WEBVTT - Qualcomm Eyes $22 Billion Growth, Crypto Sees Political Success 0:00:02.600 --> 0:00:09.039 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.600 --> 0:00:10.400 From the heart of. 0:00:10.440 --> 0:00:14.800 Where Innovation, money and power. Collie in Silicon Valley, Nbon. 0:00:15.200 --> 0:00:19.720 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:33.159 --> 0:00:36.400 Live from New York. This is Bloomberg Technology coming up. 0:00:36.440 --> 0:00:39.280 All eyes on enveer As, a three trillion dollar chip maker, 0:00:39.280 --> 0:00:42.560 is set to report earnings after the closing Bell plus 0:00:42.640 --> 0:00:45.760 Comcast it plans to spin off some of its cable 0:00:45.840 --> 0:00:49.440 TV channels. We talk future strategy and the CEO of 0:00:49.520 --> 0:00:52.280 Qualcomm joins us as a company details growth of twenty 0:00:52.280 --> 0:00:55.200 two billion dollars in annual revenue over the next five years. 0:00:55.200 --> 0:00:58.480 But first you will know Qualcomm as the world's biggest 0:00:58.520 --> 0:01:02.480 seller of smartphone processes. But the company is pushing into 0:01:02.560 --> 0:01:05.760 new markets and generating potentially up to twenty two billion 0:01:05.800 --> 0:01:09.480 dollars in additional annual revenue by fiscal twenty twenty nine. Look, 0:01:09.560 --> 0:01:11.200 eight billion dollars a year is going to be coming 0:01:11.200 --> 0:01:14.679 from an expansion into automotive chips. Fourteen billion dollars they 0:01:14.720 --> 0:01:17.919 say will come from the Internet of Things. Qullcom CEO 0:01:18.000 --> 0:01:22.040 Christiana Amon was detailing that very vision yesterday and what 0:01:22.080 --> 0:01:25.639 your total addressable market now up to nine hundred million dollars. 0:01:25.640 --> 0:01:28.000 It is great to have you here after that investor meeting, 0:01:28.319 --> 0:01:31.000 you're looking out to twenty thirty. What gives you that confidence. 0:01:31.280 --> 0:01:35.039 Look, we have been first of all, great to be 0:01:35.080 --> 0:01:37.440 here talking to you, but we have been on this 0:01:37.520 --> 0:01:40.400 trajectory since twenty twenty one when we had our last 0:01:40.440 --> 0:01:43.120 investor day and we outlined the plans to grow the 0:01:43.240 --> 0:01:44.319 company to other markets. 0:01:44.360 --> 0:01:45.959 We realize that the. 0:01:45.959 --> 0:01:49.280 Technology we produced for mobile could be very disruptive and 0:01:49.320 --> 0:01:51.680 we could build actually a leading position where we did 0:01:51.680 --> 0:01:55.320 in automotive, what we did in PCs, and we thought 0:01:55.320 --> 0:01:57.880 we'll be the right thing to tell investors as we 0:01:58.040 --> 0:02:00.720 look in the next five years how we're going to 0:02:00.720 --> 0:02:03.440 diversify the company. When you look at the company right now, 0:02:04.720 --> 0:02:07.360 most of our revenues mobile Mobile is a great market, 0:02:07.400 --> 0:02:09.720 but it doesn't grow as much until we have an 0:02:09.760 --> 0:02:13.560 AI of grade cycle. However, those other markets that we're 0:02:13.560 --> 0:02:17.919 going it will drive higher multiple. So as those revenues 0:02:18.000 --> 0:02:21.640 from non mobile become a bigger percentage of Qualcom, we 0:02:21.720 --> 0:02:25.160 have an opportunity to actually see a multiple expansion. So 0:02:25.200 --> 0:02:28.400 we want to outline to investors our trajectory and what's 0:02:28.440 --> 0:02:31.639 exciting is really where we are right now. We're very 0:02:31.680 --> 0:02:34.280 happy with the results of the company in the near term. 0:02:34.360 --> 0:02:36.120 We show on the last earnings called we're growing in 0:02:36.160 --> 0:02:39.560 all markets, including handsets, and we put out in five 0:02:39.639 --> 0:02:42.320 years we're going to have twenty two billion dollars of 0:02:42.440 --> 0:02:43.680 non handset revenue. 0:02:44.040 --> 0:02:45.880 But bearing any sicklic. 