Fast Money 8/26/26

Live for the Nasdaq Market site in the heart of New York City's Times Square. This is fast money. Big night, here's what's on tap. In video, a big beat, revenue more than doubling from a year ago, but a double is not a home run. And the stock is mostly flat right now, but we're going to go inside the numbers, we'll get the latest. The conference call about to kick off, and then Jensen Wong with Jim coming up after that plus. The metals, metals, massive settlement, he said, the details on its up to $17 billion deal, 47 states and the District of Columbia, but the state of Florida not part of the deal. And that states, Attorney General, join us to tell us why not. Later on, just not doing it or doing something, Nike Sharers falling again, new lows, we'll dig into the charts and whether or not anything can turn around, it's mighty football, footwear and a peril maker will debate and discuss everybody. I am Brian in from Alyssa, once again tonight, coming with us always live from Studio B right here at the NASDAQ and on your desk on a big night, Steve Grasso, Guy Dami, Tim Seymour and Katie Stockton Founder and Managing Partner of Fairlead Strategies, we're going to get around this desk, but we've got to begin with this, the better than expected earnings out of Nvidia, it reported revenue more than double. In video, those shares, they're up a little bit, right? But I say a little bit, I mean like 300 of one percent, Christina Parts at Evelace following the numbers on set with us now. What is the sort of big takeaway, I know we've got to call, what's the takeaway so far? Well, they performed the obvious beat and raised again, biggest beat in two years, roughly at the pace of recent quarters, but after a run like this, in line just really isn't enough anymore. The quarter ahead guide came in at 108 billion bucks, comfortably above Wall Street expectations, still getting wrong at 104 yet, still shy of the buy side whisper number, which is closer to 109. It seems to be more of an emphasis on buy side numbers. The more telling change was in how Nvidia reports its splits revenue between hyperscalers and everyone else. Like it's AI Cloud, industrial, enterprise customers, and that's a way to show growth beyond the big cloud buyers who are increasingly becoming rivals. Hyperscale revenue more than doubled up to 102%. Everything else actually climbed to 138%, so it's showing it's growing at a faster pace. The soft spot margins, gross margins, guided to 74% next quarter, which was down from 75% this quarter, and just under the 74.7% the street wanted, pressured by rising memory and component costs. On supply side, Nvidia's purchase commitments also jumped from 119 billion to 279 billion, mostly memory. And so the takeaway from that, and I bring that up, it's important. Anyone can design a chip, opening the eye of the latest, right? If you can lock up the supply chain to build at that scale, so that is why that number is important. One also to watch Nvidia disclose 15 year data center leases starting in fiscal 2028 and 2029 that it plans to hand off to third parties, a sign of how deep it's waiting into the build out, well beyond selling chips until it reassigns the lease, it's carrying that obligation. Again, raising concerns about what's on the balance sheet and to your point, you can see on the screen, Nvidia CEO will join Jim Kramer on Mad Money in the next hour. All right, so Jim can ask Jensen this, but for now I'm going to ask you this, because you're my Jensen proxy for now, Christina Parts and Eveless, a couple things you said caught my ear. Number one, you talked about increased competition. I know that everybody's now sort of seems like they're competing with each other, open AI, a customer, but also doing its own chips. Talked to us about competition also. Gross margins may have been down a touch. Touch, right? Seven. Steve Grass. I mean, would you ever want 75% gross margins? That would love it. I would take it and I would bank that every other company would love it. Exactly. Every other company would love to have that. Talked to us. Competition, is that the risk? Because competition means lower margins normally. That to your point of the competition, I'll get to you a second, it's Nvidia, it's a law of large numbers. Like, look at us. Oh, I'm saying it's 74%, the street one is 74.7. Oh no, that's a falling off. So what we'll hear on the earnings called most likely is that they're going to say that don't worry, this quarter it's down, but look at how many memory chips we procured. We've increased prices. Those margins are going to stay in the mid-70s level. So that's what we're going to need to hear from the CFO reinforced on the call. In terms of competition, just the breakdown, they'll probably speak more to the increase from sovereign AI, from enterprise customers, et cetera, that would be the other bucket within the data center revenue, which is climbing 138% year-over-year versus the 102% for just data centers. Christina, breaking it down like she always does. So I watch, just like your seventh show today, I believe, it's more real baby, I'm ready to go. No, I know this. I'm going to end with a little dummy. But you had a really