Nvidia Sparks Tech Rally; Haley Endorses Trump

Bloomberg Audio Studios, podcasts, radio News. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.

Get another blowout order from Nvidia, the chip maker at the center of the artificial intelligence boom, not only beat earnings estimates, it also gave a bullish sales forecast, showing AI computing spending remains strong. Chief Executive Officer Jensen Wang stoked excitement with talk of the dawning of a new era.

The next Industrial Revolution has begun. Companies and countries are partnering with Nvidia to shift the trillion dollar installed base of traditional data centers to accelerated computing and build a new type of data center AI factories to produce a new commodity, artificial intelligence.

Nvidia CEO Jensen Wang also announced a ten for one.

Split, and Nathan that news is being cheered by investors, and Vidia shares are among the most actively traded this morning. Right now, they're trading above the thousand dollars level, up six and a half percent. Dan Morgan is an analyst with Sonovas Trust.

The ten for one stocksport is absolutely huge because like Amazon and Google, and they both did twenty four one stock sports. It really allows the retail investor to participate more in terms of buying more shares, and it's a psychological thing, but it does boost the.

Stock Sonova's trust.

Dan Morgan also notes that in Vidia boosted its quarterly dividend by one hundred and fifty percent ten cents a share.

And Karen the Nvidia rallies helping lift other companies associated with AI. Shares of super micro computer up about four percent, Dell is hired by about five percent, Advanced micro Devices with a gain of nearly three percent.

Well, we turned to the economy now, Nathan, and the mantra higher for Longer has been reinforced.

By FED officials.

We get the very latest from Bloomberg's John Tucker John Karen.

Minutes from the last FED meeting show the participants not only rallying around higher for Longer, but many question whether policy was restrictive enough. Various officials mentioned a willingness to tighten policy further if warranted. The FED policy makers pointed to the possibility of high indust rates having a smaller impact on the economy than in the past. They also said the long run neutral rate that's the level of rates that neither slows nor stimulates demand may be higher

All right, John, thank you know. The Biden administration is touting its independence from the FED. In a blog post, White House economist cited research and historical data to make the case that central bank's independence bolsters their credibility with the public. The move comes amid heightened speculation over how Donald Trump could ramp up pressure on the FED if he wins another term in the White House.

Well, sticking with the Washington Nathan, we could see another vote on immigration policy in the Senate today. Bloomberg's Ed Baxter has the story.

Son of Majority Leader Chuck Schumer says he'll bring the one House Speaker Mike Johnson refused to bring to the floor.

Will both sides come together to advance a bipartisan border security bill?

All partisanship getting the way once again.

But a Republican Tom Tillo says Schumer may have miscalculated the situation.

There were already no votes in his conference, So I mean, it's just going to demonstrate that there was no path. He knows that it's not going to go anywhere in the House.

In any case, it is scheduled for today, Ed Baxter, Bloomberg Radio.

All right, Ed, thank you. We have another big political story already developing. Former President Trump's last remaining rival in the Republican presidential race is now his latest supporter, Nicki Haley, says she will vote for Trump in November. Bloomberg Zamy Morris reports from Washington.

Haley, who challenged Donald Trump for the Republican nomination, is the latest critic of the former president to back his White House bid. As she told a gathering at the Hudson Institute in Washington.

Trump has not been perfect on these policies. I've made that clear many many times. But Biden has been a catastrophe. So I will be voting for Trump.

Haley's endorsement of Trump is the latest sign of his near total grip over the Republican Party. President Biden has openly courted Haley's supporters to back his campaign in Washington. Amy Morris Bloomberg radio.

All right, Amy, thanks, We'll be turned to politics overseas now and there'll be a national election in the UK. On July fourth, Prime Minister rishi's Sunat called for one as his Conservative party faces the biggest challenge to its fourteen year rule. In a statement outside Number ten Downing Street, Sunak said the country needs clear leadership these uncertain times.

Cool for a clear plant. I'm bold action to chant a cause to a secure future. You must choose in this who has that plan, who is prepared to take the bald action necessary to secure a better future for our country and our children.

Rishi Sunak has seen support for his center right party dwindle steadily. Meanwhile, Labor leader Kir Starmer kicked off his own campaign, saying his party can put an end to recent turmoil.

On the fourth of July.

You have the choice and together we can start the chaos.

We can turn the page.

We can start to rebuild Britain and change our country.

Kier Starmer's shadow Chancellor, says the Labor Party will campaign and the economy, arguing that recent high inflation and lackluster growth are the product of a conservative government.

Well back here in the US, Karen the next anti trust fight could be coming at the will call window. Bloomberg News has learned the Justice Department is joining with a group of states to sue Live Nation Entertainment. More from Bloomberg's Doug Krisner.

The violations are related to Ticketmaster's unrivaled control of concert ticket sales. We are told to suit will seek remedies, including breaking up Live Nation. Live Nation is the largest US concert promoter. It merged with Ticketmaster back in twenty ten. At that time, the DOJ allowed the deal to move forward when Live Nation promised not to retaliate against concert

Radio, all Right, doke thanks. Shares of Live Nation down more than seven percent in early trading. On the flip side, du Pont shares up more than three percent. DuPont plans to split into three publicly traded companies. It joins a list of industrial conglomerates seeking to boost returns by breaking into smaller, more focused businesses. And it's time now for a look at some of the other stories making news

Good morning Karon. For the second time this week, Penn Station service was suspended because of fallen electrical wires. The down overhead power lines brought the evening commute home to a halt from many passengers laid yesterday. Both Amtrak and New Jersey Transit were operating very limited service out of Penn Station. Delays and cancelations could continue through this morning.

