maker of chat gpt.

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<v Speaker 7>Our sources say the company aims to file for initial

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<v Speaker 7>public offering in the coming days or weeks as it

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<v Speaker 7>tries to make the transition to a for profit company. Now,

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<v Speaker 7>the plans are falling in place after judge dismissed Elon

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<v Speaker 7>Musk's legal battle against Open Ai of The decision to

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<v Speaker 7>push ahead with a listing this year could help it

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<v Speaker 7>beat its rival Anthropic to the public markets and compete

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<v Speaker 7>for investors. If you or come, John Tucker, Bloomberg Radio, All.

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<v Speaker 3>Right, John, thanks, So, Anthropic is bulling an IPO as

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<v Speaker 3>soon as October.

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<v Speaker 5>I'm the head of that.

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<v Speaker 3>The company's on pace for its first profitable quarter after

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<v Speaker 3>experiencing a surgeon revenue driven by a demand for its

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<v Speaker 3>artificial intelligence software. Bloomberg News has learned the cloudmaker expects

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<v Speaker 3>to post ten point nine billion dollars in revenue for

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<v Speaker 3>the second quarter, more than double the prior three month period.

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<v Speaker 6>Nathan, Let's get to the latest now in the war

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<v Speaker 6>in the Middle East, the US and Iran are trading

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<v Speaker 6>threats once again as the standoff over the Strait of

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<v Speaker 6>Horror Movez drags on. President Trump says he's in the

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<v Speaker 6>final stages with Iran, while warning he could resume attacks

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<v Speaker 6>in the coming days if it doesn't agree to his terms.

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<v Speaker 6>The only question is do we go and finish it

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<v Speaker 6>up or are they going to be signing a document.

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<v Speaker 5>Let's see what happens.

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<v Speaker 6>And that was President Trump delivering the commencement address at

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<v Speaker 6>the US Coast Guard Academy. We get more from Bloomberg's

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<v Speaker 6>Paul Wallace in Dubai.

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<v Speaker 9>This could be just more clustering from Donald Trump. He

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<v Speaker 9>has given plenty of signals that he is desperate to

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<v Speaker 9>sort of extricate himself in the US forces from this war,

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<v Speaker 9>and all signs point to him really trying to avoid

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<v Speaker 9>a return to hostilities given the surgeon energy prices globally.

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<v Speaker 6>And Bloomer's Paul Wallace reports Iran has threatened to retaliate

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<v Speaker 6>beyond the Middle East if the US or Israel resumes strikes.

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<v Speaker 6>Now this morning, around semi official students and news agency

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<v Speaker 6>is reporting Tehran is reviewing the latest US peace proposal

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<v Speaker 6>and says it's narrowed the gaps to some extent. The

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<v Speaker 6>report says further narrowing quote requires an end to the

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<v Speaker 6>temptation of war on Washington's part.

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<v Speaker 3>Here in the US is facing protests in Greenland's capital

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<v Speaker 3>as a new consulate opening fuels concerns over Washington's designs

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<v Speaker 3>for the island. The US will inaugurate the new consulate

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<v Speaker 3>building in Nuke today. It's first in Greenland since the

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<v Speaker 3>nineteen fifties. It marks some more permanent American presidence on

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<v Speaker 3>the Arctic island, where unease has grown since President Trump

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<v Speaker 3>revived to of acquiring the territory Nathan.

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<v Speaker 6>The Trump administration is putting new pressure on Cuba as

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<v Speaker 6>the economic standoff over the island continues. The US has

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<v Speaker 6>charged former Cuban president Raoul Castro with murder over the

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<v Speaker 6>nineteen ninety six drowning of two aircraft run by a

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<v Speaker 6>Florida based Cuban exile group. Four people were killed in

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<v Speaker 6>the incident, when the ninety four year old former president

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<v Speaker 6>was Cuba's defense minister, Acting Attorney General Todd Blanche announced

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<v Speaker 6>the indictment.

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<v Speaker 10>For the first time in nearly seventy years, senior leadership

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<v Speaker 10>of the Cuban regime has been charged in this country

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<v Speaker 10>in the United States of America for acts of violence

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<v Speaker 10>resulting in the deaths of American citizens.

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<v Speaker 6>The announcement by Acting Attorney General Todd Blanche could raise

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<v Speaker 6>speculation about military action against Cuba, like the ray that

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<v Speaker 6>captured Nicholas Maduro in Venezuela earlier this year. President Trump

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<v Speaker 6>is indicating there won't be further escalation for now.

