Jim Cramer and David Faber led off the show with Nvidia and highlights from Jim's exclusive "Mad Money" interview with CEO Jensen Huang. The CHIPS Act also in the spotlight: Intel CEO Pat Gelsinger appeared one-on-one with Jon Fortt to talk about the billions of dollars in funding the company has been awarded. Jim and David discussed an excerpt from Cramer's interview on the CHIPS Act with Commerce Secretary Gina Raimondo, which is slated to air Wednesday night on "Mad Money." Also in focus: Fed decision day, Apple CEO Tim Cook visits China, Chipotle's 50-for-1 stock split.
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It's Jim Kramer here you're listening to the opening bell and CNBC squawk on the street don't miss a minute of the action good Wednesday morning welcome to squawk on the street on David Faber live post 9 of the New York Stock Exchange there he is Jim Kramer still in San Jose and NVIDIA's AI developers conference will have highlights from are you still doing the interview as it ended I'm not even sure that long interview with that from NVIDIA let's give you a look at futures of course as we get ready for what Jim and I like to call hump day I call that a mixed picture I don't know what you want to call it Jim mixed makes picture yeah looks mixed mixed all right good let's get to our road map it starts with what else NVIDIA and the AI boom shares of course up 240 percent the last year we're gonna have more from Jim's exclusive with the company CEO Jensen Wang and why he thinks the PC is changing forever speaking of PCs engine behind them Intel preparing for a $100 billion spending spree across four states this after securing ships act grants from Uncle Sam we're gonna hear from Commerce Secretary Romando and Intel CEO Pat Gelsinger that'll be this hour and of course don't forget its Powell's moment Wall Street waiting for the latest guidance from the Fed chair today on the future of rates whether that might include some cuts let's start with NVIDIA Jim's exclusive of course with Jensen Wong he spoke on mad money about reinventing the computer take a listen we reinvented the computer as we know it the computer's been the same since 1964 since the year after I was born and we reinvented it with this idea called accelerated computing now you could have a computer that's a hundred times faster or 20 times more energy efficient cost 20 times less and to be able to do solve problems at a scale that nobody's ever imagined Jim you know so many different takeaways including that it's something you've been discussing to a certain extent and I think a lot of investors are just trying to get their arms around all of this what does it mean where do I want to be is it just NVIDIA can that growth continue I mean so many different questions that seem to emanate from both his presentation and your interview well look I think that you have to go with analogies I didn't get this one from Jensen but I've been thinking about it all night which is that right now we are really happy because we have propeller airplanes and they're terrific and a lot of people are wondering why do we need something faster why do we need anything faster and Jensen's got a jet I you know what it's a secret weapon that he's using and everyone's gonna want to check we just don't know it yet David that's the difference and everything's gonna be so much faster there was that moment where he pointed to I think sort of the the setup of of the servers and his point was right this is so much faster and it's gonna take up so much less space obviously it's still gonna be in a data center but it's gonna replace what is a current data center just with you know wasn't that much equipment that he was looking at well he's got a great sense of irony and he's a very humble man so it's difficult to really grasp sometimes what he says because it has so much gravitas for instance he said Jim I asked him I said do we have to do a do over of our entire system and he said look only 95% of the chips aren't any good anymore solid 5% please you left only 95% the chips just aren't what we want and when you hear that and then you hear all these skeptics you say well do they do they listen to him is he too calm does he have to be more jumping up and down what does he have to do right right and you're seeing that in some of the research now in terms of that point you're making the second you know the strong second leg of GPU growth will be spent shift from on x86 data center to accelerated computing and to your point right yeah word yeah well David look I dealt with the robot yeah I dealt with the robot I had a boar okay yeah and he wanted I said I'd like a cocktail and you said okay he started making me of some mocktail and I said I wanted that and then I said shake and not stir well he didn't understand that okay because that's like me being bond which which is yeah difficult to understand him give it but next year when I come back he will come back with a quip when I say shake and not stirred they will be from Goldfinger right right I could see that you can see that I can I can see the advance he can see it what does it all mean for you know let's go through some of the names though the big names that that we've been talking about