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Speaker 1: We're from Mahard.

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Speaker 2: We're Innovations, Money and Power Collie in Silicon Vallet NBN.

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Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

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Speaker 3: Ahmed Ludlow, Good morning from San Francisco. Caroline highs off today.

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Speaker 3: This is Bloomberg Technology. Coming up on the program. Full

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Speaker 3: coverage of tech earnings as Amazon and Apple prepare to

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Speaker 3: report this week. We'll discuss with Denny Fish of Janis

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Speaker 3: Henderson plus Walmart buying Tiger Global's flip cart.

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Speaker 4: Steak for one point four billion dollars.

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Speaker 3: We'll break down the company's big bet on the Indian

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Speaker 3: retailer and shares of Sofi surging today as the online

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Speaker 3: bank raises revenue guidance. We'll look at the results with

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Speaker 3: CEO Anthony Nota. For this week's m Live Pole survey,

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Speaker 3: we asked investors if they intend to increase or decrease

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Speaker 3: their exposure to tech stocks over the next six months.

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Speaker 4: That's the question.

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Speaker 3: The data shows many betting that the great tech rally

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Speaker 3: of twenty twenty three has saying power that some appear

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Speaker 3: skeptical that the artificial intelligence era will live up to

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Speaker 3: the hype.

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Speaker 4: Interesting. This is the numbers.

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Speaker 3: We're going to break those down very shortly into the

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Speaker 3: AI theme.

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Speaker 5: It's three to five years is the way you buy these.

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Speaker 5: This is not going to be a short term story.

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Speaker 4: Zach is super expensive relative to the rest of the market.

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Speaker 2: This train is crowded. I think it's going to unraveled.

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Speaker 6: I look at this as a nineteen ninety five moment,

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Speaker 6: biggest transformation that we've seen in Tach in thirty years.

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Speaker 5: There's a massive growth opportunity ahead of them. The AI

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Speaker 5: creators and the beneficiaries seem to be centered in large

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Speaker 5: cap tech and that's where you have to go to

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Speaker 5: take advantage of it.

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Speaker 6: But I think that's why this is just what's going

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Speaker 6: to wed Obviously Spiede, fed and Marca. It's the star

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Speaker 6: of a new tech bomb.

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Speaker 3: Marking joining us now Denny Fish, he manages the four

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Speaker 3: point three billion dollar Janie Hennis and Global Technology and

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Speaker 3: Innovation Fund. Same question to you, Although your focus is

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Speaker 3: pretty clear, do you increase your exposure to certain corners

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Speaker 3: of the tech market right now?

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Speaker 4: What do you pull back?

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Speaker 7: Well? Definitely, I mean my job running in a sector

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Speaker 7: fund is I'm always invested in technology. Yeah, so so

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Speaker 7: clearly you know, we move capital around based on where

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Speaker 7: we feel the best opportunities are, you know, and you know,

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Speaker 7: if we just look over the last week and just

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Speaker 7: you know, think about their earnings that we've seen, and

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Speaker 7: you know, and some of the data points that are

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Speaker 7: giving us some direction going forward. You know, the you know,

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Speaker 7: large tech names, you know, things have been pretty good

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Speaker 7: so far. The digital advertising names Meta and Alphabet, you know,

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Speaker 7: things are starting to get better. The semiconductor complex, you know,

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Speaker 7: for the most part, has actually been a little bit

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Speaker 7: better than expectations as we get through sort of the

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Speaker 7: trough of the cycle and a lot of the parts

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Speaker 7: of that sector. And then you know, generally speaking, software

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Speaker 7: has been pretty good too. So you know, all things considered,

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Speaker 7: things things have been pretty good.

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Speaker 4: Let's go back to last week.

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Speaker 3: Is there a common thread between all of the names

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Speaker 3: that reported They give you a kind of macro view

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Speaker 3: of the tech sector right now?

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Speaker 7: Yeah, yeah, it really does. So, as I mentioned, there

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Speaker 7: are certain parts that are getting better, like digital advertising,

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Speaker 7: which is good. And then you know, in semis it's

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Speaker 7: really been all about the areas that are really really good.

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Speaker 7: You talked about on semiconductor today they reported this morning, Uh,

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Speaker 7: you know, exposure to auto has been great. Silicon carbide

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Speaker 7: is one of the most you know, significant themes within

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Speaker 7: semis right now, you know, and then clearly accelerated computing.

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Speaker 7: If you just listen to the transcripts and the earnings

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Speaker 7: calls from Microsoft, from Meta, from Alphabet, from others within

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Speaker 7: the semi ecosystem, it's just accelerated computing i e. You know,

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Speaker 7: GPUs and FPGAs, they're just sucking all the air out

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Speaker 7: of the room right now. And so that's a really

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Speaker 7: important theme. And then you know something that maybe isn't

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Speaker 7: as well noticed by the average investor within the silicon

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Speaker 7: or the semiconductor supply chain because of this growth in

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Speaker 7: accelerated computing, it's creating the need for different types of

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Speaker 7: packaging as well. So there are a lot of you know,

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Speaker 7: interesting ways to actually play that. And then also, you know,

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Speaker 7: talking about silicon carbide for example, material science is having

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Speaker 7: a bigger and bigger impact within the semiconductor supply chain

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Speaker 7: as well. So those are really really interesting areas because

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Speaker 7: that's what enables evs the grid like anything that's you know,

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Speaker 7: power enabled.

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Speaker 3: Go back to that idea on packaging really quick. We

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Speaker 3: have the Intel CEO Packed now singer on with us Friday.

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Speaker 3: It's kind of an area of their business that they

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Speaker 3: don't talk about as much, or perhaps we didn't ask,

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Speaker 3: but we are trying to find out what happens when

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Speaker 3: we get past the hype of Nvidia and the H

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Speaker 3: one hundreds, right, what's left for the rest to come in?

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Speaker 3: And you seem to suggest there are other opportunities.

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Speaker 7: Yeah, absolutely, I mean we could go down to the

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Speaker 7: most basic level. So if you even think about Intel,

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Speaker 7: you know they're now, you know, ramping up a foundry business.

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Speaker 4: Okay, the foundry.

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Speaker 7: You can't produce GPUs without foundry okay. And at the

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Speaker 7: same time, uh, the foundry can't exist without sem of

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Speaker 7: conductor capital equipment. So so that's really really important. And

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Speaker 7: these are all derivative plays. And then you can't actually

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Speaker 7: design GPUs without electronic design automation software. And so these

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Speaker 7: are all like really really good sub industries within you know,

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Speaker 7: this bigger broader theme in ways that you can that

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Speaker 7: should have multi year tailwinds associated with the question always

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Speaker 7: comes back to, Okay, what you know, what percentage of

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Speaker 7: the business is actually being driven by AI or or

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Speaker 7: you know, other things, and really, you know, they're the

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Speaker 7: real direct plays like the Anvitias of the world, but

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Speaker 7: then they are all these other different, you know, players

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Speaker 7: within the eCos that also benefit as well.

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Speaker 3: We had Jonathan Curtis of Franklin Templeton on the show

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Speaker 3: last week, director of Portfolio Management, and he explained the

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Speaker 3: reason he counts references to AI or artificial intelligence in

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Speaker 3: the earnings transcripts is because it shows intention. It's evidence

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Speaker 3: of a willingness to jump into that field. Do you

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Speaker 3: put any value in that data set simply talking about AI?