interesting conversation, as you always do. And the obvious question is, with all the numbers, I mean, it's a $5 trillion company growing revenue is north of 100%. It's a staggering thing, 75% gross margins, we can equivocate if we want, but there you have it. Why is it trading at 17 times next year's numbers? That's a question you have to ask yourself. What's your second meaning is too low? Given the metrics that we've been talking about now, what Christina just broke down for the last four minutes, what we've been talking about for weeks, yeah, that multiple doesn't make sense. So you ask yourself, why is the market, and the market understands this, the market sees what's going on. I see the market trading higher now in video in the after hours, but even with this move, why is it trading at a trough multiple to the broader market? Forget about its peers to the extent that even has peers. Well, something has triggered buyers to come in, because as you were talking, Guy, down in the stock, I mean, it's not soaring, but it's up 3%. It's a $5 trillion company, Christina. It's the biggest company by market cap in the world, so a 3% ad on $5 trillion, that's a lot of billions. I'm just throwing that out there. I don't want to do the math on live TV. Stock fell though. With the exception of just yesterday, the stock fell over the last seven days. You've seen it went up 13% year to date versus the stocks up almost 70%. So perhaps this is buyers getting in. The margins are decent. The beat was really good. There's no dramatic news or anything like that. So perhaps that is what we're seeing, or maybe the CFO is just sharing what we reiterated, because I had the notes that was posted on the website. Is there any worry out there? I'm not trying to throw water on Nvidia, but Nvidia's had a good year. It's up 14% and 15% this year, but it's not like a lot of other names that are sort of A.I. She just said the stocks is up 70% right now. I mean, I don't see any sort of. 15% gain is still not a bad year. I mean, I wouldn't be disappointed with that, but is there a view that the numbers are. The company's so big. The numbers are so big that the growth is going to be so hard when you see growth scar. Are you asking to Christina? I'm asking it to anybody, because the guy. No, I'm going to. What are you going to say? I know you have to join the call. So answer that. Then I want your take and Katie your take and guys take. But I know you've got to go jump on that. But that's part of the reason as to why you've seen the stock fall off and everybody keeps complaining to guys. Point, you know, valuations are lower than AMD, than Marvell at almost 50%. Why is that happening when this company is at the heart of A.I. and the problem is people don't see enough of a catalyst to re-rate the stock higher. So why get in when all of these other players like Marvell tomorrow could see a bigger bump or with their October 6th investor day? So I think that's more the mentality and then of course the circularity debate and what is that risk on their balance sheet, which they're going to prove otherwise on the call. Tim Seymour, we're getting some comments from the CFO again, the call just started Christina, thank you very much. I know you've got a hop on that call. We'll probably see you later on this hour to get more on what they said. One thing the CFO did say is that they expect to grow revenue at 70% in fiscal 2028. I mean these numbers are big. Yeah, and so the analyst community is trying to really look to 28 to figure out where we can be. Can we be at 20 bucks a share in EPS? The numbers that they gave you today, in terms of the 3Q guide, which was by the way a little bit light to what at least the buy side was at, these numbers were largely out there. But I think it's extraordinary. I actually think the stock, this is a huge relief. I think this is given the pessimism going in here. The market is focused on the numbers, not on the things it can't quantify. So I was saying yesterday when we had the same conversation, which is that the analyst community doesn't really, who knows this company really well, doesn't know what they're supposed to do with the ROI concerns or the credit concerns because they're not really in the numbers. And the central bank of the tech sector is something that just clouds the picture. The picture is this company, those margins are fantastic. We've just gone through this and I think the underperformance of 25% or so to the stocks over the last six months, but flat to the stocks, I think it's been churning around, Katie's probably got a strong view in terms of what some of that could mean, certainly better than my view. I think this stock is underwhelmed, underperformed, and I think this is a relief. I think it's a setup where the stock can digest these numbers and find buyers. >> Okay, with that in mind, so Steve Grassau, again, we're getting these live comments from the CFO who's speaking on the call right now. I just relayed the numbers. We expect to grow revenue approximately 70% in fiscal 2028, but adding this is a supply constrained outlook. So I'm sort of semi-speculating here, the idea that they could grow faster if they could make more, that they just