0:02:45.600 --> 0:02:47.800 Calid on the market, we'll expect to continue to grow 0:02:47.840 --> 0:02:50.519 annually into that into those. 0:02:50.400 --> 0:02:53.079 Targets, bearing any sickl catesy, can you just talk through, 0:02:53.120 --> 0:02:57.000 like what are the downside risks to automotive demands? Two 0:02:57.000 --> 0:03:00.919 people actually upgrading to new and refresh Android phones, which 0:03:00.960 --> 0:03:02.240 are going to remain probably. 0:03:01.919 --> 0:03:04.080 Yeah, what I mentioned about cyclicality, I think this in 0:03:04.120 --> 0:03:07.640 my conductor industry, we have seen on the first the 0:03:07.639 --> 0:03:10.040 past few years, we had a bunch of different cycles, 0:03:10.080 --> 0:03:15.920 different markets, inventory corrections, we have capacity constraints. We're not 0:03:16.040 --> 0:03:18.680 assuming that going forward, but some of that you know 0:03:18.800 --> 0:03:22.200 could happen. But when you look off the normalization of 0:03:22.240 --> 0:03:24.440 the market we see right now, if that continues, we 0:03:24.520 --> 0:03:27.160 feel very good about the ability to grow annually. To 0:03:27.240 --> 0:03:30.760 your question, is cars is one that we're incredibly excited 0:03:30.800 --> 0:03:33.840 because people are now buying new cars because of the 0:03:33.919 --> 0:03:37.480 computational cupabilities and did those big screens in the digital 0:03:37.720 --> 0:03:40.200 cupabilities of the car. And I think that's what actually 0:03:40.240 --> 0:03:42.400 creating demand for our technology. 0:03:42.760 --> 0:03:44.880 Going in before we get to cars. The Internet of 0:03:44.920 --> 0:03:47.520 things is really going to be something that we've been 0:03:47.920 --> 0:03:50.960 talking about almost for a decade the mobile or Congress 0:03:50.960 --> 0:03:53.160 and remember everyone's the zuberan about Internet of things and 0:03:53.200 --> 0:03:56.760 then reality never quite gets there. And that's where previous 0:03:56.800 --> 0:03:59.440 times you've made targets and perhaps have had to fall 0:03:59.440 --> 0:04:02.280 short because the ecosystem doesn't build. What makes you sure 0:04:02.320 --> 0:04:03.920 it will get to that fourteen billion this time? 0:04:04.040 --> 0:04:06.560 Like, we're very confident, but I I would like to 0:04:06.600 --> 0:04:11.720 break that down for you. Yeah, So first PCs, because 0:04:11.840 --> 0:04:14.640 actually what I need to tell you is we talk 0:04:14.680 --> 0:04:17.480 about Internet of things, but the Qualcom Internet of Things 0:04:17.600 --> 0:04:19.560 revenue stream, there's a bunch of things in there. We 0:04:19.600 --> 0:04:24.359 have PCs, we have virtual reality, mixed reality devices, we 0:04:24.440 --> 0:04:29.680 have industrial we have networking and personal devices like wearables 0:04:29.680 --> 0:04:33.400 and watches. That's our Internet of things bucket. So we 0:04:33.440 --> 0:04:36.960 gave a target of four billion dollars in PCIX. If 0:04:36.960 --> 0:04:40.360 you think what we're doing right now Snapdragon X series 0:04:40.520 --> 0:04:45.200 is the fastest processor is faster than Intel, faster than MD. 0:04:45.360 --> 0:04:48.000 We come in and within the industry as a new 0:04:48.040 --> 0:04:50.960 player with a leading platform, the only platform they could 0:04:51.600 --> 0:04:55.279 run Microsoft Copilot plus. If you look at this of 0:04:55.480 --> 0:04:59.480 the service market, the TAM or the SAM that we're 0:05:00.000 --> 0:05:03.360 I had an investigate of PCs in twenty twenty nine, 0:05:03.760 --> 0:05:04.920 it's thirty five billion. 0:05:05.200 --> 0:05:06.720 We say we're going to do four. 0:05:08.440 --> 0:05:11.680 It's very achievable target, especially when you think about we 0:05:11.720 --> 0:05:13.320 have the best platform the market today. 