AI optimism, SpaceX hype and rising yields test markets 5/21/26

 All systems go for the SpaceX IPO,
 but in video strong earnings fail to impress futures inching higher.
 I'm Morgan Brennan, we've got a big hour, and this is your morning call.
 Good Thursday morning, let's get a check on you with stock futures,
 which are basically hovering around the flatline right now.
 The S&P&N has that coming off their first positive day,
 and four, we saw sizeable moves for all the major averages,
 gains of more than 1% a piece.
 And by the way, for the Russell 2000, a big jump back yesterday,
 gaining about two and a half percent.
 The Dow coming off its best day since late April,
 and as you can see on your screen right now,
 basically a mixed picture for futures,
 but very, very marginal moves.
 Now, your stock of the day in video,
 out with earnings after the close yesterday,
 says revenue surged 85% in the quarter on strong data center sales.
 Big buyback, $80 billion buyback, dividend was boosted as well,
 but the rest of the chip space, you can see in videos down for actually right now.
 The rest of the chip space, we're going to have much more on that in just a moment,
 but you can see a mixed picture on your screen in the meantime,
 the main mover in the green pre-market here is micron.
 Treasuries, let's take a look there,
 because really the headline here for the last call it day or so has been stabilization
 in the bond market.
 You can see treasury yields moving higher,
 largely higher across the curve this morning,
 but we're still down from the levels that we saw earlier in the week.
 US 10-year treasury yielding 4.58% fed sensitive to your treasury, 4.062%.
 Well, let's also look at energy right now,
 which is taking a breather.
 Oil, US oil, falling back below $100 of barrel.
 You can see WTI crude as trading around $98 of barrel.
 We also had a, we rolled contracts this week as well.
 Brent crude basically flat right now at $105 per barrel.
 Let's see how Europe and Asia are shaping up.
 Steve Sedgwick is in London with those trades, Steve.
 Hey Morgan, lovely to see you,
 and you must be very excited about space sex.
 I'm pretty sure you told me when we were back in Singapore
 that you would love to go into space.
 You might get your chance to go to miles at this rate.
 Anyway, Asian equities,
 they surge this morning after in video,
 of course, beat on those first quarter earnings forecast.
 Everyone's been pouring over the NVIDIA numbers,
 but quite frankly, it's hard to find anything
 that is the less than stellar in those figures.
 Let's take a look at the European equities, though.
 They are a little bit subdued,
 but my goodness me, they've had a good week.
 Would you believe out performing most of the markets around the world?
 The Eurostock 600 before today's session was up 2.2%,
 FTSE was up 2.3% as well.
 But oil prices and concerns about the effect of those
 beginning to come through in the data.
 We had some flash manufacturing PMIs this morning
 and the Eurozone figure was at its lowest level since 2023,
 and the French data was absolutely appallingly bad today.
 Or despite that, we're up to 1.10% on the cat caron,
 but let me hand it back to you Morgan.
 Have a great day.
 You too, and yes, I do want to go to space,
 although I'll hold off on Mars.
 Unless Steve Sedgwick, you're going to come with me.
 Then that might be an adventure.
 I could partake in here.
 All right, Steve Sedgwick, thank you.
 Terra-Thama for me, I'm afraid.
 OK, OK, thank you.
 SpaceX officially heading to the public markets
 and what is expected to be a record-setting IPO,
 raising upwards of $80 billion as soon as mid-June
 in its prospectus with the SEC, which it drops last night,
 308 pages that yours truly was going through over the course
 of the evening.
 The company revealing that it will list on the NASDAQ.
 Ticker symbol, SPCX, left-lead underwriter GoldenSax.
 We had reported that in the days prior.
 Morgan Stanley, Bank of America, Citigroup, JP Morgan,
 and others will be in the mix in terms of book runners.
 Retail investors will be offered a big chunk of available shares
 through a number of brokerages as well.
 The lock-up situation is going to be very different
 than what we typically see.
 We'll have more on that later in the hour.
 We're taking a look at the financials of SpaceX, too,
 which has long been closely held
 and somewhat secretive, at least on the business side.
 First quarter of 2026, revenue was $4.69 billion.
 That was a 15% increase year-over-year.
 Loss from operations, about $1.9 billion.
 SpaceX has been ramping its spending in large part
 after that absorption of XAIs.
 It builds out all of that data-centric compute, AI compute.
 That's down from a profit of $27 million a year ago.
 Adjusted EBITDA, though, $1.1 billion.
 CapEx, as I just started going back to what I was just talking about,
 mentioned $10.1 billion.
 Now, a lot of that is from XAIs.
 So if we dig further into the financials,
 companies, three main businesses, space.
 This is the launch business, the spaceflight business,
 sort of the bread and butter of SpaceX
 when we talk about things like reusable rockets.
 Revenue was $619 million in the first quarter.
 Loss from operations, $662 million.
 A lot of that is tied to the investment in Starship,
 which, by the way, we get a 12th Starship test flight
 as soon as tonight.