simply can't manufacture enough, 70% revenue growth still seems like a pretty good number, but I don't like supply constrained outlook what you're taking. >> Yeah, and their competition is growing as well, and every one of their main buyers, the hyperscalers, they're building their own chips, and Broadcom is actually helping them build their own chips. So they have a lot of competition and it doesn't help when your main competition are your main buyers. But when you look at 70%, market will go back and say what were they growing their revenues by a year ago, two years ago? And when the market here is margins of 74% and they're down a percentage point or whatever the number is, they hear 60%. They don't hear where it's at now. So when they hear revenue, they want revenue to be 20, 30% above whatever they report. So there in a no-win situation, I'll tell you what it is though, it's what Kristina said and what you said. The market came in today with earnings where the stock was being sold off. That is a good setup for earnings, six out of the last eight quarters. Stock has fallen an average of 4.8% follow-through. This, everyone was betting on the same thing happening again. The market always sets up to hurt the most amount of people at any given point. That's why you see it up. It will probably extend gains tomorrow. And by the way, the stock has extending gains right now. It's up 4.5%. It was flat. We started the show. So Katie Stockton, whatever the CFO was saying, the market seems to like at least 4 now. Do you like the chart on a video? I like it short-term. Longer term there is deterioration, but I think to your point that the pullback that was an advance of this report sets it up much more favorably for a positive reaction. So it came off about 9% and that down draft did regenerate short-term oversold conditions for the first time since late July. So at a very minimum, it does suggest that we'll see an oversold bounce. Perhaps when that's tradable with support nearby at the 50-day moving average, that oversold bounce emerged from the 200-day moving average in late July. And of course, the 50-day moving average is higher. So we are seeing a potential for a higher low. And that could carry over to the longer-term indicators. There's about 12% upside to the highs as next resistance. I don't know if we talked about it yesterday or if you talked about it on one of your many shows today. But Sam, their open AI, talking about a chip 3.5 times faster than an Nvidia's chip at a lesser cost. So to the original sort of point is to why potentially it trades at a discount because competition might be out there in a meaningful way. And I think that's one of the reasons the market is not rewarding them the way it probably should. The average price target, I think, on the stock with analysts is $300 higher than we're currently trading. You can do that math. I mean, the market has another 40-something percent to the upside given where we're trading now. Yet we're still trading at this trough multiple. So somebody's trying to figure something out clearly. Well, here's just quickly, before we get to our guest on that guy down here, I'm going to see you in the little at this. Raise, raise. No, not raising, except price targets. So your average is three, whatever it is. Three, 17, I think. There's a $500 price target on Nvidia and the low is 180. There's a $320 difference between the high and the low. Now wipe those out because I normally never go by the lows or the highs. That is bonkers. By the way, Chris Rowland, senior semiconductor analyst joining us right now as a matter of fact from Susquehanna and Chris, I know you're trying to track the call. We appreciate you making some time. Geofo's making comments about their new product ramp being the fastest in companies' history. Amazon Web Services got a bigger and bigger partnership and they see their new chip, Viral Rubin. It's what it's called, deployed by every hyper-scaler. What do you think is moving this stock up a couple of percent after hours? Yeah, it's that 70 percent number year over year. I think the street was under 50. So this clarity and upside with clarity is getting the stock moving. I think that was the big change after hours. She really said that demand is indicating a full doubling if not for supply constraints. So that 70 percent is after supply constraints. It's a pretty nice place to be. I do not know. The CFO, her name is Collette. I do not know her, you probably do. Is she seen as a conservative? CFO and I'm asking that because if she is, there's probably a bet that the 70 number could be beaten with just a little more oof in the supply. I think that's right. She is conservative. We would deem her as conservative and they have a very good relationship with TSN. So we'll see how that ends up, but on the face of it, 70 percent is just a lot of upside that we weren't really anticipating. So it's important. So you said, at least your average or the street average was right around a 50 percent revenue jump from now until same period next year, correct? That's right. But we're getting 70 percent. So it's a little 20 percent, a little big, I think would be throwing a little icing on that cake with potential