WEBVTT - Nvidia Earnings Ease AI Bubble Fears; Traders Brace for Jobs Report

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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, Karen, it was the earnings report investors we're bracing

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<v Speaker 3>for an Nvidia delivered, pushing back on the idea that

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<v Speaker 3>the AI industry is in a bubble. Nvidia shares are

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<v Speaker 3>up five percent in early trading. Companies results topped analyst estimates,

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<v Speaker 3>with revenue rising sixty two percent to fifty seven billion dollars,

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<v Speaker 3>and more importantly, the chip giant delivered a strong revenue forecast,

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<v Speaker 3>expecting sales of about sixty five billion in the January quarter.

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<v Speaker 3>Matt Bryson covers Nvidia for web Bush Securities.

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<v Speaker 4>I think they hit the buyside expectations exactly. So what

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<v Speaker 4>we've been hearing beforehand, fifty seven billion on the top

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<v Speaker 4>line and then guy for mid sixties is kind of

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<v Speaker 4>what people wanted and they deliver.

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<v Speaker 3>That's o Wedbusch Securities analyst Matt Bryce. And it has

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<v Speaker 3>been quite a run for in Vidia. Sales will be

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<v Speaker 3>up more than tenfold from where they were in the

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<v Speaker 3>same period just three years ago, and.

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<v Speaker 2>The future looks even rosier. Nathan and video CEO Jensen

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<v Speaker 2>Wong says, the Blackwell ship sales are off.

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<v Speaker 5>The charts and video GPUs in the cloud are sold out.

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<v Speaker 5>We got plenty of Blackwells to sell you. We have

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<v Speaker 5>lots of Blackwells coming, We're making a lot of Blackwells,

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<v Speaker 5>and we have a bunch of Vara Rubens coming and

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<v Speaker 5>so business is very very strong. But we've planned our

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<v Speaker 5>supply chain incredibly well.

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<v Speaker 2>And that was in video CEO Jensen Wong speaking of

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<v Speaker 2>Bloomberg's at a Ludlow. For the full conversation, head over

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<v Speaker 2>to the Bloomberg Podcast channel on YouTube.

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<v Speaker 3>Well Investors are finally going to get details Karen on

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<v Speaker 3>the September jobs report that was delayed because of the

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<v Speaker 3>longest government shut down in history. We get a preview

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<v Speaker 3>from Bloomberg's Michael McKee.

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<v Speaker 6>The data are back and we're starting with a sort

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<v Speaker 6>of but not really important set September payrolls. If the

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<v Speaker 6>numbers had been released as scheduled on October third, they

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<v Speaker 6>would have played a big role in the Fed's October

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<v Speaker 6>rate decision. Instead, two months late, they're essentially out of date.

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<v Speaker 6>They will get scrutiny, However, it may be the last

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<v Speaker 6>full set of jobs numbers we get before the next

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<v Speaker 6>FED meeting on December tenth. While today's release may not

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<v Speaker 6>carry the same weight, at least it's something. Michael McKee,

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<v Speaker 6>Bloomberg Radio.

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<v Speaker 2>All right, Michael, thank you all. The Bureau of Labor

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<v Speaker 2>Statistics will not publish on October employment report. Instead, it

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<v Speaker 2>will incorporate those payrolls figures into the November jobs reports,

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<v Speaker 2>set to be published after the Federal Reserve's final meeting

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<v Speaker 2>of the year in December.

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<v Speaker 3>Well, the Federal Reserve has published its minutes from its

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<v Speaker 3>latest policy meeting from October, Karen, and they show policymakers

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<v Speaker 3>were divided. Many say it would likely be appropriate to

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<v Speaker 3>keep interest right study for the rest of the year.

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<v Speaker 3>Stuart Paul covers the FED for Bloomberg News.

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<v Speaker 7>So folks are basically looking out at the Bureau of

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<v Speaker 7>Laborsitiytistics and saying, what would have been a bad jobs

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<v Speaker 7>report is not going to be available for the FED

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<v Speaker 7>to make its decisions. So there's going to be one

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<v Speaker 7>fewer data prints encouraging a rate cut. Now we're seeing

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<v Speaker 7>as early as October many committee members were ready to

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<v Speaker 7>take that December cut off. The table.

