11AM Hour: Kalshi CEO on Prediction Markets, Former Defense Secretary Mark Esper & Revolution Medicines CEO on Pancreatic Cancer Drug Breakthrough 6/1/26

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Sara Eisen (1:06)

Good Monday morning again. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla, live from Post 9 of the New York Stock Exchange. Today, stalemate, Iran reportedly stopping negotiations with the US and vowing to completely block the Strait of Hormuz. We've got the right guest. We'll break it down with former Defense Secretary Mark Esper.

Carl Quintanilla (1:23)

Plus the rise of the prediction markets, hitting a new monthly volume record of more than 28 billion in May.

The president looking to block those state restrictions of the technology. We'll discuss it with the CEO of Kalshi, who will join us here at the NYSE.

Sara Eisen (1:37)

And a potential breakthrough in the treatment of pancreatic cancer. New data showing an experimental drug from Revolution Medicines has proven broadly effective against the tough to treat disease and the company's CEO is with us this hour.

Carl Quintanilla (1:49)

Sara mentioned the Iranian headlines this morning took the wind out of futures and most of the market. S&P is down just a touch, but consumer discretionary down more than 2%.

Materials down 2%. Energy up almost 2.5 is going to make it the best day for crude energy in April 2nd. All that said, VIX isn't moving too much to hang in around 16

Sara Eisen (2:09)

Well, you've still got a lot of the AI names, HireArm, DataDog, Micron, all trading up, including NVIDIA after the company unveiled new chips built for PCs. Christina Parsonevelos joins us now with the news on NVIDIA. Christina?

Christina Partz-Nevalos (2:22)

Yeah, NVIDIA and Microsoft are actually teaming up to take on Intel, AMD and Qualcomm, specifically in the PC market. At his keynote last night at Computex in Taipei, Jensen Wong unveiled the RTX Spark, which is NVIDIA's first processor for Windows PC. They're calling it the Superchip, but it pairs a new custom ARM-based gray CPU. That's why Arm shares are up with a Blackwell GPU designed for both AI as well as gaming. So right now, it's a little bit more high-end, very expensive. Dell, HP, Asus, Lenovo are all on board with more than 30 laptop models and about 10 desktop coming in the possibly in the fall and then into next year. NVIDIA already sells the DGX Spark, which is a workstation built for AI engineers, but this new superchip is different. It's aimed at consumers starting at the premium end of the market. On the data center side, though, NVIDIA's Vera CPU is now in full production, he announced that in the speech, and shipping this fall, built specifically for agentic AI workloads. Early customers include Anthropic, OpenAI, CoreWeave. NVIDIA is projecting roughly $20 billion in CPU revenue for fiscal 2027 And here's Jensen Wong on that topic.

Jensen Wong (3:33)

CPUs for agents has its own special requirement, and our NVIDIA Vera is revolutionary. I'm so happy about its ramp. The orders already is going to make it the fastest and the most successful product launch in our company's history.

Christina Partz-Nevalos (3:50)

And that's why analysts expect NVIDIA to become the largest server CPU vendor by fiscal 2028 at $50 billion annual runway. That's roughly equal to AMD and Intel combined.

The CEO's argument is simple. Agentic AI is making CPUs the new bottleneck in computing. And you've heard that from Intel and Dell CEOs recently. That's why you're seeing NVIDIA shares up, ARM up as well about to 15% because they provide the blueprint for those CPUs. And then you have CPU competitors like AMD, Intel, Qualcomm all selling off on this news. CEO Jensen Wong also pushed back on fears that AI kills software jobs, arguing agents will drive more demand for software, less. And so that is why you're seeing names like ServiceNow up 8%, Salesforce, all of these software names higher.

Carl Quintanilla (4:36)

Yeah, some of these names putting in their highs for the year so far.

Microsoft also four month high today. Thanks, Christina, Christina Bartz-Nevalos. For more on NVIDIA's big move, let's bring in Gil Loria, Managing Director at DA Davidson. Gil, it's great to have you. Can you help contextualize how big a deal this is?