Microsoft CEO Talks AI ROI, New Copilot Features & Operating A Global Company; Qualcomm CEO On Diversifying Revenue 11/19/24
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Small box tomorrow breaking down invidia earnings market reaction analysis and to demand for its next j ai stay ahead of the market walk box tomorrow six A M E R C M B C.

that's the end regulation a quad ringing the closing bell in new york, stocky change and verex doing the honors of the azahari. Stocks climbed back from an early decline Sparked by geopolitical fears. The nas deck finishing up one percent as driven by big games for a video ahead of earnings, which you'll get tomorrow here on this show.

That is the score cut on wall street for the action is just getting started. Welcome to closing that over time. I am morning britain at C. N. B. C. headquarters.

And i'm john for Johnny today from microsoft c. Net developers conference in chicago, where I spoke earlier with microsoft seat in a dollar. We're going to bring you the highlights from that conversation in justice possible. Talk to the CEO of C A. I here at the night city right in front of search, twenty four percent a day after announcing a partnership with microsoft on enterprise A I.

And we will be joined by coal com C E O as that company hosts its investor day with plenty of attention on at the chips today, ahead of videos results tomorrow. But let's begin with a market action. Joining us is vital knowledge founder adam Chris fully.

Adam is great to have you on. Looks like a mix session for stocks. Hear the dal finishing fractional lower, the S N P of actually higher, and the nasdaq, the real standout finishing up one percent, said today is big tech really leads the gains here.

IT raises the question, where do we go from here? Because there are a lot of cross current for this market. And typically, after a presidential election, you see a rally into year. And but we also have rates that are elevated.

yes. So to your point, there are a lot of a lot of real cross current right now. I think you know two big ewins are earning. So now we've received the first few october and reports um with walmart to back on this morning. And corporate amErica continues to perform very well.

You do know to see lows rally today, but really you have even raised reports out of the big names today lows metronet and walmart know csco was decent and home deeper with decent last week as anions continue to form well, you have this Normal year and seasonality and like you mention post election um historically is a has been a variable time for stocks of season earnings. The monitor policy backdrop has turned a little bit max. The odds of another cota to december fed meeting at trickle down over the last few days, thanks to resilient data, strong indications that go domestically remains on order to be healthy a in a healthy position.

We actually got some state level employment numbers today that that really kind of, I think, underscore the fact the depressed sector jobs reading was of functions of storms and strikes, with most people already assumed, but that was kind of confirmed by some of the state level data we got. So IT looks like we get a rebound in november jobs in a couple of weeks, in which case the fed probably will do nothing in december. And we actually see the B, O, J.

It's a few hours after the fed december meeting actually hydrate. So the monetary policy backdrops a bit new, short of mixed and then the political environments also little mix. Now I think markets always neither be some kid holes associated with trump s with tabs and deficits.

But I think some of the initial cabinet cabinet decision have spooked investors. Um I just created some concern that the opening months of the triumph administration will be consumed by some of these battles um over topics that you know stocks uh would rather not have to deal what they want a program agenda. They want actually deregulation and more promising eminent environment access. Many of there's you know critical capital gets expended on some these cabinet decision that that create some anxiety also. So serving the a light process current.

like he said, okay, how much should investors be waived? Geopolitics here, especially with U. S. Made attack comes, which are made by lockheed Martin being launched by ukraine into russia. I mean, that seemed to startle the markets initially, but we did come back from that. Yeah, so know.

I think you are politics we've been dealing now. I think today was a thousands, the one thousands day of this war. So the market has been absorbing the the geological risks, both in the middle ast, which has been ongoing up over year, and in ukraine for for new new two and a half years. So the situation is certainly grim and bleak, and there are a lot of geopolitical risks. But the market been dealing with you for such long time that um you know I wasn't surprised to see the rebound off of the news from this morning. The nuclear posture change had already have been previewed by russia was just kind of formally adopted today um and if anything, there are some indications that you could see an improving image of local friend um especially the middle of a lot to talk in the last couple of days about ceasefire lebanon um and then there does seem to be some movement, especially among european capitals um to reaching some type of the time in ukraine. So you know the news today, certain in is certain, but it's something we've dealing with .

i'm setting up for tomorrow. Of course, you've got in video reporting right here in overtime. How important is that report, especially given IT was up, what four percent today? Apple lovin what was up strong again, which speaks to me of optimism.