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<v Speaker 3>Karen JP Morgan JA CEO Jamie Diamond is criticizing New

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<v Speaker 3>York's Mayor Zorn Mumdannie and his plans to slap more

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<v Speaker 3>taxes on the rich. In an interview with Bloomberg in Asia,

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<v Speaker 3>Diamond said the move risks doing further damage to the

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<v Speaker 3>city's business hub status.

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<v Speaker 11>They think that somehow being anti business is going to

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<v Speaker 11>help a city.

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<v Speaker 12>It's not.

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<v Speaker 5>So we all want to pay fair taxes. That's not

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<v Speaker 5>the point.

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<v Speaker 11>But at one point people owed defeat and there are

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<v Speaker 11>a lot of studies that have shown that all these

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<v Speaker 11>people moved out and they're obviously the tax obviously New

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<v Speaker 11>York booming, so not gonna see in this year's taxes,

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<v Speaker 11>but a lot of people are paying billions dollar taxes left.

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<v Speaker 11>Why do you want that? How does that help the

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<v Speaker 11>lower paid person in New York.

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<v Speaker 3>Jamie Diamond's comments followed a recent meeting with Mom Donnie.

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<v Speaker 3>He has criticized Wall Street bankers and other executives, and

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<v Speaker 3>is pushing for tax hikes to plug New York City's

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<v Speaker 3>budget shortfall. Catch the full conversation with JP Morgan's CEO

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<v Speaker 3>Jamie Dimond on our new video hub on the Bloomberg

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<v Speaker 3>Business app.

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<v Speaker 6>Time now for look at some of the other stories

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<v Speaker 6>making news in New York and around the world. For that,

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<v Speaker 6>we're joined by Bloomberg's Michael Barr.

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<v Speaker 2>Michael, Good Morning, Good morning Karen.

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<v Speaker 8>Two police officers who helped defend the US capital during

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<v Speaker 8>the January sixth riot, ares suing to block anyone from

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<v Speaker 8>receiving payouts from a new one point seven to seventy

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<v Speaker 8>six billion dollars settlement fund for people who claim to

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<v Speaker 8>be victims of politically motivated prosecutions. There's the possibility that

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<v Speaker 8>rioters who assaulted police that day would be eligible for

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<v Speaker 8>fund payouts. Former Capitol Police officer Harry Dunn, a co

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<v Speaker 8>plaintive in the lawsuit, spoke to ABC.

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<v Speaker 12>He's trolling us with the seventeen seventy sixth thing. He's

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<v Speaker 12>trying to make this some type of patriotic symbol, but

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<v Speaker 12>this could be the most unpatriotic thing, rewarding terrorist and insurrectionist.

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<v Speaker 8>Former officer Dunn is currently running for Maryland's fifth congressional

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<v Speaker 8>district President Trump and says the fund is needed to

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<v Speaker 8>help people he claims were mistreated by the Biden Justice Department.

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<v Speaker 3>People would destroyed they went to jail, their families.

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<v Speaker 8>Were But there is outrage on Capitol Hill among a

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<v Speaker 8>growing number of Republicans and Democrats rejecting the idea of

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<v Speaker 8>taxpayer payouts to rioters. The WHO says the Ebola outbreak

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<v Speaker 8>probably started months ago in Central Africa and spread undetected

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<v Speaker 8>until a super spreader event in early May, possibly a funeral. Meanwhile,

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<v Speaker 8>health officials gave an update on Peter stafford. The American

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<v Speaker 8>doctor infected it with a BOLO while working in the

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<v Speaker 8>Democratic Republic of Congo. Doctor setische KLi is the CDC's

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<v Speaker 8>incident manager for Ebola response.

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<v Speaker 6>The American has landed in Germany and is at the

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<v Speaker 6>hospital and in stable conditions.

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<v Speaker 8>The WHO says almost six hundred suspected cases and one

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<v Speaker 8>hundred and thirty nine deaths are linked to the outbreak.

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<v Speaker 8>We didn't need this. With millions traveling for the Memorial

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<v Speaker 8>Day weekend, planes were haulted after a sinkhole opened up

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<v Speaker 8>on the runway at New York's LaGuardia Airport. More than

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<v Speaker 8>two hundred flights were canceled and hundreds more delayed, shutting

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<v Speaker 8>down one of LaGuardia's two runways. Airport officials are rushing

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<v Speaker 8>to make repairs. Global news twenty four hours a day

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<v Speaker 8>and whenever you want it with the Bloomberg News Now

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<v Speaker 8>Michael Barr and this is Bloomberg Herry.

