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

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Speaker 2: The Stock Movers Report, your roundup of companies making moves

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Speaker 2: in the stock market harnessing the power of Bloomberg Data.

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Speaker 1: Let's take a look down at some stocks making news

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Speaker 1: in the week ahead. I'm Nathan Hager with Man Deep Saying,

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Speaker 1: globalhead of Tech Research at Bloomberg Intelligence. Great to have

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Speaker 1: you on as we're going to be looking ahead to

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Speaker 1: a lot more big tech stocks in the week ahead.

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Speaker 1: What are we expecting when it comes to earnings from

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Speaker 1: Google parent Alphabet?

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Speaker 2: Mandy?

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Speaker 3: Look, I mean what we saw with Meta was you know,

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Speaker 3: accelerating top line growth, and in the case of Google,

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Speaker 3: both the search business as well as the YouTube business

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Speaker 3: have I would say modest expectations going in the quarter,

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Speaker 3: you know, low to mid teen's growth. So, I mean

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Speaker 3: we've felt double digit growth for Alphabet over the last

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Speaker 3: few or was very impressive given you know the threat

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Speaker 3: from Chat GPT, but I think Meta has really raised

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Speaker 3: the bar in terms of digital ad growth in the

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Speaker 3: fourth quarter, So I would be looking for accelerating top

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Speaker 3: line growth at least high teens growth for YouTube and

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Speaker 3: you know, low to midteens growth for the core search business.

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Speaker 3: Of Alphabet.

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Speaker 1: Since you mentioned meta platforms, we should say that the

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Speaker 1: AI spend from Microsoft seemed to spook a lot of

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Speaker 1: investors last week. Given that Alphabet has its Google Cloud business,

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Speaker 1: could that be a concern for investors there when it

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Speaker 1: comes to AI spend in the.

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Speaker 3: Cloud, You're right. I mean, what Microsoft Sprint has shown

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Speaker 3: is you can't really miss the cloud growth numbers. So

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Speaker 3: in the case of Alphabet, expectations or Google Cloud will

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Speaker 3: have at least thirty five percent growth. And based on

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Speaker 3: the work that we have done, I mean, Google really

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Speaker 3: has had some very impressive, impressive deal wins this quarter

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Speaker 3: in their cloud segments, so chances are they should do better.

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Speaker 3: And remember Google has their TPUs, so they shouldn't be

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Speaker 3: as supply constrained as Microsoft probably was in the quarter

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Speaker 3: with the GPU situation. So my guess is Google Cloud

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Speaker 3: segment would see sequential acceleration and they should be the

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Speaker 3: consensus number handedly And how.

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Speaker 1: Do you see Google's TPU processors fairing compared to the

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Speaker 1: GPUs that we get from Nvidia.

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Speaker 3: I mean, if there's one theme that we have heard

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Speaker 3: so far this earning season is AI infrastructure demand remains

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Speaker 3: insatiable and all these companies are wanting to get as

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Speaker 3: much you know, compute capacity as they can. So Google's

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Speaker 3: TPUs you know, are used both internally for Google Overviews

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Speaker 3: and across their family off app as well as they're

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Speaker 3: used on Google Cloud. And so from that perspective, I

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Speaker 3: do think, you know, Google should be able to show

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Speaker 3: the most efficiency when it comes to AI infrastructure, and

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Speaker 3: that should get reflected in their gross margins, which I

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Speaker 3: expect to be better than the rest of the hyperscalers.

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Speaker 1: We're also going to hear from Amazon this week they

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Speaker 1: report their earnings. What are you expecting from their cloud

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Speaker 1: unit AWS?

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Speaker 3: Yeah, I mean you want to see all these cloud

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Speaker 3: companies show sequential acceleration. It didn't happen with Microsoft, hence

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Speaker 3: we saw that negative reaction, and in the case of AWS,

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Speaker 3: I would say expectations again are like for low twenty

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Speaker 3: percent growth. So given they are the largest cloud provider,

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Speaker 3: I mean they should be able to beat those numbers.

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Speaker 3: But look, what we have heard so far is supply

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Speaker 3: constraints are real when it comes to AI compute capacity,

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Speaker 3: and that may have a bearing on whether ADA BLUs

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Speaker 3: ends up beating those consensus numbers or not.

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Speaker 1: Is low twenty percent enough to wow investors.

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Speaker 3: No, but you want to see that sequential acceleration. So

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Speaker 3: I mentioned about the size of Ada BLUs, So that's

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Speaker 3: almost one hundred and thirty five billion dollar rundrate business

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Speaker 3: for Amazon. Contrast that with Microsoft, which is more one

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Speaker 3: hundred billion, and Google Cloud is like sixty billion rund rates.

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Speaker 3: So given their size, I mean, low twenty percent would

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Speaker 3: be in line, but anything more than that would be impressive,

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Speaker 3: and I think that would help those dock.

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Speaker 1: And along with Amazon and Alphabet. Another a in big

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Speaker 1: tech reports this week advanced micro devices. How's the computer

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Speaker 1: chip business looking right now, Mandy.

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Speaker 3: I mean, look, Meta just told us they planned to

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Speaker 3: spend up to one hundred and thirty five billion dollars

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Speaker 3: in CAPEX, which is a seventy percent increase from what

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Speaker 3: they spent in twenty twenty five. So we were modeling

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Speaker 3: like fifty percent increase in CAPEX from hyperscalers going into

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Speaker 3: twenty twenty six. Chances are that number will be revised upward,

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Speaker 3: and so it will trickle down to the likes of AMD,

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Speaker 3: which is the you know, the second biggest GPU provider

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Speaker 3: after Nvidia, and so to my mind, AMDs deal with

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Speaker 3: open Ai and some of the other business that they

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Speaker 3: have won over the last few months should help, you know,

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Speaker 3: exceed expectations when they print their results.

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Speaker 1: Does AMD need to show more market share compared to Nvidia.

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Speaker 3: I think this is such a big market that everyone

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Speaker 3: is realizing that you don't need to, you know, win

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Speaker 3: market share from Nvidia as long as you have a

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Speaker 3: good product that you know companies are in trusted in buying.

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Speaker 3: And open Ai has that deal with AMD. Now that

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Speaker 3: is a big leap of faith in terms of MD's

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Speaker 3: capabilities to supply six gigawatts of power that has all

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Speaker 3: AMD chips, and I think that should help them win

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Speaker 3: more enterprise business over time.

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