Bitcoins been doing well. I can name a few other names. How much of the momentum in this market and perhaps of the nasdaq do you think is a hindering on that report?

Yeah, I mean it's gonna crucial tech. Tech really continues to uh drivel out of this monkey saw today. Tech was the um the the primary cause of the rebound and equity.

So now all of the indications that a big tack with the a momentum and still seems like IT is all um no fire and all soldiers. We have the vertie panel meeting yesterday. They had a very bold outlook on data and construction.

You know there's been some noise around black well and and whether or not there some a heat issue, overheating issue. But when video continues to own this market, they really are not this. And what a competition and the major tech players are pouring capex into the construction data center construction.

And you're also seeing now A I spent brought now from the almost hyper scales and this is something that this go others have acknowledge that no enterprises are now poor money into into A I it's not sure to be amazon's world and microsoft of the world. So all sign suggests that the fundamental this market remaining very strong. Just a question of, you know, how much is Price into the stock at these levels where ovc expections are very, very elevated? My sentiments already extremely boxed on the story.

Alright, adam cassels li via knowledge. Thank you. Let's turn now to some big moves for retail stocks. Walmart hitting a record high, finishing near the top of the doll after reporting solid two three earnings this morning, driven by strong revenue growth. Company also raises full year guidance and lows is moving though in the opposite direction.

Despite beating on the top and bottom ines, the company said it's expecting sales to decline in twenty twenty four. Let's bring intel sa advisory group CEO anti da. welcome.

So IT sounds like from the commentary out of walmart, conditions overall for the consumer aren't changing much. Consumer sort of hanging in there. How does that boat do you think for the holiday season kicking off and just a week?

Thank you for having me, john. I ve thought walmart results a terrific that really shows what they're doing in order to activate the consumer. Keep in mind, they just got a bigger share also of some of their higher income households.

And so they're gaining share in a time when the consumer wants value. What does that mean for other earnings coming up, Frankly, discounters and off Price or what's working? I expect tomorrow, when we hear from T, J, X, will continue to hear traffic drive the sales game.

I'm looking for sales to be up and access of five percent for T J X. And I think keep in mind general merchandise improved that walmart also, which hopefully bodes well for target. But target as forty eight percent of their sales allocated to general merchandise. Where's one mart? Sixty percent is to grocery .

in a so what about laws, especially in light of what we heard from home depot? What's the sense around some of that bigger spend and maybe that spend that's not necessary to get through the day or through the week?

I think they go overall. When you think about the home improvement retailers, the inflection point is in here, yet we need continual rate cuts in order to be able to drive an acceleration on the top line. And think about what you saw at los, where the big goods still didn't work very well, they were softer, yet they were able to raise their sales guidance while trimmed the Operating income a little bit. I think you're not at the inflection yet, but you're on your way both for lows and home depot.

So jane are looking to target specifically tomorrow morning. I I realized this provide the most direct peer to walmart, but I also tends to be more secured toward directionally spending as well. So not only to read through from walmart, but also what coming trump administration is going to mean for some of these big box retailers, especially means like target, where tariff exposure could be potentially large.

Yes, when you think about the terrible portion is something were very concerned about. We just wrote big piece on IT. Overall, what we're seeing is look at walmart said sixty percent of their goods are made or grown in the us.

You take a look at target, where forty eight percent is general merchandise. They can have work to do. It's been said that certainly with terrorists, a parallels going to be one of the areas that needs to diversify the most.

And with those charges that could be in coming up to sixty percent, could we see double dia Price increases that's not good for a target or for any the party retailers, and that's what you're seeing more than accelerate th Epace a t w hich t hey d iversify t heir s ourcing. Product innovation and newness is definitely what matters. Targets certainly has that with a lot of their collaborations and partnerships, but Price matters also.