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Speaker 7: Well, everybody's talking about AI right now, so you really

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Speaker 7: have to distill fact from fiction. But there are you know,

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Speaker 7: a really great conference call last week was the Meta

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Speaker 7: conference call, and it wasn't just talking about AI, but

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Speaker 7: very very specific ways in which the company is leveraging

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Speaker 7: AI to actually improve its economics. And so it's everything

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Speaker 7: from increasing the effectiveness of ad targeting, so return on

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Speaker 7: ads then goes up for their customers being able to

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Speaker 7: auto generate content, which is really really interesting, you know,

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Speaker 7: it's kind of the fundamental principle of generative AI. And

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Speaker 7: then one of the things that they've wanted to do

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Speaker 7: for years is monetize their messaging platforms more effectively with

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Speaker 7: click to messaging, and now with AI and empowering, that

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Speaker 7: should enable them to actually monetize WhatsApp, Facebook Messenger, Instagram

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Speaker 7: messaging in a much more meaningful way than they have historically.

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Speaker 3: Susan Lee, the Meta CFO, is on the program talking

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Speaker 3: about how AI recommendations kind of played a role in

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Speaker 3: that outlook for the current period being strong. We have

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Speaker 3: to think about this week, Amazon and Apple to literal megacaps,

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Speaker 3: with megaanames in the world of technology. What are you

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Speaker 3: expecting or hoping to hear from them.

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Speaker 7: Yeah, yeah, that's a good question to expect end hope, Well,

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Speaker 7: I think in Amazon's case, there's a wider range of outcomes,

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Speaker 7: and the hope would be that we see a real

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Speaker 7: nice inflection in North American retail profitability because that's been

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Speaker 7: the part of the business that has had a tougher

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Speaker 7: time because of for builds and over hiring during the pandemic,

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Speaker 7: having to digest their logistics investments. But we're starting to

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Speaker 7: get through that and so seeing progress there will be important.

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Speaker 7: We had Prime Day, you know, which you know was

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Speaker 7: clearly the best Prime Day ever, and so should hear

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Speaker 7: more about that, and then Amazon Web Services is obviously

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Speaker 7: a big component of the valuation of the company. We

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Speaker 7: expect it to continue to decelebrate but stable, much in

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Speaker 7: the same way that Microsoft was and Google was with

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Speaker 7: their cloud computing platforms. And then the hope there would

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Speaker 7: be that as you know, we're that we're getting through

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Speaker 7: the optimizations that all of the cloud providers have talked

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Speaker 7: about over the last couple of quarters, just given some

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Speaker 7: of the macroheadwinds. And then last but not least, you know, advertising,

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Speaker 7: it's a very significant part of the profitability equation for Amazon.

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Speaker 7: And what we've seen out of Meta, what we've seen

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Speaker 7: out of Alphabet, what we saw out of Roku late

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Speaker 7: last week, the advertising market seems to be getting and

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Speaker 7: so that that should that should bode well for Amazon

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Speaker 7: as well. So I think you mix all that up,

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Speaker 7: you know, hoping for a you know, a good, you know,

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Speaker 7: better than expected report with key improvements in those three areas.

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Speaker 3: Danny, of all the names you hold in your funds,

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Speaker 3: which from a technology perspective impressed you the most, which

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Speaker 3: is the innovator right now?

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Speaker 4: Big or small?

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Speaker 7: Yeah, Yeah, that's that's that's a good question. I would

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Speaker 7: say if we think about the two companies that have

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Speaker 7: probably been on their front foot more than any others

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Speaker 7: as it relates to AI, Clearly Microsoft. You know, it

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Speaker 7: was very pression of them to do the investment into

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Speaker 7: open Ai. They had a lot of investments across their

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Speaker 7: portfolios well before people were even talking about it, you know,

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Speaker 7: chat GPT was the moment in November, but they were

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Speaker 7: laying the tracks for you know, how they're positioned over

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Speaker 7: the last several years. You know, clearly in Vidia, I

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Speaker 7: mean you just it's it's the only like real one

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Speaker 7: pure play on AI because they dominate the market for

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Speaker 7: GPUs and then you know, they dominate accelerated computing and

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Speaker 7: you know, and that's where all the capital's going. You know,

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Speaker 7: it's interesting if you actually dissect capex that we've heard,

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Speaker 7: which is growing across all the major platforms, and look

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Speaker 7: at you know, the percentage that's going to accelerated computing

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Speaker 7: and compute versus what's going to buildings. It's a material

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Speaker 7: increase for you know, a company like Nvidia.

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Speaker 4: So those would be two.

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Speaker 3: Then you failed with Janice Anderson such a broad knowledge

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Speaker 3: base and a lot of companies in those Funds, Thank

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Speaker 3: you for your time. Walmart is staking its claim in

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Speaker 3: India's retail market, paying one point four billion dollars to

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Speaker 3: Tiger Global Management for its remaining stake in e commerce

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Speaker 3: company Flipcart. Reports say VC firm Excel also agreed to

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Speaker 3: sell it's one percent steak in flip Cart to Walmart,

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Speaker 3: joining us. Now with all the details, Bug's Brendan case

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Speaker 3: who covers Walmart and Hemma Palmer out of New York

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Speaker 3: covering all things Hedge Funds. Okay, Brendan, let's start with you.

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Speaker 3: What's the Walmart side of this story? Why go to

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Speaker 3: boost the steak and flip Cart.

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Speaker 8: I think from Walmart's standpoint, what this deal shows is

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Speaker 8: the company's willingness to deepen its bet on India. Walmart's

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Speaker 8: been pairing its international portfolio in recent years. It's gotten

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Speaker 8: out of markets like the UK, Brazil, Japan, and if

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Speaker 8: you look at what's left, the jewels in the crown

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Speaker 8: are big important businesses in Mexico and Canada, an important

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Speaker 8: business in China, and then India where Flipkart is one

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Speaker 8: of the biggest e commerce companies in the country.

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Speaker 3: Hemma other side of the table, Tiger why did they sell?

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Speaker 9: Yeah, So, Tiger also been very keen on Indian investments.

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Speaker 9: They were an early investor in flip cart back in

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Speaker 9: two thousand and nine, getting in at like a forty

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Speaker 9: two million dollar valuation. What this deal lets them do

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Speaker 9: is in this environment when there are so few your IPOs,

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Speaker 9: it helps them provide distributions to their investors and provide

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Speaker 9: a return to them. They got a pretty good price

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Speaker 9: for their exit given how early they got in.

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Speaker 1: Yeah.

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Speaker 3: Here on Bloomberg Technology, guys, I think we focus on

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Speaker 3: India a lot simply because there's so many people there, right, Brendan,

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Speaker 3: it's a big market opportunity. What's Walmart said about India

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Speaker 3: and its potential for them?

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Speaker 8: So, from the perspective of Walmart executives in Arkansas, India

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Speaker 8: is very very meaningful. They first went into Flipkart in

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Speaker 8: twenty eighteen. They bought a majority stake for sixteen billion dollars.

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Speaker 8: That's actually Walmart's biggest ever acquisition. And now they've got

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Speaker 8: flip cart going toe to toe with Amazon and other

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Speaker 8: companies in India. The other part of it is phone pay,

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Speaker 8: which is a digital payments company which used to be

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Speaker 8: part of flipcart. The two separated in December, and Walmart's

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Speaker 8: got really high hopes for both companies. It's talked about

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Speaker 8: the potential for an initial public offering. Timing remains murky,

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Speaker 8: but that's definitely something that could move the needle for

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Speaker 8: the parent company as a whole.

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Speaker 4: Hem A.

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Speaker 3: You outline the reasons why Tiger got out of this investment, right,

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Speaker 3: but give me some of the history. Why did they

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Speaker 3: first get in and has it been a success for them?