0:05:13.400 --> 0:05:16.080 But everyone does indeed love that Silicon our om Bloomberg 0:05:16.080 --> 0:05:19.680 Intelligence saying you're in s Silicon and the AIPC is great, 0:05:19.760 --> 0:05:22.280 but there's been so much cynicism around the adoption of 0:05:23.000 --> 0:05:25.440 on based PCs. What is stopping that? 0:05:26.120 --> 0:05:29.080 We actually we see a little bit different. We launched 0:05:29.120 --> 0:05:34.560 this platform in May. We have twenty designs right now. 0:05:34.760 --> 0:05:38.200 From May to today, we increase the design traction by 0:05:38.200 --> 0:05:41.120 two point five times. We have fifty eight now platforms 0:05:41.120 --> 0:05:45.120 across del HP, Lenovo, Sands on the Asia suits and 0:05:45.160 --> 0:05:49.600 people buying them and these sales are exceeding our expectations. 0:05:49.600 --> 0:05:51.320 So that's why we feel confident. And if you think 0:05:51.320 --> 0:05:53.440 about the target, were putting four billion in the thirty 0:05:53.440 --> 0:05:55.840 five billion SAM is not that high. The other one 0:05:56.000 --> 0:05:59.880 is industrial. And you asked me about IoT. One thing 0:06:00.600 --> 0:06:04.960 Caroline did change the IoT in industrial is AI a 0:06:05.040 --> 0:06:05.599 d edge. 0:06:05.680 --> 0:06:08.039 The ability to run AI a D edge. 0:06:08.200 --> 0:06:12.799 We can run multi billion parameter model into a device 0:06:12.839 --> 0:06:15.400 at the edge. That changes the cost equation for a 0:06:15.400 --> 0:06:17.480 lot of companies that I actually think that it's going 0:06:17.520 --> 0:06:19.480 to be cheaper than doing in the cloud, or they 0:06:19.480 --> 0:06:23.320 have specific needs. That inflection point is what gives us 0:06:23.320 --> 0:06:25.720 confidence we're going to get four billion in industrial by 0:06:25.720 --> 0:06:29.320 twenty twenty nine. And the other two billion we provided 0:06:30.440 --> 0:06:35.560 was for augmented reality and the ray band Meta smart glass. 0:06:35.839 --> 0:06:38.600 Everybody talks about it is probably the favorite Christmas gift 0:06:39.120 --> 0:06:39.720 this season. 0:06:40.040 --> 0:06:42.640 Let's talk therefre about an inflection point when you go 0:06:42.760 --> 0:06:44.800 back to what had been your bread and butter, which 0:06:44.839 --> 0:06:49.279 is smartphones and cells. Are people upgrading? Are they going 0:06:49.320 --> 0:06:51.960 to upgrade, particularly on the Android devices that you sit with, 0:06:52.000 --> 0:06:53.720 because Apple is course is going to be pulling back 0:06:53.720 --> 0:06:54.480 for the next few years. 0:06:54.520 --> 0:06:59.520 Look, Android is the largest global market for hintsts, and 0:06:59.560 --> 0:07:03.240 we have very focused on premion teer Android. What we 0:07:03.440 --> 0:07:08.240 see in the market that grows very you know, phones 0:07:08.320 --> 0:07:12.840 grow with GDP. Right, it's flat to single dishit growth 0:07:13.040 --> 0:07:16.880 because everybody has a phone. However, what we have seen 0:07:17.280 --> 0:07:22.400 is at the premium teer they're growing significantly. We see 0:07:22.400 --> 0:07:24.920 a mix change when people buy their next phone, they 0:07:24.920 --> 0:07:28.000 want a better phone, and that that actually allow us 0:07:28.040 --> 0:07:30.400 to be growing in many. 0:07:30.160 --> 0:07:31.880 Cases like double digit on. 0:07:32.000 --> 0:07:35.360 A market doesn't grow by expanding content, So what we 0:07:35.440 --> 0:07:39.040 expect is that is the trend as we people buy 0:07:39.200 --> 0:07:43.200 a premium smartphone with more AI and eventually as the 0:07:43.280 --> 0:07:46.520 AI use cases start to be as big as apps, 0:07:46.840 --> 0:07:50.040 we're going to see an AI driven upgrade. 0:07:50.360 --> 0:07:53.120 We are sitting with the call com Cio Cristiano, a'man 0:07:53.200 --> 0:07:57.720 for worldwide radio and TV audiences. The upgrade cycle grows 0:07:57.720 --> 0:08:00.680 the GDP. You're saying, China's GDP and looking so great. 