for more, is the supply constraint 100 percent on the Taiwan semi side, Chris, or is there other factors that play into that? Yeah, that's a great question. We know memories constrained as well. So I would not say it's just TSM. There are many places that this could actually be impacting. We did see their free purchases go from about $120 billion to $280 billion that's in a single quarter. And they did say that that was primarily related to the procurement of memory. So they're buying that ahead to help mitigate some of this on the memory side. But yeah, there could be shortages in other components just beyond front and TSM. Chris, I think your 275 price targets suggest basically lumping on a market multiple of my math is right, but it's around their ish. My question is the original question that I asked, why does it trade currently? It's such a discount. Forget about the broader market to some of its peers. With growth rates, none of these people enjoy. Yeah, I think just as it's the largest market cap company out there, there's just limited amounts that even large fund managers can allocate towards. And so it's keeping a cap on it here. And then there are some bear cases that have emerged. I don't think it fully accounts for that as well, but that might be keeping a cap on it as well. Chris, when you look at the whole complex, commodity pricing has to come back at a certain point. I get the supply demand issue, but when you look at tokens, I believe you stated this as well as one of your points, down 40% year over year. Does that affect the story in AI and chips in the semiconductor space? I'm unfamiliar with tokens down 40% and in my estimation, we're just up and to the right. So I'm a little unclear on that. Okay. I'm going to withdraw the question then. So how about this? The supply demand? Is that the canary in the coal mine? Because obviously free cash flow doesn't work within video because they're the recipient of other people's cash flow. Well, not so much. There were some actual revelations in this report talking about some vendor supplied financing. And it sounds like that is going to continue or even accelerate from here. And they've started to disclose that. So maybe cash flow is moving to some of these other guys out there. But in terms of the supply and demand question, I think they answered it with demand doubling and supply perhaps just 70% year over year here. So there's still a gap to total demand here. Wrap it up with this one. Is China an opportunity, a threat, or both? That's a very good question, we're still waiting to hear about shipping to China meaningfully. That would be the opportunity, but for some reason we wait. My guess is that maybe even on the provincial side in China, they have a soft ban on Nvidia. Beyond that, there could be a small threat from Chinese infrastructure grow or build out in China, but it is limited by pretty much seven nanometer capacity, maybe five nanometer. We're not at all close to three or two the way we can see in the West. Chris, really appreciate your as it happens inside. By checking we get back a little bit later on, and you also want to listen to the call. We appreciate that. Tim, see more of your comment on everything. You just heard or something else. Well, first of all, you guys need to work on your map because 70% is in 20% more. It's 40% more than 50. So it was an extraordinary beat. And I also just think we've heard what we needed to hear about the Ruben wrap. We've heard what we wanted to hear about non-hyper-staylor client, and I just, you know, I think the stock was almost hated coming into these numbers. That's fit. By the way, you are correct on the math. I did the simple subtraction. Sorry, sorry. Sorry. Sorry. We're just trying to host a live TV show up here and do math on the fly, so I might start going on. Tim, you know my strong point looks. I'm a math league. For Risma, humility is one of my definitely top three strengths. I'm pretty strong. that said guide out we'll get to more on this coming up we got a lot more to do because folks it is not just about Nvidia it's not just about the 40% estimate jump in revenue from our Wall Street saw you know that 40% guy is bigger than 20% you've got sales force also on the move after hours back sales forces boom and Jim Jim Kramer talked to Mark Benioff in the last hour we hear more about that why sales force is rocking Nvidia is on the move up we got a lot more to do ticker up all right welcome back we've got a big earnings alert on sales force sales force up almost 13% coming to beat revenue estimates it raised its full year outlook a lot of AI traction there sales force are also announcing a new expanded partnership with an anthropic in just the last hour Kate Rooney joining us now Kate I know that Jim Kramer a colleague and friend he just spoke with Dario Amade and Mark Benioff I didn't get a chance to watch the whole thing because I was prepping for the show kind of what what's going on well lucky for you Brian we'll bring you over some highlights and some sound from that interview I will say also the sales force beat in the quarter lifted the stock and then the Santhropic deal also sort of added to that momentum but sales force beat