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Speaker 9: Yeah, so they had been an early investor in a

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Speaker 9: number of Asia Asian companies. They got into flipcot in

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Speaker 9: two thousand and nine. They built up a stake of

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Speaker 9: a billion dollars over the years. In the past five

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Speaker 9: six years, they sold some of their steak and this

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Speaker 9: is the final exit for them. But what this means

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Speaker 9: for investors in the fund is investors are getting a

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Speaker 9: three point five billion dollar return. That's the gain on

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Speaker 9: that basically one billion dollar investment. So it's a pretty

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Speaker 9: good exit.

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Speaker 1: You know.

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Speaker 9: Keep in mind that the valuation of flip kurt is

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Speaker 9: the deal was valued lower than the last round, but

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Speaker 9: not terribly lower. You know, the the last round was

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Speaker 9: about thirty eight billion dollars the valuation of flip cart,

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Speaker 9: and this deal was done at a valuation of about

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Speaker 9: thirty five.

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Speaker 3: It's an interesting on the e commerce side, Brendan. It

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Speaker 3: kind of fits in with the Walmart we know, but

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Speaker 3: you and I spend a bit of time out in

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Speaker 3: Arkansas looking under the hood. Pardon the punt of what

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Speaker 3: else Walmart's investing in on the tech side. Where does

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Speaker 3: flip cart fit in in within the broader tech strategy

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Speaker 3: for Walmart?

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Speaker 8: Certainly flip cart and phone pay are a big piece

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Speaker 8: of the puzzle. Yeah, I think it's fair to say

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Speaker 8: that Walmart has learned a lot from those companies and

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Speaker 8: will probably can continue to learn more from those companies

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Speaker 8: if you shift the focus back to the US, You're

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Speaker 8: still talking about a big focus on e commerce, and

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Speaker 8: in terms of an investment, the way that's kind of

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Speaker 8: manifesting itself right now is in sort of a rethinking,

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Speaker 8: kind of an overhaul of a lot of distribution centers

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Speaker 8: and a lot of stores, basically boosting the bet on automation,

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Speaker 8: robotics and trying to just become more efficient in terms

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Speaker 8: of fulfilling the online demand.

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Speaker 4: That they have.

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Speaker 3: All right, team reporting thanks to Bloomberg's hem Obama out

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Speaker 3: of New York. Brennan case had adelas mister big Box.

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Speaker 3: We call him mister Walmart. Time for talking tech. First Up,

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Speaker 3: Disney and NBC are paying lobbyists to watch over legislation

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Speaker 3: that would bar them from using AI as a state

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Speaker 3: tax break. The New York bill comes as both companies

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Speaker 3: battle Hollywood writer and actor strikes over the future use

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Speaker 3: of AI, displacing workers in film and TV productions. Plus

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Speaker 3: Curve Finance, a native token of one of crypto's top

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Speaker 3: decentralized exchanges, tumbled after the platform said it had been hacked.

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Speaker 3: A glitch in programming language Viper, which is widely used

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Speaker 3: in DeFi apps, led to estimated losses ranging from twenty

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Speaker 3: to forty million US dollars, and US and European officials

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Speaker 3: are growing increasingly concerned by China's rush into the product

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Speaker 3: of legacy chips. President Biden limited controls over China's ability

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Speaker 3: to secure these advanced chips the power AI models, but

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Speaker 3: Beijing's responded by pouring billions of dollars into factories for

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Speaker 3: the so called legacy chips that are not banned and

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Speaker 3: are still essential to the global economy. Let's stick with

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Speaker 3: a story and bring in Bloombo's Cada lines outed DC.

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Speaker 3: The concerns are clear. The question is what are they

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Speaker 3: going to do about it?

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Speaker 10: Yeah, and it's a really tough question ed because they

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Speaker 10: want to tread semi lightly with China here. They are

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Speaker 10: trying to be very targeted, narrow specific in the restrictions

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Speaker 10: they put into place so as not to escalate in

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Speaker 10: dramatic fashion this trade war in tit for tat that

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Speaker 10: is going on between the largest economies. Hence why the

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Speaker 10: Biden administration specifically focused on this advanced chip making technology.

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Speaker 4: They didn't really touch.

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Speaker 10: Anything bigger than fourteen nanometers, so that leaves legacy chips

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Speaker 10: is essentially fair game for China, typically those twenty eight

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Speaker 10: nanimeters and wider, and that is really what they're ramping

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Speaker 10: up here. Yes, that technology is more than a decade old,

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Speaker 10: but as you allude to it, it is still very

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Speaker 10: critical in terms of things like smartphones and evs. It

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Speaker 10: is the shortages of legacy chips that were such a

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Speaker 10: problem in the pandemic era, when chip shortages wiped billions

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Speaker 10: of dollars off of company's ability to sell things like cars,

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Speaker 10: for example. So this is highly critical. And the concern

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Speaker 10: here is that if China can dominate that market, flood

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Speaker 10: the market essentially with these legacy ships, that even Western

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Speaker 10: companies are going to be dependent on China for them.

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Speaker 10: That goes Beijing more leverage. So the US and Europe

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Speaker 10: are looking into we understand how they could potentially rain

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Speaker 10: China back here, but again they don't want to cast

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Speaker 10: too wide a net for fear of the retaliation that

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Speaker 10: could bring from Beijing.

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Speaker 3: Well that's exactly my point that you're in DC. This

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Speaker 3: seems to be a worrying story at a time where

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Speaker 3: the main act is in DC are trying to get

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Speaker 3: us on a friendlier footing with China.

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Speaker 10: Yeah. Yeah, it's a difficult tight rope that the Biden

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Speaker 10: administration in particular is trying to walk at as you

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Speaker 10: do have administration officials like Secretary of Save Anthony B.

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Speaker 10: Lincoln or Treasury Secretary Jen Ellen actually making the trip

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Speaker 10: to China to try and re establish communication with their

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Speaker 10: counterparts at the same time that you have this tit

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Speaker 10: for tat back and forth on triggered measures. And that's

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Speaker 10: why when we're looking forward to things like what we

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Speaker 10: understand could be an executive order on outbound investment into

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Speaker 10: China in just a couple of weeks in mid August.

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Speaker 10: They're trying to keep it very narrow, very specific. We

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Speaker 10: understand that executive order, we'll focus on things like semiconductors,

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Speaker 10: AI and quantum computing. They aren't trying to put a

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Speaker 10: wide cast on on outbound investment into China. Just keep

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Speaker 10: it focused on what would protect US national security interest

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Speaker 10: and not harm China too greatly economically, because the line

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Speaker 10: continually out of the administration is that this isn't about

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Speaker 10: to do damage to the China economy. It is only

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Speaker 10: about protecting national security and interest and really just de

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Speaker 10: risking rather than decoupling with China. But it's a very

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Speaker 10: difficult equation for these officials D.

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Speaker 3: And it's another example of the US and EU being

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Speaker 3: aligned in this particular issue over China.

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Speaker 4: As Kadie lyons, how a, DC, thank you.

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Speaker 3: We are going to talk more about chips later in

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Speaker 3: the program, but coming up SOFI shares surging today. We're

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Speaker 3: going to discuss why with the CEO of the company,

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Speaker 3: Anthony Nodo. That's coming up next. This is Bloomberg Technology.

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Speaker 3: Welcome back to Bloomberg Technology Ed Lodlow here in San Francisco. Now,

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Speaker 3: if there is one single name that we're watching, it

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Speaker 3: is so Fi. Biggest jump on an industra basis in

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Speaker 3: the year, up more than eighteen percent, now raising its

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Speaker 3: full year revenue guidance. Adding members in the quarter just gone.

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Speaker 3: There's a lot of momentum in this stock and in

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Speaker 3: this company. Let's get more on the company's earnings and

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Speaker 3: bring in Sofi CEO Anthony Noo. Anthony, welcome to Bloomberg Technology,

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Speaker 3: and thank you for your time. I want to understand

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Speaker 3: something better. The five hundred eighty four thousand members that

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Speaker 3: you added in the court have just gone. What does

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Speaker 3: that mean? Are they depositors? What kind of services are

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Speaker 3: they using?