0:08:00.720 --> 0:08:02.720 You have exposure to that economy. What does it feel 0:08:02.760 --> 0:08:03.360 like by now? 0:08:03.800 --> 0:08:07.960 Look, our China business is business that we're very happy 0:08:07.960 --> 0:08:14.320 with it. As geopolitics evolve, actually our business with China expended, 0:08:14.680 --> 0:08:18.120 especially because as we become relevant in automotive and industrial 0:08:18.160 --> 0:08:22.360 beyond phones, we have Chinese customers. I think, at the 0:08:22.480 --> 0:08:26.200 end of the day, regardless of GDP growth, China is 0:08:26.200 --> 0:08:29.120 a big market. If you are, as a my conductor company, 0:08:29.160 --> 0:08:32.400 that you have a leading technology that cannot be replicated 0:08:32.960 --> 0:08:35.120 by a domestic product, you're going to have a big 0:08:35.160 --> 0:08:35.880 business in China. 0:08:35.960 --> 0:08:36.600 And that's what we have. 0:08:36.720 --> 0:08:39.400 They're fighting to make things domestically because of the new 0:08:39.440 --> 0:08:43.440 administration and indeed the current administration still pushing back on 0:08:43.520 --> 0:08:46.040 China that you don't have any pause, any concern about 0:08:46.120 --> 0:08:48.000 taris rampop for example. 0:08:47.800 --> 0:08:51.520 Look, you should think about our business. We are exporting 0:08:51.559 --> 0:08:55.280 semi conductors when the right direction of trade for the 0:08:55.360 --> 0:08:59.439 United States, especially when you think about trade balance so 0:08:59.440 --> 0:09:02.200 so in and if we have a leading technology, we 0:09:02.280 --> 0:09:06.080 expect that China will be interesting continue to buy our chips, 0:09:06.320 --> 0:09:07.800 So we're not concerned about that. 0:09:07.840 --> 0:09:10.000 You know, have any procurement issues, you don't import anything. 0:09:10.040 --> 0:09:11.840 You're not having to. 0:09:11.200 --> 0:09:12.800 Stop pile now. 0:09:13.040 --> 0:09:18.120 We I think we have been We're fabulous company and 0:09:18.880 --> 0:09:22.600 we have been a big exporter of chips into China. 0:09:23.280 --> 0:09:27.400 You've got an amazing bird's eye perspective of the technological 0:09:27.480 --> 0:09:30.280 race that we like to talk of between US and China. 0:09:30.320 --> 0:09:32.520 For example, you've got an array of large language models 0:09:32.559 --> 0:09:37.480 within your snap Dragon mobile system and platform. Some of 0:09:37.480 --> 0:09:40.040 those Chinese large language models, how do they perform compared 0:09:40.040 --> 0:09:40.720 to the US one. 0:09:41.679 --> 0:09:44.839 Look, we can talk about this all day, but I'm 0:09:44.920 --> 0:09:48.559 going to try to summarize a few things. 0:09:47.920 --> 0:09:50.520 There's a very. 0:09:50.480 --> 0:09:54.880 Large number of models becoming available, and they're very specialized. 0:09:54.920 --> 0:09:57.880 I think we're heading towards AI as being a new 0:09:57.880 --> 0:10:02.640 computing and you have models specialized in voice, major specialized 0:10:02.679 --> 0:10:07.160 in imaging, like large visual models, et cetera. What we're 0:10:07.200 --> 0:10:08.960 starting to see is a lot of those models are 0:10:08.960 --> 0:10:12.800 becoming regionalized, especially when you think about text and converse 0:10:12.960 --> 0:10:17.520 or conversation. As the computer starts to speak the language 0:10:17.559 --> 0:10:22.840 of humans, every reason has a unique aspect that is 0:10:22.960 --> 0:10:25.440 driving a lot of regional models. We expect the future 0:10:25.480 --> 0:10:27.080 is going to be like that. China's going to have 0:10:27.120 --> 0:10:30.120 their models, you know, Europe is going to have their models. 0:10:30.160 --> 0:10:31.400 We're going to have our models, and they're going to 0:10:31.400 --> 0:10:34.600 be model specialized for different things. And we're just the 0:10:34.679 --> 0:10:37.040 beginning of this exciting new transition. 0:10:37.400 --> 0:10:39.319 You could talk about it all day. The thing that 0:10:39.760 --> 0:10:42.839 the markets that the media have wanted you to talk 0:10:42.880 --> 0:10:45.679 about all day is whether you'll be making any acquisitions 0:10:45.720 --> 0:10:48.600 and whether you will potentially making any acquisitions of Intel 0:10:48.640 --> 0:10:51.000 parts of the businesses. Your CFO outline that, look, you're 0:10:51.000 --> 0:10:53.079 actually gonna be giving money back to investors is M 0:10:53.120 --> 0:10:54.600 and A therefore not on the agenda. 