expectations in the quarter also notched a massive investment gain from its stake in anthropic plus as you mentioned this new partnership with that AI giant CRM beat on some of the key revenue segments as well subscription and support as well as billions and then CEO Mark Benioff did join Jim Kramer alongside anthropic CEO Dario Amade to talk about this partnership they're calling it Claude force they both called it a win win and when you take co work and then you're able to put it right on top of sales force it's able to bring the data the applications the semantics the agents themselves and build complete applications a total user interface to let you get all the value out of sales words that's been trapped so customers have put hundreds of billions of dollars into sales force you know there's a huge amount of value that can be unleashed through this combination Brian both of the CEOs brushed off concerns as well about the so-called saspocalypse Jim asked both of them he said essentially anthropic I thought was going to put you out of business talking about sales force Amade taking that question said we're not interested in destroying anyone and that anthropic he's he really put it wants to try to empower customers to quote share some of the gains so the opposite of some of the narrative you've seen and some of the the fears and what has really weighed on software so far this year both of them dismissing that and we you know K one quick thing and I'm gonna sort of a pine here is that you know we're visual medium and I think the idea with Mark Benioff with anthropic CEO when people thought anthropic or AI might kill or crush sounds force I thought that was a powerful visual that they were together I'm guessing I'm guessing that wasn't lost on them I think you're right I think the message from anthropic was we come in peace he's sitting next to a major sass software company CEO saying we're gonna respect your data we that's been another knock on anthropic and what they've had to prove to enterprises is that enterprises can trust anthropic work work with them especially have an IPO they're really trying to underline that saying we're a good partner and it benefits both of us we're not trying to steal your business we don't want to become a CRM we can partner here so strategic for both of them and then Salesforce says it's a win-win and you know I'm so in some ways it was interesting to see the street reaction because Salesforce has been hit in the past because of its AI strategy and the street really seems to like this and think that it is a win-win I thought they I think the street like seeing them together just kind of that boom by now moment we're all friends here K-Runi thank you very much I think that's the sales force motto Benny off thing there's some yeah it might be their new motto who knows all right Katie Stockton so Mark Benny off said you know we want to do values been trapped does the chart signal trapped value well it's been a rough year for the stock but a very good summer so if it was trapped I think it's no longer trapped I do think that this move has released it from its downtrend which began in late 24 a weed already seen sales force cross above it's 200 day moving average that acts as a positive catalyst it gets on the radar affirms that just won't trade stocks below their 200 days so I like that the 231 level is a key Fibonacci retracement level so if we see that further cleared then we start looking at about 284 as the next hurdle so this has a lot of people in the radio I'm sure Katie roll up the radio rolling up that merit parkway you know stocks at 230 and change right now so why is this such a critical level yeah so the Fibonacci retracement I can't get into the math like you so it is a key resistance and it occurs often on these price charts and what we found is that when this one key level is clear that the objective becomes the next level based on the same model so 284 would be that next objective and that is Katie points out I mean that is the level we broke down from I think in January so a couple things here I think this quarter suggests the death of software is probably at least for now sort of put on the backseat for a while back burner and I agree with that we've been positive on the IGV for while I think this gives some momentum to the IGV and I'll say this as well to the viewing audience you're missing a very hand excuse me the radio on it's missing a very handsome Brian Sullivan and I will say that 284 dollars thank you by the way is 23.1 percent higher than where the stock is now you know when you look at these just just all one liner on this when you look at Salesforce and you look at service now they get lumped together they're both in that per seat mechanism or finances or accounting per seat instead of usage service now the 50% of their new bookings is usage so they migrated that way CRM is in the process of doing so per seat at least it like per se like the media per say we go with it per say I tried to stay away from that part coming up even more earnings to bring you you got crowds try we've got up that we've got urban outfitters they're all out they're all on the move tour up one is down plus metas moment of