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<v Speaker 3>Now, Stuart's Paul of Bloomberg News says the odds of

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<v Speaker 3>that December rate cut stand at about thirty percent.

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<v Speaker 2>Now, Nathan, let's go to the latest on the Jeffrey

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<v Speaker 2>Epstein files. President Trump has signed the bill to compel

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<v Speaker 2>the Justice Department to release its documents on the late

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<v Speaker 2>disgraced financier. House Minority Leader HAKEM. Jeffries is chalking it

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<v Speaker 2>up as a victory.

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<v Speaker 8>It's a big victory for the survivors, a big victory transparency,

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<v Speaker 8>and big victory for the American people.

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<v Speaker 2>House Minority Leader HOCKEYM. Jeffrey spoke on Capitol Hill. The

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<v Speaker 2>signing comes after the President spent months trying to block

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<v Speaker 2>the measure before making a dramatic about face last week.

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<v Speaker 2>The new law requires the Justice Department to release all

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<v Speaker 2>its files from the Epstein investigation, but it's launched a

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<v Speaker 2>new probe and to his ties to prominent Democrats, Senate

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<v Speaker 2>Majority Leader John Thune says that could complicate matters.

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<v Speaker 9>I trust the judgment of the Justice Department to ensure

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<v Speaker 9>that whatever files they release protect the victims clearly, and

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<v Speaker 9>I think there are other items, perhaps materials that were

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<v Speaker 9>acquired through grand jury trials that perhaps they will have

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<v Speaker 9>to make some decisions.

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<v Speaker 2>About Senate Majority leader John Thune. The law gives DOJ

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<v Speaker 2>thirty days to release the files, including investigations, flight logs,

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<v Speaker 2>travel records, immunity deals, internal communications, and records related to

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<v Speaker 2>Epstein's death in prison.

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<v Speaker 3>And there's more fallout from the Epstein matter, Karen. Former

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<v Speaker 3>Treasury Secretary Larry Summers is leaving his role as an

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<v Speaker 3>instructor at Harvard while the university investigates his ties to Epstein.

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<v Speaker 3>Former Harvard President will also go on leave from his

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<v Speaker 3>role as director of the most of Our Ramani Center

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<v Speaker 3>for Business and Government at the Harvard Kennedy School. Summers

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<v Speaker 3>is retreating from his public commitments, including his role as

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<v Speaker 3>a paid contributor to Bloomberg Television, and he's leaving the

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<v Speaker 3>board of the artificial intelligence company open Ai.

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<v Speaker 10>Well.

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<v Speaker 2>Tomorrow, Nathan, President Trump will meet with someone he's repeatedly

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<v Speaker 2>slammed as a communist. The President will host New York

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<v Speaker 2>City Mayor elect zorun Mam Donnie at the White House.

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<v Speaker 2>Mam Donnie won the election this month on a progressive

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<v Speaker 2>platform that includes freezing rents, universal childcare, city owned grocery

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<v Speaker 2>stores and higher taxes on corporations and the wealthy. The

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<v Speaker 2>mayor elects says that's the message he'll bring to the President.

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<v Speaker 11>I want to just speak plainly to the President about

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<v Speaker 11>what it means to actually stand up for New Yorkers

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<v Speaker 11>and the way in which New Yorkers are struggling to

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<v Speaker 11>afford this city and frankly, cost of living is something

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<v Speaker 11>that I heard time and time again from New Yorkers

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<v Speaker 11>about why they voted for Donald Trump.

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<v Speaker 2>Mayor elect zonororun Mam Donnie appeared on the cable news

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<v Speaker 2>network MS now. President Trump has threatened to pull federal

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<v Speaker 2>funds for New York now that Mom Donnie has been elected.

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<v Speaker 2>The city received almost ten billion dollars from Washington this

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<v Speaker 2>fiscal year and his time and now for a look

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<v Speaker 2>at some of the other stories making news in New

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<v Speaker 2>York and around the world, and for that we're joined

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<v Speaker 2>by Bloomberg's Michael Barr or Michael good Morning, Good.