 Connectivity, this is the second business.
 This includes Starlink, which has about a little over 10 million subscribers
 and more than 10,000 satellites in orbit right now.
 This is the real moneymaker, as it currently stands for SpaceX.
 Revenue there, $3.3 billion in income from operations,
 $1.2 billion, and I just touched on it,
 but the third business is AI, which includes XAI,
 and of course, that X social media platform as well.
 Revenue there, $818 million in the loss from operations,
 $2.5 billion, and that's where a lot of the CAPEX spend
 is happening as well.
 Far and away, Starlink is the most profitable.
 This is going to be the biggest focus,
 and it certainly has been in terms of valuation for SpaceX
 on the private, in the private market,
 and in secondary sales as well.
 So we're going to be digging through all of this
 in many different ways throughout the hour,
 and we'll bring all of that to you,
 but here's just a little teaser in terms of what to expect
 with SpaceX, also keep an eye on the space stocks.
 If that's not enough, speaking of mega IPOs,
 Sam Altman appears to be trying to one-up his former colleague,
 sources tell CNBC OpenAI is preparing to confidentially file
 a draft of its IPO, as soon as tomorrow,
 by the way, OpenAI showed up in the prospectus for SpaceX as well,
 a couple of times.
 OpenAI is working with banks including Goldman Sachs
 and Morgan Stanley.
 In a statement to CNBC, OpenAI says the company,
 quote, remains focused on execution.
 Well, prediction markets are running with the news as well,
 showing more than 80% odds that OpenAI goes public before Anthropic,
 which would be a near-complete flip in less than a week.
 By the way, we're keeping an eye on Anthropic as well,
 because they are poised for their first profitable quarter,
 at least according to reports, out overnight.
 Turning back to our stock of the morning.
 In video, final mag seven stock out with results,
 earnings, sales, outlook, topping street estimates,
 as data center sales, nearly double,
 and overall sales served 85% year-on-year.
 Board also authorizing a new $80 billion stock by-back
 and bumping up the quarterly dividend from a penny to 25 cents a share.
 Speaking with CNBC, CEO Jensen Wong,
 says this is the importance of hyperscalers.
 The hyperscalers is where the AI frontier models are
 and we're gaining share there.
 We're gaining share there because we've already always supported OpenAI
 in XAI and Meta-MSL and Microsoft's AI
 and a whole bunch of other AI startups,
 but this year we had the benefit of also winning Anthropic.
 We're helping them scale capacity so that they could have
 more reach, generate more revenues, and grow their company.
 And so with Anthropic, we're scaling very, very quickly.
 We've got big plans for them.
 Well, joining me now is Bill Ryan,
 founder and CEO of ETF Manager Grant Shares,
 which runs several in video linked leveraged products.
 Well, it's great to have you back on the show,
 your thoughts on what we heard from Nvidia and Jensen Wong.
 Well, another amazing quarter from Nvidia
 really has become probably the bar that everybody's looking for.
 I think the only thing different this time is in past quarters,
 it perhaps felt like Nvidia was the only talking point in the market
 and therefore Shares sold off after earnings a bit of a sell the news.
 But this time, although it's lightly down,
 I think it's more about the macro and the other situation
 from rather than videos and results itself, which was stellar.
 Are you surprised to see that the stocks are not really moving on these results?
 It's just a repeating pattern of the last three quarters in particular,
 where it seems like it's a bit of a sell the news event.
 I just think this time around,
 there's way more news for investors with SpaceX, with Anthropic, OpenAI,
 all sorts of other AI stories,
 and Nvidia doesn't know or is no longer just the only talking point
 that the market seems to be just hanging on every word.
 Yeah, I wanted to get into that a little bit more but first,
 I mean, on the call, CFO, Collette Cress,
 said AI infrastructure spending is on track to reach $3 to $4 trillion annually
 by the end of this decade.
 So I realized that there is focus on OpenAI and SpaceX,
 which also holds XAI and Anthropic
 and some of these other names that are poised to go public here.
 But it does seem like Nvidia is still poised to capture the lion's share
 of spending by those names.
 No, absolutely.
 You can see that from the margins that the one of the cases
 or one of the points of the bears always make is that these 75% margins
 video has run sustainable and looking for any kind of deceleration in the margin
 and the fact that we've seen that sustain shows you that
 the AI business and the AI demand is accelerating
 and you can see that from the news coming out of the hyperscalers.
 I mean, Nvidia reports almost at the end of the earning cycle
 so we have seen from all the other hyperscalers
 and other major AI companies already
 and that CapEx amount is increasing, not decreasing.
 Yeah, SpaceX IPO on deck for next month, possibly OpenAI filing as soon as tomorrow.
 How does an investor navigate this?
 How do you expect this to impact the public markets?
 I think it will be hugely positive.
 I mean, this is a momentous year for anybody in financial markets.