truth you're going to hear from the attorney general of one of the states that sat out of their social media addiction lawsuit settlement the interview with the Florida AG and more coming up all right welcome back to fast money a lot going on overall though stocks your money virtually unchanged on Wednesday the Dow SAP and NASDAQ each just fraction lower than NASDAQ 100 did manage to squeak out kind of a small gain you got some more stocks the move after earnings crowd spike and hooked up both up double digits stronger than expected results urban outfitters that was one that was down numbers that were broadly in line with estimate stock down a little bit here at HP dropping even after a big revenue beat and guidance raise and we've got a news alert right now on windy brandy Gomez has more branded hey there Brian yeah take a look at chairs down about 15% on this rotors report the Nelson Peltz's try and has no plan to take the company private on the stock had popped double digits back in early August when the company possibly was going to be getting that life raft from Nelson Peltz and try and I did reach out they responded saying they have no comment on the report from roiders but again clearly this is a company that does need some sort of turnaround strategy Bob Wright earlier this most recent quarter suspending guidance as he reassesses the balance sheet over there so we'll just have to see how those one plays out for investors but investors clearly looking for some type of strategic turnaround Tim Seymour you're take on windies a lot a lot of issues for new for new leadership there the unit economics and quick serve are really tough right now for a lot of people especially for a writerless ship like this one so yeah that chart actually had looked decent and was coming out of a long downtrend but without Nelson I think you're not riding this one you're not eating that burger yeah start getting Peltz right now it's down 15.7% all right thank you Tim coming up the payouts are peanuts that's what Florida's Attorney General has to say about metas nearly 17 billion dollar social media settlement will join us exclusively to explain why they said this one out and what comes next all right welcome back to a landmark settlement between meta and nearly all state attorneys general worth up to 17 billion dollars but that number paid out over 10 years Julia Borsten kind of to set it up and tell us maybe what it means and what it does it Julia well Brian metashears rising on this settlement that bears calls a fairly positive outcome relative to the worst case whispers now just this hour the court officially approving that the settlement between the company and state AG's and meta will pay as much as 18 billion dollars including a separate one billion dollar settlement with Texas now the AG's have been looking for around 200 billion dollars, which is also roughly last year's revenue, and the company's market cap is $1.5 trillion, just to put it all in context here. But Meta is also agreeing to product changes for teens, including a two-hour daily time limit at default block at night, muted notifications during school hours and hidden likes. It'll also implement new age assurance measures. But $5 billion out of that $18 billion that Meta is agreeing to pay are only if it's rivals YouTube and TickTock, get on board with time limits and age assurance measures. We've had no comment yet from YouTube or TickTock, Brian. Julia Borsen, Julia, appreciate that. Thank you very much. All right, so Florida, one of the few states that did not take part in the settlement with Meta, and it plans to keep litigating. Joining us down in an exclusive interview is Florida Attorney General James Flutefire. James, was it money, was it terms, something else, all the above? Yeah, all of the above. Look, this was not a good deal for the states, and that's why Florida wasn't a part of it. We are not going to sell out when it comes to child safety. We're not going to capitulate. It might look like a big number, but this is a trillion and a half dollar company. This is a rounding error that should not get them off Scott Free for over a decade of harms to our kids. Look, New Mexico, a jury handed out a billion dollar verdict. Florida is more than 10 times the size of New Mexico, so we're not going to settle for pennies on the dollar and the programmatic changes. They're good. They're stepping the right direction, but a lot of them are temporary, only good for five years. We do not believe they go far enough. I want to get outside the money in a second, but this is CNBC, so we'll start there. Up to 17 billion, payable over 10 years, so 1.7 billion a year, it's a 200 billion dollar revenue per year company, met it as 200 billion a year in revenue. Have you done the math, because I guess this shows all about math, Mr. Attorney General, on how much Florida would receive if you did agree to this current settlement? Well, looking at the amounts received by other states, it looks like we would get less than that verdict that New Mexico received. That's just not acceptable. We've got a great case, a lot of evidence showing the harms to kids, suicides, self-harm, mental injuries, many, many injuries, states