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<v Speaker 8>Morning, Karen. Senior US military officials, including Army Secretary Daniel Driscoll,

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<v Speaker 8>are now in Kiev to try to restart peace talks.

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<v Speaker 8>A US plan presented to Ukraine includes reducing its military

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<v Speaker 8>Russia keeping all the land it has taken and the

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<v Speaker 8>militarized zone. There are no plans for Russian officials to

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<v Speaker 8>meet with Driscoll. Federal agents have now arrested more than

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<v Speaker 8>two hundred and fifty people during an immigration crackdown in Charlotte,

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<v Speaker 8>North Carolina. The push for arrests also expanded to areas

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<v Speaker 8>around Raleigh. Meanwhile, the Trump administration's plan crackdown in New

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<v Speaker 8>Orleans could start as early as December first. Neil Ranu,

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<v Speaker 8>the attorney with the Southern Poverty Law Center, noted that

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<v Speaker 8>has caused fear among Hispanic families.

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<v Speaker 12>I think the deeper impacts here, too are the emotional, psychological,

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<v Speaker 12>and just the distrust that children are going to develop

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<v Speaker 12>of sort of participating productively in a community.

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<v Speaker 8>Attorney Neil Uranu says Jefferson Parish Public schools has one

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<v Speaker 8>of the largest Hispanic student populations in the area. A

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<v Speaker 8>thirty three year old Brooklyn woman was sentenced to up

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<v Speaker 8>to nine years in prison and a crash that killed

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<v Speaker 8>a mother and two of her young children. Euremi pleaded

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<v Speaker 8>guilty demandslaughter for the March crash. Authority say Euremi was

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<v Speaker 8>speeding when she ran a red light and hit the

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<v Speaker 8>family in a crosswalk in Midwood. Uremi spoke in court

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<v Speaker 8>before being sentenced.

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<v Speaker 11>I think about the victims every day, and data goes

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<v Speaker 11>by andrad think.

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<v Speaker 8>About the company. Audio courtesy of ABC seven. The Justice

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<v Speaker 8>Departs been told a federal judge that the final indictment

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<v Speaker 8>against former FBI director James Comy was never shown to

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<v Speaker 8>the full grand jury. One of the lead prosecutors attributed

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<v Speaker 8>the situation to a paperwork hearer. The news came during

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<v Speaker 8>a hearing Wednesday where Comy's lawyers asked to judge to

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<v Speaker 8>throw out the charges that he lied to Congress on

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<v Speaker 8>the grounds that the government is being vindictive. Global News

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<v Speaker 8>twenty four hours a day and whenever you want it

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<v Speaker 8>with Bloomberg News Now. Hi, Michael Barrn, This is Bloomberg Karen.

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<v Speaker 6>Thanks Michael.

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<v Speaker 2>Time now for our Bloomberg Sports update, and for that

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<v Speaker 2>we bring in John stash Houerd.

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<v Speaker 10>Thanks Karen Keple of hot NBA team. The Houston Rockets

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<v Speaker 10>won in Cleveland. They've won five games in a row,

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<v Speaker 10>and so have the Toronto Raptors. After a winning Philadelphia,

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<v Speaker 10>Oklahoma City beat Sacramento, the thunder defended NBA Champs and

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<v Speaker 10>off to a fifteen and one start. Top ranked teams

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<v Speaker 10>met in college basketball, fourth ranked Arizona beat third ranked

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<v Speaker 10>yukon seventy one sixty seven. The knee injury suffered to

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<v Speaker 10>Falcons quarterback Michael Pennix Junior is season ending. Joe Burrow

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<v Speaker 10>I have the toast surgery after week two, but he

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<v Speaker 10>may play Sunday for the Bengals. That to Bloomberg Sports Update.

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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 nationwide, on Serious Exam

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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 app. This is Bloomberg Daybreak.

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<v Speaker 3>Good morning, I'm Nathan Hagar. Don't call it a bubble.

