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Speaker 1: Bloomberg Audio Studios, podcasts, radio News.

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Speaker 2: This is a breaking news update from Bloomberg, instant.

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Speaker 1: Reaction and analysis from our three thousand journalists and analysts

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Speaker 1: around the world.

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Speaker 3: Let's go to actually the outlook first quarter revenue forecast

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Speaker 3: beating estimates, the company saying for the first quarter seas

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Speaker 3: revenue of seventy six point forty four billion to seventy

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Speaker 3: nine point fifty six billion, that is easily above the

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Speaker 3: street estimate of seventy two point seventy eight million. Let's

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Speaker 3: go back to the fourth quarter data center revenue that

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Speaker 3: coming in better than expected sixty two point three billion

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Speaker 3: versus the street estimate of sixty point thirty six billion,

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Speaker 3: and Vidia saying computing demand is growing exponentially. Fourth quarter

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Speaker 3: adjusted gross margin we expected seventy five percent, We got

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Speaker 3: seventy five point two percent. Fourth quarter revenue coming in

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Speaker 3: overall sixty eight point one billion, better than the street

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Speaker 3: estimate of sixty five point ninety one billion. Tim we're

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Speaker 3: seeing that stock up now about two point two percent

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Speaker 3: in the aftermarket.

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Speaker 1: Yeah, just to remind everybody where we are with these numbers.

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Speaker 1: The first the company ce's first quarter revenue coming in

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Speaker 1: six seventy six point four four billion dollars to seventy

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Speaker 1: nine point five six billion dollars. That beat estimates handedly

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Speaker 1: handily of seventy two point seven eight billion dollars. As

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Speaker 1: Carol mentioned in video, CEO Jensen Wong saying in a statement,

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Speaker 1: computing demand is growing exponentially. We are also fourth quarter

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Speaker 1: data center revenue worth repeating a beat there sixty two

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Speaker 1: point three billion dollars the estimers for sixty point three

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Speaker 1: six billion, and that gross margin coming in above estimates

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Speaker 1: at seventy five point two percent.

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Speaker 3: Our Sarah Friar on our live blog saying that chairs

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Speaker 3: are growing up on that data center revenue beat. Hey,

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Speaker 3: Ed Ludlow, come on in. I know you're looking at

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Speaker 3: these numbers. What jumps out for you?

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Speaker 4: Yeah, I mean, straight's the outlook. And by the way,

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Speaker 4: I would have done the same thing. Go right there.

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Speaker 4: You know, revenue in the fiscal first quarter seventy eight

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Speaker 4: billion dollars plus le minus two percent, and you know,

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Speaker 4: a consensus was really high. But like going into this,

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Speaker 4: it's a very simple equation. There were many names from

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Speaker 4: across sell side and buyside that said they wanted to

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Speaker 4: see in Nvidia beat revenues overall in the current period

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Speaker 4: in by the multiple billions of dollars, you know, against consensus,

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Speaker 4: and so one thing I would say to confirm something

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Speaker 4: is that the fiscal first quarter, which is the the

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Speaker 4: April quarter, does not assume any compute revenue from China.

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Speaker 4: In the outlook does not factor in any compute revenue

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Speaker 4: of China. That I guess is something to check off

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Speaker 4: the list. It was one of the questions we had.

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Speaker 1: I want to bring in Jake Goldberg from Seaport Research

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Speaker 1: partnering senior analysts your semiconductors and electronics. He joins us

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Speaker 1: also from San Francisco. Anything in here that confirms your

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Speaker 1: thesis or does it sort of go against the celerating

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Speaker 1: that you have on in Vidia?

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Speaker 5: Yeah, I mean it goes. I mean it's a good quarter.

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Speaker 5: It's a good quarter on a good guide. It's above

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Speaker 5: consensus above My expectations were good for them. Were still

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Speaker 5: waiting to see a lot more detail.

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Speaker 1: What do you want to see?

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Speaker 5: I want to see, I want to hear more. I

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Speaker 5: have to talk about gross margin for next quarter. I

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Speaker 5: think that's going to be in the CFO commentary.

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Speaker 1: Yeah, Ed jump in, Yeah.

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Speaker 4: No, I don't have it yet, but it will be

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Speaker 4: in the CFO commentary.