around the country are seeing juries that seem favorable here. They were looking at trillions in liability, so we're not going to settle. We'll go to court. We like to fight for our kids in Florida, we're not going to, we're not going to bend over and capitulate. Sir, 28 years ago, big tobacco settlement, this is 1998 dollars, which I think 206 billion dollars over 25 years, a lot, the math was a lot different than it is now. In some ways, you have to be insulted by this, I would imagine. We certainly would not settle for anything in this agreement. We were not a big part of it. They know that we are a litigation state. We lead the way when it comes to child safety. We're not going to cut corners. We need to make sure that our kids are protected at all costs. We will not let companies choose profit over public safety. Yeah, a few weeks of revenue, that's not enough here when you're talking about a company of this size. James, it's Tim Gogators. What would you like to see them do to the model? What in terms of the product, forget the settlement amounts, what would be satisfying to the state, to the extent you can talk about this? Sure. Well, what I'll say is, anything that's limiting the ability of kids to access these applications that we know are designed to be addictive is a good thing. I like that kids won't be able to use it in the middle of the night when they need to be sleeping and preparing for the next day of school. But the settlement, the changes can't just be for five years. Child protection is not a temporary short-term goal. They violated Florida law, and our law is not temporary. It's permanent. We just need to be permanent, and we would like to see something more solid as far as keeping kids off these applications in school. In Florida, we've passed a lot of reforms to empower teachers and to get cell phones out of the classroom where they're distracting our kids. We're never going to be able to compete with China if our kids are addicted and distracted all day in the school room. We would like to see that as part of this settlement. So you view this settlement as a win for meta? It's a win for meta, definitely. We're looking at trillions in liability. They just got all the states, but one, I believe, to enter into a big settlement. So it was definitely a win for them. I don't think it's a win for the states, and I certainly don't think it's a win for our little ones. Our next generation that has suffered some of the greatest harms we've seen over the last decade. We all want to protect kids. I will say, if you say trillions in liability, I mean, that's bankrupting the company. Trillions of liability ends meta. I understand that. I'm talking global at this point when you look at all the various states and the cost of action. Wherever it comes from, it ends meta. I mean, they're massively rich company, but they don't have trillions of dollars. I'm talking about what they're looking at in liability. So the notion that something like this, mere weeks of revenue, a rounding error is just not acceptable. They need to do something that better compensates the states for the harms, and also sends a deterrent to other big tech companies. This is not a rounding error. Make real changes, or you're going to have to pay for it. We do need some punitive aspects here to incentivize better behavior going forward. Our kids are that important. Yeah. And by the way, we have Rob Bond to the California Attorney General who kind of led this. He is on squawk on the street tomorrow, 10 a.m. tomorrow. It's not my interview. What would you ask it, Mr. A.G.? What would, because he's viewing this, he's taking a victory lap saying, yeah, we want the big deal, they're making a big deal about it. Yeah, I would ask him why 30 years ago, when the dollar was certainly valued a little bit differently, a big tobacco settled with A.G.'s for over $200 billion, and yet here we are in 2026, and big tech worth a lot more than those other companies is able to get off for pennies on the dollar. I don't believe that's fair to the kids that have been hurt. I don't think it's fair to the states. So what will go to court, and we'll bring our case, and we'll let the people of Florida decide. A lot of kids are really, really hurt over a long period of time, not by meta, but by social media in general, James Oothmeyer, the Florida Attorney General. Really appreciate your time, sir. Thank you very much. All right, coming up folks, remember we got Nvidia numbers. They are out. The stock is on the move. The conference call has been underway for about 40 minutes' time, stock is up 4.5%. We'll give you more. The market likes the numbers. Talk more about it. We'll have plenty more time. All right, really earnings alerts, a lot of companies out with their numbers, but in video, of course, the big one biggest company in the world by market cap stock just keeps getting bigger. It's now almost 5%, CEO Jensen Wong saying moments ago that without supply constraints, the fiscal year outlook would be a lot higher. We kind of talked about this at the beginning of the show. Other stocks to move in the back of those numbers, including more chip and memory names like Marvel, Sandisk, Micron, Western