The spirit of performance defines Acura, and now it's electric, introducing the all-electric ZVX, Acura's most powerful SUV yet. While what powers their cars may change, the energy that makes Acura never will. Crafted using the same formula that brought them electrified supercars and multiple MSA championships, the ZVX has tracked tested performance that packs an energy all its own. With a premium bang and olefsen sound system and up to 313 mile range on a single charge and a type S variant with an estimated 500 horsepower, the ZVX is everything they said electric could never be. It was built with the driver in mind, just like Acura has been doing since the beginning. We could talk all day, but the only way to experience this electric performance is to drive it yourself. Unlock the energy and order yours at Acura.com. It's Jim Kramer here. You're listening to the opening bell on CNBC's Squawk on the Street. Don't miss a minute of the action. Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Kingston here with Jim Kramer, David Faber at Post 9 of the New York Stock Exchange. S&P coming off back-to-back gains first time in two months. Dow trying to make it five straight gains for the first time this year. As Hilton, Texan, Boeing all in the earnings mix. We're going to begin though with Tesla surging in the pre-market despite this quarterly miss, including its biggest revenue slide in more than a decade due in part to price cuts and weaker demand. Shares of the EV maker getting a boost from the company's growth strategy. This is Elon Musk outlining his plan on last night's call. We've updated our future vehicle lineup to accelerate the launch of new models head, previously mentioned stock production in the second half of 2025. So we expect it to be more like the early 2025, if not late this year. These new vehicles, including more affordable models, will use aspects of the next generation platform as well as aspects of our current platforms and will be able to produce on the same manufacturing lines as our current vehicle lineup. So it's not contingent on any new factory or massive new production line. Jim Bespoke says this looks like it will be the best earnings reaction since 2020. Well, look, you do have some upgrades. You have a very nice bank of America upgrade and you have people saying it's a clearing event. Did he pull Rabbit out of the hat? He came out back with a small car as well as with the terrific app by the way in the tech that is the hailing app. I thought that the key analogy, David was not the Airbnb average analogy. He did that as great. It was the elevator. Was that not terrific? You're not alone in that, Jim. It's funny. It came up in a couple of conversations I had this morning and then somebody actually went to perplexity and tried to figure out how many elevators there are in the world. I'm not going to share the number because it sounded way low because they were like, "That's a great analogy. How many elevators are there?" They tell people because it was such a great analogy about how it started with you. Well, you used to have somebody in the elevator who operated the elevator. Did we ever think about getting in an elevator any longer and having somebody in there pulling the lever for us? Of course not. But don't you think that's just like he just comes up with the with a compelling reason why you should buy the stock, things like that. He does. I was listening to the call last night, a couple of other people in my house who were overhearing it and I was just I remarked on how he believable he is sort of uniquely and yet and yet somebody else piped up yet. But should you believe him? Should you believe him? Doug Cass today, extended and pretend. Bernstein keeps 120, Jim, says that growing units this year in Tony's view, not a slam dunk. No, but I mean, you have Adam Jonas talking about accelerated launch of more affordable models. Dan Ives likes the lower cost vehicle, but he did lower the price target. Goldman talking about better than the low expectations. I mean, I think that the bare piece, which is C's turning point, will bear sentiment. This is now trading on sentiment and the sentiment was so low, the Jonas stuff was terrific. The sentiment was so low that it was almost like if he just came in and said, listen, we'll do small car and at the same time, we'll do a ride share app. Well, I mean, look, do you think it's only going to be up 15? I mean, I think this thing is a possibility being up 30 because the sentiment changed. Now, David, the free cash flow didn't change. It was bad. Oh, and they consumed an enormous amount of capital during the quarter as an automaker will given how capital intensive the business is. What is two and a half billion? What was the number? Yeah. So coral, I mean, it's a situation where individuals love this stock. I mean, when we talk about what stock people want us to talk about, they want us to talk about Tesla. Well, they've been waiting for this, but what are they waiting for? I mean, now the app is cool. Like you summon it. Well, you know, I summoned an Uber last night, just a lot of zores, a person in it, driving. I like that. If this Uber coming out the driver, I mean, I'd have liked that given the fact that I was in San Francisco during a