for the last year whether it's meta who is the biggest by the way the biggest single spender when it comes I believe to Nvidia chips right they're spending more than anyone right but I have a comment about meta which is it later on I'm going to see the vision pro and what what Nvidia is doing with the vision pro I am not going to see what it's doing with meta because I'm not sure I know that that Jensen personally likes the vision pro and I think that's more additive to Apple than anything that we're talking about including the fact that Tim Cook wow is in China how about that let's have a Tim Cook watch in China no I'd rather talk about what Jensen wants to do with the vision pro which I think is monster because it's business to business and that's what Apple's been waiting to do yeah you talked about this a bit yesterday you really think there are what there are enterprise applications for the vision pro and absolutely buying what has been hoped accelerated computing I mean it's not it's not the stuff in the vision pro it's what you can deliver to it as a result of this you watch the interview you did you watch it yeah that's exactly what happened and that stock was up a dollar and a half because of that but people would never say that because that will require genuine accelerated computing by listening to the interview and people don't have accelerated computing do you know that Moby Dick can be read in one second I picked that up during your interview yesterday and in fact I mentioned it on air he didn't even say a second he kind of indicated less than a second I didn't know what to do or in pieces this full second I know I didn't really and it's brand think about this I know well I try not to but you know but David that's putting it in English for our viewers get that because they all had to study Moby Dick they understand a hat they understand that Starbucks is gets it much faster than the triple betting cappuccino that I tried to get the other day at the airport Starbucks in the book is better than Starbucks store right but a lot of people are trying to put it all together and what it means again for this ecosystem for the Metas not just these cities for Apple we've talked about things moving to the edge for example this week we had that story earlier in the week from Bloomberg about Google or alphabet negotiating potentially with Apple about including Gemini when we say the edge we mean essentially the device just to be clear which potentially would require a lot more memory in the device itself by the way if you're running these large if you're running these kinds of apps but you could put you could put 280 billion microprocessors in this I we spoke with synopsis yesterday and you could have 280 billion well they're actually transistors well they're pieces of something 280 billion your your it was 208 billion transistors in the it was too noisy in here I thought he said 280 no 208 granularity yeah I couldn't hear really you couldn't hear all right let's do it I think we have some more I we have some more from from Jensen's interview that I think it's worth taking a listen and get your reaction on the other side there's no computer company has ever been built like ours we created a brand new way of doing computing everybody we work with everybody we work with here there's researchers and scientists from a hundred trillion dollars with the industries health care and financial services manufacturing and such and when we're done building all these computers we break them up into parts and we integrate them into Microsoft Azure OCI GCP AWS HP and Dell and IBM and they take it the market and so the application software is being offered by cadence and synopsis and answers and this so really amazing company that we work with the so and Autodesk and Adobe and others that the tech our technology is integrated into theirs our technology is integrated into all these computer makers and the world connects it together and that's the reason why NVIDIA is everywhere okay we're in every cloud every day this is that we hear all the time well you know but Amazon's working on a competitive product outfit all I hear from you is good we want to help everybody develop whatever's necessary you are not at war with customers no well we do something very different first of all our architecture on the one hand could do artificial intelligence it could do computer graphics physics simulation data processing sequel data processing which consumes a lot of energy a lot of cost for many customers we reduce it by 95 percent 20 times reduction and cost and energy used so much so that Google's Dataproc is now accelerated by it we announced the partnership yesterday with a great company Databricks they're going to accelerate their data process they're the large-scale data processing cloud company they're going to accelerate their data processing on it and so all of this is something you can do on our architecture the other thing you can do with our architecture is everywhere right and so if you're a developer and you develop on NVIDIA you can run it on AWS GCP Azure HP Dell IBM anywhere all right Jim you want to explain to our viewers what exactly that all means sure well you take a look at you mentioned several