We saw in the last time that tires were increased, companies were able to navigate, but you're watching in order to be able to see how much do you after raise those Prices. And that still remains to be seen when you think about twenty, twenty five guidance that's given in january or february when company ies report their holiday sales, we could see Operating margin pressure from the given. It's not for free to diversify your sourcing because says many say there is no china like china in producing these goods. At lower cost and expertise and manufacturing one .

to watch as we look to the months ahead day in italy, especially as companies like target have been slashing Prices on so many goods, at least right now.

All right, thank you. Thank you.

Now let's start to see your markets commentor, my sands holy, for a closer look at consumer stocks, mike?

Yeah, more. And i've been focused on a bunch of parts of the market that had their peak about three years ago and that have been digging out from IT. That includes consumer discretionary, what this is the equal way to consumer discretionary etf.

And over a three year period, you see this big drop and then finally nosing ahead of equal waited consumer staples. Now if you look for the two years consumer directionally that period of time, you see directionally has really outperformed quite a big because it's up a lot while staples are downs quite a bit. So it's it's not a new trend.

But finally has uh, surmount in relative performance terms what staples are now even within consumer staples, they may be even weaker, if not for the most consumer cyclical components of the staples. Take a look. Care at walmart and costco.

Together, they are almost twenty percent of the consumer staple sector of the S M P. Five hundred. Relative to that, the staple C T F X lp.

Got my each sketch wrong here. And that, of course, the equates version. So you see real laggard behavior. You're on traditional consumers staples where you have the big, big box retail components. John, uh, really kind of owning the sector.

alright. I think you just shake IT.

It's going to do a yes. I say we're going .

to have much more from microsoft ignite conference after the including the big highlights from my conversation with microsoft co sin a dollar plus c 3AICEO tom seams going to join me right here to talk about the microsoft partnership news。 Let's talk a major rally for his stock today over time back into.

Experienced the power of C, N B, C prose best deal of the year, track your portfolio from every angle on one, optimize plant friday terms and strictly apply. Welcome back to over time. I set down an exclusive interview with microsoft CEO setting adella here in chicago. Etic night we started on the announcement. Here is particularly seemed to counter the idea that customers aren't really using copilot A I tools in microsoft software.

Just put in perspective, it's the fastest selling adopted sweet of microsoft, three, six, five every in our history. You know, seventy plus percent of the fortune five hundred have deployed that coming back for more seats. So we are excited about this next phase.

The other side of IT is also pretty, you know, exciting for us because we are taking everything will build as the platform underneath copilot and making the first class available to developers to build their own agents and more their own copilot. And that's where what we've done with a jury I foundry, which is the new apps server for the AI age of fabric at the data air and of course, get up copilot. Today, ubs is scaled the enterprise.

So is water phone, so is black rock. So we already have deployment of big companies that's happening. And in fact, two hundred plus customers that we are talking about who are going into that.

The thing that we announced that is something called copilot, Alyssa, right, where you literally can take a high level K, P. I, let's say you a territory manager and sales. And you want to say here are my closing deals faster.

I asked the dollar about the trajectory of AI adoption because the market seems to be betting it'll be rapid and straight. He said he's more focused on where will end up knowing that might be a bumpy road.

I'm not obsessed about sort of exactly. This is a linear path, which we know IT cannot be a linea path, uh, because the adoption cycles are adoption cycle. The build cycles are Normal.

You know the network effects happened. So you have to try to get out there, build the product first. And so I think we are in that phase. One of sah, john, is that perhaps having lived through let's take even the last big one, the cloud one. Uh, what happened in the cloud over ten years, let's say, is happening with A I in a compressed period like maybe half the time.

I mean, if you think about let's be build t two three giga watts of cloud capacity um all over the fifteen years, we're gona add something like that in the next couple of years, right? So that's the you can even see that get up because there's not a single application that's not going to be an A I application. So a little bit of the supply side of seeing here is a real catch up growth because applications are all changing. And being married by the new .

platform last year, february, uh, was to me a big moment, was sitting down with you again. You are rolling out being searched with A I added hope was gaining share from google. Last I chat, google still got ninety percent roughly search share globally. Open the eyes is now rolling out its own search capabilities. What went wrong?

