10AM Hour: Cleveland Fed President Hammack, CA AG Bonta on Meta, Nvidia’s Blowout Quarter 8/27/26

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**Carl Quintanilla** (1:03)
Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber, Mike Santoli, live at Post9 at the New York Stock Exchange. Sara Eisen has the morning off. Tech's moving higher today, driven by this big jump for Salesforce and Nvidia with blowout guidance. We're going to talk to top chips analyst Stacey Raskin in just a minute. Cleveland Fed President Hammack's with us ahead of Jackson Hole tomorrow, and the Chairman's speech. Hammack told us back in June that rate hikes might be necessary. And we'll talk to California AG Bonta about this meta settlement in the social media addiction case.
Let's begin, though, with Nvidia reporting a blockbuster quarter. Very strong guidance. Jensen Wong telling CNBC and Jim, last night, they're still run way ahead for demand.

**Jensen Wong** (1:46)
Demand is super strong and incredibly, it's accelerating. You know, obviously, we're already a very large company, but to be able to grow continuously and now to accelerate our growth is pretty extraordinary. Now, what's happening underneath?
The things that are going on, number one, is that AI is now useful. It's doing productive work. And the tokens that are being generated by these AI labs are now profitable.

**Carl Quintanilla** (2:11)
Our next guest just raised his target to 400 from 315 It's not quite a street high, but it's pretty close. He says this quarter should remind Nvidia investors why they own the stock. Joining us today, Bernstein Senior Analyst, Stacey Raskins, with us. Stacey, good to have you. Thanks for the time.

**Stacey Raskin** (2:26)
Yep, good to be here.

**Carl Quintanilla** (2:28)
So what part of last night did you find most compelling?

**Stacey Raskin** (2:32)
I mean, clearly it was the raise to next year. I mean, we had a pretty strong beat in raising in the New York term. People expected that. But I mean, they're guiding 70% revenue growth for next year. For some context, I think at least the sell side estimates were up 44% off of the lower base. So just a massive raise relative to prior expectations.
They also got in front of some of the other worries. People have been worried that gross margins may take a bit of a hit because of memory prices. They got in front of that. They're guiding them, you know, from down to the low 70s versus the mid 70s. I think it's fine.
You start to look at the earnings power of this company. I mean, numbers are clearly going up. Sell side numbers went up. Buy side numbers, I think, importantly, went up. Maybe that's something that hasn't happened in a few quarters, but that's clearly happening today. Right. I mean, maybe just take what Jensen said. The idea that a company that is this large could continue to not only grow, but actually accelerate off of an already strong base. I mean, it's just something that we haven't really seen before. Yeah. That was- I think get to the point that the demand that we're seeing here really is real. I think these things actually are being used. The question of returns, I think, is increasingly getting answered in the form that there is a return on this investment.
I was just really happy to finally see, it will start to really come through in the numbers. I was very pleased with it yesterday.

**Carl Quintanilla** (3:53)
Is there something that explains its recent underperformance on earnings? Was there something different this time?

**Stacey Raskin** (4:01)
Yeah. Well, there was. I think, importantly, the buy side is always above the sell side. The actual investors invest in the stock, their expectations tend to be higher.
Maybe you could argue for the last few quarters, they've been very strong prints, but the buy side numbers, like especially in the next year and beyond, didn't really go up. I think they went up and probably reasonably materially this time.