times Amazon web services I'm gonna spend some time with with Adam Slipsky today who runs that this is all about the ability to move so fast that in in a proper case in Amazon what they're saying is it moves so fast and it's also more accurate okay so this new step function of what he brought in moves much that gives you the information faster can read much faster but it also doesn't isn't as prone to hallucination and hallucination is what everyone's worried about when it comes to artificial intelligence and answering that and having inference that cutting down an hallucination will make it so that people will be much more willing to adopt and use the chat GPT's of the world or the clods of the world which I think may be ahead I think Claude 3 may be ahead of everything right now really anthropics Club 3 why yes yes I did well because it has the fewest mistakes and has the quickest answers and has the most in-depth answers and that is the one that Amazon web services has backed Amazon web services is the biggest buyer of the fastest stuff that Nvidia does across the whole line that's why it's so important to realize why Amazon web services has such such a great business David it's because they have superior recall they have they have met a was the biggest buyer I thought meta was there they were the biggest buyer of one kind of chip one kind of chip I invented Amazon web services biggest buyer the whole suite all the chips that that Jensen just mentioned and thank you for running a longer version because you don't get what he's about until you hear that he listened to that breath of clients and you know that this is a company where it's really hard to pin down what they're going to make per share because every one of those clients as he told me when he said to Andy Jassy CEO of Amazon would buy anything that he had every one of those is on allocation not one of those companies has enough chips right now think about that everybody else has inventory problems throughout the chain because there's too much there's too much that's be de-stocked and this man cannot meet the demand from those customers it's an amazing moment for for accelerated computing and generative AI it's an amazing moment and people are thinking too small except for that one man right there he's not okay when we come back we're going to continue to talk about chips this time Intel CEO Pat Gelsinger will be part of the discussion billions that his company in factors receiving from the US plus what Commerce Secretary Ramondo told him about the chips act subsidies for Intel let's give you a look at futures we're gonna be trading here in about 17 minutes see sort of a mixed bag the NASDAQ may be up but the S&P perhaps down a bit we're back to move welcome to the Canva guided meditation for stress at work impending deadline generate canva presentations in seconds brainstorm got too big summarize with AI in a click writer's book release with Canva magic right stress less and save time at canva.com designed for now is the time to accelerate innovation T mobile for business is powering Formula One Las Vegas Grand Prix operations and epic fan experiences with secure reliable 5g connectivity because an event this big and this fast deserves a network that can set the pace see what our 5g advanced network solutions can do for your business at T mobile calm slash now view 5g device coverage and access details at T mobile calm all right welcome back we're gonna stay with the chip sector AI of course an important component of that as well the White House announces that Intel has been awarded up to eight and a half billion dollars in funding from the chips act could to receive an additional 11 billion the funding would benefit Intel's plans to build chip fabs in four different states you're gonna want to hear what Intel CEO Pat Gelsinger has to say about it all that'll be later this hour first though take a listen to what Commerce Secretary genuine Ramon Gina Ramondo excuse me had to say to Jim Jim about the subsidies that was in an interview that is gonna air tonight on mad money right now the United States of America produces zero leading-edge chips in the United States we buy 92% from one company in Taiwan that is not resilient that is not safe right that is an overly concentrated supply chain for a critical item and that's why it makes sense for the US government to provide these subsidies so that these companies make it in America it's a national security issue Jim it's certainly seen as that given the Taiwan semi-basically controls the manufacturing of the highest-end chips including of course all the ones we've been talking about so we're all the Nvidia designs go to be made Intel was the leader for so long and then just lost it when it came to the manufacturing side not to mention the design side is well I mean it was once our premier chip company it's had a good years to stop by the way up 44% but it's just to put it in perspective a hundred and seventy seven billion dollar market value versus an Nvidia Nvidia's 2.1 trillion dollar market value right it's important to recognize that AMD passed Intel 2 which is something that if Andy Grover alive the man who really accelerated Intel's growth I think he would just be shocked