Well, like nothing with drug. I mean, like in the last quarter, one of the fastest growing businesses at microsoft, aside from our commercial cloud is actually being search. We talked about x stack.

You are strong doble digit growth, which, which is about market, by the way. So that's fantastic. And so being continues to innovate. Emerson continues to innovate in copilot. So that equal system, the three things that come together for us has actually become a big business that's growing.

And so the search share the wrong .

way to look at IT. no. I mean, sea chair is one like I mean, it's a game of let's call IT.

A hundred basis points a quarter is great like in its own progress. You mention chat G P. We are thread about the success they're having a their partnership with apple.

Guess what? That's all incremental h for even us because it's all running on azure. And more importantly, we are giving them the being index and powering uh chat a GPT search using R A P S. So overall ah i'm thilk about their progress and you know it's a place where inches matter and i'm good i'm good with the progress .

we're making now two weeks from election day, two months from a second trumpet administration taking charge, I also asked a delay about how microsoft will navigate a world post global ism.

What happens to globalization in a world where, let's say, the us. Is a lot more focused on the industrializing in the in united states itself. I think there's a clear andy for that.

Um and so I think the way as a multination company i'm grounded on is how do we on permission, quite Frankly, one country at a time to Operate that you'd never can take your Operation in a country for granted, you have to be able to invest in the country in our case. Now we even doing capital investments in data centres, doing scaling, creating jobs so that small businesses, large businesses, public sector all getting benefits, health outcomes, education outcomes. So one country a time, one community at a time, even in the united states, you have to sort to earn that.

And so that's one side of IT. The second side of IT is on court. And what are you? There many issues, right? Because after all this a new technology, everything from what is copyright to what exactly are the big issues where the courts have to apply a and so yeah, I think that there is a time of great change of technology. Um I think what matters is for us as a company to be able to stick with our mission, produce the products on the permission from communities and countries.

You watch that full interview over its cnbc pro by scanning this Q R code that's on your screen right now. But you can watch this full interview right now. A look at c 3AI。 It's sold today after the company announced an expansion of its partnership with microsoft to drive adoption of its enterprise AI software on microsoft cloud azure service running is now for an exclusive interview.

Is tom siebel, CEO cofounder, c 3AI time going to be with you hear in chicago。 So it's the go to market. Part of this that I think is particularly interesting that it's all interesting. But tell me what selling with microsoft and developing products with microsoft is gonna for what you've already built at c.

This is a huge tail and inflection point for city AI, and I think an inflection point in the enterprise A I industry. So as you know, we've spent fifteen years we started before is before before the GPU now building, I think, one hundred and thirty turkey enterprise AI applications in order of one hundred general AI applications for for banking, for supply chain, for manufacturing.

All of those applications starting tomorrow are being sold by the are available for sale by the entire global as sales where so by the in december will be jointly selling to one hundred accounts, I suspect in the year will be jointly selling to thousands of accounts. Where were a team to get using a zr using the C C A I applications between microsoft and c 3AI？ We can guarantee the .

customer success. So this this industry approach to selling A I IT really seems like things are going more that way. It's not about just having generic L M, generic males got to be able to do specific things within your industry. How much of that in your conversations with microsoft are driving the expectation where growth is going to come from, where values is going to come from, from some of these customers?

We are in meetings real time this week, next week, the week after last week, focused and federal intelligence, manufacturing, pharmaceutical, chemicals, oil and gas utilities is very clear. You know, the microsoft goes to market with the very industry centric focus. See three is always going to market with the industry focus, and we are delivering now combined industry specifics, AI solutions that addresses value chains of all these verticals. Very, very tightly integrated with these are supported by microsoft, supported by c three. This is huge.

tom. It's more again, you just mention defense, intelligence and federal.