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Speaker 1: Versus seventy five percent expectations, I mean, can can ed

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Speaker 1: Can you use that as sort of a guide for

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Speaker 1: for how the company could see first.

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Speaker 4: Yeah, I mean on a basis point basis, Yeah, it

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Speaker 4: looked like margins are impacted by a number of things.

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Speaker 4: It has been a sell side question on prior calls

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Speaker 4: the percentage of a server that Nvidia contributes to. And

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Speaker 4: again what's changed in the period is in Nvidia starting

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Speaker 4: to sell, for example, CPUs as standalone product, and that

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Speaker 4: was a part of the meta deal that was included.

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Speaker 4: They talked about core Weave being an early user of

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Speaker 4: CPU as a standalone product. You know, how does that

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Speaker 4: impact the margin profile going forward? But yeah, I mean

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Speaker 4: what they do is they own more of the server

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Speaker 4: and that has been one of the ways in which

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Speaker 4: that they've got margins to where they are. And clearly

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Speaker 4: being zero point two percent above you know, where where

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Speaker 4: the hopes were is not a bad thing.

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Speaker 3: Yeah, I'm looking at that CFO commentary. As we know,

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Speaker 3: revenue expected to be seventy eight billion plus or minus

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Speaker 3: two percent, and as you correctly pointed, out not assuming

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Speaker 3: any data center compute revenue from China. In their outlook,

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Speaker 3: gap and non gap gross margins expected to be seventy

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Speaker 3: four point nine percent and seventy five percent, respectively, plus

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Speaker 3: or minus fifty bases point inclusive of a one tenth

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Speaker 3: of one percent impact from stock based compensation expense. Just

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Speaker 3: looking at what else we have here, Operating expensive gap

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Speaker 3: and non gap operating expenses to be approximately seven point

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Speaker 3: seven billion seven and a half billion, respectively, including that's

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Speaker 3: inclusive of one point nine billion of stock based compensation expense.

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Speaker 1: A headline getting my attention is in Vidia says that

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Speaker 1: hyper scalers were just over fifty percent of four Q

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Speaker 1: data center revenue. Jake Goldberg, I want to repeat that

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Speaker 1: headline for you, hyper scalers, We're just over fifty percent

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Speaker 1: of fourth quarter data center revenue. Is that a sign

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Speaker 1: that in Vidia is diversifying revenue? Who who made up

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Speaker 1: the other half of data center revenue? Is it automakers?

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Speaker 1: Like who's buying well?

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Speaker 5: I think that's one of the most interesting things that's

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Speaker 5: taking place with in videos is they're not just reshaping

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Speaker 5: the semiconductor industry, They're trying to reshape the cloud computing

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Speaker 5: industry as well. And that's why you see we see

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Speaker 5: all these neoclouds getting investment from or support from in video.

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Speaker 5: In Vidia would much rather have one hundred neocloud customers.

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Speaker 1: Than three HYPERD scale customers, of.

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Speaker 5: Course, and they're doing a really good job of creating that,

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Speaker 5: willing that into existence.

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Speaker 1: So those other customers had come on in here. Those

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Speaker 1: other customers are like the core weaves and the other neoclouds.

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Speaker 4: Yeah, I mean, what is still important in his fact

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Speaker 4: is that obviously the vast majority has been the hyperscalers

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Speaker 4: plus meta, right, and so they've wanted to kind of

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Speaker 4: switch between a story what they used to call an

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Speaker 4: AI factory. At first, an AI factory was an on

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Speaker 4: prem data center that enterprises and maybe some of the

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Speaker 4: neoclouds would operate themselves. Now an AI factory is what

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Speaker 4: they you define any data center that's running AI workloads

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Speaker 4: in so they have chopped and change between that story,

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Speaker 4: but its origin was that they wanted to go beyond

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Speaker 4: the hyperscalers to have people own their own infrastructure for

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Speaker 4: AI workloads if they were say a software company or

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Speaker 4: an enterprise of a slightly different size.

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Speaker 2: You know, it's interesting.

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Speaker 3: I'm looking for supply constraints and they seem to say

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Speaker 3: in the CFO commentary, I'm seeing it in terms of gaming.