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Speaker 11: Sure, the members are someone that has a product with us.

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Speaker 11: So in the quarter we added five hundred and eighty

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Speaker 11: four thousand members, up forty four percent. The two largest

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Speaker 11: pieces of that were so Fi Money, which is a

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Speaker 11: checking savers account. You get four point four percent interest

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Speaker 11: on savings. If you do direct deposit with us, you

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Speaker 11: can spend any time anywhere you want, no restrictions, no fees.

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Speaker 11: And we also because we're treating you as a member,

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Speaker 11: you get access to our member benefits reward programs as

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Speaker 11: well as a free certified official planner. In addition to that,

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Speaker 11: we offer a credit card that would be in that number.

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Speaker 11: In addition to that, we also offer brokers so you

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Speaker 11: can buy single stocks without commissions ETFs. We have six

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Speaker 11: robo accounts, and then we offer cryptocurrency and we most

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Speaker 11: recently did an IPO oddity IPO. So in addition to

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Speaker 11: four different types of loans, we have those products that

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Speaker 11: I just mentioned, and then we also have a technology

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Speaker 11: platform revenue segment.

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Speaker 3: On the depositor and deposit side. Is this as simple

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Speaker 3: as you taking business from the regional banks that suffered

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Speaker 3: in the first half of this year.

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Speaker 2: We're taking business, but it's not from the regional banks.

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Speaker 11: It's from the largest banks in the country, the top

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Speaker 11: five banks in the country by deposit accounts or checking

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Speaker 11: sales accounts.

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Speaker 2: That's where we're getting the bulk of our market share from.

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Speaker 11: We've positioned so far over the last five and a

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Speaker 11: half years to be a one stop shop for all

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Speaker 11: your financial services needs. So we give you all the

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Speaker 11: products that you need on a daily basis, but then

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Speaker 11: we're also there for the big decisions you have to

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Speaker 11: make financially like buying a home, paying for college education,

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Speaker 11: starting to invest for retirement, and so it's the everyday

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Speaker 11: products and then those larger products.

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Speaker 2: Many of the large.

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Speaker 11: Banks have abandoned unsecured personal loans or walked away from

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Speaker 11: home loans. Our goal is to put the member at

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Speaker 11: the center of what we're doing, and we have to

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Speaker 11: be there for everything they do and have that lifetime

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Speaker 11: relationship in order to help them get their money right

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Speaker 11: to reach the point they have enough of it to

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Speaker 11: do what they want, whether that's owning a home, retiring

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Speaker 11: in a certain age, whatever career they may want to have,

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Speaker 11: or size family.

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Speaker 3: And see this stock's up more than eighteen percent, biggest

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Speaker 3: jump in a year.

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Speaker 4: What do you make of that reaction?

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Speaker 11: You know, the team has been working incredibly hard over

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Speaker 11: the last five and a half years to build out

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Speaker 11: this complete suite of products, and for the first time,

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Speaker 11: fifty percent of our growth on a year year basis

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Speaker 11: came from non lending products. And that was the lending

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Speaker 11: products were the first products that we've had. Everything else

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Speaker 11: has been introduced since then. So fifty percent of our

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Speaker 11: year year revenue growth came from our financial services segment

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Speaker 11: and our technology platform segment. So it's the first time

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Speaker 11: we can truly say that our strategy of being a

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Speaker 11: one stop shop is now playing out in the actual financial.

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Speaker 2: Results on the revenue side.

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Speaker 11: On the profit side, we had our fourth consecutive quarter

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Speaker 11: of record Ebadah, but most importantly, we're on track for

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Speaker 11: gap profitability by the fourth quarter. With the one segment

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Speaker 11: of our three that is still losing money, but it

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Speaker 11: only lost four million dollars in a quarter on a

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Speaker 11: contribution profit basis, and then improved from a loss of

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Speaker 11: twenty four million dollars in Q one of this year

438
00:23:14,560 --> 00:23:17,520
Speaker 11: and forty four million dollars in Q four of last year,

439
00:23:17,840 --> 00:23:20,320
Speaker 11: and so this segment should become profit by the end

440
00:23:20,359 --> 00:23:23,159
Speaker 11: of the year, reinforcing the fact that only are we

441
00:23:23,200 --> 00:23:26,560
Speaker 11: giving the consumer a great, complete, one stop shop, but

442
00:23:26,640 --> 00:23:30,480
Speaker 11: our financial results also reflect the completeness of that diversification.

443
00:23:32,000 --> 00:23:35,719
Speaker 3: You had a goal of thirty percent return on equity.

444
00:23:35,760 --> 00:23:40,680
Speaker 3: That's double JP Morgan. Is that still insite that goal?

445
00:23:41,600 --> 00:23:44,440
Speaker 11: Yes, absolutely, we believe we'll have thirty percent EBA dot

446
00:23:44,560 --> 00:23:47,600
Speaker 11: large margins long term and twenty percent gap net income

447
00:23:47,640 --> 00:23:50,439
Speaker 11: margins long term, and that should position us to have

448
00:23:50,480 --> 00:23:53,760
Speaker 11: that thirty percent or higher roe the mix of businesses

449
00:23:53,800 --> 00:23:56,880
Speaker 11: that we have. It's not just the financial services products,

450
00:23:57,280 --> 00:24:00,399
Speaker 11: but it's also a technology platform business where we able

451
00:24:01,119 --> 00:24:04,680
Speaker 11: processing of payments DEBNAC payments as well as banking in

452
00:24:04,720 --> 00:24:07,679
Speaker 11: a box for other providers, including B to B and

453
00:24:07,720 --> 00:24:10,680
Speaker 11: we have over one hundred and twenty five million accounts

454
00:24:10,680 --> 00:24:13,639
Speaker 11: in that segment that are generating over eight billion dollars

455
00:24:13,640 --> 00:24:15,959
Speaker 11: of transactions a year that we get paid for. So

456
00:24:16,000 --> 00:24:18,440
Speaker 11: we have a mix that's much more like American Express

457
00:24:18,520 --> 00:24:21,000
Speaker 11: than a traditional bank in that we have both at

458
00:24:21,000 --> 00:24:24,800
Speaker 11: this large technology business in addition to these high row

459
00:24:25,040 --> 00:24:28,080
Speaker 11: products like credit card as well as invest products.

460
00:24:29,080 --> 00:24:32,240
Speaker 3: Anthony so far has been very close to the student

461
00:24:32,280 --> 00:24:35,920
Speaker 3: loans story, and since last we spoke, we've had some

462
00:24:36,040 --> 00:24:39,120
Speaker 3: kind of clarity from the regulatory side. I just wondered

463
00:24:39,119 --> 00:24:41,280
Speaker 3: if you could update us on kind of what opportunity

464
00:24:41,359 --> 00:24:44,160
Speaker 3: you're now seeing in student loans for the company.

465
00:24:45,480 --> 00:24:48,640
Speaker 11: Yes, the student loan refinancing business this quarter was still

466
00:24:48,680 --> 00:24:51,560
Speaker 11: relatively depressed as it has been for the last three

467
00:24:51,640 --> 00:24:54,240
Speaker 11: years while the moratorium I'm paying federal student loans was

468
00:24:54,280 --> 00:24:57,080
Speaker 11: in place. For those that are not familiar, we take

469
00:24:57,200 --> 00:25:00,560
Speaker 11: federal student loans and help our members re finance them

470
00:25:00,560 --> 00:25:03,439
Speaker 11: at a lower rate or extending the terms they have

471
00:25:03,480 --> 00:25:05,520
Speaker 11: a lower monthly payment, even if it's at the same

472
00:25:05,880 --> 00:25:06,600
Speaker 11: or higher rate.