AMD at one point was being joked about as the company that Intel kept alive in order to be able not to have a justice department investigation of monopoly and now well just say AMD is the only rival to Nvidia Intel does not make the leading chips maybe it will with the money that is being that is receiving but right now Intel as you said it's just very far behind they had a series of CEOs that frankly were sub-optimal and but that was not talked about much because you know David other than I think when a couple of shows we never criticized CEOs for having no vision but Intel had no vision and this is what you get when you have no vision yeah you know listen it's it is sometimes hard to discern from our vantage point how poorly things are going from an execution standpoint you look quarter to quarter it sort of takes a while but to your point decision not to provide into the iPhone when they had a marketer running the company frankly instead of a scientist many people point to that period of time you're right there's no doubt it's a Harvard case study to be done I assume if they haven't already Pat Gelsinger obviously trying to turn around yeah Jensen came to Intel and said look you guys should be doing gaming chips I hadn't have a friend who was on the board at that time and said look gaming chips are very very fast maybe we should make an invested in gaming chips and Jensen's proposal was right on the desk of Intel and Andy Grove was so dismissive that it became a doctrine not to talk about gaming chips which is why Jensen is not historically that much of a pal with Intel yeah that said you know the hope is that we are going to be able to make or that we will have a lot more manufacturing capacity here in this country perhaps as much as 20% up from I think what is 12 right now in order to make these advanced chips because there is that risk there's no payback semi there's no payback for five or six years in these chips so you need to have subsidies Brad Koenig used to run a global tech investment thank you for Goldman he's the advisor on this so don't think that the government doesn't notice that they don't know what they're doing I think Brad's probably the most knowledgeable when it comes to doing exactly what the government would like best yeah and your guests and I do you know Ramondo as well as deep deep into this hitter I think hitter from every CEO it took Amazon and alphabet they talked to Apple they they talked to they talked to every major company and yet we think that the government's a bunch of idiots I think that people who pull her someone who doesn't know what she's doing our people should look at her body at work because they should be embarrassed of their criticism embarrassed and we know that there are people who are very critical yeah I know but every time I run into a CEO in this world they've heard from her recently all right Jim get ready you got an opening you got a we got an opening bell but you have a mad dash to get ready for stay with us now is the time to bring new ideas to your industry and T-Mobile for business has the advanced 5D solutions to make that happen we're helping rethink patient doctor interactions with real-time data sharing we're tracking carbon with 5D sensors to help fight climate change we're partnering with cities to connect roadways cars and drivers to minimize injuries disruptive thinking deserves a disruptive partner so let's get started on what's next for your business step up your innovation at T-Mobile dot com slash now all right let's get to a mad dash Chipotle is on the menu yes yes sure I press Jensen Wong to give us a big split because I said that individuals love splits even though they don't create value well David Chipotle is listening to this call they're doing a 54 52 1 stock split 50 to 1 and you can see what's happening they're doing it so employees get stock and employees want this is much easier from place to understand but David the individual wants this the institutions hate it because it means more commission dollars it hurts the S&P because for these index funds because they've worked at more friction but the individual goes crazy there is nothing new David with Chipotle nothing except for this 50 to 1 look let's do it a 50 for 1 and the stock has a major move 5% this is what corporate America should be listening to this is how you get individuals involved with your stock it's still really that's still the case even with all these short dated options and all these other ways to do things it's it still matters to people you're still right to ask for for $200 for $29 instead of $2943 that is the right question but Doug McMillan at Walmart said that Sam Walton had done an analysis of this for his employees there are people who understand this they understand that the there are sticky investors and there are fickle investors the fickle investor we should stop catering to them they're the ones that don't care about this stuff at all but the individual investor will buy Chipotle put it away and you know when the carne is sought when you when they get that chicken out plus door which is really good David maybe they'll buy a couple shares have you had the El Pestor now I don't really attend I don't really go to Chipotle