You know, I turned around, he pulled a gun out of his pocket and point Blake Rays.

Just like that.

Inspect fled driving home just miles away, where he was pulled over and captured by authorities in front of his neighbors. The Biden administration has a quote deep concern about the closure of a key entry point for aid flowing into Gaza. Israeli forces pushed into the southern city of Rafa earlier this month, closing the crossing into Egypt. Secretary of State Antity Blincoln.

Because of.

Combat activities around near and around the gate, the environment for bringing the assistance in is really challenged.

Secretary Blincoln. Health officials confirm a second person in the US has been infected with bird flu. The case was confirmed in a Michigan farm worker who had regular exposure to livestock infected bird flu. Michigan Health Department Chief Medical Executive doctor Natasha Bagdasarian, the.

Risk to the general public remains low. We know that with our current understanding of H five influenza and H five influare ones are particularly in livestock, that there is the risk for sporadic human cases, and that's what we've seen at this time.

Doctor Bagdasarian says the first case of human bird flew this year was confirmed in Texas and also linked to Candle Global News twenty four hours a day and whenever you wanted with the Bloomberg News. Now, I'm Michael Barr. This is Bloomberg Heroon.

Hooray Michael Barr, thank you.

It's time now for the Bloomberg Sports Update with John stash Hour.

John, good morning, Good morning, Karon.

Rangers and Panthers started an Eastern Conference final at the Garden. Actually rare in the Stanley Cup playoffs when the top two seeds the two division winners get this far. Florida got a first period goal for Matthew Kitchuck. The game stayed one nothing for the next thirty nine minutes.

Counted a Rangers territory Sstorking Well out to play this one. David writes a for Hackey along the farboards for Hackey, come fo tip Hooker Reacher, they store Carniver Hagey center. It went off for Raacher and the Panthers have a tune up lead with three forty eight to play.

On WQAM and Miami Panthers added empty nt A one, three nothing Sergei Babroski twenty three. Saints didn't face a single Rangers shot for a fourteen and a half minute stretch to the second period. Rangers, after winning their first seven playoff games, are one and three since in their last two at home, they've been outscored seven to one. Game two at MSG tomorrow night. The Devil's hired a new coach, Sheldon Keef. He just got fired in Toronto

It's two thousand and one.

John Stashewer Bloomberg.

Sports Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.

Good morning, I'm Nathan Hager. Nvidia delivered for the fifth quarter in a row. The chip maker at the center of the artificial intelligence boom came through with an earnings beat, a forecast for even further growth, and to top it all off, ten for one stock split. So let's get more on these results.

Now.

We are joined by Matthew Bryson, Senior vice president of Equity Research at Webbush Securities. Matthew, good morning. I'm going to ask you the cliche question and ask you to take it literally. What's not to like about Nvidia's results.

Honestly, there's nothing not to like. They gave us a great guide, they gave us great results. They told us that they couldn't meet demand. They told us they likely can't meet demand for another until midway through next year or beyond that well into next year, I think, is what Jensen said, So there's nothing not for leng.

How much is this growth that the CEO has continued to forecast for these last several quarters going to hinge on suppliers like Taiwan Semiconductor meeting demand that Wang is admitting is going to outstrip supply for quite some time.

I certainly in the near term it's it's an issue, right They told you during the call they couldn't get as many networking products out as they would have liked because of supply constraints. I think with their newer chips they need a new generation of high bandwidth memory. High bendwith memory has bent tight. That new iteration HBM three E is even tighter, so that's going to be a constraining factor. So I think at least in the near

And you point out in your note that the video broke out networking as a line item for the first time. What stands out to you in terms of the networking aspect of Nvidia's business.

So I think what's what's really interesting is they took this business from Melanox that was relatively small. Now they've grown it to a size where it's comparable, if not larger than something like Arista. And they're not a networking company, right, they're a GPU company. I think in the near term them telling you that networking was constrained in the court they just reported, but it's getting better better this quarter.

Obviously, there's a lot of attention as well on the announcement of the ten for one stock split in the pre market right now, we're seeing in Vidia shares trading above your price target of one thousand dollars. Where do you see the stock going now with a split on the way?

So, I mean it splits on it is a good thing in the sense that you have investors that couldn't get involved because the stock was simply too pricing. Now that enables those investors. I mean to some extent, it's a question of supplied demand, right, you have more demand. It's a good thing for the stock.

So do you raise your target? You want to make some news this morning.

I again talk about where my price target goes until I put out a note talking about where my price target goes. But I mean certainly what they told us. It lifts numbers beyond where my current model is, and so whenever I come out with a report, my new model has to reflect that changes to their guide.

This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.

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Listen coast to coast on the Bloomberg Business app, SERIUSXM, the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hay.

And I'm Karen Moscow.

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