473
00:25:07,000 --> 00:25:08,680
Speaker 2: That business was our largest.

474
00:25:08,320 --> 00:25:11,879
Speaker 11: And most profitable through Q four of twenty nineteen, and

475
00:25:11,960 --> 00:25:14,040
Speaker 11: then when the more term got put in place, which.

476
00:25:13,920 --> 00:25:15,720
Speaker 2: Was necessary given the pandemic and.

477
00:25:15,680 --> 00:25:18,640
Speaker 11: The crisis we were under, the business went to be very,

478
00:25:18,880 --> 00:25:21,080
Speaker 11: very small, about a quarter of what it used to be.

479
00:25:21,560 --> 00:25:24,200
Speaker 11: So we anticipate that that will come back more strongly

480
00:25:24,240 --> 00:25:26,840
Speaker 11: in twenty twenty four. There will start to be a

481
00:25:26,880 --> 00:25:29,679
Speaker 11: pickup in Q three and more in Q four, but

482
00:25:29,800 --> 00:25:32,200
Speaker 11: our outlook for it has not changed since the beginning

483
00:25:32,200 --> 00:25:35,439
Speaker 11: of the year, which was an expectation that the federal

484
00:25:35,480 --> 00:25:38,639
Speaker 11: payments would resume come September October time period, which is

485
00:25:38,640 --> 00:25:41,280
Speaker 11: what will happen now. There's forty million people in the

486
00:25:41,320 --> 00:25:44,239
Speaker 11: United States that still have a federal student loan, and

487
00:25:44,280 --> 00:25:46,760
Speaker 11: a portion of those people can refinance with So far,

488
00:25:47,320 --> 00:25:49,920
Speaker 11: to date in a company's history, we haven't even financed

489
00:25:49,920 --> 00:25:53,720
Speaker 11: more than one million student loan refinancing members. So there's

490
00:25:53,760 --> 00:25:56,560
Speaker 11: a large opportunity still ahead of us, but one that's

491
00:25:56,600 --> 00:26:00,199
Speaker 11: not reflected in today's results, nor does are improved dial

492
00:26:00,200 --> 00:26:02,639
Speaker 11: look reflect any greater expectation than before.

493
00:26:04,280 --> 00:26:07,120
Speaker 3: Anthony, before we lose you, I want you to recool

494
00:26:07,160 --> 00:26:11,760
Speaker 3: your days at Twitter. The idea of an everything app

495
00:26:12,160 --> 00:26:15,879
Speaker 3: going from a social media platform adding banking, adding in

496
00:26:15,960 --> 00:26:19,800
Speaker 3: other financial services. Do you think that that's a reality

497
00:26:20,480 --> 00:26:23,120
Speaker 3: for X to become a platform like that.

498
00:26:24,000 --> 00:26:24,400
Speaker 2: Yeah.

499
00:26:24,560 --> 00:26:27,160
Speaker 11: When I joined the company in early twenty eighteen, five

500
00:26:27,200 --> 00:26:30,600
Speaker 11: and a half years ago, every fintech company said they

501
00:26:30,600 --> 00:26:32,639
Speaker 11: want to be a one stop shop. Five and a

502
00:26:32,680 --> 00:26:35,280
Speaker 11: half years later, only so far has done it. In

503
00:26:35,320 --> 00:26:38,240
Speaker 11: addition to those competitors not being able to accomplish what

504
00:26:38,280 --> 00:26:40,080
Speaker 11: we have, look at the incumbents.

505
00:26:40,119 --> 00:26:42,119
Speaker 2: They still haven't been able to put all their.

506
00:26:41,960 --> 00:26:44,520
Speaker 11: Products on a digital platform and be a one stop shop.

507
00:26:44,800 --> 00:26:47,720
Speaker 11: It's not easy to do. It's an incredibly large investment.

508
00:26:48,040 --> 00:26:50,720
Speaker 11: We've been definite funding it for five and a half years,

509
00:26:50,960 --> 00:26:53,080
Speaker 11: so it's a pretty tall amountain to climb. We kind

510
00:26:53,080 --> 00:26:54,920
Speaker 11: of feel like we've climbed that mountain or on the

511
00:26:54,960 --> 00:26:57,879
Speaker 11: other side, and we wish everyone luck trying to get

512
00:26:57,920 --> 00:26:58,280
Speaker 11: over it.

513
00:26:58,920 --> 00:27:01,600
Speaker 2: Hopefully it will be good for the industry, and the more.

514
00:27:01,800 --> 00:27:04,680
Speaker 11: Reliable fintech companies can be, the more trusted they can

515
00:27:04,720 --> 00:27:07,040
Speaker 11: be we think will benefit from that. I think it's

516
00:27:07,040 --> 00:27:11,400
Speaker 11: a tall task to go after, but one we've done successfully.

517
00:27:11,440 --> 00:27:13,119
Speaker 2: So I wish other people luck.

518
00:27:14,520 --> 00:27:18,320
Speaker 3: A tool, toolpath to go after. Can Ela Musk do it?

519
00:27:18,440 --> 00:27:21,800
Speaker 3: Based on his experience with PayPal and his career so far.

520
00:27:22,760 --> 00:27:26,119
Speaker 11: We take everyone seriously, anyone that wants to compete in

521
00:27:26,160 --> 00:27:28,439
Speaker 11: the industry, whether it's in a single product or across

522
00:27:28,440 --> 00:27:31,960
Speaker 11: the entire platform. There's a lot of competition and we're

523
00:27:32,000 --> 00:27:35,240
Speaker 11: no strangers seeing that. We have companies that are one

524
00:27:35,280 --> 00:27:37,520
Speaker 11: hundred times bigger than us that we're competing with, and

525
00:27:37,920 --> 00:27:40,000
Speaker 11: we've been able to do quite well, and I'm confident

526
00:27:40,080 --> 00:27:42,960
Speaker 11: that will be the case. I don't think anyone has

527
00:27:43,000 --> 00:27:46,320
Speaker 11: bigger aspirations than we have a so far, and as leader,

528
00:27:46,359 --> 00:27:49,040
Speaker 11: I'm responsible for making sure we deliver on that every

529
00:27:49,359 --> 00:27:51,440
Speaker 11: second of every hour of every day.

530
00:27:52,359 --> 00:27:52,679
Speaker 4: All right.

531
00:27:52,760 --> 00:27:56,160
Speaker 3: So far shares up more than eighteen percent, raising net

532
00:27:56,200 --> 00:27:59,720
Speaker 3: revenue guidance to one point ninety seven billion to two

533
00:27:59,720 --> 00:28:02,680
Speaker 3: point zero three billion for twenty twenty three. Thank you

534
00:28:02,720 --> 00:28:06,800
Speaker 3: for your time, so Fi see thank you appreciate right

535
00:28:06,840 --> 00:28:07,359
Speaker 3: coming up.

536
00:28:07,240 --> 00:28:08,639
Speaker 4: Here on Bloomberg Technology.

537
00:28:08,640 --> 00:28:11,679
Speaker 3: Hassan al Kuri on semi CEO going to join to

538
00:28:11,680 --> 00:28:15,840
Speaker 3: discuss the semi conductor device company's second quarter results and

539
00:28:15,880 --> 00:28:18,200
Speaker 3: an update on silicon carbide.

540
00:28:18,600 --> 00:28:51,080
Speaker 4: This is Bloomberg Technology.

541
00:28:35,200 --> 00:28:42,480
Speaker 6: Three two Power.