And and so that's the question i'm going to ask you because there is this focus on incoming trumpet administration, what it's going to mean, especially with doge a coming into being here, what is going to mean for the companies that do contract with the government? Maybe not so good, at least based on what investors are gaming out right now potentially for traditional defense contractors, but may be great for dual use logy companies like, for example, A C three I that can may be realized greater productivity within government. How do you see IT?

I expect you're right that the investigation new investors tion will dramatically change the way they to recur weapon systems. And what have a new that being said, with elan involved in many the people involved in administration, you could be certain they're going na triple down on A I for space, for subsurface, for hypersonically. And you know, in the military system they built will be entirely centered about A I and I suspect that c three will continue be involved in many .

of those discussions.

So going back to the partners, are I just going back to this broader conversation, tom, then what inning do you think we are in, in terms of AI adoption and this notion of return on investment, especially the time where IT does seem like there are some companies out there on the software side that are beginning to crack the code in and deliver more value right now.

I think that know this.

This will be analysts expect or will be a two trillion dollar aggressive ve market enterprise AI applications. So this is the largest at market that we've seen in the history of going to Price applications software. Now where are we, I think where you know, in the first half of the first dining and the first batteries on his way to the play, I think this is, this is before this is over.

As soccer says, every application is an application. Everything we do, supply change, demand change, demand forecast, customer service, customer service, Operating the military, Operating shipping Operations, manufacturing consumer packets goods, all of this is being driven by AI and which is getting started. And IT is true that now where sinks were, many companies like shell, like dog, like others uh receive uh achieve substantial economic benefit from these .

couple of years and not a couple years ago. But you shift to your model, right to being more about paying as you go versus the subscription model. People got nervous about that.

The market got nervous. What can you tell me about the th Epace o f a doption, th Epace o f d emand? Even as in the general enterprise, there seems to be some caution.

Well, we were were on subscribe base pricing. We were charging ten, twenty, thirty, forty, fifty million dollar contracts. Now it's pays you go and pay twenty, thirty, forty, fifty cents per cp power.

And as you have result, you seem first, dramatic declaration in the growth of cc that we call IT in the last eight quarters has been dramatic acceleration. I think today, we've gone from zero percent to seven percent to sixteen percent to eighteen percent to twenty two percent. I think most analysts have our our company growing at you know twenty three percent compound annual growth rate this year.

I think as the third fastest growing company in the public, in the public suffer. So our growth has been accelerating. Are we expected to continue accelerate and the new pricing model really enable us to be able to work with our partners like a sure like to bring to utilize their entire global sales and organizations to serve remedial customers.

Afford to continue to talk about IT here on overtime, in earning season and at sea, and tom seo, the CEO of c three. Thanks for joining us.

Thank you down and shares A C three. I finishing the day up twenty four percent. John, great stuff coming out of chicago today. Will coming up next a shifting stance on nuclear weapons from russia, sending a chill through the market early in the session, we will talk to former defense secretary leon panetta, the geopolitical risks that are facing investors and later, don't miss our interview, the C E O qual. Com, as that company hosts its investor day and his chip stops remain in a sharp focus ahead of results.

From A. Video experience of the. Best deal of the year track flash prolife friday terms and restrictions apply welcome .

back to over time. The russia ukraine war took a new turn today after russian president blad mir putin amended the country's nuclear doctrine to lower the thresh holds for a nuclear strike. And this comes after ukraine struck russia with U.

S. Made long range missile inside the country for the first time following president bitts permission to do so. So joining us now is former us defense secretary and many other positions across a number of administrations.

Leon banana, mr. Secretary, it's great to have you on. Thanks for joining me.

So that's .

exactly you're wanna start because this was a significant shift um by the us to allow in this particular case today, attackers are launched by ukraine into russia these long range missiles. Just want to get your thoughts on why that shift seem to be necessary now, especially when we're talking about a lame duck president and administration and a new one coming in talking about conflict resolution.