 I mean, SpaceX just have viewed that coming to market,
 largest IPO in history.
 So these are going to be real watershed moments for the market
 and what they all have in common is AI is right at the core.
 Okay, well, Ryan, great to have you on as we take a look at stock futures
 which are all slightly higher now.
 Be sure to tune in to swap on the street at 10am Eastern
 for the full conversation with Nvidia CEO, Jensen Wong
 and a lot more to come here on Morning Call,
 including we've got much more on SpaceX
 and what one early investor has to say ahead of that public market debut
 plus what to watch when Walmart reports before the opening bell today
 our Morning Call crew tease up those numbers and later.
 Global power broker?
 A look at China's Xi Jinping's long-term plans
 and we're Washington falls in the mix.
 We have a very busy hour still ahead.
 You don't want to miss it.
 Morning Call, be right back.
 Well, turning now to CNBC's 2026 Disruptor 50 list.
 I don't want SpaceX topped that list.
 The dominance of the company is looking to tap into all things AI
 to shake up their respective industries and futures.
 That's really the focus of the list this year.
 That includes our next guest.
 Whose company is looking to make waves in maritime manufacturing?
 Dino Mavricus is the co-founder and CEO of Seronic
 and we are also joined by Julia Borsten
 who is behind all of this data that leaves
 to the Disruptor list as I like to say every time the mother of disruptors.
 Julia, it's great to have you back on set, kick it off.
 It's great to be here and Dino,
 thanks so much for joining us.
 You've been growing so quickly,
 most recently raising $1.75 billion in March
 to help build out your autonomous maritime company.
 What is it that this recent round of fundraising
 is going to enable you to do?
 Hi, Morgan.
 Hi, Julia.
 It's great to be back on and thank you to CNBC
 for the recognition on the Disruptor's 50 list.
 This most recent round of financing is just going to let us
 accelerate our vision and our mission.
 Starting with Corsair, which is our first product,
 24-foot fully autonomous speedboat,
 that's in full rate production.
 We're delivering hundreds of units.
 We could build thousands of units per year,
 if called upon, right now.
 We expanded that to Marauder,
 which is a 180-foot fully autonomous ship.
 We started building that ship
 about this time last year.
 That ship is nearing completion already.
 That's the fastest ship built in this country since World War II.
 And we're making a multi-hundred-million-dollar investment
 in our shipyard in Franklin, Louisiana
 to scale production of that vessel.
 And then we're expanding into Port Alpha.
 Port Alpha, quite literally, is going to be the largest shipyard
 in the Western Hemisphere.
 We're going to invest billions of dollars.
 We're going to create thousands of jobs.
 We're going to build a net new shipbuilding capacity
 here in the United States.
 And most importantly, bring shipbuilding back
 to this country in a way
 that we haven't seen since World War II.
 Yeah, I mean, it seems like what you're doing here
 is not just disrupting the defense space,
 but also the shipbuilding space.
 And curious as your technology evolves,
 how you think about dual-use technology,
 will we see your technology deployed for consumer purposes?
 Oh, absolutely.
 Dual-use is absolutely core to our thesis.
 Every single product I already listed,
 it is in fact dual-use.
 It's in fact commercial first.
 If you look at what the Secretary of War
 and the department is calling for,
 it's commercial first solutions
 that can serve the department of war.
 There's a lot of reasons for that.
 It's how do you build robust and resilient supply chains?
 How do you take advantage economies of scale?
 How do you drive down cost for the department?
 When we're talking about marauders
 and what the Navy is looking at in its long-term shipbuilding plan,
 there's a 30-year 1.2 trillion dollar plan right now.
 We can deliver on that plan while saving the taxpayers
 hundreds of billions of dollars.
 Port Alpha, we're talking about large commercial ships,
 600, 800,000-foot cargo containers, tankers,
 roll-on roll-off vessels.
 These are not just important for the commercial market,
 but these are actually critical to national security
 because if you don't have these logistics and auxiliary ships,
 you can't resupply your force in times of conflict.
 So do use is absolutely critical
 and definitely what we're building for.
 Yeah, and of course, huge initiative running through
 the White House's OMB amidst all of this,
 too, to bring shipbuilding back to the US
 in a much bigger and more meaningful way.
 And not only the shipbuilding itself, but the supply chain.
 I mean, it's part of the reason why you're seeing tariffs
 on things like imported steel here
 to reignite that industry,
 so it can supply things like shipbuilding.
 It's hard to do, Dino.
 You and I have talked about it before.
 What does it take to actually get those production lines
 up and running and the people skilled to operate on them?
 It's a supply chain, absolutely critical.
 You're right.
 The focus from the administration is a big push here.
 If you look at what China does,
 I mean, the subsidize the entire industry.
 This is definitely an all-of-country effort.
 And you're seeing that from the administration
 with the executive order from the president last year
 resulting in the maritime action plan.
 There's a bipartisan ship's act
 that's proposed for legislation.
 That would be a big push here.
