9AM HOUR: Anthropic Sets IPO Price Range, Nvidia Shares Extend Losses on Jensen Huang Investigation 11/10/26

0:00With the Discover Cashback Card, it's payback time when you earn cash back on everyday purchases. Activate and earn 5 % cash back at different categories each quarter on up to$1 ,500 in purchases. That's 5 % cash back at different places each quarter, like grocery stores, on gas, and at restaurants. It pays to Discover. Terms apply. See discover.com slash 5 for details. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S.

0:39and global economic news, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash market update podcast or find Schwab Market Update wherever you get your podcasts. Tuesday morning, welcome to Squawk on the Street. I'm Carl King today with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Futures back on their heels as October CPI comes in hot on headline and core and Waller signals a half a point hike in December. Yields are ripping two years at the highs of the month. Contrast that with oil.

1:14Brent below 90 for the first time since August 28th. Our roadmap begins with Anthropix plans for a public debut. We'll dig into the firm's new filing this morning, why the IPO could be a litmus test for the AI build-out. President Trump says the FBI is investigating NVIDIA CEO Jensen Wang's relationship with an alleged Chinese spy. And we got the latest read on inflation, and it came in hotter than expected, turned the market around as well. Also, Fed Governor Waller opening the door to a possible 50 basis point rate hike. Let's begin with Anthropics' updated IPO filing this morning, Jim. Digging through some of these numbers, both on the fully diluted basis and sort of the trillion they're looking to value at.

1:55Yeah, look, I think it's OK. I mean, I was so afraid, one, that the deal might not even get done. And two, that we would see some sort of a decline in a rate that would be significant enough that we would not want to pay up. Instead, I find that we are going to be at a level that I think would satisfy a lot of the bulls. David, this thing could conceivably be, it's been a reset, but I think the deal gets done at a decent level. Well, I mean, if you take the fully diluted number, you're talking about a range of, let's call it, between 1.3 and 1.4 trillion. 1.4 at the high side, again, fully diluted numbers there.

2:32A bull has to like that. Remember, they're also going to be selling about$26 billion to many of the companies we know that have already made commitments and are going to be fulfilling them as part of their overall commitment. So raising perhaps as much as$84 billion again at the higher end with the full amount,$84 billion in new capital. You add that to the$130 billion or so that they have, let's call it. We're not, you know, in cash and marketable securities. They're going to have over$200 billion on that balance sheet in cash after the offering is completed. We did finally get that blank filled in.

3:08And it was much as had been reported last week in terms of the annual revenue run rate based on October. It has hit$81 billion and is expected to move up from there. That was a$10 billion increase in that ARR over what we saw from the previous month in September. So a significant increase. We've talked about, of course, the hits that the company may have taken as a result of cracking down on things like distillation that may have had the impact of lessening the revenue growth for the last quarter, last reported quarter, which was$16.8 billion in revenues for the third quarter. So, yes. And, Jim, what I'm hearing is at the level they're talking about right now in terms of valuation, there is at least a hope amongst the bulls that as this week goes along, as the marketing begins, as it has already this morning, as you get analysts coming out with their estimates and everything else, that you could even see this kind of moving up a little bit in valuation prior to the actual issuance next Thursday.

4:11Well, that would be terrific because the initial, well, the tertiary worry after whether to get done and how low it would be, is will there be aftermarket demand? So I was hoping if it gets priced correctly, aftermarket demand would make people pretty excited. I mean, Carl, I think this is the most consequential deal of our time. Yes. Yes, I do, because there is so much money being spent and someone's going to have to pay for it. And we just had this very wounded NVIDIA that I know that we're going to have to talk about. We really needed something positive. We needed something good. This came on the day where the CPI is bad and where Waller's negative.

4:46But we would be saying, you know what, we've just dodged a real bullet. And when this is done, when Anthropic is done, we're clear sailing to Christmas. Yeah, I'm trying to think of what's in the way. I mean, there is a GTC event on the 1st, right? So, I mean, it's not like NVIDIA is going away. And there's more dribs and drabs out today. But you think it could be, once we get this done, December's not much to worry about. Right. I mean, look, we overdid the term clearing event when it came to the election because it was anything about clearing event because it turned out they blew up the data center story.

5:24And people don't want to talk about data centers anymore because those have become such hot buttons. But I would say, David, there isn't a lot. We get this deal done at a good price. They pay the people that need to be paid. Jensen's sidelined but doesn't mean necessarily that the theory's over. And maybe we don't have a lot that's bad between here and the end because we do have the possibility of oil continuing to go down, which that would make it so Waller might be on pause. I know that's a real pan-gloss view, but I think that I've seen stranger ones. You have. It always seems like something comes up that we don't expect.