period where you didn't really want driverless. Although he did say that version 12 is, quote, profound. Actually, I have Uber and Lyft moving on this today. I don't know if it's apples to apples, but lift is down a percent. I think that we're in one of these interacting in periods where everything that was bad, judging from what is all like started by Super Micro and Taiwan Semi, everything was bad. David's now good. It's front seat back seat. It's like, remember the movie Bananas? Everyone must wear underwear and in order to be able to shirt, we have to wear it on the outside. I mean, that's what we have. We have people who probably don't even know who we are on this. It's really pathetic. Right? What are you all on? Yeah, do you think there's a movie in theaters like right now? Well, I mean, but it's a bad one, yeah. But I do think that this is almost comical. It's almost comical. How much everybody loves a free cash flow story? By the way, if I'm not mistaken, sleeper. I mean, they were there were autonomous automobiles. Remember? There were all kinds of gadgets. Yes, the autonomous automobile and sleeper, for what's his name? He used the nuclear bomb. He was the head of the teacher's union, right? What was his name for Gattoo? Well, I mean, is that more or less fanciful than what do you offer to say or say? Listen, he told people flat out, you're in his investor base. If you want to invest in a car company, we're not interested. We are only interested in or not. You should be interested in his autonomy and robotics, because that is what we are. And obviously with almost a half a billion market cap again today, given the move up. Name me another company. Name me another company with incredibly negatively free cash flow that's going hard. I can't. To your point about sentiment. Boeing. Boeing is actually higher ahead of the bell after this narrower loss and lower cash burn than expected for Q1. Our fillebo is at the production facility in Renton and has a very special guest. Hey, Phil. Hey, thank you for joining us this morning. You heard the setup there. Q1 big loss. Less than the street was expecting, but you still burn through $3.9 billion in cash. Is this the bottom in terms of free cash flow and how much you're going to be losing per quarter? Yeah, rather than address the bottom, this first half will be the result of a lot of dramatic actions that we've taken in this factory to slow things down, synchronize all of our work with the supply chain, eliminate large portions of traveled work, work that we did in our factory to take a non-conforming part from a supplier and turn it into a conforming part. So we've made some dramatic changes. We had stand downs. So the cost in the first half will be real, but then we'll get back in normal order as we get into the second half. How much difference is the process behind you right now than it was 60 days ago, specifically in terms of the fuselage that you're taking from Wichita from Spirit Arrow Systems? Yeah, it's dramatic, it's dramatic. So we took all of the inspection processes and the people doing those inspections, and then the people who are doing the rework embedded in these positions in the factory, and we moved it to Wichita. I give Pat Shanahan a lot of credit for saying bring him down, let's do it. So they are now embedded there and for this, from that day forward, which was really March 1st, we will only accept they will only ship a conforming fuselage, which means it comes in this door in near perfect shape and then it moves through this factory in a much reduced cycle. More than a few on Wall Street have said, look, you still have the target out there of $10 billion annual free cash flow by the end of 2026. Get rid of it. I have not come across one analyst who has said it's a smart thing to keep it out there. Why you didn't reiterate this morning, but you're not taking it down. Why keep it? Because I believe it. I just do. So this will cost us six months. That means in that two year window, it'll be six months later than whenever it was going to happen. I still believe it'll happen in that two year window. And by the way, this was never a heroic target. This was a target that we believe we could need when this factory moves and three sevens move and deliveries are done. So I'm still strongly believing it and I actually believe that the work we're doing to eliminate travel work in these factories to re-synchronize with our supply chain, make it more probable, not less. Jim, I know you have a question for Dave. I wanted to know, obviously Steve Mullenkop, fantastic guy from Qualcomm, working his 24/7, trying to find a successor. How about Stephanie Pope? She's there. She's terrific. Maybe it's someone internal that you need because the problems are so complex? You know, Jim, I happen to be pretty strong believer in Stephanie's potential to run the company. We've invested a lot in Stephanie. You saw what she did with our services business for the last couple of years, we're at record margins, we're meeting our customers' demands. And she came in here and put both feet on the ground and she's been out on that floor. It's a little bit of trial by fire on that front, which I am confident that she will work her way through and perform. And then yeah, Steve