11AM Hour: Mattel & Kraft Heinz CEOs on Earnings, SpaceX Shares Tumble & AI Hacks Intensify 8/5/26

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**Sara Eisen** (1:00)
Good Wednesday 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, SpaceX shares Tumble, a surge in AI spending overshadows an otherwise strong quarter. We'll talk to a top analyst about why he's remaining neutral on this stock.

**Carl Quintanilla** (1:15)
CEO Mattel is going to join us on the heels of another profit miss. We'll discuss what's dragging on those earnings, plus some key bright spots in the quarter.

**Sara Eisen** (1:23)
The CEO of Kraft Heinz joins us as the company raises its sales outlook. We'll break down the latest quarter, discuss whether the turnaround plan is working. First up though, in the markets, we've lost a little bit of steam from the open. The S&P is still up a third of 1 percent, but Russell 2000 is negative and we were stronger. Still have a number of sectors higher, materials, healthcare, communication services lead, tech is up, the NASDAQ is up two-tenths of a percent right now. We're adding to some strong gains on the week. To date, NASDAQ up 5 percent, S&P up almost 4 percent. You do have strength in NVIDIA, Micron, Alphabet, Metas, kind of split, but AMD is weighing, so is SpaceX, and so is Tesla. We're going to start on the shares of AMD, because they're heading south after earnings. As NVIDIA gets this pop on the back of SpaceX's results, Christina Partzanevelis joins us with more. Christina.

**Christina Parchenevalos** (2:15)
It's all connected, but AMD, like you said, down about 7 percent. Even after a record quarter, revenue jumped 50 percent, driven by data center business that doubled from a year ago, and now makes up nearly 60 percent of the company. And yet, shares are down, because after more than doubling this year, a beat just wasn't enough for this crowd. So why are we seeing this sell off? The Guide topped Wall Street, but not the Whisper numbers, which are increasingly more important. Growth is somewhat slowing. Capital spending came in nearly three times what analysts modeled, denting cash flow, and margins aren't set to improve from here, but bulls say at least they were maintained given high memory costs, etc.
CEO Elisa Su pushed back, saying AMD is tracking materially ahead of its own targets, and that its data center AI business will grow well over 100 percent next year. Jeffries even says the street is now tossed around 150 percent growth. Barclays called this stock drop, quote, extreme. Most of the analysts were very bullish on the earnings report, and the biggest payoff, it's Helios AI racks, though, is really a 2027 story. So that could be another hindrance to this stock. Then came Elon Musk. On the SpaceX investor call, Musk said his companies will build, quote, exclusively on Nvidia, calling Blackwell the best architecture. That's actually a reversal from May when he said he'd keep buying both Nvidia and AMD.
That is a pretty darn big number for Nvidia. By Nvidia's own math and Barclays tracking as well in a note today, every gigawatt of AI data center is worth roughly to them $35 billion in revenue to Nvidia. Musk is building at a gigawatt scale, so going all in lock billions of dollars more into Nvidia's pipeline even with potential rebates. Musk saying he wants to hit six gigabytes by 2027, so he can do the math. It's a lot of money for Nvidia.
It deepens one of the most circular relationships in AI. Nvidia put roughly $2 billion in Musk's XAI earlier this year, and is also his chip supplier, helping finance the very GPUs he then buys. That's a very, very, very profitable loop and now AMD, Pierce is no longer part of it.