sorry do you know what Quack is what yes I do well I know what Quack is I do okay I do I just I'm sure because Quack costs are higher are they again the avocados are are soaring again it's quite sick yeah well when you own the Mexican restaurant we used to get real-time pricing information on the avocados but not so much in here avocado killed I had three months where I lost money cuz I have avocado I couldn't make it up the carne here's the opening bell with the NASDAQ AI infrastructure from a sterile labs that's an IPO its CEO is going to be on money movers that's about an hour and a half from now all right Jim you know what I'm gonna start us off somewhere a little bit different than everything we've been talking and I'm gonna go to caring I'm gonna start with caring the luxury goods I'm gonna start with Gucci because your sales force yeah because we got a update some preliminary information regarding the first quarter is what it's called and they're talking about challenging current trends consolidated revenue on the first quarter could decline by as much as 10 percent on a comparable basis and they're citing a sales steeper than expected sales drop at Gucci notably in the Asia Pacific region where comp revenues in the first quarter could be down by nearly 20% Jim this is taking that entire it's all its cohorts in that area down as well I want to take a look of course you'd expect LVMH and the like your thoughts it never stops China has gotten away from conspicuous consumption the Chinese I think the government doesn't really want it I think that that the people are not as wealthy as they used to be and you don't need to have Gucci David you can live without Gucci okay yeah I have managed to do that throughout my entire life interesting I don't know if you saw this journal story about sort of attacks as well on the richest man in the country and some leaders of business sort of nationalist kind of attacks on them that's going on at the same time I just pointed out yeah the Chinese high-end consumers very important for these companies you see Rishmont LVMH carrying all down but carrying obviously bearing the brunt of this that said I feel like recently we've seen different kinds of performance you know you'll you'll see one not not doing well but it doesn't necessarily translate to some of the others including for example I remember Burberry had a bad quarter but LVMH didn't know LVMH had a great number Rishmont wasn't nearly as bad now David what I see happening is if you look at the casino stocks McCallus come back they're letting people gamble McCall they're very very fickle but I think what you said about the ultra-rich is very important because unlike say you know Senator Warren who can kind of rap about the older the ultra-rich their government can jail the ultra-rich is a much more critical thing and so what we're seeing is the crackdown again on conspicuous consumption that David I think must be frightening all the wealthy a child may be but you know and then I'll go to PDD Holdings which of course is a very important company there T. Moo is it's one of its main businesses as our viewers may well know and things look pretty good there PDD is up sharply you can see the hundred and twenty-three percent overall increase in revenues from from the company and this includes obviously domestic China it may also be on the earning side that they did a better job in terms of executing and so margins a bit better or and or the business just more profitable than some in anticipated but this was well above many the estimates both on the revenue and profit side that analysts had for this company and again we're talking about the consumer in China here well the price of what team who makes I mean it's unbelievable how cheaply you can get now a lot of us is I had my daughter got sent a big box of to attend a step a team of stuff because it was like she's an influencer or something I bought some stuff my wife a team who just to see how it worked it was not well received frankly I think it was mostly because of the dal issue you know the volume issue oh the polyethylene issues pop these actual maker making of it which I think would trigger a fire hazard throughout New York City but that's what they make they make incredibly cheap stuff the prices are insane it's very it's you know what it's crazy Eddie like the price yeah insane good old crazy Eddie in the fourth quarter the quote is but you are growing growing demand driven by encouraging consumer sentiment that was the company's co-chief executive officer going on to say we all we will continue our high quality development strategy and stay dedicated to offer great value quality did they say high quality they said high quality they mentioned high quality okay so so I saw Jassy at Amazon you can buy their stuff on Amazon and they actually give you a date if you buy it through them it comes within like two or three weeks okay if you buy through Amazon you get it immediately you have to pay a little more right I mean I bought a swimsuit for my wife which again was a suboptimal situation not a smart move just in general I mean come on man you've been married a couple of times you've been married to Lisa for a while here what are you doing