still has a tough job. Steve will canvas the industry. Steve will canvas the CEO community. And Steve will get to know our company. He's already invested a lot of time and energy and getting to know our lead technical people. He's developing a real perspective and he has time to do it. He has time to do it. So I'm quite optimistic about these outcomes and I am quite optimistic about the performance that Stephanie Pope will bring to PCA. Dave, next week marks the 60-day mark, if you will, for reporting back to the FAA saying, here's where we were in terms of fixing the problems that exist here on the 737 MAX line and then 90 days at the end of May. By the end of May, do you expect the FAA to say, well, we are signing off on the changes that have been put in place here? Yeah, so first of all, the review is going well in the sense that we're both approaching it business-like. We all want the same thing. We want to factory under control. We want a set of metrics that demonstrate it's under control month to month to month to month. And then we want compliance on the floor. Are your tools in the right place? Are the instructions set up the way they're supposed to be? We want that to be as perfect as it can be. Easily measurable, and I think at the end of 90 days, they will simply say, we agree with this control plan. We will measure it, and you will have to demonstrate performance every step of the way. You've seen the metrics already, so you know some of these numbers. Percentage-wise, how many fewer problems are you seeing, let's say this week than you saw two months ago? Well, if I pick that one part that we talked about, the fuselage, the incoming, reduce our non-conformance load about 80%. So you've got 80% fewer non-conformance problems with the fuselage that's coming in from the guitar than two months ago. So as you look at this, is this the low in terms of max production? Because so many analysts are out there saying these guys are going to be backed up. And it's more about whether it's a low or not. It is wildly sporadic, because again, we're trying to sync up our supply chain. This will begin to steady as we get through the second quarter, and then it will be all about how many perfect fuselage do we get from spirit. That will be the constraint, and that will be the opportunity. I'm confident we'll get there. You saw the whistleblower hearings last week in DC. Not sure if you watched them or not, but you saw that it was going on. You know the commentary that's coming out of Capitol Hill. How often are you in touch with senators, separate from any discussions about a hearing, testifying? How often are you talking with them? Well, you'll probably remember, I think, the second week after the Alaska accident, I went and visited with a whole bunch. I've been in regular contact. Every week, we tee up one or two conversations so I can bring them up to date on everything we're discussing. The NTSB investigation, the FAA work, our determination to see the spirit work through, our willingness to slow down the factory, to get things under control and synchronize with that supply chain. I walk them through all of that. They're very appreciative of the conversation. I don't want anybody surprised. I'm doing my very best to one, always be responsible, and two, always be transparent. Real quick, spirit error systems. Do we see an acquisition likely in the second quarter? Announced? Yeah, so let me first say, it's not being delayed. Nothing's off the rails. We are working diligently to get it done, and I'm determined to get that done. Spirit in working with its other customers are taking actions to ensure that all of those relationships are what they need to be, and everything they do in that regard is better for us. So we're going to be patient, let them get their job done with their respective customers, and then we'll get a deal done. Yeah, I believe in Q2. It's more than likely. Dave Calhoun, CEO of Boeing. Guys, we'll send it back to you. Yeah, thank you. Well, extraordinary, because I think somebody would say the cash flow here is so weak that maybe this is the same thing that we saw during the great recession, trying to put together the, you know, a bond. I mean, during the, you know, during the COVID-19, almost four years ago, the Steven Euch and Bond deal. It was 26th bill, I think. It turned the market. Yes, it turned the market. When we were able to raise that. But somehow, David, people were kind of sanguine. Yeah, well, I mean, Phil, Phil pushed Dave Calhoun, particularly on the target for, was it 25/20, the 10 billion target? He said, I believe it. I know. But why does he get the, why does he have the credit bill? I'm just asking, I happen to think that he does. I think you do. You do? Well, look, I think that in the end, you have two companies. Airbus is having trouble meeting demand. They've got eight years worth of demand of Boeing. They need the planes, the customers, the customers aren't saying, you know what, we're going to go to, well, there's nowhere else to go. There is no right. This is the duopoly defense. That's why I think that, yeah, I believe because, because how can you not, because there's growing demand and we need new aircraft. And a lot of these are United the other day, we've already