0:10:55.320 --> 0:10:59.960 Look, we have always been looking for opportunities. A lot 0:11:00.040 --> 0:11:03.040 of the Quaker M and A framework with the outline 0:11:03.080 --> 0:11:06.439 has been apportunistic or been very target to. 0:11:06.400 --> 0:11:08.199 Accelerate our plans. 0:11:08.960 --> 0:11:11.640 We has showed that with the M and A that 0:11:11.679 --> 0:11:13.640 we've done for Auto, the M and A that we've 0:11:13.640 --> 0:11:16.760 done to enter the PC space. So you're probably going 0:11:16.840 --> 0:11:19.720 to continue to see qualk on doing that right now. 0:11:20.280 --> 0:11:24.400 At this point, we have not identified any large. 0:11:24.200 --> 0:11:25.319 Acquisition that. 0:11:26.840 --> 0:11:29.960 Is necessary for us to execute on this twenty two billion, 0:11:30.440 --> 0:11:33.439 and we're super focused on executing on the twenty two 0:11:33.440 --> 0:11:34.840 billion in the next five years. 0:11:34.920 --> 0:11:38.360 So give us the confidence. Give the investor base that's 0:11:38.400 --> 0:11:40.839 currently seeing perhaps your share price off by six cent 0:11:40.880 --> 0:11:43.760 a moment, give them the confidence that this transition away 0:11:43.760 --> 0:11:47.240 from Apple and focusing on an Android but focusing in 0:11:47.280 --> 0:11:50.880 on the Internet of things opportunity that you articulated the autos, 0:11:51.240 --> 0:11:53.560 You're going to get that smoothly and with clarity on 0:11:53.600 --> 0:11:54.040 time frame. 0:11:54.400 --> 0:11:57.520 Yeah, Look the way I see it, and I think 0:11:57.559 --> 0:12:01.719 that's probably you know, I can't really you know, talk 0:12:01.760 --> 0:12:03.719 about what's happening with the stock, but I think there 0:12:03.720 --> 0:12:08.560 may be some confusion. Our plan in the investor day 0:12:08.760 --> 0:12:11.000 is to tell investor there are strategies working. 0:12:11.200 --> 0:12:13.360 We don't need a new strategy. It is working. 0:12:13.440 --> 0:12:16.160 We had executed on what we said we're going to 0:12:16.240 --> 0:12:19.960 do in those new markets like Alto, for example, we 0:12:20.040 --> 0:12:23.520 have been have five consecutive quarters of record growth, and 0:12:23.640 --> 0:12:25.920 we would grow even when the market doesn't grow because 0:12:25.960 --> 0:12:31.320 we're gaining share. We had deliver on our entrance on 0:12:31.360 --> 0:12:33.640 the PC and a well positioned to ramp, and we 0:12:33.679 --> 0:12:35.560 told investors how this is going to play out with 0:12:35.559 --> 0:12:39.480 the other markets. We had said since the beginning that 0:12:39.600 --> 0:12:43.200 our planning assumptions assume that Apple is coming off the model. 0:12:43.240 --> 0:12:47.360 We had said our contract implies that we have twenty 0:12:47.360 --> 0:12:50.400 percent share in twenty six Would that be the case, 0:12:50.720 --> 0:12:51.200 I don't know. 0:12:51.240 --> 0:12:55.360 I think we have had two renewals of Apple, but. 0:12:55.360 --> 0:12:57.720 We have to make a planning assumption that Apple's coming. 0:12:57.559 --> 0:12:58.120 Off the model. 0:12:58.600 --> 0:13:02.480 Even with that, we are well positioned to continue growing 0:13:02.520 --> 0:13:05.720 to the period and get to a point in twenty 0:13:05.760 --> 0:13:07.600 twenty nine that we have twenty two. 0:13:07.440 --> 0:13:10.719 Billion of revenue non mobile, and when we. 0:13:10.640 --> 0:13:12.440 Get to the end of the decade, we have a 0:13:12.440 --> 0:13:15.480 potential about but fifty to fifty mobiles about fifty percent 0:13:15.559 --> 0:13:16.680 fifty percent. 0:13:16.520 --> 0:13:17.960 Of the revenue from growth market. 