buying her swimsuits on Timo I was calling for number three wife I mean I don't know I I mean it's nice it's thoughtful I would never say it was a you know it was kind of I was like you know how you get we eat like have a popsicle and your brain freezes you had a brain freeze yeah all right that all right yeah when it came I realized it see as soon as you started to feel it and it felt like something that is made by DuPont that was that was it it was indicative I want to get to Boeing I want to get to a bunch of other things Jim but we do have to move on because we do have a special guest as our viewers know the Biden administration awarding in tell nearly twenty billion dollars worth of grants and loans that of course from the chips act the company right now will receive eight and a half billion in grants but could get as much as a additional eleven billion in loans that would be to help it build out fab manufacturing fab facilities here in the US let's bring in John Ford because he has the man of the hour Pat Gelsinger John David thank you I am here I in Chandler Arizona with Pat Gelsinger the CEO of Intel big day for you've been waiting for this for a while ships act funding eight and a half billion dollars that's a lot of money but shy of the 10 billion that some maybe you were hoping that you'd get and then there was this DoD kind of two and a half billion pullback headline so tell me with this funding now what's this going to do for the timetable for you for getting Intel back to manufacturing leadership well we just say this is an exciting day for America it's an exciting day for the chips program it's an exciting day for Intel and you're behind us the construction project on live and well and we're moving forward rapidly and the facilities behind us hey these need to come online in 2025 you know they'll be part of our 18a you know our finish of our getting back to leadership so this brings us back to leadership manufacturing for some of our key products also will be key for our foundry business as well and it really is sort of the coming together of everything that we did you know a lot of shoe leather getting the chips act passed and the eight and a half billion the additional 11 billion of loan guarantees the investment tax credit and then more to come with defense the R&D investments so today's a great day it sort of is I'll call it the end of the beginning of our journey to rebuild semiconductors in America this is exciting what what's coming with defense what kind of timetables you'll be looking at no particular timetable in that area but everything we're talking about is the commercial efforts that we've laid out and as you said we want to build world class at scale commercially viable leadership technology and then we want to add to those capabilities the additional requirements for defense and intelligence so that work is underway but today a proud day to get the commercial work well underway and thank you to the chip sack thank you to Congress president Biden and the Department of Commerce this is an exciting moment okay level set with me now because we're almost exactly three years and one month from when you started this job as Intel CEO the stock is about a third lower than it was and there's been a lot going on in the market but how far are investors now from being able to tell whether this turnaround in design and in manufacturing that you told them was gonna take a while this wasn't gonna be overnight how far investors from seeing whether this is working yeah and I certainly believe that we have taken our investors on a journey you know we said very clearly this is five years to turn the company around three years into that journey and now we see the light at the end of the tunnel on the process technology we just held our foundry day where the industry the EDA community says oh the industry can build on Intel as their manufacturing partner the products you know our product execution has you know almost entirely you know been restored as we'd say back to delivering the products to our customers that we said we would launch new categories like the AI PC and now this entire AI craze is gonna demand more leadership technology than even we imagined five years ago and facilities like this and Ohio and New Mexico and Oregon are gonna be even more important than I envisioned so I'd say halfway through the five-year journey and we're a little bit over halfway through the challenges to rebuild this iconic company and we're appreciative of everything that's come together to make this day possible five nodes in four years still on track absolutely and this will be the culmination of that right behind us as we finished the fifth node 18a and that'll be manufactured right here let's put that into context for people because we've been talking a lot about chips lately I was in Austin a little more than a week ago with Lisa Sue Jensen Wong and NVIDIA has been putting out news this week just talking about Blackwell which I believe is made on TSMC's latest four nanometer process now you have argued that this is an apples-to-apples when you're comparing process technologies in tells to others so if you were to make Blackwell for NVIDIA how long before your manufacturing facilities