hired the pilots. So it's just, you know, listen to Larry Cole. I mean, from GE Aerospace, look, this is a high quality problem in Italy. They have to get the cashflow. But how many industries have a situation where the demand is so much greater that we have to overlook problems like this? We have to overlook them? Well, there are some problems that you can't overlook when it comes to Boeing. Well, like making sure they're putting everything together the way it's supposed to be. Well, that's a safety issue, Dave. Yes, Dave. Which remains, I mean, his member was all about safety. Yeah, Billy Craig Hayes, when I was talking to him about this recall, you said, Jim, you know what's really important here? Safety. And I'm like, okay, sounds good. Yeah, no kidding. Safety first. Safety first. Safety first. Really? Yeah. David's very concerned. I'm very safety first. When we come back, a bunch of earnings to get to, including AT&T, Visa, Hilton, Hasbro, Mattel, Otis, Biogen, Humana. 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Visit ssga.com for a prospectus, containing this and other information. Read it carefully before investing. Spy is subject to risks similar to those of stocks. All ETS are subject to risk, including possible loss of principal alps, distributors, and distributors. Let's talk a little AT&T. You can see the stock does appear that it will open higher, although it already in the pre-market has been higher than that. Calls. Still ongoing, I believe. Started at 8.30. I'm reading a running transcript of it. I mean, the results were pretty good. You know, I did talk to the CFO earlier this morning, hundreds. Yeah, I did. Fast-held directions. Yeah, 170 basis points of margin expansion. They had the most post-paid net ads, $349,000, and their fiber business continues to grow very quickly. They got 8.6 million subscribers in fibers, making them one of the bigger players there. And obviously, they have more opportunity. They say this has been a key strategic area for them. Wireless service growth, roughly 3%, and they're guiding free cash flow between 17 and 18 billion dollars. I did ask them, you know, all right, what's the margin expansion about here? Where is that coming from? You know, he obviously mentioned they've already cut 6 billion in run rate, or have 6 billion in run rate savings already that have come out over the last few years, or has been added, depending on how you want to, you know, cost cuts hence the savings. Talking about AI, helping them in terms of their, how they're dealing with customers and the voice recognition systems that make things easier and more productive. They've reduced their retail footprint a bit, fiber easier to maintain than his copper, and on from there. But, you know, Jim, I know you have rarely been constructive on AT&T stock. I would point out, by the way, Stanky, some on a little shade at Verizon, which reported numbers that initially were well received earlier this week, and then kind of reversed, take a listen when he talks about low calorie pay particular attention. We now have about 71.6 million high value, post-paid phone subscribers, which is up one and a half million from a year ago. And these aren't empty calorie additions. Our results reflect the quality of our customer growth with higher RPU, higher adjusted operating income, improved margins, and lower post-paid churn. So, sort of trying to draw a distinction there between what I guess they believe were lower calorie additions at Verizon. Overall, and this gets you to Apple a little bit as well, consumers are holding on to their devices longer. The upgrade cycle is taking longer. You know, since 5G, there hasn't been something that has made you go out and say, "I got to get a new iPhone." And that direction was talking about that. Like everybody, he's waiting as well for, "What are they going to put out in the fall that's going to have an AI component to it that might get things moving again?" So, is that the .72 churn, which is incredibly low? Yeah, it is. It keeps things low. And, by the way, since they subsidized devices, it actually helps on the margin side as well. You know, the revenue side may not be as high, it helps with margins because they're not initially making the money on the devices. I give them that. Now, David, some of this ATT fiber business, you're talking about penetration of 40%, 27.1 million total locations pass, kisses. I mean, I'm fine. So, they have the opportunity on some point 1 million locations that they can market to, and they had a significant addition in subscribers to their fiber. How about ATT not as bad as you? Is that the headline? You're like ATT, not as bad as we used to be? All right, I'll give you the last word on that one. It's good. It's good. It's still an important company, obviously. The consumer, again, according to the CFO, remains pretty resilient. Okay. All right. Yeah, it's good report, David. Thank you. Well, speaking of Apple, we'll get to some supply chain reports about the Vision Pro at least. We'll get Kramer's mad dash, and the opening bell, don't go anywhere. What's on the horizon for financial markets? At PIGIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals, specialized across asset classes, but united in