 And then to your point on workforce.
 You know, we're doing a lot around workforce.
 How do you rebuild the workforce?
 And I'll tell you, the most important thing we're doing
 is making it cool for young people
 to go work in shipyards again.
 We're giving them the mission to build
 for the future of the maritime industry
 and we're making the investments to support our people.
 All right. Dino Mevruchas.
 Great to have you on.
 I'm Seronic, and Julia Borsten.
 Thank you for bringing us.
 Great to be here.
 Congratulations again on the list.
 Go check it out on cmbc.com.
 Full Disruptor 50 list.
 You can scan the QR code right there on your screen
 or go to cmbc.com slash Disruptor 50.
 And Julia will have more throughout the day.
 Straight ahead.
 Strike averted at Samsung.
 And shares are surging.
 We've got that full story in just a moment.
 But first, we're also watching shares of SoftBank
 over in Japan.
 Also, surging reports that two
 of his portfolio companies plan to IPO
 in the coming weeks.
 Open AI.
 And SB Energy, which develops energy infrastructure
 for what else?
 Data centers.
 Look at those shares.
 They're 20% right now.
 Morning, call you right back.
 Welcome back to Morning, call.
 China's president Xi Jinping wrapping up his two-day summit
 with Russia's president Vladimir Putin yesterday.
 This is less than a week, just days, really.
 After his face-to-face with US President Donald Trump,
 beyond those high-profile sit-downs,
 though, she is increasingly casting himself
 as a diplomatic power broker,
 meeting with leaders from the UAE, Spain,
 and others in recent weeks.
 This is a role, or at least presenting
 the optics of a role, once dominated by the US.
 That Beijing is now
 trying to move aggressively to fill.
 Joining me now is Congressman at Greg Stanton of Arizona.
 He is a member of the House Select Committee
 on China and the House Foreign Affairs Committee.
 And, Congressman, it's great to have you here.
 Welcome.
 That's exactly where I want to start.
 These evolving relations between China and the US
 and China on the world stage
 when we do think about US hegemony.
 Well, recent Gallup poll show for the first time,
 unfortunately, that China is more respected on the world.
 On the world stage,
 then the United States of America.
 There is real implications for how Trump has treated our allies
 and our friends,
 open and trying to break up the NATO security alliance
 with our actions in Greenland,
 denigrating our European partners,
 slapping tariffs on our friends and allies around the globe,
 denigrating Canada,
 threatening to bomb Mexico,
 even without the partnership of the Mexican government
 going after the cartels.
 These relationships matter
 and this president has not done well
 internationally in diplomatic sphere
 and that is paying a heavy price
 for the United States of America.
 So, in light of that, certainly what's in focus here
 for viewers of CMBC this morning is AI,
 whether it's blockbuster results from Nvidia,
 whether it is a prospectus from SpaceX,
 a possible IPO filing,
 from open AI as well,
 the possibility that we have an order signed
 by President Trump involving AI and cybersecurity,
 which could potentially reportedly come
 as soon as today as well.
 How to see the relations between the US and China
 on the world stage when it comes to this AI arms race?
 What's at stake?
 Well, it's important that the United States
 leave the world in innovation.
 It's been our strategic advantage for many decades,
 so we've got to continue to do that.
 But when it comes to AI safety,
 that is an area where the United States and China
 can have conversations but have common agreements.
 We have common interests in that regard
 and that's one of the reasons why
 building these strong diplomatic relations
 around the globe is so important.
 Obviously, when it comes to export controls,
 we have to make sure that our leading innovations
 remain here in the United States
 that we don't give away that strategic advantage.
 And so we have to be very smart about our public policies
 as it relates to export controls.
 Yeah, I mean, you serve on behalf of the innovative state
 of Arizona, which is home to TSMC.
 So how to think about bringing chipmaking back to the US
 and what it means for supply chain resilience,
 especially given the fact that Taiwan is in focus right now.
 Well, that's exactly right.
 TSMC and the Taiwanese semiconductor company has invested
 over $200 billion building semiconductor fabs
 in Phoenix, Arizona, my community.
 So for me, as a former mayor of Phoenix,
 international policy and local economic development
 go hand in hand.
 And this is why the biggest news coming out
 of the Trump Xi Jinping summit is the fact
 that President Trump has not moved forward
 with the arms sales to Taiwan.
 We want to be able to ensure that Taiwan
 can defend itself in case Xi Jinping
 and the Chinese Communist Party
 make any kind of move on Taiwan.
 That would be devastating for this world
 if he were to do so.
 There'd likely be a global recession
 or even depression because we can't have another choke point
 on semiconductors.
 Taiwan is the leading country on this globe
 on semiconductors.
 Obviously, Arizona's been a huge beneficiary
 of their foreign direct investment.
 We need to continue to advance that relationship.
 But we also need to ensure that Taiwan does not become
 a bargaining chip in this global battle that we do support.
 Congress has authorized arms sale $14 billion to Taiwan.