would be ready to do that at scale well what you see behind us here you know would be the sub two nanometers or 18a as we call it so two nodes more advanced than what they're using today right you know for that so that makes it faster smaller cheaper you know more performance capabilities and this will start coming online next year in 2025 for manufacturing so we would hope to be manufacturing the most advanced AI chips for all of them for Intel's products but for AMD and NVIDIA and Apple and Amazon and Google we want all of those chips to be manufactured in America taking advantage of the R&D that's done here uniquely in America as well and that's why today is such a thrilling moment I always got to ask about Galaxy 3 any new news on when that accelerator chip competing with the others is gonna be ready coming very soon you know very healthy we're bringing it up in the labs and the systems are getting bigger that we're running it on very healthy you'll be hearing more about that soon all right gonna take a pause here we're gonna hear more from you on CNBC here on overtime but for now Pat Gelsinger thank you send it back to New York Stock Exchange John thank you a reminder by the way tune in tonight 4 p.m. Eastern actually that's later today closing bell over time John will have much more of his conversation as you saw with Intel CEO Pat Gelsinger Jim let's bring you back in I mean you know interesting of course we talk about NVIDIA we talk about Blackwell and then you got John asking hey is this facility ever going to be in a position to produce those chips well look I think that the problem is once you're finished the facility Jensen will all from NVIDIA will already have moved on to the next I mean that is what keeps happening like Lisa Sue put out some chips and they were terrific and then right on top of that Jensen had the next chips and all the big customers one are the latest and greatest so it's absolutely there's there'll be demand for what Pat Gelsinger is making but the real demand when it comes to the Amazon's and the alphabets when it comes to the Metas when it comes to Microsoft are going to be for whatever is the fastest at the time and what has software NVIDIA will have software Intel is not a software company so Intel will be at a disadvantage that said look it's very difficult to get engineers in our country it's 50 to 1 between Taiwan and us in terms of the number of engineers the number of builders very very difficult so I think this is a great thing that the Commerce Secretary's doing and these plans would not be built because they're uneconomic without the substance yeah I'm that is part of the problem and I mean Morris Chang the founder of TSMC American of course he was at Texas Instruments for much of his life he's an older gentleman now he's complained about how how expensive it is I mean in Arizona where they're trying to build a new fed everything I know is from Morris I just read everything he does he's a good friend of Jensen's and Morris is someone who is idolized in the semiconductor capital equipment business which of course is where the real IP is real intellectual property belongs to the KLA's it belongs to to lamb and Morris Chang got father of the construction it used to be it used to be another was a jury park used to be the architect of the great Intel plants here Israel and Ireland they lost that they lost their way in Intel and and Morris took up the the vacuum that's why Taiwan has such an advantage no I mean that the two hundred eight billion transistors that's what we're talking about the ability to right that's exactly put all of that it's just incredible you're so right remember what we remember what synopsis said Jensen designs then the software is it's handed off for the software for not for synopsis and then it goes to Taiwan semi you need that software component in order to be able to stay ahead of everybody else that's how inference occurs remember inferences the ability to ask a question in English and get an answer and as these machines learn more the answers more sophisticated that is not what Intel does and that is not what Intel be able to do when this plan is done as efficiently as in video or aimed yeah well but they're not writing the large language model they're not you know using they're not behind that side of it Nvidia I don't want to get to right there they're allowing the platform to operate for the large language model correct correct and I think that that's the boy you're on your game that's exactly right and people who think that they do both Jensen will correct very quickly look I think Intel is going to do terrific stuff I am not denigrating I think this is great idea and it should be done there and we know from the supply chain problems we had during the pandemic yeah we are so vulnerable we need this at the same time we have to understand that into these chips may not be as valuable as they seem because of what Jensen is thinking about doing five years from now that's mean this plant may not produce chips he did that are of use for say three four years and Jensen will move on he did talk about five years as well get into human level AI or general intelligent action yes say which is a conversation David did you