6:02I mean, you know, it's not often that you think of the CEO of the most powerful, important company in the world consorting with an alleged Chinese spy. So that's the kind of thing that you just don't know. You just don't know what's going to come up. The unknown unknowns. That said, we are going to be focused on this anthropic offering now for the next week. Well, we have CoreWeb tonight. Maybe you can tell me CoreWeb can't get it done. that they're 16 % and that the neoclows are done. No, that's not going to happen. Right, I'm just saying, I was giving you a negative. Yeah, no. Well, you came up with a negative that was so crazy, I can't believe it.

6:32You're telling me the largest company in the world CEO. Yeah, yeah, I am. We spent a lot of time on that yesterday, but we will continue to because there is still the possibility. What, did nothing happen? That Jensen Wang. Did nothing happen? There is certainly a possibility, of course, that he stays in his job. Right. And there is also the possibility that he does not. Well, we have a— And that would be a significant, significant moment. I am not going to deny that. We are hearing names being floated. But this is Jensen's company, more than I think that it was Steve Jobs' company. because I think when you met with the management team, and I've met with him enough, I didn't get to meet other people.

7:23I've met with him many times. But that doesn't necessarily mean that I didn't meet with Tim Cook and he had five other people with him. Yeah. Well, certainly, Melius' point this morning is that we need to get to know some of the bench a little bit more publicly. So the impression is not that of a one-man show. Speaking of NVIDIA, it is extending the decline from yesterday of more than 4 percent. Although it got cambered right when the CPI came out, which I thought was good because it was only happening because of the CPI. Yeah. A company announced it's investigating Wong's relationship with that suspected Chinese spy.

7:58Stock erased more than$190 billion in market cap yesterday. Wong is reportedly now skipping two events, including a private CEO forum hosted by Anthropic. Yesterday on our program, Goldman's David Solomon talked to Leslie Picker about the controversy. I don't think the ecosystem is centered around one individual. I obviously know Jensen. I think highly of Jensen. I think NVIDIA is a great American company. And I think no matter how this plays out, NVIDIA will continue to be a great and important American company. And then Dan Ives today, Jim, coming out saying if Jensen does leave, shares worth maybe a third less.

8:32Third less. 33 percent decline. I did damage had been the biggest backer yes I thought we're a godfather well we've had 25 to 30 not not 33 25 to 30 okay I think that presumes that their technology sucks no but he has had such a hold on this company in every single way that he has 60 direct reports he has been there all along the way this is a board obviously that we've talked about that is not a strong board right in any way that I can see. But they have product, they have software and hardware. I think that's a fanciful position that he's taking. All right. Well, the possibility, and again, we don't know.

9:14We'll have to see what unfolds over these next few days and weeks. But you're saying that the possibility of Jensen Wang no longer running this company as he does would not impact it? Oh, I'm not saying that. I'm saying that it's been impacting it consistently now, starting, you know, I said it was going to be down 10 % initially. It's almost down 10%. I am just saying that... It's only down 4 % yesterday, and it's not going to be down another 1%. Well, that's not down. I thought it would be down 10%. No. I thought it would be down 10%. Right. But I am saying that unlike most companies, there is a definitive roadmap that Jensen left them that is like the car that runs on water.

9:50I mean, we do have the Richard Feynman. Maybe. We have the Richard Feynman. He's also the guy, though, that literally goes around the world all the time I'm philosophizing about the positive impacts of AI. Talks, I mean, we can track it, I mean, twice a week somewhere he's talking. And he's the guy behind all the deals that they've done. All those, all the financings, all the investments, everything. I mean, he's central in so many ways. And again, he may, he's certainly going to have to pull back, it would seem, from the public, from the spotlight regardless. But he may stay in the role. I just think that that sells the company short.

10:24I think that the company, because of the way Jensen worked, does have the right product. Is someone a proselytizer? He created the ecosystem. I don't know how much more of the ecosystem needed to be created. You're right. Maybe that's not the right word. He created the ecosystem. Cheerleader? I mean, you know. I think that sells him short. But how about an aggressive proselytizer for a way of thinking that has won? I mean, if Michael Entrader were sitting there, I think he would say there is a consistent roadmap that Jensen's left. So if Jensen takes a leave of absence possibility, they've got the Vera Rubin and then they've got the Richard Feynman.