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<v Speaker 3>That could be the takeaway message from Nvidia after its

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<v Speaker 3>surprisingly strong revenue forecast. CEO Jensen Wong says his company

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<v Speaker 3>is in a strong position to deliver with its most

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<v Speaker 3>advanced AI chaps.

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<v Speaker 5>We've done a good job planning for a very very

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<v Speaker 5>strong year, and we've done a good job planning for

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<v Speaker 5>Arah Rubin. So sales are off to charts and video

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<v Speaker 5>GPUs and the cloud is sold out. But we've got

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<v Speaker 5>a bunch of Blackwells to sell.

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<v Speaker 3>That was in Vidia CEO Jensen Wong in an exclusive

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<v Speaker 3>interview with Bloomberg Tech host ed Ludlow following the earnings

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<v Speaker 3>this morning after we're joined by Bloomberg Radio and TV

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<v Speaker 3>host Kritty Gupta. So these numbers are I popping once again,

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<v Speaker 3>fifty seven billion dollars in revenue in the previous quarter,

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<v Speaker 3>projection of sixty five billion in sales next quarter. How

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<v Speaker 3>significant is this at a time when so many investors

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<v Speaker 3>have been questioning all the spending around artificial intelligence.

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<v Speaker 13>Critty, Well, this is a massive deal because what's essentially

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<v Speaker 13>happened with these Nvidia earnings is Nvidia has quite literally

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<v Speaker 13>put their money where their mouth is. And that was

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<v Speaker 13>the concern that you saw earlier in the week, where

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<v Speaker 13>so much of the tech jitters, we're driving this global

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<v Speaker 13>equity sell off. You saw it in the Asian session,

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<v Speaker 13>you saw it in the European session, and certainly you

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<v Speaker 13>saw in the US session where the likes of Nvidia

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<v Speaker 13>and Nvidia itself actually driving the index lower. This idea

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<v Speaker 13>that everyone was investing in everybody else and maybe these

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<v Speaker 13>big promises and this big guidance would ultimately not be

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<v Speaker 13>delivered on. Jens Enawong really put a stop to that

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<v Speaker 13>kind of commentary in terms of yesterday's earnings report. That

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<v Speaker 13>being said, take a listen to what he's actually saying.

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<v Speaker 13>Because the earnings of the demand backlog, I say, is

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<v Speaker 13>a significant beat. So the revenue numbers are very strong.

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<v Speaker 13>But concern here though, is that because the demand backlog

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<v Speaker 13>is so large, at what point is in Vidia going

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<v Speaker 13>to be able to actually deliver on that, given that

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<v Speaker 13>they already have delays on their Blackwell chip and their

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<v Speaker 13>Reuben chip as well. But the idea of the fact

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<v Speaker 13>that some of this demand is basically unsatiable though, that

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<v Speaker 13>was a message that was really reinforced yesterday.

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<v Speaker 3>So where does this put the ball in terms of

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<v Speaker 3>the ball being in someone's court? Is it on the

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<v Speaker 3>suppliers for these Blackwell chips to keep the supply chain humming.

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<v Speaker 13>A little bit?

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<v Speaker 1>It is?

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<v Speaker 13>It's also on in video though, because you'll remember a

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<v Speaker 13>couple of quarters ago, I was even a couple of

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<v Speaker 13>years ago, Jensen Wong had really made this big push

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<v Speaker 13>to say, well, our main clients right now are the Hyperscalers.

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<v Speaker 13>There are the Microsofts, they are the Amazons, they're the

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<v Speaker 13>Googles and Alphabets of the world that are investing so

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<v Speaker 13>much of the extra cash. We're talking about trillions of

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<v Speaker 13>dollars of cash that they have on their balance sheets

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<v Speaker 13>into this new technology. So you had about sixty percent

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<v Speaker 13>at one point of their revenue of Nvidia's revenue coming

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<v Speaker 13>from Microsoft, coming from Amazon, coming from alphabet who are

0:12:09.800 --> 0:12:12.040
<v Speaker 13>just looking to build out those data centers and therefore

0:12:12.080 --> 0:12:14.920
<v Speaker 13>build out these use these tips to do that. What

0:12:15.000 --> 0:12:18.000
<v Speaker 13>Jensen Wong has wanted to do, though, is diversify that base,

0:12:18.040 --> 0:12:20.680
<v Speaker 13>and that's where the sales to China are really really important.