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Speaker 3: They say, we expect supply constraints to be a headwind

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Speaker 3: to gaming in the first quarter fiscal twenty twenty seven

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Speaker 3: and beyond, but not so important, right ed. I mean,

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Speaker 3: we want to really just see if that's a problem

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Speaker 3: in the data center area.

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Speaker 4: Sadly, you know my history within video, you know, before

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Speaker 4: coming Silicon Valley and covering the data center thing was

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Speaker 4: gaming and you know it's now such a small piece

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Speaker 4: of revenue. It's I mean, Jay, you can jump in,

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Speaker 4: but really it's not where anyone's looking right now. There

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Speaker 4: is some discussion later on as it relates to the

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Speaker 4: balance sheet and cash flow on things to do with supply,

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Speaker 4: but you're right that what they're basically saying is that

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Speaker 4: that was the gaming was the segment that was impacted,

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Speaker 4: and I don't know that that is having any effects really.

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Speaker 4: And how we see the stock trading in after hours, well.

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Speaker 1: And Video shares up three point four percent right now,

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Speaker 1: and in fact we're seeing Broadcom TSMC and Micron shares

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Speaker 1: follow in video higher. Jake Goldberg come on in here

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Speaker 1: and talk a little bit about the broader repercussions of

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Speaker 1: a print like this outside of in video. What's the

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Speaker 1: signal that it sends not just to hardware makers but

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Speaker 1: to the entire market.

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Speaker 5: I think there are always concerns about how long the

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Speaker 5: spend is going to keep going, and we had certainly

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Speaker 5: had some positive data points about that. Two weeks ago

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Speaker 5: when the hyperscale is reported, Facebook reported they have very

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Speaker 5: strong CAPEX numbers. This just continues that trend. And I

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Speaker 5: don't want to say it's a rising tide that lifts

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Speaker 5: all boats, but it's it is six seven hundred billion

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Speaker 5: dollars in CAPEX this year, and that's going to spread

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Speaker 5: across the entire ecosystem.

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Speaker 3: No, and I want to go back to it, and

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Speaker 3: I totally get like gaming non important, but I was

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Speaker 3: like looking to see if there's any supply constraints in

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Speaker 3: the rest of their universe, and I just thought it

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Speaker 3: was kind of interesting that I haven't seen anything along

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Speaker 3: those lines.

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Speaker 2: It was just in regards to gaming.

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Speaker 3: So is that a good sign that we haven't seen

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Speaker 3: anything that the company has said so far in terms

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Speaker 3: of supply constraints.

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Speaker 2: Yeah, for the rest of the business, or I don't know,

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Speaker 2: is it not that important?

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Speaker 4: Well, you know, I leave it to the analyst to

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Speaker 4: model money left on the table if there were any,

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Speaker 4: so to speak. But given the outlook in terms of

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Speaker 4: sales and where it came in relative to consensus, you know, Nvidia,

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Speaker 4: it's an enviable position to be in right where demand

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Speaker 4: exceeds your ability to supply anyway. But going back to

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Speaker 4: that five year handbag analogy of a few moments ago,

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Speaker 4: you know, the other argument that Jensen Wong and Video

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Speaker 4: have made quite consistently is that if you tell your

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Speaker 4: suppliers what you plan to do five years in advance,

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Speaker 4: then the rest of the supply chain can help prepare

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Speaker 4: with you and keep up. And you know recently that

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Speaker 4: that's been most difficult in memory. But memory shows up

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Speaker 4: in pricing, you know. And if you're Jensen Wong, I'm

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Speaker 4: sure you can make a phone call and make sure

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Speaker 4: that the corresponding high bandwidth memory that you need is

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Speaker 4: there or thereabouts.

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Speaker 3: Quick check on now ZAK one hundred many futures here

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Speaker 3: in the aftermarket, and they're up about one point eight percent.

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Speaker 3: So we're certainly seeing a lift to the overall market.

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Speaker 3: Jay Gilbert, come on back in what's top of mind

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Speaker 3: when we get to this conference call in terms of

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Speaker 3: what you want to hear. I know we talked a

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Speaker 3: lot about margins earlier, but what is it?