11:05And that's a roadmap that lasts till 2029. And that's not bad. And these chips last long. And we just need a person who's at point to meet someone. But I'm just saying that the bench is strong because I don't know who the bench is. That's a central figure. I mean, think about that table. When Becky Quick had all the leaders of finance around that table and then Jensen, he was the driving force for the securitization, for example, market of GPUs. I agree. I mean, you lose somebody like that, take that player off the field, you know, it's like losing Lawrence Taylor. Well, you know what? They were still pretty good without LT.

11:41They didn't win the Super Bowl without him. No, they did. I mean, later. Well, look, I know you often, I often announce the NFL, too. It's Barry Sanders. He quits when he's at the top. But I do think that when you look at the chart, it's not like it hasn't lost a lot already. I mean, it's been horrendous. Yeah. It's been a horrendous time. This was a, what,$240 name, Jim? Oh, which is horrendous. Just a few weeks ago. But that was, right, that was not based on this. That was based on the concerns about data centers and the slowdown and the political opposition to AI more broadly. All that's true.

12:16and the data center weakness. I'm not... Look, I'm debating the Ives issue. I don't want to do that. That's who I'm debating? I'm talking about a company that has put up a tremendous history of product over and over, and the iterations keep coming, and I don't believe that Jensen did all the iterating. I think he did a lot of the proselytizing. I don't think he did all the iterating. I know he was very much involved. If you talk to him, he'll say, hey, listen, I've got the Feynman, and we know at GTC he's the representative, but he has a roadmap, and people can finish the roadmap. I don't think, for instance, that as much as I think Lisa Su's fabulous, I don't think Lisa Su's able to leapfrog over NVIDIA.

12:59You're also one of the biggest China hawks, certainly I know. I mean, at one point you didn't want China names to be listed in this country. That's right. I would imagine you are curious to know what we knew, what the company knew, what the Singaporeans knew, right? Absolutely. And I'm a little surprised about the different discussion the New York Times has about the Commerce Department. Yes, yes. With what I knew about the Commerce Department, and I now question what I knew, which is something that you never want to do if you're a reporter on the news saying, well, wait a second. But I am saying, I need you to listen to me on this and agree that this is not like a typical company.

13:38They have a product in 2029 that they are ready. There is an ecosystem. system. We do have a situation where we don't know whether the data centers are going to be as visible, but that had to do with the election, not having to do with Jensen. What'd you get? No, nothing. It's just a soundbite from Dario. I agree with what you're saying. And by the way, I just think it is interesting. This is the week in which we would be talking about nothing but Anthropics IPO. By the way, we will still spend plenty of time discussing it because it is a key to the market. We've been talking about this number finally coming out.

14:10We got confirmation It's$81 billion in ARR. It's generally a positive. It went up$10 billion just from the last month in terms of the increase in what they view now as their annual revenue. And obviously going into next year, a$100 billion number is certainly going to be a start. And who knows where it will end. So those are all real positives. Yes. But we're also going to be dealing with this. Well, we don't have a – we don't – there – Wow, we don't have a – Yeah, well, we got earnings Tuesday. The deadline to reply to the congressional briefing request is tomorrow. And then that hearing, that closed door session on foreign affairs would be next, I think, Thursday.

14:50There are four open investigations, but we don't know. Here's what I want to hear. I want to hear that there is an outside lawyer whom we all trust, who's investigating, who we've all heard of. I don't want some firm we haven't heard of. I know. I don't know. I have not. Others may have been well ahead. a personal interest in terms of understanding who the law firm is going to be. Obviously, they have a former gentleman who ran Cooley, which is a well-respected law firm. I don't know if they are going to take the lead here and also an investigation. That would seem a little odd. No, we don't want that.

15:22If they do that, oh, my God, don't make him ask me. No, you're right. But there's a lot still to come. The FBI potentially, as the president said, is investigating. There's just a lot still to understand. And as I said yesterday, the facts rarely, sometimes, but rarely get better in these situations. OK, well, it should be the procedure has typically been you have a very tough outside counsel that we all trust. And then the outside counsel suggests that Jensen Wang gets his own counsel and then they separate and you work out a deal. That is your worst case ex-FBI. And that's what I want to see, because I'd like to see.

15:59I don't want that to happen. But I'm saying that is typical of what has happened in these situations. And then the company puts in safeguards to make sure they're properly vetting everybody he ever talks to again. The institution must be preserved.