0:13:18.040 --> 0:13:21.320 So I don't know what the anxiety is, but I 0:13:21.360 --> 0:13:23.360 think we feel confident about the plan and we'll continue 0:13:23.400 --> 0:13:24.440 to execute on that plank. 0:13:24.480 --> 0:13:27.760 Let's get Hannah. Analyst Christopher Roland saying, we continue to 0:13:27.760 --> 0:13:31.600 have confidence in CEO Amount's ability to move Quillcom beyond 0:13:31.600 --> 0:13:34.680 modem and cellular IP company. We appreciate you, thank you 0:13:34.720 --> 0:13:40.320 for being here. Quil Come CEO Cristiano Aman. Now as 0:13:40.360 --> 0:13:43.160 a quick checkout on this particular chart of a chip 0:13:43.240 --> 0:13:45.960 company that you're not looking at every day. Semiconductive Manufacturing 0:13:46.000 --> 0:13:48.880 International Shares SMICK, as it's known they've more than doubled 0:13:48.880 --> 0:13:51.000 over the past two months, even amid the risks tied 0:13:51.000 --> 0:13:54.160 to competition to geopolitical tensions in China. The stock is 0:13:54.240 --> 0:13:57.840 up one hundred and twenty percent from September, trancing global 0:13:57.880 --> 0:14:03.079 sector names including nvidiomc As you see China autperforming particularly 0:14:03.320 --> 0:14:06.400 on land in Beijing trading, I mean, while speaking of Nvidia, 0:14:06.520 --> 0:14:08.559 look all eyes on the company reporting earnings after the 0:14:08.600 --> 0:14:11.480 closing bell, we'll discuss what to expect, particularly with Blackwell. 0:14:11.760 --> 0:14:25.520 This is Blue meg Technology, oh in vidious quarterly results 0:14:25.600 --> 0:14:27.920 and the forecast they're out after the closing bell Today. 0:14:27.960 --> 0:14:30.560 Analysts will be on the lookout see whether the world's 0:14:30.560 --> 0:14:34.120 most valuable company can sustain what has been a remarkable run, 0:14:34.400 --> 0:14:37.360 fueled by spending, of course, on AI hardware. Relumeg Intelligence 0:14:37.400 --> 0:14:41.120 analyst Kundren Savani joins us, now everyone wants clarity on 0:14:41.160 --> 0:14:45.240 the supply side of Blackwell and demand for the Hopper too. 0:14:45.520 --> 0:14:47.680 Yeah, I mean, look, second half, we have seen the 0:14:47.720 --> 0:14:50.600 demand for the Hopper expand not just said the top 0:14:50.720 --> 0:14:54.040 large cloud service providers and hyperscalers, but beyond them to 0:14:54.120 --> 0:14:56.600 the sow end, which now we expect them to be 0:14:57.240 --> 0:15:00.360 low double digits this fiscal year with the enterprise, with 0:15:00.400 --> 0:15:03.400 the tier two cloud service providers. So we don't see 0:15:03.400 --> 0:15:07.480 any limiting in terms of demand for Hopper, and everyone's 0:15:07.480 --> 0:15:10.720 anticipatingly waiting for the Blackwell ramp, which we think will 0:15:10.760 --> 0:15:12.680 see major portion of it next year. 0:15:13.040 --> 0:15:15.800 We allls seem to focus on revenue. It's going to 0:15:15.840 --> 0:15:18.080 double for the full year. We anticipate it's going to 0:15:18.080 --> 0:15:20.800 be up eighty percent for third quarter, up a little 0:15:20.840 --> 0:15:23.040 bit less than that for the fourth quarter is the expectation. 0:15:23.160 --> 0:15:25.920 But what about margins, what about profitability conngin? 0:15:26.720 --> 0:15:28.400 Yeah, I mean, look, we have seen the peak of 0:15:28.440 --> 0:15:31.600 the margins there behind us. Going into four Q, we 0:15:31.680 --> 0:15:35.520 expected to not as low as some people are concerned. 0:15:35.520 --> 0:15:38.520 We expected to still stay above the seventy three percent mark. 0:15:38.600 --> 0:15:40.880 But going into twenty twenty five with Blackwell as a 0:15:40.920 --> 0:15:45.360 new product ramping, we expected to stay at the same levels. 0:15:45.480 --> 0:15:48.240 We are also seeing the cost of the new products increase, 0:15:48.440 --> 0:15:51.880 but their ability to charge equivalently more pricing is not 0:15:51.920 --> 0:15:54.040 going there because there's a lot of pricing pressure. These 0:15:54.040 --> 0:15:57.240 are very expensive GPUs. 0:15:56.880 --> 0:15:59.720 May sure, and it's a very expensive stop bluing bag intelligence. 