542
00:28:40,640 --> 00:28:48,040
Speaker 3: Airwork SpaceX sent the largest commercial communications satellite ever into

543
00:28:48,120 --> 00:28:50,440
Speaker 3: orbit this weekend. The payload was on top of its

544
00:28:50,480 --> 00:28:53,360
Speaker 3: Falcon Heavy taking off from the launch pad at NASA's

545
00:28:53,440 --> 00:28:57,760
Speaker 3: Kennedy Space Center in Florida. The Jupiter three satellite weighs

546
00:28:57,840 --> 00:28:59,440
Speaker 3: nine metric tons and is.

547
00:28:59,400 --> 00:29:01,040
Speaker 4: The size of a bus.

548
00:29:01,360 --> 00:29:04,560
Speaker 3: It's going to provide wireless internet over North and South America,

549
00:29:04,720 --> 00:29:08,120
Speaker 3: operated by Hughes Network Systems.

550
00:29:08,520 --> 00:29:10,280
Speaker 7: We are just over thirty.

551
00:29:11,560 --> 00:29:15,240
Speaker 3: Let's talk chips shares of on semire up after making

552
00:29:15,520 --> 00:29:18,160
Speaker 3: the most of power in image sensing and chip sales,

553
00:29:18,320 --> 00:29:21,960
Speaker 3: giving an outlook for the third quarter above expectations. It

554
00:29:22,040 --> 00:29:25,160
Speaker 3: was also a record quarter for automotive revenues and silicon

555
00:29:25,280 --> 00:29:28,600
Speaker 3: carbide revenues grew four times year over year.

556
00:29:28,640 --> 00:29:29,040
Speaker 4: For more.

557
00:29:29,280 --> 00:29:32,880
Speaker 3: Hassan al Kuri on Semi CEO here with us. Hassan,

558
00:29:32,920 --> 00:29:35,080
Speaker 3: thank you so much for your time. Look the third

559
00:29:35,160 --> 00:29:38,840
Speaker 3: quarter outlook above expectations. What gave you the confidence there?

560
00:29:38,880 --> 00:29:40,240
Speaker 3: What are the factors behind that?

561
00:29:41,840 --> 00:29:43,360
Speaker 2: Yeah, like two years ago.

562
00:29:43,600 --> 00:29:46,719
Speaker 12: We have doubled down on part and water of an

563
00:29:46,760 --> 00:29:50,880
Speaker 12: industrial but more importantly on the technology of power and sensing.

564
00:29:51,680 --> 00:29:53,760
Speaker 12: Those are the technologies that are driving all of the

565
00:29:53,800 --> 00:29:56,880
Speaker 12: mega trends you talk about as far as electrification of

566
00:29:56,880 --> 00:30:01,000
Speaker 12: the vehicle, but also the infrastructure necessary to support that electrification,

567
00:30:01,440 --> 00:30:06,000
Speaker 12: like the renewable energy, energy generation and energy distribution in

568
00:30:06,040 --> 00:30:09,760
Speaker 12: the form of charger fast chargers. That business has been

569
00:30:09,840 --> 00:30:13,040
Speaker 12: ranking for us and that's what is going to provide

570
00:30:13,040 --> 00:30:16,200
Speaker 12: that growth in the third quarter, which also provided that

571
00:30:16,440 --> 00:30:17,400
Speaker 12: growth in the second chord.

572
00:30:18,520 --> 00:30:21,120
Speaker 3: You know, I was reading the transcript from the Earning

573
00:30:21,160 --> 00:30:24,760
Speaker 3: School and the word secular comes up right. This is

574
00:30:24,800 --> 00:30:28,880
Speaker 3: a secular demand story. So what happens when the technology

575
00:30:28,880 --> 00:30:33,360
Speaker 3: transitions happened? How do you maintain momentum when there is

576
00:30:33,400 --> 00:30:34,200
Speaker 3: secular demand?

577
00:30:35,800 --> 00:30:37,960
Speaker 12: First, you have to pre invest. You know, we've been

578
00:30:38,000 --> 00:30:41,720
Speaker 12: investing in our silken car Bye specifically, but also image

579
00:30:41,760 --> 00:30:45,800
Speaker 12: sensing for autonomous driving. We've been investing over the last

580
00:30:45,840 --> 00:30:49,920
Speaker 12: two years. When we started our transformation, we talked about

581
00:30:49,920 --> 00:30:53,360
Speaker 12: these trends as being the trends for us for the

582
00:30:53,400 --> 00:30:56,200
Speaker 12: future that are going to support that growth. Above the

583
00:30:56,200 --> 00:31:01,200
Speaker 12: semiconductor market growth reierated that view in our analyst day

584
00:31:01,560 --> 00:31:05,080
Speaker 12: a few months ago, and now that has started delivering,

585
00:31:05,120 --> 00:31:08,440
Speaker 12: and you can see the penetration of evs from a

586
00:31:08,520 --> 00:31:13,080
Speaker 12: total vehicles made has been increasing quarter on quarter year

587
00:31:13,160 --> 00:31:16,840
Speaker 12: over year, only to reach maybe fifty by twenty thirty.

588
00:31:16,880 --> 00:31:19,920
Speaker 12: So this is a multi decade long mega trend that

589
00:31:19,960 --> 00:31:20,960
Speaker 12: we're participating in.

590
00:31:22,440 --> 00:31:24,440
Speaker 4: There are some OEMs.

591
00:31:24,480 --> 00:31:28,680
Speaker 3: I think Tesla actually has discussed this about wanting to

592
00:31:28,800 --> 00:31:33,360
Speaker 3: reduce their exposure silicon carbide due to the expense. How

593
00:31:33,400 --> 00:31:37,120
Speaker 3: do you manage that mindset among the end customer.

594
00:31:39,120 --> 00:31:42,440
Speaker 12: It's actually very a good opportunity for us. We're in

595
00:31:42,480 --> 00:31:45,440
Speaker 12: a very good position. We provide both silicon and silicon

596
00:31:45,480 --> 00:31:49,040
Speaker 12: carbide power. You know, you've heard me talk about hybrid

597
00:31:49,760 --> 00:31:54,360
Speaker 12: module capability where a single module we are able to

598
00:31:54,360 --> 00:31:57,800
Speaker 12: put silicon carbide and silicon power in order to give

599
00:31:58,080 --> 00:32:03,800
Speaker 12: the most optimal solution for a customer system meet. We've

600
00:32:03,840 --> 00:32:07,240
Speaker 12: had that where in production with it in industrial we're

601
00:32:07,240 --> 00:32:11,360
Speaker 12: going to production and automotive should literally plays very well

602
00:32:11,400 --> 00:32:14,160
Speaker 12: into how we also see the market. So one thing

603
00:32:14,160 --> 00:32:16,840
Speaker 12: I would know, the reduction of silicon carbite is not

604
00:32:16,920 --> 00:32:18,720
Speaker 12: on a vehicle to vehicle basis.

605
00:32:18,720 --> 00:32:20,040
Speaker 2: It's a different platform.

606
00:32:20,160 --> 00:32:22,880
Speaker 12: You know, if you want ultra high performance, long range

607
00:32:23,040 --> 00:32:26,720
Speaker 12: silicon carbite is it if you're talking about city driving,

608
00:32:27,040 --> 00:32:30,120
Speaker 12: where you're going to charge it maybe every evening short run.

609
00:32:30,400 --> 00:32:36,000
Speaker 12: Of course IGBT can do the job. And if you

610
00:32:36,040 --> 00:32:39,120
Speaker 12: want something in between, that's where IGBT and cilic carbyte

611
00:32:39,200 --> 00:32:39,520
Speaker 12: comes in.

612
00:32:39,720 --> 00:32:40,040
Speaker 2: Again.