but yeah what were you at all concerned about the possibility of these computers let's say having biases or being able to say you know what I think that after looking at everything there are smarter than we are yeah of course you know I'm concerned about that what have I been talking about for the last year you know I just made it all way to that was a segue it was called a segue oh okay I listened no I brought I should have just said you know what hey David you've been worried and you know what I come back with a little bit more concern I was just trying to get it you oh you're getting a little more TV thing getting a little more concerned now finally huh I am I am about the ability for the machines to be able to have their own opinion it's also and I don't know if I want the machines opinion on Moby Dick I know I want to look at what they're gonna do and all the sovereigns that are gonna have their own large language models and are buying all these ships from NVIDIA as well because they don't want to just rely on the US and there's a lot of roads you can go down all right you're David I come back with newfound recognition of your concerns and I think we have to dress them continually because it's what I saw out here the machines how could have conceivably have discard our opinions I want to talk to you a lot more about that before we run out of time here though - I did want to come to Boeing the stock's actually up despite what doesn't seem to be great news from the company CFO presenting at a conference in which he really does give guidance in terms of negative cash flow that was worse than had been anticipated as much as for the first quarter negative four to four and a half billion in free cash flow some of which will not be made up for the year they are still talking about being cash flow positive but again and it goes back to something called traveled work for it's for years they prioritize the movement of the airplane through the factory over getting it done right and that's got to change that's a quote from Dave Calhoun previously and so they've decided as you saw there to hold airplanes in a position longer and get after this traveled work broadly it's going to impact revenue earnings and cash flows both from the quarter in the year and as I just said it will be between four and a four and a half billion it's essentially has to do with the fuselage that they used to get from spirits that was non conforming now they needed to be fully conforming and it's just going to have the effect of making everything slower Jim for Boeing as they sort of and you change their manufacturing process you could correctly point out this is a cash flow story that's how it's always been valued and the cash flow drain it's worse than expected should the stock be up to no it shouldn't be up to no I'm kind of curious as to why as to why it is well I mean there may be the people who think that what they're going to do is get control of fuselage and do spirit and have spirit not do airbus work but David what really matters is that you and I both know from the from the crisis during the pandemic it's all about the cash flow of Boeing and so therefore the people who are buying it must think it's about something that is ephemeral at versus the cash which is which is permanent they did say if it when it comes to spirit error systems and in fact if they do buy that company it would be cash not equity that they would use and the CFO said spirits shouldn't be a business it should be a factory well when they spun it off they should have thought about that all right I'm gonna give you a bond report now Jim because it's that time sure and I know you care by we haven't even talked about the Fed let's take a look at our surgeries are fair you want to you want to throw something in here during the bond report go ahead the Fed meets today we'll be right back all right Jim what do you got on the big show tonight final portion of my interview with Justin Wong from the video Amazon Web Services gigantic user in video chips Gina Ramondo talking about exactly what John Ford's doing which will be interesting and then so far answering some questions about why the stock fell down so much great show you're you're out there you do you're ever coming back or you just stand out there now actually I'm gonna stay out here for the rest of the week albeit at one market later today just learning you know just learning thank you for watching all that stuff because you and I both know that we have to think about it you're right I want to congratulate you I was a little too clear about what these what can be accomplished with and they are now you're starting to worry me I was too good all right we're gonna talk no I just know that we have the guard rails are necessary I was too good thank Jim have a great day and a great show tonight on Matt all right coming up right here it's a rough morning we talked a bit about it for luxury retail signet jewelers though also included in that CEO's gonna join us to discuss the company's earnings and guides you've been listening to the opening bell one CNBC's squawk on the street all opinions expressed by the squawk on the street participants are 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