Kenny Polcari: Nvidia continues to change the world

Experienced traders of our era, because it sounds dramatic, Kenny Palkari and John Agarian, well at least my era guys starting in the late 90s. But OK John, right off the bat, NVIDIA, NVIDIA obviously had a very stellar first half. What about it do you feel makes it in a position to continue that leadership or should take a back seat? It should continue that leadership. Everybody wants their chips. I mean, Mr. Musk with his ex AI has ordered a boatload of those chips at $40,000 a piece or thereabouts. I don't know if there's a, a quantity discount there. I don't think they discount at all. No, they don't have to. They don't have to. I think, Liz, that they continue to draw investor interest because it did cross the $3 trillion mark. Yes, it pulled back after being the richest stock in America or the world of real stocks. I, I think this one is deserved. But does that mean it puts on another 140% in the second-half? I don't think so, Kenny. Here's why I agree with John. the IT sector overall, the second quarter earnings which will start coming in relatively soon, are expected, according to FACT, set to gain 16% year over year. But that's not even as good as the communications technology sector, which of course includes things like Apple and Google. Those names, Google and Meta up 31%, that's the expectation for their earnings. So the meat is there, the steak is there, not just the sizzle, correct. So does it still does it, does it still take that leadership position or do people start to finally begin looking elsewhere? Because there is another area we're about to talk about that is showing some serious mojo right now. There is. But I got to tell you something. If these tech and communication names in fact, deliver on what, you know, very high bar, because this quarter it is a very high bar, unless we suddenly see, you know, estimates come down in the next in the next week, the s s are very high. If these companies hit these high, this high bar, that's only going to fuel that fire because investors going to be very excited if if they report what we think they're going to report. And I think that will keep them in charge at the John's point, NVIDIA is NVIDIA that everybody needs their, their, their chips. It's quite clear they do. And they continue to change the world the same way Apple did, right? In terms of in terms of, you know, what the future holds and AI is very much and it's infancy stages still. Yeah. It's not like the.com bubble where a lot of these names, they were meme stocks before the term meme came out. E Toys U bid. I mean, a complete disaster. No earnings, no cash flow, just fluffy, you know, shiny objects. That said, I tease that that there is another sector that certainly in the last week, John has gone absolutely parabolic and that is nuclear energy stocks. Certainly whether if you don't want to be in a single stock like CAMCO, which is my pick and I own it, I own call options on CCJ. Why do I own them there? Well, it's only up sevenfold in in the last couple years. This is nuclear energy. They provide the uranium. There's also URA, which is an ETF of multiple uranium producing stocks. And I think both of those are in big demand, partly because of the shutdown of course of the pipeline in from Russia into Europe and the rest of it because AI and E VS are very thirsty. I mean, if you just show the week to date charts of these, Kenny Nano ticker symbol N&E, you look at Lightbridge LTBR up 40% last week and Novix up 29% last week. Is this just a flash in the pan or not? No, no, no, I don't think it's a flash of the pen at all. To John's point, it's the demand for energy that's driven by very much AI, the chips, the electric vehicle port center or whether or not that saves or not. But even if you go to AI, it's AI alone is is in such high demand for energy that they've got to find it somewhere. If they're pushing back on oil and climate change, nuclear clearly is one of the places to go. And that's what the market's telling you, right? That's what investors are telling you as they jump and dive into these nuclear names. Yeah. And Liz, where you're exactly right. Nano, for instance, they make many nuclear reactors. We all know that a big nuclear reactor takes decades, lots of permitting, all the rest these minis. I know two insiders in this company and they are very happy campers because this thing has just zoomed since it's come public and by demand. Again, they're not the producer of uranium like the one I described before, Camco or URA, but they are miniature nuclear reactors, which means basically power instantly in some place where it's needed. Let me go macro guys. We've got a very jam packed econo calendar and we already got the ISM purchasing managers index it. It continues to contract. All right, So that's good if you are hoping that the Fed will push up its rate cut eventually to sooner rather than later. Tomorrow, we're getting the jolts. It's kind of rearview mirror because it's May, June auto sales Wednesday, ADP, which is, of course, the precursor to the June Labor Department report on jobs, which comes Friday. The expectation 195,000 gain, 95,000 jobs gained. Kenny, what do you think? Any one of these has the power to gyrate the markets. Well, listen, you've already the, the June ISN manufacturing came in at 51.6. Yeah, it, it's a tiny, that 10th of a, a percentage below last month, but it is still an expansionary territory. Remember anything above 50 suggests expansion. The one that people should be looking at in terms of ISM is the next one is the services one. Because remember the United States is a 75% services economy. And if that continues to stay in expansionary territory, that just argues for the ongoing robust economy and it argues for I'm not so fast, boys slow down on on hoping for this rate cut coming, you know, next month or in September, which I don't think is happening. I actually don't think we're getting the cut at all this year. I think it's been pushed out till till early next year. By the way, the Fed markets now pricing a 300 basis point reduction by March of 2025. So they're looking for rates to go from 5:00 and 1:45 and a quarter by March of 25, which to me, I don't know what you think, John, but to me sounds completely ridiculous. One quick word on that and then I've got to bring up something that's happening in the meme stock world quickly, John. OK, I agree with you, Kenny. And if we do see that many cuts in 2025, boy, it's going to be a great time to be in stocks. 2025, not a great time to be in Chewy today. Yes, Kenny, we are looking at Chewy stock, which is falling. Does this mean that Roaring Kitty has lost his claws? He has taken a huge position, 240 something million dollar position in this stock. We don't know if he doesn't love GameStop anymore. That was his other big position earlier. But you're looking at a loss here for Chewy of about 5 1/4%. And that is bringing down Petco, its competitor, because if Keith Gill is pouring all this money into the competitor, I mean, Wolf is down about 10 1/2 percent. Is this the kind of game you don't even look at or play? I'm not in that meme stock world, right? I don't follow, you know, Lady Roaring Kitty or Lazy Kitty, whatever his name is. I don't follow it. I think it's ridiculous, but my clients aren't following it. It's not, it's not a narrative that I push in, in the client wealth management business, right? Those are not places that I would put clients at all just because A, they're two volatile and B, it's all story stocks, right? And it's all built around this one guy that sits in his base and up in some place in Massachusetts, you know, with the gets on YouTube and starts to tell everybody what he's doing and what he's trying to create. All we saw what happened with GameStop 2 weeks ago when he came out. He had that YouTube presentation to start Cratered. Right now it's happening to Chewy, whether it's him or not. I don't think. I think people are starting to smarten up and not and and and kind of and kind of discount everything he says. John Kenny thinks he's getting paid by the word here. But let me let you finish out. He is. In fact, is there an options play here, a put option play here at all? Yeah, I think there is the fact that Roaring Kitty picks stocks that are heavily shorted, which we all know, and whether it's Place, Children's Place, whether it's beyond me, whether it's GameStop, whether it's this one or Wolf, I think that's a smart way to trade. He's trying to squeeze somebody, but I think a lot of the people that have followed him into the likes of GameStop have been burned, and they're probably not able to commit more cash to this one. All right, we got to run. Gentlemen are two great traders of our era. Kenny and John, great to see you.