 The Taiwanese legislature has approved funding
 to buy those weapons.
 And we need to support the self-governing democracy
 of Taiwan's such a critical trading part in the United States.
 We need to make sure they can engage in their own self-defense.
 And it's really disappointing that the president
 has decided to use that as a bargaining chip
 with Xi Jinping.
 And finally, I just want to shift gears here
 and get your thoughts on what we're seeing with Cuba
 with the indictment of Raoul Castro yesterday
 and the ongoing effects of this fuel blockade.
 How does this play out?
 Are we going to indict a 94-year-old Raoul Castro
 of all the things going on in this globe,
 including paying attention to the Putin Xi Jinping summit,
 which just occurred with all of the important activities
 that we have around the globe?
 The focus should be on negotiating a solution
 to the Iran war so we can complete that war
 and lower gas prices for the American people
 and for our allies because gas prices go up for us.
 They go up for people all around the globe.
 That really should be our focus.
 Building stronger relationships in North America
 between the United States and Mexico,
 the United States and Canada.
 And this obsession with Raoul Castro and Cuba
 I think is a distraction.
 Okay, Congressman Greg Stanton of Arizona.
 It's great to have you on.
 Thank you for joining me.
 Thanks so much.
 Still on deck.
 The White House, Reddy's an AI executive order
 and theropic looks to get profitable and sinkholes.
 Plague a critical New York airport
 to regulate its headlines when morning call returns.
 I'm Morgan Brennan.
 Welcome back to morning call.
 Let's get a check on the US stock of futures
 which are higher this morning,
 fractionally, that of course after an update
 for the major averages yesterday
 with all of the averages gaining 1% or greater
 or Russell 2000 was the real outperforming yesterday
 up to and a half percent.
 We're watching chips and the reaction to in videos
 latest quarterly report.
 Revenue surged 85% on strong data center sales.
 You had a big buyback.
 The dividend was boosted dramatically to those shares
 though are basically flat right now.
 Remarket CEO Jensen Huang speaking with CNBC
 about the opportunities with hyperscalers.
 The hyperscalers is where the AI frontier models are
 and we're gaining share there.
 We're gaining share there because
 we've already always supported OpenAI and XAI and Meta MSL
 and Microsoft's AI and a whole bunch of other AI startups.
 But this year we had the benefit of also
 winning and thropic.
 We're helping them scale capacity
 so that they could have more reach, generate more revenues
 and grow their company.
 And so with anthropic, we're scaling very, very quickly.
 We've got big plans for them.
 Well, let's get a check on the bond market
 which has seen quite a bit of activity in recent days.
 You can see we're largely higher for yields
 across the curve.
 30 years taking a little bit of a breather here
 but US 10-year treasury yielding 4.57%.
 We're still lower than we were 24 hours ago
 and the Fed sensitive to your treasury yielding 4.0.
 5% right now.
 Turning to energy after a steep decline
 in crude prices yesterday.
 You can see some more red on the screen right now.
 WTI is now trading below 98 bucks a barrel.
 97.50 give or take.
 And Brent is also down almost 1% $104 per barrel.
 Global markets and mixed picture across Asia
 after Japan exports jumped in April.
 Well above street expectations thanks to a surge in chip shipments
 and green arrows across Europe
 in early trading here as well.
 All be it some modest moves,
 but other than the Cosby in Asia which finished up
 it looks like 8.5% Samsung union talks
 coming to deliver and avert a strike
 a big part of the move we've seen there.
 We're checking some of the morning's latest headlines
 shares of Samsung.
 Oh, I just front ran myself.
 Soaring in Asia after its 48,000 member worker unions
 suspended plans for an 18 day strike
 thanks to an 11-hour deal with management
 that includes six figure bonuses.
 The deal will be put to a vote starting May 22nd.
 Well, President Trump reportedly expected to design
 a new executive order as soon as today on government AI
 oversight. The directive would ask tech companies
 to submit their advanced AI models to a review
 by federal agencies at least 90 days before
 public release and also grant pre-public access
 to critical infrastructure providers like banks.
 If we stick with AI sources tell CMBC
 Anthropic is on track to generate 10.9 billion dollars
 in sales during the second quarter.
 Huge move higher from what we saw at the end of last year.
 And if achieved, this will be the company's first
 profitable quarter ever.
 Sources adding Anthropic generated 4.8 billion dollars
 in sales in Q1 meaning it sales more than doubled
 in a matter of months.
 Deal alert reports that Avalon Bay community
 is an equity residential are nearing a merger agreement
 that could come as soon as today.
 Avalon Bay has a portfolio of around 100,000 units
 across more than 11 states including New York and California.
 Equity residential owns and manages more than 85,000
 apartment units across six states including Texas,
 New York and Georgia.
 So this would be a huge tie-up in the world of reeds.
 And we continue to monitor the situation
 at LaGuardia Airport in New York where a sinkhole
 on one of its two runways caused more than
 280 cancellations 305 delays yesterday
 that's according to flight aware with more expected today.