0:15:59.760 --> 0:16:02.400 As of Bonnie, we thank you. Let's turn about that 0:16:02.480 --> 0:16:07.040 valuation now with Kim Forest, founder and CEO Booker Capital Partners. Kim, 0:16:07.520 --> 0:16:10.600 we've had almost two hundred percent run up in in 0:16:10.760 --> 0:16:13.720 video over the last year, and indeed that's on top 0:16:13.840 --> 0:16:18.240 of a tripling the previous year. We have a massive valuation. 0:16:18.760 --> 0:16:21.240 Is it too high? 0:16:21.280 --> 0:16:25.280 Well, if you get to it today, maybe I don't know. 0:16:25.440 --> 0:16:26.800 We'll tell you at the end. 0:16:26.720 --> 0:16:27.120 Of the day. 0:16:27.920 --> 0:16:31.520 The problem that I see, and let me just say this, 0:16:31.640 --> 0:16:34.400 I'm a believer in AI in general. I'm a little 0:16:34.440 --> 0:16:37.600 bit skeptical of generative AI. I think it has a 0:16:37.640 --> 0:16:41.240 lot of issues that just can't be solved through the 0:16:41.280 --> 0:16:47.480 brute force throw more chips at it. But that being said, I'm. 0:16:46.880 --> 0:16:48.480 Rooting for AI. Now. 0:16:48.520 --> 0:16:52.520 The problem with evaluation on in Nvidio is you laid 0:16:52.520 --> 0:16:55.480 it out. It's already had a triple, a double, you 0:16:55.520 --> 0:16:59.440 know everything. It's as if it's a quarter being tossed 0:16:59.480 --> 0:17:02.760 and coming up heads heads heads. There is a day 0:17:02.760 --> 0:17:06.040 it's going to come up tails and momentum investors are 0:17:06.080 --> 0:17:10.440 going to freak out. And with every earnings call now 0:17:10.480 --> 0:17:14.159 that we have, that day gets closer. Is it today? 0:17:14.320 --> 0:17:16.119 I don't think so, But I don't know. 0:17:16.640 --> 0:17:18.960 And that's really my problem with this, that it's a 0:17:19.160 --> 0:17:21.199 stock driven by momentum. 0:17:21.840 --> 0:17:25.720 To be fair, they have freaked out before after earnings, 0:17:25.760 --> 0:17:28.840 even when they meet and beat. But the forecast isn't 0:17:28.880 --> 0:17:31.800 living up to expectations. So what is it that you 0:17:31.880 --> 0:17:34.840 therefore need to hear from Jensen to give you the confidence. 0:17:34.920 --> 0:17:37.320 It feels like you're pushing against the scaling laws that 0:17:37.359 --> 0:17:39.400 actually he continues to think thrive at. 0:17:39.280 --> 0:17:41.480 The moment exactly. 0:17:41.640 --> 0:17:45.080 Well, there's a couple of things that concern me. There 0:17:45.160 --> 0:17:48.320 is a handful of companies that are willing to spend 0:17:48.760 --> 0:17:52.679 unbelievable amounts of money on this. Now, if one of 0:17:52.720 --> 0:17:55.320 them blinks, well the other ones kind of cool down 0:17:55.480 --> 0:17:59.240 and you stop shoveling money to the end of this problem. 0:17:59.600 --> 0:18:03.800 That's the one thing. So who are we talking about? Apple, Meta, 0:18:04.840 --> 0:18:08.720 and Microsoft are the big ones, right, maybe Amazon as well, 0:18:09.080 --> 0:18:11.919 but those are certainly the companies that have the cash 0:18:11.960 --> 0:18:12.760 flow that. 0:18:12.720 --> 0:18:14.080 They don't even have to question it. 0:18:14.119 --> 0:18:17.240 They're going to spend, spend, spend, But you know, that's 0:18:17.280 --> 0:18:19.359 a very narrow market if you're going to think of 0:18:19.400 --> 0:18:23.320 it that way. So you know, I'm just a cautious 0:18:23.359 --> 0:18:27.760 investor and everything has gone right, so that demand is key, 0:18:28.160 --> 0:18:30.800 and blackweil is a little bit of a concern. Yes, 0:18:30.840 --> 0:18:34.399 it's not really shipping yet. They'll probably modify the problem 0:18:34.480 --> 0:18:37.880 that's causing overheating. You know, when these things get over 0:18:38.000 --> 0:18:41.040 into the world, they're used differently than they've been tested for. 0:18:41.560 --> 0:18:45.800 We've seen this many times in other semiconductor cycles. But 0:18:46.119 --> 0:18:49.080 it's all a concern for you know the thing that 0:18:49.280 --> 0:18:52.680 leads the market now it you know, it drives all 0:18:52.720 --> 0:18:55.399 the markets. It's such a high component of the S 0:18:55.440 --> 0:18:56.560 and P five hundred game. 0:18:56.600 --> 0:18:59.240 It's a macro event. Do you buy all wetness? 