10AM Hour: Sen. Elizabeth Warren on Trump Canceling Housing Bill Signing, Broadcom CEO & OpenAI President on New Processor, Cerebras Board Member 6/24/26

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Carl Quintanilla (0:52)

Good Wednesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Pickard, David Faber here at Post 9 of the New York Stock Exchange. Sara Eisen is off today. Coming up in just a minute, a rare interview with Broadcom's Chief Hock Tan, and OpenAI's president and co-founder Greg Brockman just unveiling OpenAI's first intelligence processor. They're calling it Jalapeño. Then Massachusetts Senator Warren's with us, leading the charge on this bipartisan housing bill, expected to be signed by the president in just a few hours. We'll speak with one of the earliest Cerebras investors as well. He's also a current board member. The chipmaker stock falling today after reporting earnings for the first time since going public.

Leslie Pickard (1:29)

New home sales just crossing the tape. Rick Santelli has that for us. Hey, Rick.

Rick Santelli (1:35)

Hi, Leslie. Indeed. This is a May read on new home sales. Single-family homes. We're expecting a number of 635,000 to 640,000 seasonally adjusted annualized units. Big miss here. 580,000. That's off over 7% from a slightly revised last month at 626,000.

And it's the second weakest number of the year. This is the lowest level since January. So we want to pay attention to this. And we do understand, of course, some of the elevated rates have made a difference, although they are coming down. Right now, 2 years down 5 base points, 10 years down 9 basis points. Should 10s close here, it would be a 1.5 month low yield close. 2s, only about 1 week. And in foreign exchange, wow, the yen at a 40 year low, the dollar then at a 40 year high, dollar index at a 14.5 month high, should it close here, and of course, another supply at 1 o'clock Eastern. This leg, 70 billion 5 years, following yesterday, 69 billion 2 years, and we want to continue to monitor oil. It definitely briefly traded under 70 in the August futures, 10 year definitely following it, and of course, the Treasury Secretary on Squawk Box this morning didn't hurt the cause for lower yields, underscoring his notion that inflation most likely will follow oil and some of the recent reads in energy and be a bit lower in the future. Back to you.

Leslie Pickard (3:11)

Rick, thank you so much. Rick Santelli for us. Shares of Cerebras sharply lower this morning after its first earnings report since going public. The AI chip maker said its revenue almost doubled from this time last year, but it also expects to operate at a loss through 2026 and shrink its core gross margin for the second quarter. Let's bring in Steve Vassallo, general partner at Foundation Capital, member of Cerebras' board, his firm led Cerebras' Series A funding back in May of 2016 and now owns a 7% stake in the company. Steve, I think you took that stake for like $10 million or something and look at it now.

Obviously, shares down, shares well off the highs post IPO as well. And I'm just curious what you make of the early aftermarket trading activity for this company post IPO. Do you feel like it is indicative of the fundamental story here or of market structure lockups coming off or something else entirely?

Steve Vassallo (4:13)

Good morning, Leslie. Great to be here. Yeah, and thanks for having me. I mean, we've been involved in Cerebras, as you said, sort of north of a decade now. So we've seen lots of highs and lows along the way. So having this first, I would say, very outstanding start for the company five weeks since our IPO, all of the news that we shared last night or yesterday afternoon was all very positive. In fact, it was more or less a home run up and down the P&L.

I think obviously it's been a tough couple of days for semiconductors. So trading into that is a little bit tricky. But if you look at, as you said, sort of growth on the top line, core revenue up 92 percent for the quarter.