collaboration. Our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PIGIM, a leading global asset manager. Let's get to a mad dash, an opening bell. You want to talk a little verdict from Dave Cody, of course, Mr. Chairman, and that stock has just been on a run. I think this is interesting. It's a SPAC. It was originally a SPAC, way back. David, they have 60% organic order growth. Why? They're in the data center, and the data center, as we saw in the Wall Street Journal. Still not as ever, so I give you burden of as being still on the world's data center play that looks. That's a chart. That's just beautiful. Look at that thing. Look what it's off, it's 600% a year. It was catchable. You could have had it. I know. Let's get the opening bell, and see if he says he'll tell us Dave. For the big board, it is the UConn Trustees' name to basketball team in honor of winning back-to-back championships. First team to do that since '07 on the men's side at the NASDAQ. It's co-part and online car auction company celebrating 30 years on the NASDAQ. Back-to-back, David. Amazing. Right? Yeah. Very impressive. Tessa, that coach up there. Mr. Hurley, yeah. Yeah. So we open up Jim within about 15 points of 5,100. Does this say tactical bounce, or can this continue if PC egos are away? I actually think that it depends on the bond auctions. Yesterday, the two year was regarded as being one of the great auctions ever. We get a five today. Five, not as attractive. I just think that what we're looking at, Carl, is money that came out of nowhere going into the financials and going into bonds. Now it's broadening back out to the magnificent ones, which are reporting. It's kind of got a year of good feeling, but I don't think this can necessarily last. We have to have so many things go right. Now we had Tessa go right, we had Bowen go right. Okay, I think Meta can go right. I don't know if Google can go right because there's up so much. Amazon, I like. Microsoft, maybe it's up too much. So Nvidia is not right now. But look at Meta. It's soaring, and yet if TikTok is really banned, so to speak, then the world is Zuckerberg's oyster. Yeah, I mean, it's worth mentioning, of course, that bill is going to go to the president's desk today. Obviously, it's an aid bill for Ukraine and Israel, humanitarian aid, as well as a part of it. But a ban on TikTok is going to get signed into law. They're going to have a year. As we pointed out many times, it seems unlikely that the Chinese government is going to let TikTok's owner by dance sell the US or the English language version of the app. But it remains to be seen, and Carl, it very well may end up being decided in the courts. Meantime Blinken's in Shanghai today, possible face-to-face meeting with Xi on Friday about support for the Russians, about some of this, about sanctions, about chips. I mean, it is extremely nothing that they have in common right now. I mean, look, we're trying to stop them everywhere, and yet we're still talking to them, and I don't get that. I think it's great that they talk. But what they're really doing is trying to stop cybersecurity at home. They're trying to keep them from having all the advanced chips, and yet they want to, the Chinese will, and it's hope to them. I still think that the Chinese have a weaker hand, and that that's why they're willing to talk. But we're not giving them any of them. I mean, it's really different from the old days when we wanted to sell diapers and sell so badly that we gave them the house. We don't do that anymore. We just say, listen, we're going to take away, you want Nvidia? You know, we'll give you Texas Instruments, which, by the way, is a big one. I'm not going to use AMD or Intel in their own telecommunications infrastructure, for example, any longer. How about Apple? I mean, Apple, Nike? What do we give them? We give them Apple, Nike, yesterday, and water. Starbucks? Starbucks. Yeah. And those are all doing badly because, yeah, what else? We're getting something. And Tesla. We give them Tesla. Oh, well, Tesla's different. We do give them fabulous. We do give them Tesla. The only company that's been able to 100% own, it's Chinese subsidiary. Right. Of course, that was very helpful to the Chinese EV makers, it would seem. Absolutely. By the way, Apple, I would never. Obviously, made Shanghai at home for making some of its automobiles. So what do you make of it? I mean, what do you make of the idea that we're talking to them? And yet we have nothing to say. What are those talks like? You know, we don't like you. You don't like us. Okay, let's have some food. I mean, come on. There's so much I don't understand that I can rarely share anything that would be of value, Jim. David, you never say that. What you say is, it's to be continued or we-- The jury's still out. The jury's still out. The jury's still out. We'll see. Time will tell. We'll see. Time will tell. Time will tell. Absolutely. You guys know, David, I wonder abundance of caution on this. Can we talk-- let's talk a little visa because it's only a $565 billion mark. Let me get my visa file out. Get the visa file out. Gap that income was $4.7 billion. That equated to $2.29 a share for its second quarter, second fiscal quarter results. Non-gap, by the way, is $5.1 billion or $2.51. So, you