0:19:00.000 --> 0:19:02.240 If I buy on weakness, I'm going to look at 0:19:02.240 --> 0:19:04.960 it very hard on weakness because again I still think, 0:19:05.080 --> 0:19:08.440 given what the other makers of chips and even the 0:19:08.480 --> 0:19:11.800 people who are dreaming of being competitors of Nvidia, and 0:19:11.960 --> 0:19:15.280 Vidia has a nice long runway to have people not 0:19:15.520 --> 0:19:18.080 catch up to them. So there's some safety in there, 0:19:18.840 --> 0:19:22.000 but valuation is steep at this point. 0:19:22.440 --> 0:19:34.480 Proceed. We're caution O Capital Partners, CIO, Kim Forest. It's 0:19:34.520 --> 0:19:37.160 time now for talking tech them First Up Global Foundries 0:19:37.200 --> 0:19:39.480 has been awarded one point five billion dollars by the 0:19:39.480 --> 0:19:42.800 Buyer Administration's chips at The grant will support the chip 0:19:42.840 --> 0:19:45.399 makers expansion of two factories and one new plant in 0:19:45.400 --> 0:19:47.760 the United States and is estimated to create a thousand 0:19:47.800 --> 0:19:52.800 production jobs and zeploint nine thousand construction workers plus salesforce. 0:19:53.040 --> 0:19:56.160 Plans to cut workers from its recently acquired data management 0:19:56.160 --> 0:19:59.920 startup own. The company says some roles will not be required. 0:20:00.160 --> 0:20:03.480 Quote post harmonization and set an end date of January 0:20:03.520 --> 0:20:06.280 thirty first for those employees, while others will remain on 0:20:06.320 --> 0:20:09.479 a short term basis if needed for the transition and 0:20:09.600 --> 0:20:13.760 shares of MicroStrategy rising today, catapulting the market value to 0:20:13.800 --> 0:20:16.560 more than one hundred billion dollars. This is the company 0:20:16.600 --> 0:20:19.720 announced plans to increase the amount of convertible senior debt 0:20:20.080 --> 0:20:23.359 it plans to sell in an effort to buy more bitcoin. 0:20:23.640 --> 0:20:27.360 Now it's about forty billion dollars worth coming up. We're 0:20:27.400 --> 0:20:30.800 joined by Strike Fanner and CEO Jack Mallers as traders 0:20:30.840 --> 0:20:34.399 and making bullsh bets on bitcoin alongside Michael Sailor clearly 0:20:34.480 --> 0:20:38.320 over at MicroStrategy from New York. This is blom Meg Technology. 0:20:49.280 --> 0:20:51.600 Welcome back to bloue Meg Technology. Look what else is 0:20:51.640 --> 0:20:54.680 moving crypto? But actually there has still been that risk 0:20:54.720 --> 0:20:56.919 on sentiment in bitcoin that drives us up another one 0:20:57.000 --> 0:20:59.119 and a half percent. We're at ninety three six hundred 0:20:59.119 --> 0:21:02.320 and sixty one and this as it's more about the 0:21:02.359 --> 0:21:04.840 feel good factor around future policy in the United States 0:21:04.840 --> 0:21:08.359 and indeed some heavy buyers continuing for their balance sheet. 0:21:08.400 --> 0:21:10.920 Let's talk about it in the industry at large, because 0:21:11.000 --> 0:21:13.600 of course it's spent a lot in terms of lobbying 0:21:13.600 --> 0:21:16.600 on candidates across party lines during the twenty twenty four election, 0:21:16.680 --> 0:21:19.480 and those efforts clearly seem to have paid off. Stand 0:21:19.480 --> 0:21:21.480 with Crypto, a group that tracks those results, say two 0:21:21.520 --> 0:21:24.399 hundred and seventy five pro crypto candidates were elected to 0:21:24.480 --> 0:21:27.280 the US House, twenty in the Senate. Now they're looking 0:21:27.320 --> 0:21:30.040 at how those lawmakers will influence the industry, including the 0:21:30.040 --> 0:21:33.439 policy of President elect Trump. Here to detail what the 0:21:33.440 --> 0:21:35.960