0:12:21.040 --> 0:12:23.280
<v Speaker 13>The argument here is that well, sixty percent of your

0:12:23.320 --> 0:12:26.000
<v Speaker 13>revenue or more than that, shouldn't just come from a

0:12:26.040 --> 0:12:27.920
<v Speaker 13>handful of players. There's a lot of risk in that.

0:12:27.960 --> 0:12:30.560
<v Speaker 13>What happens if Microsoft says, well, we're having a bad quarter,

0:12:30.600 --> 0:12:33.480
<v Speaker 13>maybe we don't want those chips. It's a very unlikely scenario.

0:12:33.600 --> 0:12:36.000
<v Speaker 13>But there is that question of broadening out. And now

0:12:36.040 --> 0:12:38.520
<v Speaker 13>the trade seems to be not just about the hyperscalers,

0:12:38.679 --> 0:12:42.440
<v Speaker 13>but how do the smaller companies, the next level technologies,

0:12:42.520 --> 0:12:46.280
<v Speaker 13>the healthcare manufacturers, the medical equipment makers, even some of

0:12:46.320 --> 0:12:50.199
<v Speaker 13>the kind of equipment makers for say tractors, for example,

0:12:50.240 --> 0:12:54.040
<v Speaker 13>among other things, using those chips, using that AI technology.

0:12:54.600 --> 0:12:56.400
<v Speaker 13>At the end of the day, and that's what Jensen

0:12:56.480 --> 0:12:58.760
<v Speaker 13>Wong is ultimately trying to do. It's not just about

0:12:58.760 --> 0:13:01.520
<v Speaker 13>getting more and more chips and getting more and more orders.

0:13:01.559 --> 0:13:04.679
<v Speaker 13>It's getting about more chips from more people and getting

0:13:04.679 --> 0:13:07.080
<v Speaker 13>demand from different parts of the market, broadening out the

0:13:07.120 --> 0:13:10.680
<v Speaker 13>demand and therefore justifying the broadening out of the rally

0:13:10.720 --> 0:13:11.800
<v Speaker 13>you're seeing in the stock.

0:13:11.520 --> 0:13:13.800
<v Speaker 3>Market in our last thirty seconds. It's got to get

0:13:13.800 --> 0:13:17.680
<v Speaker 3>investors attention. When Jensen Wong says that his projections include

0:13:18.040 --> 0:13:19.880
<v Speaker 3>zero revenue from China.

0:13:20.440 --> 0:13:22.520
<v Speaker 13>And this is a really interesting piece because we know

0:13:22.640 --> 0:13:25.480
<v Speaker 13>that the White House has been urging Congress to say,

0:13:26.040 --> 0:13:28.840
<v Speaker 13>loosen those restrictions. Congress really actually trying to tighten it,

0:13:28.840 --> 0:13:30.880
<v Speaker 13>saying that we don't want to talk about talk about

0:13:30.880 --> 0:13:34.640
<v Speaker 13>selling our really high technology to China, to the Middle East,

0:13:34.679 --> 0:13:36.360
<v Speaker 13>to other places around the world. The White House trying

0:13:36.400 --> 0:13:38.120
<v Speaker 13>to seek those curbs. At the end of the day,

0:13:38.160 --> 0:13:40.640
<v Speaker 13>Jensen Wong saying, look, that zero percent number on the

0:13:40.640 --> 0:13:43.600
<v Speaker 13>Blackwell chips is actually a massive safety measure, and if

0:13:43.640 --> 0:13:46.040
<v Speaker 13>you do get the green light, that can only add

0:13:46.120 --> 0:13:48.359
<v Speaker 13>to the blockbuster numbers that already exist.

0:13:49.520 --> 0:13:52.959
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