16:15Yeah, we got we got a road ahead, that's for sure, on NVIDIA. We will get to more of this Anthropic IPO, including some comments from Dario saying the acceleration of AI progress might actually be getting faster, not slower. Futures did take a chink out of the armor on CPI, which we'll delve into as well in a minute. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S. and global economic news, monetary policy decisions, and key results and statistics that may impact your trading.

16:56Download the latest episode and And subscribe at schwab.com slash market update podcast. Or find Schwab Market Update wherever you get your podcasts. Which NHL teams are scoring big off the ice? CNBC Sports' Michael Ozanian has the numbers. If a dive margin in the NHL is right there with the NBA. Official NHL team valuations revealed Friday in Squawk Box on CNBC. This is going to be the most promising technology in human history. AI is capturing the essence of cognition. In 2024 and 2025, coding became possible. And now we're starting to find that agents that do things end-to-end in other areas of knowledge work are possible.

17:40And even more recently, we're starting to see that fundamental discoveries in areas like biology and mathematics and physics are becoming possible. If humans can use AI to cure cancer, an evil human can use AI to make a bioweapon or do a cyber attack. We cannot succeed if we don't address these risks. That's Anthropics CEO Dario Madej from the company's roadshow filing, Jim. We may experience a further increase in the rate of progress of AI capability. When I talk to people who say, Jim, you ought to be promoting this IPO, I hear the same thing over and over again. And Jim, not in your life, but your kids, 130.

18:22Your grandchildren, 170. One what? 170. Possibility of living to be 170. Now, I say— We're going to need a lot more Social Security trust fund. And a bigger boat? What are you talking about? No, but look. Okay. You see? Do you think that that guy— That guy, of course, he always throws in the fact that we're all going to die. How about we can live to 170? Do you want to live to 170? I don't know. I mean, what am I going to look like? Oh, my God. You're the most famous person on earth. Think about what he thinks of. I haven't had any. I'm going to look like a prune. So you're going long plastic surgery?

18:58I haven't had any work done yet. Do you know how much I'm going to need? Well, why don't you go buy some AbbVie? I do think it's good to return to the larger question around AI. The technology, as we sit here and talk about so many other things, continues to advance at an enormous rate. And I thought it was interesting that he mentioned physics. Yes. and science because the courses you didn't take because you didn't want to ruin your transcript correct uh i am hearing that you know there may be advances in the not too distant future that are shared on things like that that are going to shake people as well in the same way we did uh with mathematics more recently modernist for real if they have something from melanova that's the beginning right i'm not sure that was necessarily ai related no but we can we can talk yeah all All right, fair enough.

19:45Recursive self-improvement, Carl. It's coming. Yep. Can you believe he said that 170, the first thing you thought it was how you look? What about my eye job? I'm going to need, like, you're going to need seven eye jobs. Every 10 years, you're going to need an eye job. When it's 170, there'll be no one you're saying you've got to go. 170? I'll be four feet tall. Will that be a way to not have you shrink? I'm so glad you really addressed the issues. Yes. Kramer's mad dash in the opening bell after a short break. Introducing Fidelity Trader Plus. With customizable tools and charts you can access across all your devices.

20:25Try our most powerful trading platform yet at fidelity.com slash trader plus. Investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC. Member NYSE SIPC. AI is here, transforming how we work, live, and lead. And the women I talk to aren't waiting for the future, they're shaping it. I'm Julia Boorstin, Senior Media and Tech Correspondent at CNBC. This is CNBC Changemakers, where I talk with the female leaders transforming business as AI reshapes the world. Follow and listen to CNBC Changemakers, Women Leading in the Age of AI, wherever you get your podcasts. We'll be right back.

21:31favorite company with really fabulous people. I mean, really fabulous. And this is a little bit of a narrative break. Oppenheimer comes out today, a heart recommending it. Not that long ago, we had this kind of free fall of these companies and Blackstone was involved. Carlisle was involved. I thought it got overdone and it was too related to this housepocalypse. Right. And also to their BDCs in particular, KKR and others. Exactly. So to see someone come out and say, you know what, it might be the time, is kind of an interesting call. Because these are really good companies that did make some mistakes.

22:08I think they would all be the first to admit it. But this is not an expensive company. And it historically has been one. And these guys are, you know, David, this is a really good company. It's 11 times earnings. It's 11 times earnings along with the entire group of alternative asset managers. The stock is down and down rather substantially for the year, in part because of concerns around private credit that you raise and lending to things like software companies whose business may get dispermediated by AI. And overall, just questions around some of the business development corporations that some of these companies have funded as well and the loans made there.

