Caroline Hyde

largely that's on strong or positive economic data but i put the philadelphia semiconductor index in there or socks because actually movements in in chips and the mag 7 is the news driver the catalyst in some of what's happening at the index level that manifests in a deal between meta and nvidia for millions of nvidia's processors over a number of years

But this is clearly a driver of markets, at least in NVIDIA's case, up almost 3%.

Meta had been lower, is now modestly higher.

Let's get the details with Bloomberg's Ian King, who leads our coverage of semiconductors.

So the reality is, Meta's already the number two customer for NVIDIA, but this is an agreement over time, millions of chips, and we're not just talking Blackwell GPU, we're talking later generation Rubin, and then the CPUs in each case.

What are the kind of facts that we need to know?

You had a discussion with one of NVIDIA's leaders in the data center and infrastructure group.

And part of the discussion was, this is the first big example of NVIDIA selling the Grace CPU to market as a kind of standalone product.

Simple question is, what would you use a Grace CPU for other than what's happening in AI?

And that is why the number is probably tens of billions over that time period, right?

the other movers in the market this morning is AMD, which was to the downside.

I guess not surprising, the biggest story is Nvidia kind of keeps rolling on and dominating the spend of the hyperscalers plus Meta, which is not a hyperscaler, but that has the data center footprint of one.

I was interested to go into the terminal and see like Meta, about 9% of revenues for Nvidia.

But Microsoft's number one, you know, double that.

But the big picture is there, right?

Nvidia, it seems dominant.

Bloomberg's Ian King on a story that, again, news driven catalyst for markets this morning.

Investors are looking also to scoop up beaten down names after a stretch of choppy AI driven volatility.

Morgan Stanley says the recent sell off, especially in software and services, was largely indiscriminate.

with some companies hit harder despite strong fundamentals.