11AM Hour: FCC Chairman Brendan Carr on Battle with Disney, Erin Brockovich on Data Center Concerns & Premier Cancer Treatment Conference Kicks Off 5/29/26

SPEAKER_1 (0:00)

Dell PCs with Intel Inside are built for the moments you plan and the ones you don't. They're for those all-night study sessions, the moment you're working from a cafe and realize every outlet's taken, the times you're deep in your flow and can't be interrupted by an auto update. That's why Dell builds tech that adapts to you, built with long-lasting battery so you're not scrambling for an outlet and built-in intelligence that makes updates around your schedule, not in the middle of it. Find technology built for the way you work at dell.com/dellpcs. Built for you.

SPEAKER_2 (0:30)

Trading at Schwab is powered by Ameritrade, giving you even more specialized support than ever before, like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy gut check. Need assistance? No problem. Get 24-7 professional answers and live help, and access support by phone, email, and in-platform chat. That's how Schwab is here for you to help you trade brilliantly.

Learn more at schwab.com/trading.

Sara Eisen (1:04)

Good Friday morning. Welcome to Squawk on the Street. I'm Sara Eisen alongside Carl Quintanilla, live from Post 9 of the New York Stock Exchange. Today, new developments in the FCC's ongoing Disney and ABC feud. The broadcaster blasting the agency's early license review effort as unconstitutional and saying the move has no legitimate purpose. FCC Chair Brendan Carr will join us first on CNBC with his response.

Carl Quintanilla (1:27)

With Wall Street closely watching upcoming mega listings from SpaceX and Anthropic, does it mean the IPO market is open for business? Vice Chair, Citizens Commercial Bank thinks so and will explain why he thinks such blockbuster listings should pull more companies into the market.

Sara Eisen (1:41)

And growing data center pushback in communities across the country getting one prominent backer, renowned consumer advocate and activist Erin Brockovich has begun tracking AI data center. She's going to join us to explain why.

Carl Quintanilla (1:55)

Tech definitely leading the charge this morning even as breadth is slightly negative and most sectors are lower rather than higher. Dow is awfully close to 51K and the VIX continues to hover right below the 16 level, some of the lowest closing level since January. We will begin on the big stock story and that's Dell after earnings. Our Christina Parks-Nevalos has the details. Morning, Christina.

Christina Parks-Nevalos (2:18)

Good morning. Well, Dell shares are up what? Over 30 percent because Wall Street just got this stock wrong. Wall Street was essentially looking for $35 billion in revenue. Dell did $44 billion in the quarter. On earnings per share, consensus was about near three bucks. Dell came in just under five bucks. That kind of miss by the entire analyst community really forces a reset and why we're seeing the stock soar so much today. Previously, Wall Street thought that AI demand had been pulled forward and the cycle is maturing. So back to normal for Dell. This quarter completely dismantled that theory. The AI server backlog grew again to more than $51 billion in traditional servers, which is you can say almost the boring part of the business. We're up 92 percent year over year driven by enterprises building out for agentic AI workloads. Dell's COO said customer conversations are now multi-year in nature. Think three, four, five years, something we've heard from memory executives as well, but not necessarily from the AI hardware side. That's not pull forward demand. Morgan Stanley said it flat out in a note that they got Dell wrong and put its rating under review.

Jordan Klein at Mizzou, another one is comparing this to Nvidia's blowout quarter back in May 2023, the quarter that convinced Wall Street that the AI revolution was real. He's calling Dell's quarter this quarter a game changer for investors, confidence in the size as well as the scale of AI spending, and says the trade has real legs well into 2027 as well as into 2028 There's also another layer here too.

Dell CEO flagged some serious shortages in memory chips, which we know about processors, CPUs specifically, and hard drives, would lead time stretching to at least a year, which bodes well for names like Intel, AMD, ARM.

Also good news for the likes of Micron, and that's why you're seeing so many of these names higher. HPE, another competitor up about 14 percent, Supermicro up the same amount. The AI demand story was really supposed to be slowing, Dell just spent a whole earnings call proving the opposite, and the rest of the sector is repricing it in real time, which is why you saw such a stock move post earnings call, guys.

Sara Eisen (4:27)