 Well, we have liftoff for the SpaceX IPO,
 SpaceX filing its S1 publicly last night after the bell 308
 page document brimming with information including
 the first financial document I've ever seen
 referencing the extinction of dinosaurs.
 SpaceX will list on the NASDAQ under SPCX as soon as June 12th
 adopting a stair step block-up approach
 that ties share sales to stock performance while increasing
 the float for the financials, three segments.
 Space, which is the launch in space like business,
 connectivity, which is largely Starlink.
 Starlink now has over 10 million subscribers paying for broadband
 from its more than 10,000 satellite and counting
 constellation and AI, which includes newly acquired XAI.
 Well, connectivity, Starlink is the big money maker,
 most profitable.
 Space registering and operating loss as SpaceX invests
 in the super-powerful Starship rocket.
 We're expecting the 12th test flight as soon as tonight, by the way.
 And AI, which also includes the X platform,
 is driving most of the losses.
 Most of the CAPEX spending, CAPEX in Q1 for AI specifically,
 was $7.7 billion.
 And in all of 2025 for AI specifically,
 it was $12.7 billion.
 So you continue to see a ramp up there and that build out
 in that race for AI compute.
 Also, we got some details about that cursor agreement,
 the Anthropic Deal, which includes a $1.25 billion monthly payment
 to SpaceX by Anthropic.
 And in the prospect, in the prospect,
 there's lots of focus on AI compute,
 and especially on orbital data centers.
 SpaceX saying, quote, we believe,
 our goal of establishing a lunar presence
 will enable TerraWat scale annual AI compute growth,
 support deeper space exploration and industrialization,
 and serve as a stepping stone
 to establishing a civilization on Mars.
 SpaceX adds that quote,
 we believe the next paradigm shift for humanity
 is the creation of resilient,
 perpetually expanding space-faring civilization
 that drives continuous innovation across new frontiers,
 ultimately propelling us to Kardashev type 2 status.
 We believe we are capable of unlocking an era
 of unprecedented economic expansion,
 while also contributing to the safeguards
 of humanity's future against existential risk.
 That's it.
 That's everything you need to know about the mission of SpaceX,
 and what's driving all of the technology and innovation.
 SpaceX thinks it's identified, quote,
 the largest actionable, total addressable market
 in human history.
 Quantifiable, Tam, get this.
 $28.5 trillion, most of that, about $22.7 trillion,
 and enterprise applications.
 So we're talking about AI knock-on effects.
 That's excluding China and Russia, by the way,
 which says a lot about the risks to the entire,
 well, I'll say all of this,
 as we talk about the entire risks,
 the risks to the entire business case
 of which there are several pages,
 among the, quote, challenges that SpaceX cites,
 shifting timelines for deploying these AI data centers
 to space, establishment of a lunar economy,
 interplanetary industrialization,
 space tourism, and cargo transport to the moon.
 They say that's an emerging business,
 and a number of businesses that haven't been realized yet,
 in orbit manufacturing, passenger transport to the moon,
 let alone to Mars, energy production,
 and manufacturing on the moon in Mars,
 and asteroid mining.
 They talk about that quite a bit in the perspectives, actually.
 As for governance, dual-class equity structure,
 giving dual-class B shareholders 10 votes per share,
 as long as Elon Musk is a majority shareholder,
 he's going to control a selection of the board,
 he controls 85% of SpaceX voting power,
 a lion's share of that,
 you could see right there on your screen through class A,
 but also class B shares, where it gets fun,
 and almost Tesla-like in terms of compensation package,
 if Musk takes SpaceX to a $7.5 trillion market value,
 and establishes a permanent Mars colony,
 he will earn 1 billion shares, that can best.
 Checking other space docs in the midst of all of this,
 because we've been talking about it for weeks
 on morning call, you're gonna see a re-rating here
 in space docs, and it's already happening.
 It happened ahead of this perspective,
 and it's even happening right there on your screen,
 pre-market, I expect that that's gonna continue to
 echo Star, which is a shareholder in SpaceX's up fractionally,
 but AST space mobile, intuitive machines,
 planet labs, red wire, rocket lab,
 go down the list here, your space systems voyager,
 all of these names are expected to see a revisit by investors,
 in terms of their valuations,
 and what the future is gonna hold,
 especially something like SpaceX's starship comes online,
 and brings down launch costs,
 and allows more payload to go to space more quickly,
 we're on the edge of a space economy,
 this is just the beginning.
 Okay, well we're not done with SpaceX yet, either.
 Coming up, we're talking with an early investor in the company
 on what he says will be key for the company's success,
 once it does officially go public,
 and as we had to break,
 let's get a check on two stocks on the move following earnings,
 and two it shares, those are seeking 12%,
 revenue just missing estimates,
 the company also announcing it's cutting 17% of its workforces
 at faces slowing growth.