22:43And whether they can do they have an IPO market that they can bring. So I'm never going blind by saying, I mean, what are these guys doing? This is the best IPO market. You had Toma Bravo. Yeah, last week, yeah. And I'm just getting a sense that this is not the as dire situation as we thought, which would be really good for the watch. And I like that. I did. I like that very much. Let's get the opening bell here this morning at the Big Board on Wall Street. It's the Bob Woodruff Foundation celebrating 20 years of veteran and military family support at the NASDAQ in Times Square. iRhythm, a digital healthcare company celebrating 20 years, 10 years of listing.

23:25And at CBO in Chicago, it's Two Sigma Securities celebrating their expansion into index options trading on CBO later this month. Jim is, wow, bang right back to 7 ,500. Yeah, I did this piece yesterday, and I said, don't get too excited. We've had bull market, then bear market. We just had bull market, so we get the bear market. I don't like it that way, but everybody seems to get so bulled up at the end of the day. and it's just, we don't know what hits the next day. David said it, we don't know what happens the next day. But I do know that I was, look, if I can get, if we can get the anthropocene field done, then I think that we can just talk pruriently about at what point did Jensen know and, you know, the piece today about how there was a cessation of dealing with Megaspeed before the October 9th New York Times article.

24:14Maybe they're chipping away at the negativity. And the next thing you know, well, what? We get Anthropic done and then name me something else that I said, open AI, a little good chatter. I don't know, David, I'm portraying a situation which just says we could at least have some sanguine story of inflation coming down and that this may be. I'm going to give it to him. He can shoot it down. Last bad number. I like, yeah, I like your little narrative you're going with here. Last bad number. Yeah. I'm not sure it's going to end up being true, but I like, I mean, it's a nice thing to think about, at least for a day.

24:48I mean, we just had the biggest monthly jump in food price of the year. And I think that that's, if we can get oil down, the food price so much, I didn't know how much food really is connected to getting the food to the supermarket, but this would be a terrific situation if we saw oil at$40. The overproduction of oil is extraordinary. And the president has basically said, look, there's something good happening in Qatar. Oil going down every day, it says to me that if Waller is going to stay negative, then he doesn't want the facts to get into the way of a possible story that's good. Yeah, well, I mean, he's obviously talking about three straight months of core jumping three-tenths.

25:32And a year-on-year number, we don't have year-on-year, but if you do use November as the baseline, it's a 4-1. Oh, absolutely. But I think you want to, at a certain point, when you look at what the pattern has been with the CPI, it lags. And maybe this is the CPI number that says, OK, now we're going to have oil come in. Oil is going to go down. The stocks that went up yesterday, a lot of them were involved with retail, which were very much, to me, involved with the idea that there's going to be more spare change. Those are the stocks that went up. And I was very happy to see that. Technology, not so much.

26:06Obviously, technology is a lot of ways hostage to the world that David described, the Jensen world. Your point on, I mean, I'm looking at the crack ETF, CRAK, Valero, MPC, Jim. A lot of these charts are telling you exactly what you're hoping for. Look, I said last night, I need you to get out of Valero. I need you to get out of it yesterday. I mean, Valero went from being maybe the greatest stock of this era, which you don't want because it's kind of a commodity, to being the one that I at least want to be in. I mean, that is a chart. Oh, my God. David, do you remember the K2? Do you remember the disaster there?

26:43You know, the what? Well, this was the three different expeditions that all fell at once. Right. That's this chart. Yeah, this is a crevasse there. You don't even want to think about it. I don't. No, that's a horrible chart. It was pretty nice going up, I remember. We talked about it every day. That was the day this is now. We need to see inflation down, and that's a chart of inflation. Oh, that's not a chart. Oh, okay. It's a nice zone. Still, it's a top six S &P gainer of the year. I mean, right behind Moderna and Dell. What was a big gainer? Was this NVIDIA? It was a big gainer. What? NVIDIA was a big gainer.

27:25When was that? Say what? Never mind. At one point. Now for the year, I think it's still red for the year. Oh, it sounds 7.8 % now year to date. The gold is not in the stars, David. That is true. Yeah, Nvidia shares, it's actually coming closer to that$4 trillion market level,$4.1 trillion right now. You know who my hope is now at this point, David? And Microsoft and Nvidia are very neck and neck when it comes to the market value game. Apple obviously above it at$5.1 trillion. Two companies stay in the way. Of what? Of what? Two companies. Yeah. There's one company called CoreWeave. Yes. And then there's another company called Oracle.