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Speaker 5: Yeah, I mean, I think this margin stuff is important

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Speaker 5: because what I'm sort of reading between the lines is

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Speaker 5: they had to negotiate pricing with the memory memory makers,

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Speaker 5: and the memory makers have the most leverage they've had

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Speaker 5: in a decade, and we don't see any impact on

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Speaker 5: in videous numbers. Compare that to pretty much any other

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Speaker 5: electronics company out there today which is warning about memory.

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Speaker 5: I'm sure they're in video is feelings some of that,

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Speaker 5: but the fact that their gross margins are guiding to

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Speaker 5: at least in line tells me that they're just going

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Speaker 5: to price on those memory increases to their customers, which

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Speaker 5: is a testament to their pricing power, to their power

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Speaker 5: their market position.

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Speaker 1: Jake Goldberg, Jay, we're gonna have to leave it there.

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Speaker 1: We're going to give you time to get ready to

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Speaker 1: jump on that call. Jake Goldberger, Senior Analyst, Semiconductors and

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Speaker 1: Allow Electronics for Seaport Research Partners. Once again, Jay, the

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Speaker 1: only analyst tracked by the Bloomberg terminal who has a

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Speaker 1: celerating on in video and want to give you the

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Speaker 1: last word. You've spoken to Jensen Wong many many times.

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Speaker 1: What's a question that you would have for him on

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Speaker 1: the earnings call tonight?

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Speaker 4: Yeah, Like, ultimately, it just always comes down to a

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Speaker 4: projection of confidence that all of the stories we've been

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Speaker 4: over in more than the last year is still intact.

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Speaker 4: You know that the great buildout of AI infrastructure is early,

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Speaker 4: that they have long horizon visibility into what's going on.

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Speaker 4: All in video can control, I suppose, is the roadmap

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Speaker 4: to go from one generation of compute to the next.

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Speaker 4: And so they talk about in the CFO document margins

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Speaker 4: being supported by the ramp up in blackwell and mix

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Speaker 4: of new products. Well, when does that mixed change? When

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Speaker 4: does Vera Rubin really kick in and then go beyond that?

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Speaker 4: That's kind of how the street would look at it.

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Speaker 2: I think, all right, we're going to live with there.

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Speaker 6: Ed.

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Speaker 3: We know you're busy as well. Ed Lovelo, thank you

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Speaker 3: so much as we awaited those numbers then helping us

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Speaker 3: break them down. Co host of Bloomberg Tech of course

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Speaker 3: on Bloomberg Television, Catch It at eleven am Wall Street

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Speaker 3: time Monday through Friday. In the meantime, we've got chairs

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Speaker 3: of Nvidia up about three point two percent. We're seeing

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Speaker 3: broad come up about three quarters of one percentage point.

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Speaker 3: Here in the aftermarket, TSM, Taiwan Semi up about one

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Speaker 3: in a third percent, and you're seeing Micron also hire

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Speaker 3: off its best levels.

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Speaker 2: In the aftermarket. It's still up Tim about eight tenths

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Speaker 2: of a percentage point.

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Speaker 1: All right, we're keeping an eye on this. We know

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Speaker 1: Charlie Pellett is keeping an eye on all this and more.

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Speaker 1: He's standing by in the Bloomberg Interactive brokers to studios

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Speaker 1: with a business flash.

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Speaker 7: Hey Charlie, all right, I thank you very much. Tim

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Speaker 7: and Carol keeping an eye as we recap and reset

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Speaker 7: on in video. The stock hire after ours up by

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Speaker 7: three percent right now. It did give another bullish quarterly

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Speaker 7: revenue forecast, signaling that the massive buildout of AI computing

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Speaker 7: does remain on track. Chip maker said fiscal first quarter

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Speaker 7: sale is going to be around seventy eight billion. That

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Speaker 7: compares with an estimate of seventy two point eight billion

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Speaker 7: in Nvidia is the world's most valuable company. Closely watched

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Speaker 7: shares up now by three percent, salesforce heading in the

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Speaker 7: other direction after ours, stock down roughly five percent, out

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Speaker 7: with a lukewarm outlook for sales growth in the new

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Speaker 7: fiscal year, fueling while Street's worries that the software giant

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Speaker 7: will lose out to new competitors in the age of AI.