know, takes your pick. You can see the stocks are about two and a half percent. But as a reflection of the overall economy as well, Jim, despite what maybe some brown shoots that both you and I have sort of been hearing about anecdotally, I mean, you did have payments volume up 8%, cross-border volume up 16%, process transactions up 11%, that doesn't sound like much of a slowdown, although there was a deceleration during the quarter in that growth. And they gave you an April number. It was okay. Look, there-- nothing's changed in terms of the consumer wanting to go places. The consumer is still the long-won money short on time. We saw that from American Express. They want to do things. They seem to be less maturely oriented. They want to travel, plays into Boeing's hand. No, I'm not kidding. Like when you speak the Larry Cope, GE, aerospace, you say, "Don't forget, people want to travel like never before." That has not changed. And when it comes to goods, whether they be luxury or otherwise, you're right. I mean, carrying is another example. The owner of Gucci, not good, not a good quarter. Stock is down. You can take a look. But it was a big quarter. We're talking about a significant decline in the first half operating income as a result of Gucci sales. And by the way, it's not alone. We've seen it with any number of other luxury companies. Right. I mean, I think that the world changed. Rishma was an unusual group. Yeah, it's interesting. Rishma's okay, Carl, because you wear it on your arm. You can't see it. So it's not showing. But I have to tell you that the idea that we're going to go spend on great stuff, it's just not the new way. It's a new frugality, except when it comes to travel, because it's an experiential economy. I hadn't been telling one last night. Now, Hasbro, by the way. I was going to say Hasbro is the number one S&P right now. Yeah, that guy. That guy's a magician. I don't know. I mean, we think that the O's, the medalist is Hasbro. I thought I had it wrong. 61 cents beats 27. No, it was incredible. It was an amazing quarter. And that guy is so good. We should get him one. I thought that Mattel was going to be the star of the toy show. No, it was Hasbro. But Mattel has this 12 ride theme park in Glendale. You know, so it's kind of doing a reverse Disney. People like that. What happened at Hasbro? Well, Christopher, that guy Cox, he's amazing. No, I mean, honestly, you know, he did this wizards. Wizards is better. David, it's also an inventory story. The inventory has finally dropped. I see. Chris Cox has finally turned around Hasbro. The toy business has gotten better. You know, my father sold toys. What a horrible business. It is tough. Yeah, it's really tough. He sold Bobby Shants games. Bobby Shants was a reliever for the Phillies for about a half a season. And he got that was what he did for a living. Does this mean you got free stuff as a kid? Like, you have all the Bobby Shants wins. But we sold him out of a station wagon in the back at three markets, which he told me was really a great job because you see, sometimes when you live in that fantasy world, it's nice. I felt very at home back there with the station wagon. But I'm bringing this up because toys are so hard. And yet Hasbro and Mattel were good last night. I think that's extraordinary. I'll take a listen to what Mattel told Jim on Matt. We're executing on our $1 billion share repurchase program and just bought $100 million of share in the quarter. We expect to outpace the industry and gain share and reaffirm guidance for the year. And the plan for the year is to emphasize profitability, gross margin expansion, and strong cash generation, and return to topland growth in 2025. Whether it's toys, Jim, you mentioned travel, Hilton's up six. Oh my god. That's it. We're net unit growth. The nug that people like so much. We got this upgrade of Airbnb. Oh my god. The Airbnb and you have both, you have most talking Airbnb and then you got good Airbnb. Actual Airbnb. And by the way, the Olympics. They mentioned the Olympics on could be a boost to rates. They go from 150 to 200. I happened to love Chesky. I think he's great. I remember when things were really going bad during COVID and he had to bite the bullet and he hated letting people off, but he saved the company and the ministry. It's a juggernaut. Texas Instruments shares are also up six percent. Well, that was a, you know, what they said. They have the worst comps called the world, but they did say, look, we saw bottom in some of the analog stuff, which is autos. And then people buy one semi, which is the worst performing semi. They go by NXPI, because that's, that's auto semi. And Texas Instruments gets away with it. Even though they gave you no absolutely just give you that inventory. Yeah. Yeah. They, I love how they insult the analysts. Maybe they get a little come up in soon. Well, well, it was a lot of guns. It was, it is a father along with a couple of other companies of chip making in the world. Right. I mean, it's where Mars Chang actually spent most of his career before going to create. But, you know, we've not mentioned Nvidia, which is an insult Nvidia, because Nvidia is the one that started going memory. Video is down 10% on Friday. Super micro is down 23%. Those are