Well, let's let's not make any mistake here of potton is the aggressor pott n is the invader h and putney has continued to be aggressive in ukraine, launching a huge missile attack against ukraine. And now, uh, with almost ten to eleven thousand north koreans that are going to be deployed into battle as well. So it's very clear you can just stand back and allow putin to continue his kind of aggression without a response. And I think that's why the decision was made to give ukraine the ability to strike those bases from which russia is launching attacks on ukraine is the right thing to do. In order to give ukraine the ability to defend itself against this attack.

russia also amended its nuclear posture. Uh, IT had conveyed that I was planning to do so a number of months back. I guess all of this, to put a sharp point on IT, how is that not escalators?

Well, look at, putin has been threatening to use a low, low yield nuclear weapons almost two years of the war in ukraine. I and that hasn't happened. In the reason that hasn't happened, he knows if he crosses that line that the united states would be forced to respond.

Uh and the last thing I think the united states needs and russia needs is a nuclear war. So I I don't expect that they are gone to take that style. Uh, they they are obviously gonna continue to be aggressive.

They are obviously gonna a continue to be able to use missiles and drones. And now they've got these korean soldiers. North korean soldiers have theyll use in battle. Uh, they have plenty of ways to be aggressive here without resorting to any kind of nuclear warfare, which would be destructive of russia as well.

Do you want to get your thoughts on this incoming administration and some of the picks we've gotten as as investors trying to pass out what this could mean for policy implications looking to twenty, twenty five and beyond? Hegseth, gabbard, wall's, uh ratCliff, how does this potentially position the defense department, the intelligence agency is the national security apparatus of the us. To now shift in terms of policy, in terms of posture? Uh, what does that mean potentially for regulatory reform?

Well, look, there's there's no question um they're certainly you're going to be change. So uh, like i'm kind I take a kind of traditional APP that a new president, uh, is entitled to a name people that he wants to be on, on his team. But I also believe that the senate has a huge responsibility to provide advice consent on those nominee's. So I think of the senate or two, be very aggressive at looking at each of these candidates to make sure that they have the experience and the qualifications and the ability to be able to serve in those very important decisions.

Leon banana, thank you so much for joining me today.

Thank you.

And time now for a cnbc news update with Julia borst on julio .

john president elections ald truck named doctor met odds to lead the medicare and medicated services agency cms. In a statement, trumps said doctor oz l worked closely with Robert f. Kennedy junior, to quote, take on the illness industrial complex, who hosted a long running TV talk show, ran unsuccessful for senate sylvania in twenty twenty two.

Federal reserve vice chairman Michael bar, appearing today in front of the house financial services committee, where he testified that the banking system remains sound and resilient. The capital ratio have increased this year to Better position the system to whether potential losses and that liquidity conditions remain stable. And delta is teaming up with shake shack to bring its burgers to inflight dining.

The partnership will start next month on flights departing from boston and expand to other us markets. All through twenty twenty five. First fast passengers will be able to preselected the meal, which includes a customize cheeseburgers, ceases salad chips and Brownie. Didn't say anything about a milk shake, don.

Well, there's always room for improved. And Julia, thank you. Well, when we come back, qualcomm, Christiano among join us for our first on C N B, C interview fresh off the stage at the chip companies is investor day or the company just announced long term revenue targets, including eight lion dollars in auto chip revenue in five years, four billion dollars in PC chip revenue by fiscal year twenty twenty nine, two billion in A R chip sales by twenty twenty nine and four billion in industrial chip revenue by twenty twenty nine and speaking out chips mix and told is gna return with a look at the set up for invidia with less than twenty four hours to go before those critically important results will be right back. Welcome back. We've got less than twenty four hours before in videos earnings hit right here on overtime, and mixon told the return to the look at the company's valuation ahead of those results.

Like yeah john TTS become so commonplace to mention that in video evaluation, as measured by its forward Price earning multiple is weight from the peak even though the stock is up a few hundred percent over the last year and a after.

So and this this shows that, right, we had sixty two times forward learnings back in may of twenty twenty three right now, about thirty six now obviously, we were only at sixty two times what the estimate was at that moment. For what forward to all about there were going to be at the time is about fifty cents to share. What did the video actually earn over the subsequent four quarters?