613
00:32:40,200 --> 00:32:43,959
Speaker 12: Our focus, we only win when our customer wins, and

614
00:32:44,040 --> 00:32:47,440
Speaker 12: that's the most optimal solution. Whether it's silicon or silic carbte,

615
00:32:47,480 --> 00:32:50,600
Speaker 12: we're able to support both and that's the strategy we have.

616
00:32:51,440 --> 00:32:55,440
Speaker 3: Yeh hasan on Semi was into silicon carbide early. You

617
00:32:55,480 --> 00:33:00,640
Speaker 3: know the advantages from a energy efficiency stamp. But I

618
00:33:00,680 --> 00:33:05,600
Speaker 3: see some of your competitors kind of coming around silicon carbide.

619
00:33:05,640 --> 00:33:08,800
Speaker 3: They have scale, So how do you stay competitive without

620
00:33:08,840 --> 00:33:11,600
Speaker 3: the same sort of scale that something the competition has.

621
00:33:12,560 --> 00:33:14,760
Speaker 12: Well, Compared to any of the competition, we either have

622
00:33:14,880 --> 00:33:17,480
Speaker 12: more scale or we're ad scale. You know, scale is

623
00:33:17,520 --> 00:33:19,840
Speaker 12: not an issue because if you look at some of

624
00:33:19,880 --> 00:33:23,360
Speaker 12: the some of our peers or competitors that you're describing,

625
00:33:24,040 --> 00:33:27,320
Speaker 12: they've had issues either ramping at the pace we have

626
00:33:27,440 --> 00:33:30,600
Speaker 12: done it, or they're not vertically integrated, meaning they still

627
00:33:30,640 --> 00:33:35,040
Speaker 12: dependent on material or sourcing material from third party or

628
00:33:35,080 --> 00:33:39,760
Speaker 12: merchant market, which adds to the risk in the supply

629
00:33:40,160 --> 00:33:43,480
Speaker 12: resiliency or supply assurance we have to give our customers.

630
00:33:43,920 --> 00:33:48,160
Speaker 12: Where we are on top of the technology innovation, we're

631
00:33:48,240 --> 00:33:51,720
Speaker 12: able to give our customers supply assurance through a supply

632
00:33:51,800 --> 00:33:55,880
Speaker 12: resilient network. We've proven that. We've proven that in the ramp.

633
00:33:55,960 --> 00:33:59,560
Speaker 12: You know, going four x year over year is not

634
00:33:59,680 --> 00:34:02,480
Speaker 12: something you just stumble upon. It's something you keep executing

635
00:34:02,560 --> 00:34:06,360
Speaker 12: to every day. We've proven our execution and we're going

636
00:34:06,400 --> 00:34:09,359
Speaker 12: to continue delivering and that adds the confidence that our

637
00:34:09,400 --> 00:34:12,759
Speaker 12: customers have, and you've seen that confidence translate into long

638
00:34:12,840 --> 00:34:16,000
Speaker 12: term supply agreements that have reached a record dis quarter

639
00:34:16,040 --> 00:34:16,480
Speaker 12: as well.

640
00:34:17,600 --> 00:34:20,520
Speaker 3: Hassan, I've reported on some tier ones that have come

641
00:34:20,560 --> 00:34:23,880
Speaker 3: into the space. For example, BOSH buying TSI, a small

642
00:34:23,960 --> 00:34:28,160
Speaker 3: Northern Californian silicon carbide name is further m and A

643
00:34:28,600 --> 00:34:31,480
Speaker 3: for you guys, something that's on the table or is

644
00:34:31,520 --> 00:34:32,879
Speaker 3: it just not necessary?

645
00:34:34,920 --> 00:34:37,440
Speaker 12: I would say MNA is not necessary for us to

646
00:34:37,480 --> 00:34:40,160
Speaker 12: achieve what we need to achieve. You know, everything we've

647
00:34:40,200 --> 00:34:45,360
Speaker 12: outlined at our analyst date, we're able to achieve organically

648
00:34:45,400 --> 00:34:49,040
Speaker 12: through execution and the market drivers are there for us

649
00:34:49,080 --> 00:34:52,879
Speaker 12: to grule with. However, we always look and we use

650
00:34:53,000 --> 00:34:55,560
Speaker 12: M and A and we use that as complimentary. You know,

651
00:34:55,600 --> 00:34:58,520
Speaker 12: if we can able to get an MNA asset to

652
00:34:58,600 --> 00:35:01,800
Speaker 12: accelerate something we are doing, or make it even better

653
00:35:01,840 --> 00:35:05,000
Speaker 12: and faster, or be better use of capital rather than

654
00:35:05,040 --> 00:35:07,480
Speaker 12: us investing in it, we're absolutely going to do it.

655
00:35:07,800 --> 00:35:10,600
Speaker 12: You know, about eighteen months ago, we acquire a g Tech,

656
00:35:10,680 --> 00:35:15,000
Speaker 12: which is a substrate manufacturing company, and that gave us

657
00:35:15,080 --> 00:35:19,640
Speaker 12: the capability and we applied our ability to scale and

658
00:35:19,760 --> 00:35:23,160
Speaker 12: from the time we acquired it, meaning a fourteen month period,

659
00:35:23,239 --> 00:35:27,920
Speaker 12: we five x that capacity. So we'll use our benefit

660
00:35:28,120 --> 00:35:31,120
Speaker 12: as our scale and our capabilities, and we'll use MNA

661
00:35:31,200 --> 00:35:33,719
Speaker 12: as a complementary aspect. But there's nothing I would sit

662
00:35:33,760 --> 00:35:37,160
Speaker 12: here and say we are missing something to achieve our

663
00:35:37,160 --> 00:35:40,919
Speaker 12: goals or our long term financial target. But we will

664
00:35:41,000 --> 00:35:42,960
Speaker 12: use MNA if we can accelerated better.

665
00:35:44,360 --> 00:35:44,800
Speaker 4: Hassan.

666
00:35:44,840 --> 00:35:48,640
Speaker 3: In China, they've been domesticating their supply for silicon car

667
00:35:48,719 --> 00:35:51,279
Speaker 3: by kind of hand in hand with the broader ev

668
00:35:51,400 --> 00:35:55,040
Speaker 3: supply chain there, does China still represent an opportunity for you?

669
00:35:56,680 --> 00:35:59,200
Speaker 12: China is an opportunity for us. You know, we've had

670
00:35:59,239 --> 00:36:04,400
Speaker 12: engagement always set our revenue and our exposure overall is

671
00:36:04,440 --> 00:36:09,319
Speaker 12: geographically distributed and more important importantly, is customer diverse. So

672
00:36:09,400 --> 00:36:13,560
Speaker 12: we don't have a region that we have additional focus

673
00:36:13,600 --> 00:36:16,319
Speaker 12: on versus others. So that makes us very comfortable to

674
00:36:16,400 --> 00:36:18,759
Speaker 12: be able to manage the supply and.

675
00:36:18,800 --> 00:36:21,040
Speaker 2: The demand side of it. That's one.

676
00:36:21,440 --> 00:36:26,000
Speaker 12: As far as silicon carbide specifically in China, the focus

677
00:36:26,040 --> 00:36:30,719
Speaker 12: today in China is really on the substrate manufacturing. So

678
00:36:30,760 --> 00:36:34,400
Speaker 12: from a device and module capability, we are far ahead.

