Nvidia Earnings Lead to Share Slump; SpaceX IPO Details

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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.

Well, Caern, we begin with the lukewar market reaction. We're seeing to another blowout from Nvidia. Sales at the world's most valuable company gained eighty five percent to eighty one point six billion dollars in the latest quarter, and in Vidio forecast sales in the coming quarter of about ninety one billion and also boosted its quarterly dividend and announced

This was an extraordinary quarter. Demand has gone parabolic. The reason is simple. Agentic AI has arrived. I can now do productive and valuable work. Tokens are now profitable, so model makers are an erase to produce more. In the AI era, compute capacity is revenue and profits, and video is the platform of this era.

Video CEO Jensen Wong says he aims to rely less on giant data center operators and predicts other businesses and governments will become a bigger source of revenue for the company's chips and computing products, Paul Meeks covers in VideA for Freedom Capital Markets.

He says he's not concerned with the numbers.

I'm not necessarily worried about what they printed or even this guidance.

But this guidance is not disappointing.

I think it's fine because you know what, it'll be, ninety one billion dollars and then they're going to upside it like they always do, so this will be much better at the end of the day than.

The whisper Paul Meeks at Freedom Capital Markets right now in videos trading down about two tenths of one percent pre market.

Well, Nathan, there's also a couple of high profile IPOs on the way for investors and Bloomberg. John Tucker joins us with the very latest John good Morning.

Good mor and Karen Elon Musk. SpaceX filed publicly for what stands to be the largest ever initial public offering. Filing with the SEC also reveals the company has billions of dollars and losses and the way it's set up right now, it would give Musk the power to outvote anybody else and give him as many as a billion shares.

Now.

According to the filing, Musk would have to hit certain goals for the rockets, satellite and AI company. These goals include a human settlement on Mars with at least one million inhabitants and oh yes, SpaceX would first have to build data centers in space.

All right, John, Well, if that's not enough to absorb this morning, there's another Wall Street debut that appears to be on track as well.

Yeah, Karen, this one is OpenAI, the maker of chat gpt. Our sources say the company aims to file for initial public offering in the coming days or weeks as it tries to make the transition to a for profit company. Now, the plans are falling in place after judge dismissed Elon Musk's legal battle against Open Ai of The decision to push ahead with a listing this year could help it beat its rival Anthropic to the public markets and compete

Right, John, thanks, So, Anthropic is bulling an IPO as soon as October.

I'm the head of that.

The company's on pace for its first profitable quarter after experiencing a surgeon revenue driven by a demand for its artificial intelligence software. Bloomberg News has learned the cloudmaker expects to post ten point nine billion dollars in revenue for the second quarter, more than double the prior three month period.

Nathan, Let's get to the latest now in the war in the Middle East, the US and Iran are trading threats once again as the standoff over the Strait of Horror Movez drags on. President Trump says he's in the final stages with Iran, while warning he could resume attacks in the coming days if it doesn't agree to his terms. The only question is do we go and finish it up or are they going to be signing a document.

Let's see what happens.

And that was President Trump delivering the commencement address at the US Coast Guard Academy. We get more from Bloomberg's Paul Wallace in Dubai.

This could be just more clustering from Donald Trump. He has given plenty of signals that he is desperate to sort of extricate himself in the US forces from this war, and all signs point to him really trying to avoid a return to hostilities given the surgeon energy prices globally.

And Bloomer's Paul Wallace reports Iran has threatened to retaliate beyond the Middle East if the US or Israel resumes strikes. Now this morning, around semi official students and news agency is reporting Tehran is reviewing the latest US peace proposal and says it's narrowed the gaps to some extent. The report says further narrowing quote requires an end to the temptation of war on Washington's part.

Here in the US is facing protests in Greenland's capital as a new consulate opening fuels concerns over Washington's designs for the island. The US will inaugurate the new consulate building in Nuke today. It's first in Greenland since the nineteen fifties. It marks some more permanent American presidence on the Arctic island, where unease has grown since President Trump revived to of acquiring the territory Nathan.

The Trump administration is putting new pressure on Cuba as the economic standoff over the island continues. The US has charged former Cuban president Raoul Castro with murder over the nineteen ninety six drowning of two aircraft run by a Florida based Cuban exile group. Four people were killed in the incident, when the ninety four year old former president was Cuba's defense minister, Acting Attorney General Todd Blanche announced the indictment.

For the first time in nearly seventy years, senior leadership of the Cuban regime has been charged in this country in the United States of America for acts of violence resulting in the deaths of American citizens.

The announcement by Acting Attorney General Todd Blanche could raise speculation about military action against Cuba, like the ray that captured Nicholas Maduro in Venezuela earlier this year. President Trump is indicating there won't be further escalation for now.

Karen JP Morgan JA CEO Jamie Diamond is criticizing New York's Mayor Zorn Mumdannie and his plans to slap more taxes on the rich. In an interview with Bloomberg in Asia, Diamond said the move risks doing further damage to the city's business hub status.

They think that somehow being anti business is going to help a city.

It's not.

So we all want to pay fair taxes. That's not the point.