Digital, they're all up between really two and almost 4%. So-called AI optical trade moving lower or higher rather, Lumentum, Corning, Sienna, and the NVIDIA conference call apparently I'm told, just wrapping up. So let's keep rolling with Chris Roland and Susquehanna joining us now with more. Chris, market liked it, stocks up nearly 5%. Market liked it, market liked that 70% number for sure. There were some additional details more about vendor supplied financing. The bears will probably try to hang on that. Additionally, there were some gross margin revelations. Gross margins looked to be pressured particularly in the fourth quarter around memory. And so those numbers for next year are probably not going up as much as you would think. Just given that gross margin mitigation. But kind of to our point, we talked about it at the top of the show, Chris, the supply constraint idea where Jensen Wong just saying on the call and he'll probably talk about it with Jim Kramer and Matt, money coming up at about 10 minutes, that if they didn't have that constraint, they could grow more. So if we hear NVIDIA at some point say, well, our manufacturing partner TSM can build us more faster, that stock's got to go up then. Because what they're saying, I think, is that supply constraint would be over. If we get that, and I'm not saying we will, well, model numbers go up for sure. And yeah, that is the case, if anything, we would bias it to the upside on increased supply. So anything else that you want to hear from Jensen when he speaks with Jim Kramer in about 10 minutes, what could he say that might give that stock another leg? Supply is important. I think market share, keeping their market share is important. There is an ongoing threat from ASICs, hyperscalers rolling their own. I'd like to hear more about that. And I'd like to hear more about development in certain areas like internal open source models that NVIDIA is working on today. Chris Roland, Seth Squahana, really appreciate your time and flexibility tonight. Chris, great stuff. Really appreciate it. Take care. Thank you. Thank you. not to have and to have not. All right, got a retail roundup. Look at Abercrombie and Fitch. Holy smokes. Stocks up 36% today. Better than expected earnings. Raise their full year outlook. Best day for the stocks. It's well, actually not that long ago. Just about a year ago. Meantime, Nike just can't get out of its own way. Falling again today. Nike is now back at its levels of 2014. Katie stocked at Affairlead Strategies. Is there any bottom in the charts to Nike at all? Well, it not visibly so. I mean, we have a secular and cyclical downtrend in the stock. And the momentum, of course, is still to the downside with this new breakdown below the recent lows. However, you could find support if you go way, way back. We're talking about a very long term to be not sheer retracement level in the $38.39 area. So I would love to see the stock hold right near current levels. And honestly, it needs to advance through about 50 to get out of what is a narrowing wedge formation. Above 50, that's where I think the momentum could really turn. But unfortunately, from a technical perspective-- You got to get the 50, Katie. It's a 38-box. That's right. I think that would be convincing, more convincing. Structurally, Nike has a bunch of things that they could do to save the ship. They need new blood. I know it's a new CEO, but he was a lifetime Nike. It was kind of the old CEO, right? He was brought back the other guy. Yeah, and then he'd probably be happy to pass the reins off to someone who could manage it. And we have too much competition for them. Social media makes it too easy for competitors to get on the same footing as Nike. They're still spending the same ad dollars that they used to spend. China is not having them. They have a bunch of people ahead of them, a bunch of companies ahead of them. They need to do stuff structurally for this to end. And it's more than just technicals. It's about changing the company fundamentally. We'll see. I don't know what people are wearing. On cloud's not doing well. Underarmor hasn't done well for years. Up next, your final trades. [MUSIC PLAYING] Let's go around more. Tim, see more. Please kick off final trades. Yeah, it wasn't long ago that this was the A-stuffed inside a guys' plan. Agnico Eagle. Miner's Katie. I'll go with the Uranium ETF. It's being renewed intermediate from the momentum ticker's URA. Steve, SpaceX, still long, Morgan Stanley, had some positive things to say about it. $300 target for Madam Jonas guy down. Well, what size Nike do I like? 15 and a half, 14. 14, yeah. You're a big man. Stopful and airy. Your final trade guy down my junk, Brian. That would be Unity Software. You Unity Software. All right, guys, thank you. We'll see you tomorrow night. Thanks for watching Fast Money Big, Matt Money with Jim Kramer right now. All opinions expressed by the Fast Money 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. You 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 an opinion. Such opinions are based upon information the Fast Money 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. 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