11AM Hour: PulteGroup CEO on Housing Market, Atlanta Falcons CEO on Turnaround Plan & Big Tech's Big Week 7/28/26

**Sara Eisen** (0:00)
The board recommends approving.

**Carl Quintanilla** (0:01)
Regarding that seat on the committee, we're promoting.

**Sima Modi** (0:02)
To boost quarterly earnings.

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**Sara Eisen** (1:00)
Good Tuesday morning again. Welcome to Squawk on the Street. I'm Sara Eisen, live today from Coca-Cola headquarters in Atlanta, along with Carl Quintanilla as always from the New York Stock Exchange. Big show ahead. Joining me here in Atlanta this hour, the CEO of the country's third largest home builder, PulteGroup, for a deep dive into the housing economy. Then the new CEO of the Atlanta Falcons on the business of football, the turnaround strategy for the Falcons organization.

**Carl Quintanilla** (1:23)
Plus the state of the AI trade as investors now weigh the costs of the build out and now Chinese competition. Chips and memory stocks among the biggest decline is for a second day.
We'll discuss with Citi's Head of AI Investment Research, Heath Terry and with the Fed meeting today, find out what CNBC's new Fed survey says about the odds of a hike and what changes are expected under new chair Warsh. As for the markets, trying to find a little bit of a bid here after a bit of a soft opening, Dow's up 375, still circling around 7400 by about 10 points. Breath is pretty good here at the NYSC and more sectors are green than red. Let's begin with tech though and the sell-off that we've seen across some of the biggest names in semis. Joining us here as we said at Post 9, Citi Research Global Head of Tech and Communications, Heath Terry. H, it's great to have you back.

**Heath Terry** (2:10)
Yeah, great to be here Carl.

**Carl Quintanilla** (2:10)
I feel like we do this every few weeks. We have you in and try to get a gut check on whether this reset makes sense and whether it's going to manifest itself in real changes to CapEx guidance, let's say.

**Heath Terry** (2:23)
Yeah, look, I think it does make sense. There's a lot that's happened since the last time I was here. I think I was here around the same time that the SOX was at an all-time high. We were up 115 percent or so year-to-date at that point. We're still up about 55 percent so far here. So it gives you a sense of the scale of the correction that you've seen. But in that time, we've seen data center delays, we've seen open model competition, we've seen a lot of regulatory issues that have crept up, that have created issues for the frontier model providers, and then you've seen a lot of positioning, which I think more than anything is what's impacting the market broadly. You had max positioning in favor of things like memory and storage.
You've seen some of that obviously unwind as the leverage piece of it became more and more of an issue for a lot of investors and the timing part of it. When we see these data center delays, we've had 300 different data center moratoriums at a local level come through since the beginning of the year, including the state of New York.
That pushes a lot of that supply back up the supply chain, which impacts the broader market for the spot market. And I think that's what has people worried right now.

**Carl Quintanilla** (3:37)
You do think, though, that to the degree that there's newfound price sensitivity for all these components and services, that that extends the cycle. Is it good news?

**Heath Terry** (3:47)
Yeah, absolutely. I mean, I think, and to be clear, there doesn't seem to be a lot of price sensitivity, right? We heard it in the Alphabet earnings last week. They're increasing their CapEx investments. They're actually pulling things forward into this investment. We'll see what Meta and Microsoft and Amazon have to say this week, but I suspect it's going to be very similar with regard to CapEx. You just had a post on Twitter yesterday from one of Microsoft's AI leads about the only sustainable competitive advantage being compute. That's not something that somebody who's thinking about cutting their CapEx spend or who has suddenly become price sensitive about what they're paying for chips posts a couple of days before earnings.