11AM Hour: Revolution Medicines CEO on Drug Approval, Nvidia Rallies on Earnings & Synopsys CEO 8/27/26

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**Carl Quintanilla** (1:03)
Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Contessa Brewer here post night of the New York Stock Exchange. Sara Eisen's off today. Synopsys shares rallying alongside AI partner Nvidia today. The chip design company Raising Forecast. Does it signal a broader sector shift toward AI powered engineering? We're going to talk about it with the CEO coming up.

**Contessa Brewer** (1:21)
Plus, we're watching shares of Revolution Medicines getting a pop after the FDA approved its potentially game changing pancreatic cancer drug. RevMed CEO Dr. Mark Goldsmith joins us exclusively.

**Carl Quintanilla** (1:35)
Got some diverging dollar store views on the state of the consumer and the economic challenges sending some of those names in opposite directions today. We'll explain that as well. Nvidia is carrying a lot of water for tech.
IT sector on the S&P up almost 3 percent, but every other sector is red, including 1 percent declines in utilities, energy, consumer staples. We're watching the 10-year-2, a little softest today back to 465

**Contessa Brewer** (1:58)
Nvidia is really the mover this morning. After reporting a blowout quarter yesterday, Jensen Wong talked to CNBC last night, describing the company's technology as the framework that all frontier AI models are built on. Listen to this.

**Jensen Huang** (2:13)
We literally run every single model. We're the only company that I know that runs every single frontier model, every closed model, every open model. It's built on Nvidia, it runs on Nvidia, and because of that, we're fungible. You could use this across all these different use cases, and because we have so many developers, our ecosystem is so large and we use it all over the world, the asset is durable, it's long life, it's fungible, and therefore, it's rentable. People are renting it for great money these days, and so that's the reason why it's an investable asset.

**Contessa Brewer** (2:45)
Our next guest raised his price target on the stock to $300 from $380,000 to $380,000, adding that Nvidia's Q3 guidance points to a solid AI spending environment. Joining us now at Post9, Goldman Sachs Senior Analyst, Jim Schneider, it's great to see you today.
You think that the 70% growth for next year, the guidance, could surprise to the upside. We heard Jensen Wong say the demand could be more than 100% except that supply is constrained. How do you solve that bottleneck?

**Jim Schneider** (3:15)
I think that's all true. So the company talked about un-constrained customer demand in excess of 100%.
They feel they have confidence in line of sight to a good, solid 70% revenue growth. But the gap is data center, land, power, shell, also memory and a bunch of other components that go into all the Nvidia racks. So that's really the thing. And I think that there is going to be upside to 70%. Our numbers are a little bit higher than that already for next year. And we think it's going to be a question of the supply chain partners kind of closing that gap between some place between that 70% and 100%.

**Contessa Brewer** (3:46)
Jim, Nvidia's receivables jumped 55% over the last quarter. The company has disclosed $366 billion of commitments, another $108 billion in change of guarantees, half a trillion dollars of financing in its platform.
At what point does this supporting customers actually become vendor finance demand?

**Jim Schneider** (4:10)
Yeah, I think there is some of this across the whole supply chain. You're starting to see the suppliers which have very, very strong balance sheets and credit ratings support some of the customers, maybe not the hyperscalers who actually have very strong credit ratings, but some of these smaller companies which don't yet. And so I think that there is at least a transference of credit worthiness, if you will, sort of across the supply chain. And we've written about circular financing in the past in some of our other notes. I think that at this point, I'm not particularly concerned with what I see. Most of the commitments they've talked about are commitments to their supply chain partners. So companies like memory companies and so on and so forth, that they need to provide sort of visibility for them to build capacity. And then there's a more limited amount of financing to some of the partners who are actually also customers.