28:03Yes, Oracle. You have the CFO of Oracle. Yes, I'm looking forward to a conversation with the CFO of Oracle. It'll be the first time. Remember, they had their big, Hillary Maxson, they had their big meeting last week in Las Vegas, but they didn't actually do any media at all then. So looking forward to a conversation around Oracle. We don't need any more money, and now we're going to see. I think that that is a real potential possibility because they have said that already in terms of what they've raised and where they're going to be able to hit positive cash flow and the increases that they're actually going to get as a result of the deals they've signed to provide compute.

28:41But we'll get into all of it with Oracle's CFO. That'll be in the 11 a.m. hour. Are you going to get the phony CDS that they're like where people bet against them? We're looking at the phony CDS. Get a little Ellison comment? I don't know. We'll see. Stay tuned. Sky. Guys, I want to get to SoftBank this morning because there's a couple of things having to do with that Japanese-based, really, investment company run by Masa-san, of course, with his Vision Fund 1 and Vision Fund 2. It's significant stake in OpenAI, if you recall, of which it now has invested$65 billion. We did get a couple of highlights actually from SoftBank around that.

29:26They completed the final$10 billion of their$30 billion follow-on. They have$65 billion. Their valuation on it, by the way, remains the same at an unrealized fair value. They save$110 billion for that. They talk about the acceleration in OpenAI's business as well. It's ARR reaching$50 billion at the end of September,$50 billion plus at the end of September, up over 70 % from the prior three months with weekly active users at OpenAI, $1.2 billion. And the fact that over 50 % of the revenues are now derived from enterprise customers. So saying a number of positive things about OpenAI, which this stock does trade in part on the perceived value of OpenAI.

30:08It is interesting to note that OpenAI, of course, hit$11 billion, brought it in at a$1.25 trillion value. Anthropic now will be going out to try and raise as much as$84 billion at a value above that. $1.3 trillion, maybe$1.4 trillion. Maybe it even gets moved up if there's a positive response to its numbers from investors over the next week during the roadshow. I did want to come to something else, though, Jim, involving why shares of... GE Vernova are down right now, and that actually also has to do with SoftBank, where it talked about a subsidiary in which it has invested, which has signed manufacturing capacity reservation agreements and equipment purchase contracts for power generation equipment.

30:57The contracts, of course, supporting USAIData Center projects in a lot of different places. In the slides accompanying SoftBank's earnings, they talk about a review of the projected portfolio and revise their procurement strategy for certain power generation equipment. They booked a$3.7 billion loss,$2.9 billion of which is already paid, secured rebates as well. And they just talk about the fact that following a review, they recognize certain losses and And it has raised this possibility that there's going to be a cancellations and or a glut. How great that would be. This company is booked through 2029-30.

31:41Scott Sturridge has said that over and over again on the top. It's called the CEO. Mike Chapel Trust does own it, so you can see I'm talking my book. But I am telling you that if there are slots available, they're going to be taken by the end of the day. Well, they do call it a realignment of procurement plans tied to project requirements. It doesn't mention overordering, by the way, as a sector-wide issue. It doesn't talk about turbines. Recall that Elon Musk's tweet saying SoftBank, he said some things about turbine orders from SoftBank that weren't particularly nice. It doesn't necessarily mean that that's going to be the case.

32:17But we have some analysts just talking in general about this from the SoftBank earnings presentation being a concern. And that's why GE Vrnova stocks that. Any from GE Vrnova talking about this? I mean, GE Vrnova was up nicely yesterday. This just happened in the last few moments. I haven't called Scott Strasick. I haven't had that opportunity. But it is why the headline from SoftBank is bringing back to the forefront in a very vocal way, writes one analyst, one of the key bear narratives on power generation equipment, which the concern is, of course, over-ordering. No, that's double orders, you're saying.

32:54All right, well, I'll find out. Okay, look, I just... Get on it. Scott Stracik has not... Look, you know he doesn't even include any neoclouts? That's how confident he is. He doesn't need any neoclouts. Right. Like a poor we've ever called him right now. He wouldn't... I don't even... Not even interested in them. Right. I'm on it. Okay, I'm glad to hear you're on it. I just wanted to share it because I did see the stock down. I'm still reeling that 170 is worried about Botox. I'm worried about 170. Living to 170. Unless they can actually reverse the aging process, which maybe AI will allow us to do, and that would be great.