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Speaker 7: Other companies reporting earnings, Zoom Communications forecast adjusted EPs for

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Speaker 7: two twenty twenty seven that guidance missing the average analyst estimate,

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Speaker 7: shares down one point seven percent. Also reporting snowflake after Ours,

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Speaker 7: the stock down two and a half percent. It gave

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Speaker 7: an outlook for quarterly sales that was in line with estimates.

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Speaker 7: The Dow, the SMP, and Neztak all advanced today, s

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Speaker 7: and P up fifty six, wrapping up the Wednesday session

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Speaker 7: at sixty nine forty six, a gain of eight tents

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Speaker 7: of one percent. Dow Industrial is up three oh seven

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Speaker 7: ups six tens, Nez Stack today up by one point

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Speaker 7: three percent, the Nestak one hundred index up today by

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Speaker 7: one point four percent, the Vics just falling below eighteen

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Speaker 7: with a ten year four point zero five percent spot

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Speaker 7: Gold up twenty six dollars, the ounce up by five

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Speaker 7: tens of one percent, fifty one seventy major move in

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Speaker 7: bitcoin today surging eight point one percent sixty nine thousand,

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Speaker 7: two hundred and forty five on bitcoin and finally beyond

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Speaker 7: Wall Street, Cuban forces killed four people today who opened

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Speaker 7: fire from a speedboat with Florida tags, an incident with

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Speaker 7: the potential to escalate an already ten standoff with the US.

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Speaker 7: Carolyn tim that is a Bloomberg business flash.

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Speaker 3: All right, folks, we're watching in Vidia, Charlie, thank you

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Speaker 3: so much for that breakdown on all of that. In

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Speaker 3: Vidia shares continuing to trade higher. A couple of headlines

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Speaker 3: also crossing that we want to bring to you, and

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Speaker 3: Vidia says it's secured supply to.

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Speaker 2: Meet demand for several quarters.

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Speaker 3: So we talk about supply constraints often when we're talking

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Speaker 3: about Nvidia and the AI demand. Also in Vida saying,

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Speaker 3: the United States granted a license to ship H two

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Speaker 3: hundred chips to China based clients, so they've granted a

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Speaker 3: license for specific China based customers. The US licenses to

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Speaker 3: ship small amounts of the H two hundred to China,

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Speaker 3: So we were looking for some clarification on its business

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Speaker 3: in China. Something that they've certainly been looking for.

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Speaker 1: We've got a great Bloomberg Intelligence roundtable, Mandeep's saying. His

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Speaker 1: global head of Technology Research for Bloomberg Intelligence. He joins

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Speaker 1: us here in the Bloomberg Interactive broker's studio. He covers

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Speaker 1: in Vidia, he covers Snowflake and more. Also, anurag Rana

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Speaker 1: is senior technology analyst for Bloomberg Intelligence. He joins us

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Speaker 1: from Chicago, and he covers a salesforce. So we're going

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Speaker 1: to talk software, We're going to talk hardware. Man, Deep,

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Speaker 1: I want to start with your reaction to in Video.

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Speaker 1: It was a beat it, I mean, a very good quarter.

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Speaker 1: Your reaction to margin and what is actually holding up

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Speaker 1: margins here because seventy five point two percent.

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Speaker 6: Yeah, no mention of any impact related to memory costs,

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Speaker 6: which is surprising.

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Speaker 1: And why is that surprising? I know memory costs have

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Speaker 1: gone up, but in Video is such a big company.

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Speaker 1: Don't they have pricing power? They do, but purchasing power.

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Speaker 6: They clearly did a great job in terms of securing

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Speaker 6: that supply, and they don't have the premium. They don't

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Speaker 6: have to pay the premium that everyone else has to

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Speaker 6: pay on the hardware. Signe.

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Speaker 1: They said, secured supply to meet the man for several quarters.

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Speaker 1: What's several well, I mean in this case at least

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Speaker 1: like the FED. This is like the FED.

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Speaker 2: But they're saying that they've got it. That's a good thing.

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Speaker 6: They have got it, and they're guiding to you know,

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Speaker 6: mid seventy percent rose margin for next quarter as well.