 Different story for L, though,
 you can see those shares are popping at 10%,
 earnings and revenue topping expectations,
 it's announcing plans to walk back
 some of those tariff fueled price increases
 to offset a slowdown in sales,
 as consumers pull back in spending.
 Morning call, we'll be right back.
 Let's get back.
 Welcome back to morning call,
 let's take a look at rocket lab,
 those shares are falling actually right now,
 after the company announced a $3 billion stock offering
 to help fund future acquisitions.
 Well, from Rocket Lab to SpaceX, so much more.
 Let's continue the conversation,
 bring in Chad Anderson, founder and CEO of Space Capital,
 self-described as the world's largest space focus venture fund
 with more than $1 billion in assets
 under management across 59 portfolio companies.
 And someone I've been speaking to covering the space space
 for many years, you're also an early investor in SpaceX.
 Like a really early investor in SpaceX,
 like one of the OGs in terms of investing in space overall.
 So it's good to have you on your thoughts on the prospectus
 and this upcoming IPO.
 That's exciting.
 I mean, it's now real.
 We've been building towards this for a while now
 and a lot of expectations.
 And it was really interesting to sort of comb
 through everything last night and then early this morning.
 But I think the biggest takeaway for me
 is that SpaceX is no longer a space company
 in the traditional sense.
 It is a fully integrated AI company.
 And they are competing with hyperscalers.
 And they are looking to own the whole stack.
 So from everything that they're doing, right?
 I mean, because they're talking about big numbers here, right?
 You were talking about a $28 trillion Tam,
 90% of that is AI, actionable Tam that they're going after, right?
 So that shows you where sort of their sites are set
 and where they're focused.
 And look, they're trying to own everything
 from the Silicon to the orbital assets
 and the orbital infrastructure and the rails that get them there.
 Yeah, I mean, to get to the orbital assets
 and the orbital infrastructure,
 and I want to get your thoughts more detailed
 on data centers specifically,
 which came up quite a bit in the prospectus as well.
 But to get to that, you need starship to come online.
 We're expecting a 12 test flight as soon as tonight.
 How much hinges on that, which is not even part
 of the valuation yet?
 Yeah, I mean, this is a critical piece of the business
 and all of the future business relies heavily on this, right?
 So we're looking at a business right now
 where they're printing money with Starlink.
 Their broadband business is going gangbusters.
 For a system that didn't exist six years ago,
 they now have 10 million subscribers
 and are growing incredibly fast, right?
 Their V3 satellites will be launched on starship.
 They're so big that they need this vehicle.
 And they're going to enable direct to sell.
 The telco market is obviously much bigger.
 It's also going to enable orbital data centers, right?
 So it's really important that this vehicle come online.
 If they have a positive test flight tonight
 if things go well, then it keeps things on track
 and moves towards their base case
 that they've put forward in their perspectives.
 And if it doesn't, they have 10 more boosters,
 five more ships in production.
 This is not like they don't have one rocket.
 And this is the way that it's been done in the past.
 They don't have just one rocket
 and all their hopes and dreams are relying on this one rocket, right?
 They have a production facility
 that is pumping out these massive starships and boosters.
 And so they could be back on the stand shortly
 and they call this something their prospectus
 that as long as the pad is intact,
 we'll see, but I mean, we're expecting big things.
 This is a program that they've now flown twice.
 It's just with all new technology.
 So what's that?
 It's hard to describe to folks and capture
 really capture in reality what star bases to your point
 and what they're turning out there
 and how big it's gotten and how quickly.
 I want to play some sound for you from Jeff Bezos,
 who was on our air from the Blue Origin Factory yesterday.
 Elon Musk has set very aggressive targets
 for getting those orbital data centers to space,
 but others I've spoken to,
 and certainly Bezos on our air yesterday,
 I think it's gonna take longer, have a listen.
 Our data centers in space realistic, the answer is yes.
 The timeline is harder to answer.
 So, some of the timelines you hear are very short.
 That probably would not, right?
 People who talk about two or three years,
 that's probably a little, Elon's talked about two or three.
 The little is probably a little ambitious.
 Okay, but I think what Elon would tell you
 is if you don't set an ambitious timetable,
 if you wanted to be six years, say it's three,
 it's the kind of, so exactly how long it will take.
 I don't think anyone knows, but it is real.
 It will happen.
 Thoughts?
 Yeah, I mean, this is obviously very ambitious.
 All of these new markets that we're talking about
 are very ambitious, but I think that,
 definitely the timeline's gonna be a lot longer
 for folks who don't have a launch vehicle
 that can pull this off, right?
 So, SpaceX owns the rails to orbit.
 That is a huge competitive advantage.
 You're not valuing this company,
 is not based on the launch business alone,
 but it sure is an incredible competitive mode
 and competitive advantage for the business.
 And that is what is going to enable them
 to be the first mover here
 and for them to get up faster than anybody else.
 So, it would be really great to see blue origin launch
 in a higher cadence and more regularly.