the ones that have to come back, not Texas Instruments. Okay. This is going to be dead. This is why, Carl, when you ask me, are we out of the woods, whatever? Nvidia, if it doesn't take out the high end, I believe in owning not trading a video, and if Apple can't lift, then I think you've got these two stocks that are just glaring. And right in your face as being bellwethers, if one of the Microsoft meta Google doesn't hit it, then you tip. And you think, you think Alphabet's the prime suspect on that? I just think Alphabet is, we've been selling Apple, you have a club meeting today at 12, and I'm talking about how I'm grateful that we've sold some Alphabet, because I don't trust Alphabet. You need a company, you need Waymo split off, which I don't think we're going to get. You need a CFO, which I'm not sure we're going to get. You need a buyback, I mean, a dividend, which I'm not sure we're going to get. And you need a breakdown of YouTube, and I'm sure we're going to get, that's like four things you got to get. Instead, I think you'll get, hey, it's good here. And we run cat videos in the fourth quarter of NFL, because I don't, we don't care. Why don't they sell ads? I think they do sell plenty of ads. What are you talking about? In the fourth quarter of the NFL, they ran videos about cats. Cats ask us to come down. Meanwhile, we have everything on the line for daily fantasy, and they're running cats. How much do you make when you're on a cat video? Apparently it's David. It's get this perfect. Back to Nvidia. David, I work all show on that. That was good. Thank you. Back to Nvidia and Tesla. Yeah. Well, they, they, they bought 35,000 already equivalent H100s, targeting 85,000 by year end. A billion of quarterly spent on compute alone. Isn't that a Tesla? And that's all in video revenue, right? Yes. Yes. Remember when he just, when he dissed Jensen? Yeah. And then he came back to Jensen? I mean, come on. Let's have some crew here. H100s aren't even what I want. I want Blackwell. Blackwell's not available yet, right? In September, but Amazon's going to get a lot of Blackwell. And believe me, when I said that Zuckerberg is a bigger order of this, Zuckerberg stuff is, David, it's so fast. And so, if he gets TikTok and he's got all, he has 300,000 is the biggest buyer other than Amazon. Yes. Of what Jensen offers? The world's, like I said, the world's his. Remember when Congress hates it? That's running. Are they also running llama? Is that there? That's a lot of three. Which is open source. Yeah. But a lot of people are worried about that. But open source. Yeah. We hated it when he was close source. I know, but a lot of bad actors. What are they going to do back to the AI conversation? Hey, you know what? Yesterday, I sent someone a video, a chip, a video, and it wasn't Apple. And it didn't go through Justice Department. The green bubble. The green bubble. Made me feel much better about Jonathan Cantor. Meanwhile, so much for that vision pro. That's because they haven't made it a business business play with with Jensen Ron. They're still keeping it as a super product. This he's talking about the dramatic cut. Yeah. Minchikuo, longtime supply watcher on Apple, says that they have cut their vision pro forecast for the year. We're in a thousand from seven to eight. Look, I, the, like I said, the long times are out for Apple. I made the point a few times. It's very expensive. It's a very expensive device. We need to see people to write things. Business to business. No. Siemens could buy a hundred thousand. They make factors with it. Mrs. Jensen. Jensen says, look, it's a business to business product. And Apple doesn't vary necessarily my point due business to business. They like consumer. But Jensen says, if this was a business, business, this product would be amazing. You would buy cars, carve on it. You would buy homes, real a geo, whatever they called it. And that's what it's for. But he didn't think Tim Cook knows that. Remember, I got in a car that didn't exist. I got in a car that was a chair. I stepped out of the chair like it was a car. I almost slammed the door of my fingers. Would it have hurt? No, because there was no car. Oh. Are you able to step off like the cliff when they test you, you know? It's not intense. It's difficult, right? Yes. I have to tell you, I looked under the hood. I kicked the tires. And there were no tires. There was no hood. It's amazing. But no, they're using it just for like movies on a plane. It's not enough. It's a lot of money to spend to just watch movies on a plane. He's so good. Thank you. You're in sight today. Try to show it to me. As I like to say often, I have that keen sense for the obvious. Yes, you do. It has stood me well. Captain obvious, right? Yeah. Tim, the other report tonight will be IBM. You got this journal, HashiCorp story going? Yeah. Look, I think IBM is going to have an upside surprise, because this management knows how to do that. Hallelujah. And HashiCorp, I don't know. I mean, Salesforce wants to buy informatic, and everybody hates it. These guys want to buy HashiCorp. Everybody loves it. Well, Salesforce doesn't want to buy them anymore. Not anymore? No, because it's felt a little like PayPal wanting to buy Pinterest. Yes, that one went away. Yeah. So