But at one point people owed defeat and there are a lot of studies that have shown that all these people moved out and they're obviously the tax obviously New York booming, so not gonna see in this year's taxes, but a lot of people are paying billions dollar taxes left. Why do you want that? How does that help the lower paid person in New York.

Jamie Diamond's comments followed a recent meeting with Mom Donnie. He has criticized Wall Street bankers and other executives, and is pushing for tax hikes to plug New York City's budget shortfall. Catch the full conversation with JP Morgan's CEO Jamie Dimond on our new video hub on the Bloomberg Business app.

Time now for look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr.

Michael, Good Morning, Good morning Karen.

Two police officers who helped defend the US capital during the January sixth riot, ares suing to block anyone from receiving payouts from a new one point seven to seventy six billion dollars settlement fund for people who claim to be victims of politically motivated prosecutions. There's the possibility that rioters who assaulted police that day would be eligible for fund payouts. Former Capitol Police officer Harry Dunn, a co plaintive in the lawsuit, spoke to ABC.

He's trolling us with the seventeen seventy sixth thing. He's trying to make this some type of patriotic symbol, but this could be the most unpatriotic thing, rewarding terrorist and insurrectionist.

Former officer Dunn is currently running for Maryland's fifth congressional district President Trump and says the fund is needed to help people he claims were mistreated by the Biden Justice Department.

People would destroyed they went to jail, their families.

Were But there is outrage on Capitol Hill among a growing number of Republicans and Democrats rejecting the idea of taxpayer payouts to rioters. The WHO says the Ebola outbreak probably started months ago in Central Africa and spread undetected until a super spreader event in early May, possibly a funeral. Meanwhile, health officials gave an update on Peter stafford. The American doctor infected it with a BOLO while working in the

The American has landed in Germany and is at the hospital and in stable conditions.

The WHO says almost six hundred suspected cases and one hundred and thirty nine deaths are linked to the outbreak. We didn't need this. With millions traveling for the Memorial Day weekend, planes were haulted after a sinkhole opened up on the runway at New York's LaGuardia Airport. More than two hundred flights were canceled and hundreds more delayed, shutting down one of LaGuardia's two runways. Airport officials are rushing

Thanks Michael.

A time now for our Bloomberg Sports updating. For that, we bring in John Stashaur.

There's there.

In Game two of the NBA's Western Conference Finals, Victor wembin Yama was coming off a forty two point effort in Game one, this time half of that he scored twenty one and the Spurs lost at Oklahoma City on twenty two to one thirteen. The series is title one. Game one in the West of the Stanley Cup Playoffs, Vegas took a three nothing lead and went on to win four two At Colorado.

Aaron Rodgers met.

The media in Pittsburgh getting ready to play for the Steelers. He confirmed that twenty twenty six will be his final season. That's a Bloomberg Sports fifty.

Stay with us. More from Bloomberg day Break coming up after this.

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This is Bloomberg Daybreak.

Good morning, I'm Nathan Hager.

Was the earning story investors awaited for weeks and it's getting a lackluster reaction this morning. And Nvidia came out with a revenue forecast right around the middle of Wall Street estimates. But CEO Jensen Wong says the future is here and his chip Giant is right where it needs to be.

The world is rebuilding computing for agentic Ai and robotic physical AI, and Vidia sits at the center of these transitions.

I was in Vidia CEO Jensen Wong on the company earnings call.

Joining us this morning after is Neil Campling, senior strategist with the Bloomberg Markets team.

Great to have you with us this morning, Neil.

So we saw the numbers in eighty five percent jump in sales in the quarter gone by even bigger forecast in the common quarter.

Why the lackluster reaction this morning? Good morning, Good morning.

I think is a bit of a travel and arrive here in terms of in Video being the largest company in the world, it's fueling obviously a entire AI ecosystem, but investors in its very very narrow market that we've seen in recent months in terms of their strength, It's likely that it is as a lack of new investor money coming into this stock itself and looking into play the AI three through other sort of other plays in

So is this a moment where the moat that in Nvidia had built around itself when it comes to the chips that it puts out there that they're starting to be cracks in that molt, what can it do to seal them?

I think the way it's looking at this now is to extend that ecosystem into other parts of the AI market. As you mentioned, Jensen talked last night on the call about one hundred trillion dollars of industry that hasn't yet but is about to be affected by AI. This is taking the AI into the physical AI system. To you and I, it's about in the real world and with robotics and those kind of applications of AI. They are diversifying into other areas of the market that could be

And the last minute I have with you, Neil, I got to get your reaction to what we learned from the filing of the IPO for SpaceX. Billions in losses and some big plans from Elon Musk.

Some quite incredible statements in as one overnight, not least the ambitions to have a one million people on Mars in the future. But as you mentioned, the increase in the losses is a tenfold increase of those losses to help to sort of fund the exceptional growth trajectory and opportunity they see in the future. It's no wonder they need to come to the market though, because they are burning through a lot of cash.

But yeah, we're It's.

Going to be highly anticipated and with Open Ai ananthropic likely to come to their market as well, this year could be a great year for ten.

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I'm Karen Moscow.

And I'm Nathan Hager. Join us again tomorrow morning. For all the news you need to start your day, right here on Bloomberg Daybreak