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<v Speaker 2>Thanks Michael.

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<v Speaker 6>A time now for our Bloomberg Sports updating. For that,

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<v Speaker 6>we bring in John Stashaur.

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<v Speaker 5>There's there.

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<v Speaker 13>In Game two of the NBA's Western Conference Finals, Victor

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<v Speaker 13>wembin Yama was coming off a forty two point effort

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<v Speaker 13>in Game one, this time half of that he scored

0:09:27.840 --> 0:09:30.679
<v Speaker 13>twenty one and the Spurs lost at Oklahoma City on

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<v Speaker 13>twenty two to one thirteen. The series is title one.

0:09:33.880 --> 0:09:35.959
<v Speaker 13>Game one in the West of the Stanley Cup Playoffs,

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<v Speaker 13>Vegas took a three nothing lead and went on to

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<v Speaker 13>win four two At Colorado.

0:09:39.240 --> 0:09:40.400
<v Speaker 5>Aaron Rodgers met.

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<v Speaker 13>The media in Pittsburgh getting ready to play for the Steelers.

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<v Speaker 13>He confirmed that twenty twenty six will be his final season.

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<v Speaker 13>That's a Bloomberg Sports fifty.

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<v Speaker 2>Stay with us. More from Bloomberg day Break coming up

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<v Speaker 2>after this.

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<v Speaker 1>Coast to coast on Bloomberg Radio, wide on Sirius XM,

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business Apple.

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<v Speaker 2>This is Bloomberg Daybreak.

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<v Speaker 5>Good morning, I'm Nathan Hager.

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<v Speaker 3>Was the earning story investors awaited for weeks and it's

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<v Speaker 3>getting a lackluster reaction this morning. And Nvidia came out

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<v Speaker 3>with a revenue forecast right around the middle of Wall

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<v Speaker 3>Street estimates. But CEO Jensen Wong says the future is

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<v Speaker 3>here and his chip Giant is right where it needs

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<v Speaker 3>to be.

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<v Speaker 4>The world is rebuilding computing for agentic Ai and robotic

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<v Speaker 4>physical AI, and Vidia sits at the center of these transitions.

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<v Speaker 5>I was in Vidia CEO Jensen Wong on the company

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<v Speaker 5>earnings call.

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<v Speaker 3>Joining us this morning after is Neil Campling, senior strategist

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<v Speaker 3>with the Bloomberg Markets team.

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<v Speaker 5>Great to have you with us this morning, Neil.

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<v Speaker 3>So we saw the numbers in eighty five percent jump

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<v Speaker 3>in sales in the quarter gone by even bigger forecast

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<v Speaker 3>in the common quarter.

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<v Speaker 5>Why the lackluster reaction this morning? Good morning, Good morning.

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<v Speaker 14>I think is a bit of a travel and arrive

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<v Speaker 14>here in terms of in Video being the largest company

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<v Speaker 14>in the world, it's fueling obviously a entire AI ecosystem,

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<v Speaker 14>but investors in its very very narrow market that we've

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<v Speaker 14>seen in recent months in terms of their strength, It's

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<v Speaker 14>likely that it is as a lack of new investor

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<v Speaker 14>money coming into this stock itself and looking into play

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<v Speaker 14>the AI three through other sort of other plays in

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<v Speaker 14>this space. And as you mentioned, the guidance was solid,

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<v Speaker 14>but it was within the range of Wall Street estimates,

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<v Speaker 14>so it didn't surprise to the upside. There was no

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<v Speaker 14>mic drop moment like we had two years ago, and

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<v Speaker 14>it's really kind of maturing now into that mature growth

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<v Speaker 14>tech leader, where as we've seen before the likes of Apple.

0:11:45.240 --> 0:11:48.440
<v Speaker 14>But to grow those revenues, as you mentioned, eighty five

0:11:48.480 --> 0:11:53.160
<v Speaker 14>percent year on it is a substantial number by anyone's metrics,

0:11:53.640 --> 0:11:56.920
<v Speaker 14>but by Side has now got used to these kind

0:11:56.960 --> 0:12:00.240
<v Speaker 14>of estimates, and so we are above some of the

0:12:00.280 --> 0:12:04.320
<v Speaker 14>whisper numbers. But there are questions that analysts are now

0:12:04.360 --> 0:12:08.520
<v Speaker 14>having about the sustainability of such growth going forward, especially

0:12:08.520 --> 0:12:12.680
<v Speaker 14>in my higher competition from the likes of Google creating

0:12:12.720 --> 0:12:15.360
<v Speaker 14>their own internal chipsets in the future.