don't saddle that on Salesforce anymore. No, I think Salesforce is going to grow. I'd like earnings per share, like 21, 11 on the red. We haven't really gotten to the banks. Interesting report out of Mike Mayo at Wells, judging various CEOs for their 10 year performance on the day where we're getting some annual meetings, then you had Diamond at the Economic Club of New York yesterday talking about the US economy. Take a listen. Soft landing type of scenario, but I'm putting me on the cautious side of that one. So let's talk about something. A great quote when I started working on Wall Street, I can't say it in its actual language, but it was something like the markets will do whatever they have to do to hurt the most people. And this may be one of those setups. Well, you know who I would have picked number one if I worked at Wells? I would pick Charlie Sharp. I mean, the turnaround there is big, and it would also be my boss. What do you think? I think that would have been a good choice. Right. How about the Bank of America bomb portfolio? How is that done for Brian? Not as well. Right. How about Sydney, the illusion? You think it's an illusion. I think it's an illusion. You're not a believer in Mike Mayo, who came on this morning with his... Did he bring a prop? Yeah, he brought a prop. He had a director's thing. You know, there's a teen reorganization, but this is going to be the one. Well, look, if yes, if you want... Stocks the best performance to make banks. But, you know, there's a bit of alchemy there. I think it was intangible bulk value. It was still so different. I can't figure it out. David, Jim. How about that vertive? Yeah, you know what? They bought back ages. Oh, listen to me. Vertive bought back six. Do you see that every shares they bought back? A lot. Oh, my God. They're operating margin at vertive. Everybody loves vertive. Well, yeah, because they bought back six million shares. They bought back 9.1 million shares in 66 vertive. So, I see you, City, and I raise you a vertive. What do you think? I like it. Yeah. Dave Cody, man. Dave Cody. I was there when he happened to be making some changes with management. And it was kind of like what Jamie Diamond said about how you can't say. I happen to be there with a different kind of moment. Really? Yeah. Yeah. Jamie didn't talk about it. I love capitalism. He's another one who doesn't suffer fools. Either Diamond or Cody. They don't suffer. No, they don't. No, no. When Dave lived next door to me, I shoveled his walk. I didn't know it was it. You know, he's like, you shovel my walk. I said, yeah, shoveling your walk. That's a good way to get on the right thing. That's how I got on the right side of Dave Cody. I shoveled his walk. How do you like that? I'm amazed. There you go. See, David, he's with a bunch of caution. He says he's amazed. A quick reminder. Don't miss the next investing club monthly meeting, as Jim says, happening at noon today, Eastern Time. David, I am so ready. You can join the club for members only access to Jim's next big portfolio moves. As we go to break, watch bonds. As Jim also said, we'll keep an eye on the five year at 1 p.m. Eastern Time. Durables came in best since November this morning. And right now, the Nasdaq trying to put together its best week since November. Don't go away. Watch biogen today up almost a five and a half percent here. Beat on the bottom line. Revenue missed, but they do reiterate the full year guide. 15 to 16 streets basically in the middle of that. For the time being a bit of a mixed open down down 15, S&P up 16. We'll get stopped trading with Jim next. Let's get to Jim and stop trading. Every single time that we do our club meeting at 12 o'clock, we always have far more questions than we get the answer. People love it. They love the question. So we're going to take the ones that we don't get to, Jeff Marks and I. And we're going to answer them on the show. I urge people to come in. I go over a lot of stocks and it is kind of revelatory. I'm not always complimentary of positions we own. Some people should listen. We can't wait, Jim. It's always good information, good intel. As for tonight? Yes. That's what we're going to do because I just find the club is very compelling and I don't want to let people down. I'm going to give like 100 questions. I got to help people. Jim, we'll see you at six and of course at noon, noon eastern time as well. When we return more reaction to Tesla's post earnings surge, we'll talk to Bernstein's Tony Saginaki in a moment. 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 solely their opinions and do not reflect the opinions of CNBC, NBC, Universal or their parent company or affiliates and may have been previously disseminated by them on television, radio, internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information squawk on the street participants, consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. To view the full squawk on the street disclaimer, please visit CNBC.com/squawkonthestreet disclaimer. From their innovative practice facility to unmatched views from the fairway, the PGA of America is helping lower scores and elevate fan experiences with 5G solutions from T-Mobile for Business. 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