 We've seen three launches with varying levels of success.
 SpaceX is the only one they have built
 the most powerful and reliable rocket fleet in history.
 And their hopes are on this next generation vehicle
 and we'll see how things go tonight,
 but I mean, if this thing comes online,
 they're expecting to be launching it
 and getting into operational cadence by next year.
 No one else can match that.
 Yeah.
 I have about 20 more questions for you.
 We have to leave the conversation there.
 Chad Anderson, please come back.
 It's great to have you.
 All right, morning call crew is next.
 We're going to keep this conversation going.
 It's time for your morning call, call sheet,
 where we look at the topics driving the trading day ahead.
 The crew members today, Joe Missola, Charles Schwab,
 Larry McDonnell to the Bear Trap Report
 and Terry Weisman of McQuarrie Group.
 Oh my gosh, so much news today,
 so much to touch on, not enough time to do it.
 Let's see what we can get to.
 Larry McDonnell, I'm going to start this conversation
 with you, SpaceX IPO, what are you watching?
 Well, there's a lot to digest.
 I mean, you've got $4 trillion of valuation
 coming in on the three big AII POs.
 And you have, for investors watching us right now,
 you've got to be concerned that 50% of the S&P
 is already technology.
 And now we're kind of jamming these IPOs in
 because they need to get them in in a short period of time
 and they're waving S&P 500 rules around that.
 And so I think you just want to watch who's unloading
 and why are they unloading, it's such a rate of change
 and why are they dumping the shares
 into passive investors, which is the S&P 500
 and the NASDAQ.
 So the valuation and just the rate of change
 of the dumping is what I think a lot of the institutions
 that we at most of our clients are institutional investors,
 that's what they're watching.
 Yeah, I mean, SpaceX is also allocating
 quite a nice chunk to retail investors, Joe Missola,
 and going to be offering those shares through
 a number of brokerages, including Charles Schwab.
 Really are, yeah.
 Rewrating here in space stocks,
 which has already been a retail fan favorite.
 You know, it'll be interesting to kind of see the demand
 for it.
 My assumption is the demand will be through the roof.
 But overall, market sentiment from our investors
 has really improved these last few weeks.
 Not only do we see it in terms of their buying behavior
 and video is number one on the list,
 kind of heading into earnings.
 But we've seen a lot of action on the option side as well too.
 So a lot of call buying, a lot of positioning ahead
 of some of these earnings, specifically these late tech earnings
 with Nvidia Broadcom and so on.
 So, you know, they've shown a bullish sentiment,
 probably getting to the point now where it's a little bit extended.
 But you know, we'll see, because there could be some room
 for this market to rally.
 Yeah, Terry, want to get your thoughts on all this?
 Because we've been talking about all week, the run-up and rates.
 We've seen some stabilization.
 We've seen effects volatility.
 We've seen that pressure some of these growth names,
 including the semiconductors, which have surged.
 In focus today, this whole AI infrastructure build-up,
 which also, by the way, is starting to permeate
 some of the macro data.
 How do you see all of this, especially
 as the market digests in video?
 Well, I think if the policymakers in Washington,
 specifically the Fed, have a mission in mind,
 it should be to try to bring the yields on the long end
 of the yield curve down to the extent they can do it.
 Because obviously, if funding costs become expensive
 for companies in America, we may not have that AI revolution
 manifest itself.
 So it's funding costs need to be brought down.
 And interestingly enough, one of the reasons why yields
 the back end of the curve are so high
 is because people are concerned about inflation.
 So this is a job that the Federal Reserve should be able
 to tackle by signaling that it's prioritizing price
 stability again.
 And when that happens, and I think we've seen a little bit
 of that in the last few days
 where some of the speeches have come out fed officials,
 we may see stabilization at the long end of the curve.
 And we won't see the 10-year yield go north to 5%.
 And I think then we have more positive conditions,
 obviously, for the market, rather to continue.
 Okay.
 John, I'm going to go back to you.
 Your thoughts on Nvidia.
 And also your thoughts on another mega cap name
 that's been focused this morning, which is Walmart.
 Sure. Well, let's start with Nvidia.
 I mean, what do you have to do to get a big reaction
 from the market?
 I mean, you crush everything.
 You've got revenue up 85%, you'd be under just an EPS by 10 cents.
 So everything looks good.
 I think the sales guidance, while it was above expectations,
 there's a whisper number for maybe around 96 billion
 didn't hit that.
 So I think maybe that's why you're seeing the tepid response,
 especially like I said, the run-up that we had,
 it was about a 48, 50% move from the bottom at the end
 of March to the highs that was all around 235.
 So I think the response is appropriate.
 I think Walmart's a big test today in terms
 of how the consumer is holding out.
 We talk about the K shape recovery.
 We do want to see if there's rolling down
 or if people are still spending.
 OK.
 Jensenman, we have to leave the conversation there.
 Thank you to our call crew and Squawk Bucks starts now.