About a dollar eighty are share. So that's how far below reality the estimates were at the time. So clearly, we were really at seventeen times forward back there, there about not at sixty.

So the question is whether current earning trajectory more reflects the likely outcome here. So here's the path of the next of the current the next fiscal year earnings for invidia. According to the street consensus, you see how much is up over the same period of time covered by that P H.

R. So just rapping to know. And although the current fiscal year, as you can see, kind of flatten out right there, the current forward twelve months s is in around of four hours.

Purchase forward gives you a pretty reasonable valuation. But the question is, is the street finally caught up to reality what IT comes to figuring out what those earnings are? money? All right.

my sand tally. Thank you. Up next, a first on cnbc interview with cocom CEO after the company just laid out its long term sales targets to investors over time, will be right back. Welcome back, elan musk and spacecraft counting down to the sixth test flight of the powerful starship rocket system, literally its team, minus sixteen minutes and thirty seconds.

If you look at your screen right there for space access star base near boke cheek of texas, where lift off will occur uh as of right now at the top of five pm eastern now when starship launches IT will be Carried to space to tatches from the super heavy booster for a sub orbital flight and then splashed down in the indian ocean meanwhile about seven minutes after lift off, that launch tower we just showed you on your screens is going to attempt to catch the twenty three stories tall super heavy booster as a return to earth using medal chopstick arms. Now you recall spaceless and meat history doing that for the first time ever in the last test flight just last month. Our starship is mask solution for making life multiplying.

Eti is contracted with NASA, bring astronauts to the moon surface, also potentially cargo, as that seems to be in the works with NASA right now. It's developed to Carry people and cargo to mars. It's the most powerful rocket system ever flown two times the threats of the Apollo era saton five rocket, and it's designed to be fully reusable.

This is an engineering feet that has never been accomplished before adding to the stakes today, not only is must gn sight, but president elect trump is there as well as you can see on your screen, he's a star. Signaling of focus on space exploration for this incoming administration, as experts widely expect that the plans for the artist st. Moon programmer now going to accelerate and that deliveries tomorrow s could also be mapped out and begin soon as well.

You could check out my podcast manifest space that Q R code on your screen to hear more about all of these possible space policies. Come twenty twenty five. John sounds great.

Well, up next, pok M C E O Christian amon joins us to break down the companies just announced growth targets from investor day. You write back, looking back, call com hosting its investor day in new york today, laying out some new long term growth targets for its business units. And joining me now fresh office stage is Christian on cocos C E O in the first on C N B C chrono.

Good to see you. So um some big targets here, especially I O T in net of things, fourteen billion fiscal year twenty twenty nine. What changes between now and then bring that business in that side?

A john gray talking to you. Look, we have said before, we are really, really focused on diversified the company and grow. We we said there are many market there could benefit from our technology in addition of mobile, and we see now the opportunity to start scale revenue on pcs.

As we said a last earnings go, the number platforms that was fifty eight, two point five times expansion of design when since the launch in may, we see an opportunity to continue to grow in xr mixed reality, augmented reality, especially augmented reality because of geni. And we took our time to develop an ability to grow organically industrial, building a complete softer platform really out those targets. Um we expect by two thousand twenty nine IoT to be fourteen billion. And as we get head towards two thousand thirty, our goal is to get the company that is only fifty percent of the revenue, its mobile fifty percent is from auto n IoT. And we're going to have a much more diversified company going forward.

Yeah wow, I take IT probably after that, then the company becomes majority, not mobile, is the implication that are since sort of mobiles being your bread and button. So tell me particularly for that PC number to get where you wanted. I think four billion revenue is your target. How much of that hinges on you're being able to figure out this legal stuff with ARM?

Look, we are we're very comfortable in opposition. We're heading towards the trial and just in december and walking has brought rights to the instruction set base on our license, and we expect the court will decided. But I think the real answer to your question is we have seen in significant traction increasing in pcs from our OEM.