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Speaker 6: So clearly memory not you know, an impact at all

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Speaker 6: in terms of the margins. The thing that is clear

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Speaker 6: is they are selling you know, to existing customers, not

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Speaker 6: just GPUs, but systems. And that's the big difference between

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Speaker 6: and in Vidia and AMD. AMD wants Meta to use

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Speaker 6: their chips and integrate it right. Nvidia is actually selling

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Speaker 6: their custom to their customers entire systems that have higher asps.

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Speaker 6: They are helping them reduce the token costs and that's

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Speaker 6: where the customers don't mind paying that extra you know,

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Speaker 6: premium that in Vidia is charging because overall the total

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Speaker 6: cost of ownership is lower than if you were to

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Speaker 6: standardize on any other chips. And that's what's reflected in

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Speaker 6: their print is look, their customers see.

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Speaker 2: The so well done in video right by doing the whole.

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Speaker 6: Thing and the Blackwell architecture that's really taken off. I mean,

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Speaker 6: all the concerns around the migration from Harper to Blackwell.

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Speaker 6: I mean, they just prove that Blackwell will be probably

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Speaker 6: a bigger, you know product in terms of their chip architectures.

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Speaker 2: Does this in your mind?

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Speaker 3: I mean I always feel like you're like the calmvoice

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Speaker 3: of saying, the airspend is still happening, like everybody relaxed.

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Speaker 6: It's accelerating that.

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Speaker 2: But it's accelerate. That's what you're getting from this.

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Speaker 6: I mean, look at Nvidia's growth in the last fiscal quarter.

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Speaker 6: It was around mid sixty percent. They're pointing to seventy

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Speaker 6: seven percent growth in their fiscal one Q So that

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Speaker 6: goes to show and the proof point you can see

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Speaker 6: in the hyperscalar capex. The hyperscalar capex seems to be

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Speaker 6: going up as well. So it's underpinned by healthy fundamentals.

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Speaker 6: We know why. And Vidius top line is accelerating, right

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Speaker 6: because the kapex seems to be accelerating, and all these

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Speaker 6: points towards more inferencing, more for AI compute, and we

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Speaker 6: are hitting that phase where it's not just you know

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Speaker 6: about training or whether it will happen or not. It's happening.

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Speaker 2: So the ROI the usage right, We're seeing it.

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Speaker 6: The usage is happening, and companies are consuming the compute.

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Speaker 6: It's going to get reflected in the cloud revenue next quarter.

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Speaker 6: It's going to get reflected in all the possible forms

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Speaker 6: of where inferencing will show up.

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Speaker 1: We're gon we're going to bring on aurag In in a

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Speaker 1: second and talk Salesforce because I think that's a good

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Speaker 1: transition to talk about what companies are doing with AI

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Speaker 1: and the message at least that Salesforce trying to make

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Speaker 1: with agentic AI. But before we get there, maybe if

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Speaker 1: I do want you to weigh in on what Carol

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Speaker 1: mentioned earlier about the China business. H two hundred shipped

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Speaker 1: under a new program subject to a twenty five percent tariff.

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Speaker 1: Nvidia discloses US government in a ten K filing, granted

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Speaker 1: license by the US and February of twenty twenty six,

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Speaker 1: the US licenseship small amounts of H two hundred to

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Speaker 1: China for specific China based customers. What what is our

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Speaker 1: investing ADI? You need to understand about what it can

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Speaker 1: sell to China and the impact on that financially.

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Speaker 6: I mean it used to be China used to be

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Speaker 6: mid single digit percentage of in Vidio's overall data center revenue,

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Speaker 6: and Jensen has said China is about a fifty billion

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Speaker 6: dollars addressable market when it comes to you know, chips,

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Speaker 6: and so the fact that they're allowed to sell something

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Speaker 6: now to China doesn't mean it's going to grow at

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Speaker 6: the same rate as their overall top line, which is

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Speaker 6: you know, seventy seven percent, and that excludes the China number.

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Speaker 6: But it's all incremental revenue. And this print shows there

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Speaker 6: is just insatiable demand for Invidia's chips and whoever can

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Speaker 6: get it well buy it. So it's just a question

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Speaker 6: of whether in Vidio is willing to sell it to

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Speaker 6: them or not.

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Speaker 2: All right, so let's go to salesforce.

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Speaker 3: We do want to bring in our anarag Rana, senior

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Speaker 3: technology analyst a Bloomberg Intelligence.

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Speaker 2: He's in Chicago.