33:27I thought you were talking about the NVIDIA stock price. Yeah. Slow the aging process, reverse it. Can I get younger? Benjamin Button kind of thing. David just killed GE Vernova. I'm trying to get to the bottom of the NVIDIA, the Commerce Department. Talk about a story in motion. By the way, speaking of companies I've been following for a long time, Skydance shares are down about 10%. This after the company did release earnings after the bell yesterday. You know, everything I hear from people of the company is they are on target, if not going to potentially exceed their stated synergy goal of$6 billion.

34:02Now a lot of that is yet to come, of course. Much of it going to be delivered in not just 2027, but an even larger percentage of it delivered in 2028. Talking about on the call, the expectation to deliver 70 % of run rate synergies by the end of 2028. 30 % by the end of next year. And their CFO is saying, we don't need to raise any new capital. We will hit our leverage goals through our operating plan and continue to review the portfolio as they integrate. They are going to be putting this HBO Max and Paramount Plus together, integrating the stack. That'll take place next year as well. On the call, David Ellison did call out some weakness in the Warner Brothers slate that is impacting nearer term results.

34:49Take a listen. We do have some headwinds, particularly in studios, where the Warner Brothers film slate has underperformed this year, and will weigh on Q4 results. But we'll apply the same playbook we did at Paramount, green lighting more selectively, prioritizing profitable streaming growth over subscriber counts, optimizing linear, and driving efficiency across the cost structure. We've proven it works, and we're confident it will work again, starting from a position of extraordinary libraries, franchises and creative talent. They also talk about moving to an annual guidance methodology and they will provide their next guidance in 2027 and their next earnings call, Jim.

35:30But the stock is down, as you see. In the end, I was trying to think that it sounded good until I heard that soundbite, because I just keep thinking about what Zaslav was able to pull up and how you had this view when people wrote the company off. He was saying it's worth 27, 28. He was dead right. I don't count anything out here. And again, they are talking about unifying their bundle in early 2027 and then moving from there to converge what they're calling the back end of their tech stacks within a year and the benefits that will accrue. By the way, direct to consumer was a bright spot. It was up nicely.

36:10I think it was, what, 15%. I want to make sure here I get the numbers right. And that certainly is something that people are going to be looking at positively. Yeah, revenue up 15 % in the third quarter in terms of the streaming businesses of both companies. It's very good. Everything I hear, I like. I mean, I'm just saying it could have been worse. The Warner Brothers, the slate might have been. No, but they got a lot of debt, as you well know. And the focus is on their leverage ratio, quickly bringing it down from some 6 plus to that target of closer to 3. Well, look, your meeting bell is very closely.

36:46It's a nice call option. So AMD shares are up 1.4 percent, Jim. And Nvidia is now down another 4 percent, almost hitting your target from yesterday of the 10 percent in total you thought was deserving of the news. I just look for sure it was down 10 percent. and I look at Lisa Sue came on and she has a very competitive product lineup and somebody might, there are people who might just say, you know what, I'd rather deal with Lisa. It's not an unusual thing. Lisa Sue's, her product line is very well. And that's the big worry for me.

37:21What's the big worry? I think that Lisa Sue's product line is competitive with NVIDIA's. And I want to be sure NVIDIA's timeline for the Feynman is on, that there's no problems with that. Right now, we don't have anything from them saying, you know what, look, regardless of what happens, we have a timeline, we've got product, and we are confident. That statement would be sensational. But we are not getting that statement from NVIDIA. We are not getting we've got a buyback and it could be active, maybe active. We are not getting our timeline is on. We're not getting the GTC will be on. We are getting what I think is some sort of crisis management.

37:58Frankly, I'm not familiar with.

38:05Who's running things over there in terms of crisis management? You are.

38:14Well, speaking of buybacks, I mean, I know you're looking forward to December 9th on Micron, which does get removed today, Jim, at B of A from the U.S. one list. Let's just take everything down. Let's just, like, just wreck everything. Look, Sanjay Marotra is doing very well, but David just talked about double ordering at GE Vinova. And you could argue there's double ordering in Sanjay, but I think Sanjay Marotra would be saying, no, we have long-term agreements. If you want to be sure you have product, just sign a long-term agreement. And you don't have to worry about double ordering. They are take or pay.

38:43You have to be able to, you have to take it no matter what, and you have to pay for it. I mean, there are probably some people like David might say, you know what, Jim, some of those customers are not money good. I will refute that, David, and say that the customers are good. Okay. But hasn't your thesis been that memory actually eases and takes some pressure off of Apple? I do think that there's the possibility that when you talk about a tremendous PC glut, then that means down the road there could be some diminution of the tightness of Micron. I was more bullish about Apple than Apple was, I felt.