We have successfully launched and started to rain for volume on x serious. And it's also good to see arms showing our devices when they measure to investors about that. There's no ARM into the PC ecosystem. I think that's .

another validation.

So we haven't seen you on TV at all since you did have earnings not too long go a few days ago. Tell me about this premium wave in phones right now because the mid tear really seems to be suffering with the global economy doing what IT is. What are you seem for snapdragon, which seems to be a little, little above the friend like very .

happy about that. And by the way, just to comment, even though we're working to diversify the company and get out to an IoT to be fifty percent or more as we get to dented a decade, which lot phones and we are were not missing the patient phones.

And we still have a big upside with A I and we basically preparing for that with snap taken eight elite snapdragon eight elites restore the performance leadership to android and was kind of reflected in our earnings call. The preventin continues to grow. In a market that does not grow, we see the preventive or expanding.

As a matter fact, we announce today that our premiered revenue is five times our news competitor. And IT was really show that people want a Better phones. They do more on their phones and that's gonna become even more of a reality when AI application starts to growing.

Number one of the back to industrial IoT um for years now, particularly a couple years back, prepare delic. Even IT was always talk about how five g was going to drive massive digital transformation in manufacturing, in industrial. I think that that hasn't really happened to the extent that many had projected. What does A I do for that translation process?

It's an excEllent question. I I think it's five g plus A I and and what is really happening right now, I think you should start thinking about the industrial IoT. It's evolving to its next platform, which is about running AI at the edge, running largely language models at the edge.

There's first of our significant ant economic incentive. Actually, we had display testimonials from as some of the largest secure systems in an invest day. You saw amazon, you saw microsoft saying about the role of the h and I.

You create and train models in the cloud. You deploy them also at the that is the opportunity in the industrial. That's a no brainer. When you think about the number of huge cases across different verticals, the opportunity to disrupt of AI is significant. And what we have done and describe an invest day is we took our time in the past few years to develop a comprehensive platform, including products that can run that AI with industrial of standards, and now we are ready to start to scale that business.

Where does automate mode of go from here since your growth there has been pretty significant .

thus far yet automotive, we're not updating the pipeline. Having said that, we are very happy where position would be participating into a number or f peace, and we like the outcome, but we chose not to update the pipeline at this point. What we did show, however, a new data point on our scale.

So we said we're gonna get higher in four billion revenues in two thousand and twenty six. We're gonna head toward nine billion towards two thousand and twenty one one we actually provide. Now that is going to be eight billion dollars by two thousand twenty nine. And one big announcement is we are our joint developers stack for A S and alternator. Bmw is gonna be available two thousand twenty five, and we're starting to see traction for other OEM interest in that stack as well.

Interesting stuff. Thanks for joining us with the first on cnbc, Christian ana on city of qualcomm, fresh from the investor day.

Thank you, john. We're busy and we're gone to keep executing and .

we'll be watching the countdown is on to in videos earnings, which will happen right here during overtime tomorrow. So next, which you need to know ahead of those closely watching numbers, welcome back. Tomorrow will be a huge day for earnings. Before the below, we will get results from retailers target and T J X. And then the main event will happen right here on over time when NVIDIA releases its highly anticipated earnings.

Plus we'll ll also get numbers from snowflake and palo alto networks, and we will have full coverage of all of those results with an all star lineup of guests, including patch, more head, Gloria, brothel and dinner valuations himself, the motor and john. This is going to be one to watch. And we know, at least in the near term, this is, this is the big catalyst now for where the market goes from here, especially in the asic finish today of one percent.

Yeah, i'm a little bias, but I think that the main event is always here on overtime, but particularly tomorrow, and I think today sort of set us up for IT in a way because really microsoft I C night was very much about demand for A I and the argument that that continues time seibold was talking about that in conjunction with microsoft and fifty dollar. And now let's see how many of those in video chips microsoft and others are buying.

Yeah meantime, john, two point four million viewers on x for the space x starship launch, which is literally seconds away. I'll be monitoring that here, and I look forward to seeing you back here on set tomorrow.

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