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Speaker 3: Shares of Salesforce anaragar Dad about four and a half

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Speaker 3: percent in the aftermarket. Some of the red headline that

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Speaker 3: we crossed on the Bloomberg Company in terms of the

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Speaker 3: outlook sees first quote a revenue.

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Speaker 2: Of eleven point zero three to eleven point zero eight billion.

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Speaker 3: That's above the street estimate of ten point ninety nine billion,

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Speaker 3: also increasing its share buyback authorization. Did fifty billion dollars

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Speaker 3: walk us through? Because this company has certainly been under

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Speaker 3: a lot of pressure. It's down about fifty percent since

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Speaker 3: late twenty twenty four.

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Speaker 8: So there are two things that are happening right now.

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Speaker 8: The first is, given so much spend going into AI,

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Speaker 8: the NONAI spending is the one that's under pressure, and

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Speaker 8: that is hurting companies like Salesforce, workday accenture, and so forth,

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Speaker 8: because companies have or the clients don't have that much

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Speaker 8: money to spend in terms of how they're allocating AI

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Speaker 8: spending versus NONAI. The second big piece right now is

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Speaker 8: the market's extremely worried about software companies getting disrupted by

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Speaker 8: all the model providers and all the AI native companies.

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Speaker 8: So Salesforce are getting hit by two different ways. But

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Speaker 8: the results, frankly, I mean I wouldn't say they were disappointing.

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Speaker 8: I would say they were stayble to inline in terms

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Speaker 8: of what they were saying they're going to do. So

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Speaker 8: from our side, you know, it is just going to

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Speaker 8: take some time to sort out.

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Speaker 1: So ANNI rog.

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Speaker 7: The question.

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Speaker 1: I think a lot of people have excuse me about

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Speaker 1: a company like Salesforce, and you know, we could go

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Speaker 1: through any other software company, not any other, but many

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Speaker 1: other software companies and ask you the same question is

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Speaker 1: about the threat from artificial intelligence. And Mark Benioff was

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Speaker 1: was very clear in the press release to say that

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Speaker 1: this is a company that has like relaunched, I don't

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Speaker 1: have the exact wording in front of me, but relaunched

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Speaker 1: as an AI and agentic AI company. Is is it

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Speaker 1: really under threat? And specifically like what is the threat

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Speaker 1: from Claude, from anthropic or from open AI that investors

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Speaker 1: are so worried about and is it warranted?

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Speaker 8: So the question is the answer to the if is

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Speaker 8: it warranted? I mean, I think we're going to take

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Speaker 8: some time to play out because if the models get

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Speaker 8: really smart, then why do you need a manufactured software

439
00:22:03,560 --> 00:22:06,000
Speaker 8: like this. That software can do a lot of what

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00:22:06,080 --> 00:22:08,880
Speaker 8: you need to do in terms of managing your salesforce

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00:22:08,960 --> 00:22:11,920
Speaker 8: or customer service. Now, the question is in our view,

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00:22:12,119 --> 00:22:14,800
Speaker 8: when a company like Salesforce is there there are a

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Speaker 8: handful of their products that they have they have that

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00:22:17,480 --> 00:22:20,720
Speaker 8: they sell into the enterprise, whether it's customer service, cloud

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00:22:21,000 --> 00:22:23,880
Speaker 8: or sales automation cloud. Those are the ones I think

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00:22:23,920 --> 00:22:27,280
Speaker 8: they have a little bit better position of not being disrupted.

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00:22:27,600 --> 00:22:31,400
Speaker 8: But they have other visualization tools or some other smaller

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00:22:31,440 --> 00:22:34,000
Speaker 8: products that you know, may not be the ones where

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Speaker 8: anybody would pay for it. So I think there is

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00:22:36,040 --> 00:22:38,520
Speaker 8: a lot that needs to be done from Salesforce in

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00:22:38,600 --> 00:22:41,720
Speaker 8: terms of adding more AI capabilities to its core product

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Speaker 8: and not be you know, change the narrative around it.