39:17And so far, I'm right. Yeah, 350 is essentially the street-high target. I've got T-Mobile tonight, and I think you're going to hear the story of being able to get five duos for$800 a shot. Oh, you got Shrini coming on tonight? Yeah, how about that, Kiku? Not just you with the Oracle. I got something, too. Wow, you got Shrini coming on tonight. All right. That's interesting. NVIDIA is thinking like it's just asking. My God, granted. You know, if SpaceX ever wanted to try to buy Echo Star, would he let the MVNO be transferred? So now you're running my interview, are you? No, I'm just asking. All right, I'll ask him.

39:55I got time. I don't think the answer will be yes. No, Carl's right. Look, is there going to be an end of tightness? I think the tightness is insane and was really hurting the system. But I do know that Sanjay Murocha had the wisdom of lining up a huge number of long-term agreements that are take or pay, which is terrific for him. But I also think that this could be a break for Apple. What I was trying to say, look, I, you know, I think Apple's terrific, but I think the Apple Duo is the greatest product they've ever had. It's one of the reasons why I want Srini on, because I think it's going to be very hard to get by April.

40:31The greatest product they've ever had. Oh, God. Why do you have to be so disputatious? I can't help it. I listen to you. Did you get your mother on the phone? I listen to you sometimes. She did, I would agree. What? You don't, come on. The greatest product they've ever had. Have you had it in your hand? No, no, I haven't. Oh. Oh. Mr. Wright just brought it on. Did you not see? I did. I saw it. It looked nice. It looked nice. Good to make that judgment. Greatest product they ever had. What about the first one? Wasn't that the greatest product they ever had? The very first one? The first one was good.

41:01It was pretty good. I've never had to have two phone lines. I've never, ever had two phone lines. I am going to be watching the Sixers. The Broncos. I'm going to be watching the Sixers playing the Celtics tonight. I have one here, and I'll have this. Okay? Okay. That's what I'm going to be doing. Okay. I am happy. I hope it makes you happy. Because I want you to be happy. If I had it during the period of bull session, I would have had that show that David had at the first half. Yeah, it was one of your early debuts on CNBC. You were my regular. Open AI, what level? We still got canceled after nine months.

41:35What open AI? You want to have the level right now? Open AI, what do you mean? I'm trying to go now that I have Anthropoc. Oh, you want to figure out whether that's going to get priced? Yeah, I'm trying to work on that right now. Well, first things first. Let's watch bonds as well 10 year 499 just about this morning as CPI does come in four tenths on headline Three tenths on core for the third straight month stay with us Take a look at the NDX not many components in the green Just about maybe fewer than 20 Best component at the moment is going to be take two, but Guess what's the worst once again?

42:11It's Nvidia. We'll keep an eye on that with the Dow down about 335. Don't go anywhere. Time for Jim and stop trading. There's other activity showing that NVIDIA seems wounded to some people in the buying of Broadcom. The second day it's been up, Hocktan has said often that its biggest competitor is NVIDIA. NVIDIA really is a pitiful, helpless giant. You can see Broadcom come on. I don't want to make this trade because I still feel that you don't want to be that linked to the data center yet, but Broadcom and AMD are acting as if this is going to be a very serious impediment to NVIDIA's business.

42:47Seems like a reach to me, but people are going with it. Meanwhile, as you mentioned earlier, T-Mobile tonight. Yeah, and I think T-Mobile is a story about Apple. It's also a story about Starlink. And whether Starlink, is their technology better than Shrede's? Right. How much are they going to have to spend to actually set up a terrestrial wireless network? or can they make some sort of jump in physics that we're not aware of at this point? I mean, remember Google says that putting a hundred times more, but I've never really gone out against Elon and made a lot. It would not have been a great trade against it.

43:27But yeah, I mean, look, I just think you want to buy Broadcom, you want to buy AMD, you're not going to find out tomorrow that they're doing better than NVIDIA. And I do think that if NVIDIA came out with the roadmap that simply says, Look, we'll put them on leave, we'll investigate it, and maybe there's more innocence than we believe. There is a roadmap, but it's not being followed. And it's rather strange. But I'm not leaving my job to go do it. Good for us and for viewers. We'll see you tonight, Jim. Mad Money, 6 p.m. Eastern Time. All opinions expressed by Squawk on the Street participants are solely their opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by them on television, radio, internet, or another medium.

44:10You 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 his 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 forward slash Squawk on the Street disclaimer. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab.

44:40Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S. and global economic news, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash marketupdatepodcast or find Schwab Market Update wherever you get your podcasts.