679
00:36:34,480 --> 00:36:38,239
Speaker 12: We're a few generations ahead. That's why a lot of

680
00:36:38,320 --> 00:36:42,040
Speaker 12: marquee names in China have ltessays multi year ltsays with

681
00:36:42,200 --> 00:36:45,719
Speaker 12: on Semi. That's proof that we're able to provide what

682
00:36:45,840 --> 00:36:48,680
Speaker 12: somebody local cannot. Of course, the only way you can

683
00:36:48,760 --> 00:36:51,760
Speaker 12: do that, whether it's China or Europe or North America,

684
00:36:51,840 --> 00:36:54,160
Speaker 12: you have to keep innovating. That's how you relain ahead,

685
00:36:54,200 --> 00:36:55,600
Speaker 12: regardless of work reagion all.

686
00:36:55,560 --> 00:36:58,280
Speaker 3: Right, thanks to Hasan A Kuri on Semi CEO talking

687
00:36:58,320 --> 00:37:11,720
Speaker 3: everything Silicon Carbine. Yay, the artist formerly known as Kanye West,

688
00:37:11,760 --> 00:37:15,280
Speaker 3: has been reinstated on x, the social media platform formerly

689
00:37:15,320 --> 00:37:17,719
Speaker 3: known as Twitter. This comes following a nearly eight month

690
00:37:17,840 --> 00:37:22,160
Speaker 3: suspension for breaching a company rule against inciting violence. X

691
00:37:22,200 --> 00:37:24,640
Speaker 3: told The Wall Street Journal that the account won't be

692
00:37:24,680 --> 00:37:28,880
Speaker 3: eligible for monetization, nor will advertisements appear next to posts.

693
00:37:29,000 --> 00:37:31,319
Speaker 4: Yay has yet to post on the platform.

694
00:37:31,520 --> 00:37:35,280
Speaker 3: Neither Yay nor X responded to Bloomberg's requests for comment.

695
00:37:35,520 --> 00:37:37,480
Speaker 3: All right, this is the other top top story on

696
00:37:37,480 --> 00:37:40,320
Speaker 3: bloomberg dot com and the terminal. Apple is just weeks

697
00:37:40,320 --> 00:37:44,320
Speaker 3: away from introducing the iPhone fifteen and next generation watches.

698
00:37:44,400 --> 00:37:48,840
Speaker 3: New lineup marks another stepping stone towards the company's dream iPhone.

699
00:37:48,840 --> 00:37:51,400
Speaker 3: Though changes to the Apple Watch they're going to be modest.

700
00:37:51,520 --> 00:37:54,440
Speaker 3: Here with all the details. Who else Bloomberg's Mark German

701
00:37:54,480 --> 00:37:56,360
Speaker 3: I learned a new word today, bezel.

702
00:37:56,840 --> 00:37:57,200
Speaker 4: What's that?

703
00:37:58,960 --> 00:37:59,680
Speaker 2: A bezel is.

704
00:38:00,120 --> 00:38:03,960
Speaker 13: Basically the smartphone term for the border around the screen.

705
00:38:04,080 --> 00:38:06,680
Speaker 13: And so for this year, the big visual change on

706
00:38:06,680 --> 00:38:09,000
Speaker 13: the iPhone fifteen pro, at least from the front, will

707
00:38:09,040 --> 00:38:11,279
Speaker 13: be that those borders are going to get about a

708
00:38:11,320 --> 00:38:12,000
Speaker 13: third thinner.

709
00:38:12,080 --> 00:38:13,759
Speaker 2: Now, that might not seem like a lot, but.

710
00:38:13,680 --> 00:38:17,040
Speaker 13: The technology behind it, funny enough, is inside Apple is

711
00:38:17,040 --> 00:38:22,280
Speaker 13: called LiPo LPO, and it's basically a special manufacturing technology

712
00:38:22,280 --> 00:38:25,240
Speaker 13: that allows them to get the screen, closer to the borders,

713
00:38:25,280 --> 00:38:28,400
Speaker 13: closer to the edges, and so it's a big visual improvement.

714
00:38:29,080 --> 00:38:31,839
Speaker 13: Someday in the future, Apple wants to have a borderless

715
00:38:31,880 --> 00:38:35,120
Speaker 13: phone with no buttons, no camera cutouts in the front,

716
00:38:35,120 --> 00:38:38,000
Speaker 13: and so of course this is another step towards that.

717
00:38:39,400 --> 00:38:41,440
Speaker 3: In the Power On, I encourage the audience to go

718
00:38:41,480 --> 00:38:43,560
Speaker 3: and read the latest power on. It has those new

719
00:38:43,600 --> 00:38:47,000
Speaker 3: details about what we expect. You kind of more downbeat

720
00:38:47,040 --> 00:38:49,680
Speaker 3: about upgrades to the watch. Why are they going to

721
00:38:49,680 --> 00:38:50,200
Speaker 3: be modest?

722
00:38:50,960 --> 00:38:53,000
Speaker 13: So last year was a pretty significant update for the

723
00:38:53,040 --> 00:38:55,920
Speaker 13: Apple Watch. You had the apple Watch Ultra, which is

724
00:38:55,960 --> 00:38:59,120
Speaker 13: the first all new Apple Watch design. That was the

725
00:38:59,120 --> 00:39:01,560
Speaker 13: first all new Apple Watch design four years, right, so

726
00:39:01,640 --> 00:39:04,840
Speaker 13: quite a bit of time. You had a redesigned apple

727
00:39:04,880 --> 00:39:07,360
Speaker 13: Watch sc which is the entry level Apple Watch, and

728
00:39:07,400 --> 00:39:09,799
Speaker 13: then you had a pretty minor update to the main

729
00:39:09,840 --> 00:39:12,160
Speaker 13: apple Watch with the Series eight. But nonetheless you had

730
00:39:12,200 --> 00:39:14,960
Speaker 13: three new models, right, and so you can't really do

731
00:39:15,120 --> 00:39:18,560
Speaker 13: three new models, including two new designs in one year

732
00:39:18,600 --> 00:39:21,160
Speaker 13: and then the next year expect anything major, right, So

733
00:39:21,239 --> 00:39:23,640
Speaker 13: this year is pretty moderate. You're going to see a

734
00:39:23,680 --> 00:39:26,840
Speaker 13: new apple Watch Series nine that's the standard Apple Watch,

735
00:39:26,880 --> 00:39:28,680
Speaker 13: and then you're going to see a second generation Apple

736
00:39:28,719 --> 00:39:32,360
Speaker 13: Watch Ultra. I would expect some new colors, but faster

737
00:39:32,520 --> 00:39:34,880
Speaker 13: processors is going to be the talk. In addition to

738
00:39:34,920 --> 00:39:37,160
Speaker 13: the new watch, a West ten of the models for

739
00:39:37,239 --> 00:39:37,640
Speaker 13: the spot.

740
00:39:37,680 --> 00:39:40,160
Speaker 3: All right, Bloomberg's mark and check out his latest power

741
00:39:40,200 --> 00:39:41,719
Speaker 3: on on Bloomberg dot Com.

742
00:39:41,760 --> 00:39:42,160
Speaker 4: That does it.

743
00:39:42,160 --> 00:39:45,040
Speaker 3: I'm afraid to this edition of Bloomberg Technology so much

744
00:39:45,120 --> 00:39:46,000
Speaker 3: recap busy.

745
00:39:45,800 --> 00:39:48,680
Speaker 4: Starts of the week. We have a podcast wherever you get.

746
00:39:48,560 --> 00:39:52,160
Speaker 3: Yours on the Bloomberg platforms as well as apples, Spotify, iHeart,

747
00:39:52,200 --> 00:39:55,120
Speaker 3: and as I said, Bloomberg dot Com from here in

748
00:39:55,200 --> 00:39:56,000
Speaker 3: San Francisco.

749
00:39:56,360 --> 00:39:58,279
Speaker 4: This is Bloomberg Technology

750
00:40:00,719 --> 00:40:02,040
Speaker 1: Out un today