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Speaker 3: You know, the narratives have been so interesting on AI

454
00:22:49,080 --> 00:22:52,600
Speaker 3: as you really well know, looking at names like Snowflake

455
00:22:52,600 --> 00:22:54,800
Speaker 3: down about one point three percent here in the aftermarket,

456
00:22:54,800 --> 00:22:58,400
Speaker 3: we're talking about Salesforce and that stock just a real

457
00:22:58,480 --> 00:23:01,520
Speaker 3: quick rehash here on the Bloomberg seeing that stock still

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00:23:01,560 --> 00:23:03,840
Speaker 3: down about four and a half percent here in the aftermarket,

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00:23:03,920 --> 00:23:05,640
Speaker 3: and then of course you've got Nvidia up about two

460
00:23:05,680 --> 00:23:06,399
Speaker 3: point three percent.

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Speaker 2: You put out some great research.

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Speaker 3: This week, Anaog, you and the team about the haves

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00:23:11,600 --> 00:23:14,560
Speaker 3: and have nots and AI disruption. What do we need

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00:23:14,600 --> 00:23:17,159
Speaker 3: to know at this point, especially when everyone says, folks,

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00:23:17,200 --> 00:23:18,520
Speaker 3: we're still early in on this.

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00:23:18,600 --> 00:23:21,840
Speaker 2: We don't really know how it all plays out.

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Speaker 6: You know.

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00:23:23,320 --> 00:23:25,200
Speaker 8: I think that's the most important thing is we are

469
00:23:25,359 --> 00:23:27,480
Speaker 8: very early in the inning. But at the same time,

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00:23:27,520 --> 00:23:29,600
Speaker 8: you know, when people are worded daily entirely sell the

471
00:23:29,720 --> 00:23:32,480
Speaker 8: entire sector. We have seen that numerous times. So when

472
00:23:32,480 --> 00:23:34,480
Speaker 8: we looked at this thing, I mean the entire team

473
00:23:34,520 --> 00:23:37,120
Speaker 8: worked on creating a framework of you know, when we

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00:23:37,200 --> 00:23:40,320
Speaker 8: see a company, does it have high market share? Does

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00:23:40,359 --> 00:23:43,760
Speaker 8: it sell to very large companies versus smaller companies? Is

476
00:23:43,760 --> 00:23:46,800
Speaker 8: it a platform, is it a system of record? All

477
00:23:46,880 --> 00:23:49,760
Speaker 8: those things takes into account, you know, kind of the

478
00:23:49,800 --> 00:23:51,639
Speaker 8: history of a company. So let's say a company like

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00:23:51,680 --> 00:23:54,720
Speaker 8: I SAIP that's been around for fifty years, you you know,

480
00:23:54,840 --> 00:23:57,719
Speaker 8: use it for your code, accounting, reason, supply chain. I

481
00:23:57,720 --> 00:24:01,000
Speaker 8: think something like that is better entrenched than a very

482
00:24:01,000 --> 00:24:05,760
Speaker 8: small company that's probably doing one particular function or selling

483
00:24:05,800 --> 00:24:07,639
Speaker 8: only to the small and medium customers.

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Speaker 3: Hey, final question here on Salesforce. Just going back as

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00:24:11,119 --> 00:24:13,320
Speaker 3: we watch this stock down four point six percent, top

486
00:24:13,359 --> 00:24:14,879
Speaker 3: of mine. I know I always ask you guys this,

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00:24:14,960 --> 00:24:17,639
Speaker 3: but when the call starts with the company and the

488
00:24:17,680 --> 00:24:20,800
Speaker 3: C suite and analyst and investors, what must be asked?

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Speaker 8: I think the biggest thing is going to be like,

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00:24:24,040 --> 00:24:27,280
Speaker 8: how what are you doing to change the narrative around

491
00:24:27,440 --> 00:24:30,760
Speaker 8: them being disrupted by AI? And how are they adding

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00:24:30,760 --> 00:24:33,879
Speaker 8: more AI capabilities across the entire suite?

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Speaker 2: All right, love it, Anirog, thank you so much, Anirog.

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00:24:36,880 --> 00:24:40,359
Speaker 3: Grana his research certainly on the AI world and also

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00:24:40,760 --> 00:24:41,480
Speaker 3: on salesforce.

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Speaker 2: We'll be looking for that later on today.

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Speaker 3: Anirag Grana, senior technology analyst at Bloomberg Intelligence out there

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Speaker 3: in Chicago,