0:12:15.960 --> 0:12:18.839
<v Speaker 3>So is this a moment where the moat that in

0:12:18.920 --> 0:12:21.959
<v Speaker 3>Nvidia had built around itself when it comes to the

0:12:22.960 --> 0:12:25.160
<v Speaker 3>chips that it puts out there that they're starting to

0:12:25.160 --> 0:12:28.320
<v Speaker 3>be cracks in that molt, what can it do to

0:12:28.360 --> 0:12:29.400
<v Speaker 3>seal them?

0:12:29.880 --> 0:12:32.080
<v Speaker 14>I think the way it's looking at this now is

0:12:32.120 --> 0:12:36.040
<v Speaker 14>to extend that ecosystem into other parts of the AI market.

0:12:36.360 --> 0:12:40.000
<v Speaker 14>As you mentioned, Jensen talked last night on the call

0:12:40.240 --> 0:12:44.920
<v Speaker 14>about one hundred trillion dollars of industry that hasn't yet

0:12:45.320 --> 0:12:48.840
<v Speaker 14>but is about to be affected by AI. This is

0:12:48.920 --> 0:12:52.800
<v Speaker 14>taking the AI into the physical AI system. To you

0:12:52.880 --> 0:12:55.360
<v Speaker 14>and I, it's about in the real world and with

0:12:55.600 --> 0:12:59.960
<v Speaker 14>robotics and those kind of applications of AI. They are

0:13:00.120 --> 0:13:03.520
<v Speaker 14>diversifying into other areas of the market that could be

0:13:04.360 --> 0:13:08.160
<v Speaker 14>many times the size of existing AI infrastructure. And I

0:13:08.160 --> 0:13:10.760
<v Speaker 14>suppose the other thing to think about is that Bloomberg

0:13:10.800 --> 0:13:15.000
<v Speaker 14>News overnight had an exclusive on Anthropic. Anthropic a key

0:13:15.080 --> 0:13:19.360
<v Speaker 14>partner of in Nvidia and others. But the growth rates

0:13:19.360 --> 0:13:22.920
<v Speaker 14>that Anthropic are talking about now are ten billion dollars

0:13:22.960 --> 0:13:27.200
<v Speaker 14>in sales for this current quarter. I mean, this company

0:13:27.240 --> 0:13:30.320
<v Speaker 14>had no products less than three years ago. So in

0:13:30.400 --> 0:13:35.000
<v Speaker 14>videos helping fuel the entire agentic AI revolution that we're

0:13:35.040 --> 0:13:35.880
<v Speaker 14>witnessing today.

0:13:36.160 --> 0:13:37.760
<v Speaker 3>And the last minute I have with you, Neil, I

0:13:37.760 --> 0:13:39.640
<v Speaker 3>got to get your reaction to what we learned from

0:13:39.679 --> 0:13:44.640
<v Speaker 3>the filing of the IPO for SpaceX. Billions in losses

0:13:44.720 --> 0:13:48.000
<v Speaker 3>and some big plans from Elon Musk.

0:13:48.720 --> 0:13:53.800
<v Speaker 14>Some quite incredible statements in as one overnight, not least

0:13:54.000 --> 0:13:58.400
<v Speaker 14>the ambitions to have a one million people on Mars

0:13:58.400 --> 0:14:02.240
<v Speaker 14>in the future. But as you mentioned, the increase in

0:14:02.280 --> 0:14:06.000
<v Speaker 14>the losses is a tenfold increase of those losses to

0:14:06.080 --> 0:14:11.280
<v Speaker 14>help to sort of fund the exceptional growth trajectory and

0:14:11.400 --> 0:14:14.280
<v Speaker 14>opportunity they see in the future. It's no wonder they

0:14:14.320 --> 0:14:16.000
<v Speaker 14>need to come to the market though, because they are

0:14:16.040 --> 0:14:18.640
<v Speaker 14>burning through a lot of cash.

0:14:18.760 --> 0:14:20.160
<v Speaker 5>But yeah, we're It's.

0:14:20.040 --> 0:14:25.160
<v Speaker 14>Going to be highly anticipated and with Open Ai ananthropic

0:14:25.360 --> 0:14:27.200
<v Speaker 14>likely to come to their market as well, this year

0:14:27.680 --> 0:14:29.400
<v Speaker 14>could be a great year for ten.

0:14:31.160 --> 0:14:34.600
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