Speaker 1: From Mahart where Innovation, Money and power Collie in Silicon
Speaker 1: Vallet NBN. This is Bloomberg Technology with Caroline Hyde and
Speaker 1: ed Love Love.
Speaker 2: Live from New York. This is Bloombo Technology.
Speaker 3: Coming up.
Speaker 2: We sit down with the CEOs of AMD, T Mobile
Speaker 2: and Pinterest. Is tech earnings hit full send Wow plus
Speaker 2: Microsoft Azure growth tests, investors, patients, as AI spend ramps
Speaker 2: and the US sparing ASML and Tokyo Electron From chip Curbs.
Speaker 2: We bring you the details. What a morning I woke
Speaker 2: up to this morning. This is what the earnings that
Speaker 2: have gone before last night looked like in terms of
Speaker 2: the shehare reaction. Many different stories. A lot of it's
Speaker 2: centered around AI. Microsoft down one point three percent off
Speaker 2: session lows. The story slower than expected Azure growth an
Speaker 2: eight percent contribution from artificial intelligence, but investors look at
Speaker 2: the capex and go, we don't see the growth or
Speaker 2: the money coming out the other side of that equation.
Speaker 3: AMD a different story.
Speaker 2: They actually boosted modestly the guidance for the outlook for
Speaker 2: the Mi three hundred AI Accelerator family sales for this year.
Speaker 2: And as you guys know, we're going to be speaking
Speaker 2: to Lisa sue really soon, so many important questions. Lastly,
Speaker 2: Intel up more than one percent. Bloomberg is reporting, citing
Speaker 2: sources that they are going to cut thousands of jobs
Speaker 2: to respond to the lagging earnings and get focused back
Speaker 2: on getting that foundry or fab business off the ground.
Speaker 2: Here's another one that I'm really interested in. T Mobile
Speaker 2: really coming in strong. The stock has kind of bounced
Speaker 2: around this morning on T Mobile, but is now up
Speaker 2: around three to four percent, And the story is so interesting.
Speaker 3: It's those monthly subscribers that are coming in well.
Speaker 2: I looked at the industry and I think the industry
Speaker 2: as a whole has done really well on that front.
Speaker 2: Delighted to bring in the president and CEO of Tea Mobile,
Speaker 2: Mike sever who joins me on set in New York City.
Speaker 3: Good morning, that's great to be here, Thanks for having me.
Speaker 3: Really interesting.
Speaker 2: That number to subscribe a number because I look at
Speaker 2: your peers and competition who also seem to be doing well.
Speaker 2: So it raises the question, where are your gains coming
Speaker 2: from from them? Or is there just like this new
Speaker 2: generation of customer that's appeared.
Speaker 4: Well, we're seeing nice organic growth in the industry, so
Speaker 4: everybody did pretty well. Both my principal competitors I think
Speaker 4: had net gains that were a little better than expected.
Speaker 3: But T Mobile took the prize.
Speaker 4: I mean, this was the biggest Q two for postpaid
Speaker 4: net phone editions ever in our history, and we.
Speaker 3: Took took the price from who is what I'm trying to.
Speaker 4: Well, we took more than AT and T and Verizon combined.
Speaker 4: So this is still a share taking story for us.
Speaker 4: And you know, of course the industry is growing. That's healthy,
Speaker 4: that's positive it but T Mobiles the disproportionate winner in
Speaker 4: the growth game. Our post paid service revenues up seven
Speaker 4: percent year over year, more than twice the pace of
Speaker 4: the principal competitors.
Speaker 2: Mike back in California, we're a T Mobile householder and
Speaker 2: I use Verizon for my kind of work business line.
Speaker 2: But it's the technology story that I'm most interested in.
Speaker 2: You know, I think back to when the I fifteen
Speaker 2: Pro generation came out. I went there because of incentive
Speaker 2: a credit back on a new handset, the incentive of
Speaker 2: having multiple lines on one account, And I always want
Speaker 2: to know how much of a factor that still is
Speaker 2: for you guys to kind of think, well, what can
Speaker 2: we do on the incentive side to either renew existing
Speaker 2: customers or bringing new ones.
Speaker 4: Customers have always trusted T Mobile to be the best
Speaker 4: value in the industry. That's our legacy, that's our heritage.
Speaker 4: And what's interesting is now that we're the best network
Speaker 4: in the industry. Also, some would expect us to give
Speaker 4: up that value position, but we're not gonna. You know,
Speaker 4: we have the best promotions, we have the best overall value.
Speaker 1: We give you more, we ask.
Speaker 4: Less of you, and we have the balance sheet and
Speaker 4: the cost structure to defend that value position for the
Speaker 4: long half.
Speaker 2: It's great to have you on Bloomberg Technology here in
Speaker 2: New York and one of the technology stories with T
Speaker 2: Mobiles Fiber KKR Loomas. I think you've talked about the
Speaker 2: importance of that in the ramp, but I wondered if
Speaker 2: you just give me some specifics why and also how
Speaker 2: you grow your investment and why you did it.
Speaker 4: Last week, we announced our second transaction in the space.
Speaker 4: The first one was Loumos a couple months ago. Last
Speaker 4: week we announced that we are combining collaborating with KKR
Speaker 4: to purchase metro Net and Metronet is the fastest growing
Speaker 4: pure play fiber company in America and arguably the most important.
Speaker 4: And so it's really terrific to be collaborating with KKR.
Speaker 4: Our joint business plan for this asset and this team
Speaker 4: is to grow at past six and a half million
Speaker 4: homes passed within the planning period NOWTAL twenty thirty and
Speaker 4: to do so without further capital calls.
Speaker 3: Is the long time opportunity for you. Bundling.
Speaker 2: So you look at your subscribe to customers, you look
Speaker 2: at what the household does with you.
Speaker 3: You want them to do more. Is that the idea?
Speaker 5: Well, it's the current opportunity.
Speaker 4: Remember, T Mobile's a major broadband provider today. In fact,
Speaker 4: we have five point six million broadband customers through our
Speaker 4: fixed wireless product. This quarter Q two, T Mobile took
Speaker 4: our highest percentage share broadband net ads ever in our history,
Speaker 4: seventy five percent. When you add up all fiber, all cable,
Speaker 4: and all fixed wireless one brand, T Mobile took seventy
Speaker 4: five percent.
Speaker 5: With over four hundred thousand net editions.
Speaker 4: And so our value proposition is resonating with people, and
Speaker 4: part of it is sure they trust our brand and
Speaker 4: they want to buy wireless from US and broadband from.
Speaker 2: US stock's now up four percent and in the session
Speaker 2: up about fourteenth eight year today. This is Bloomberg Technology.
Speaker 2: One of the companies that I cover is SpaceX. I'm
Speaker 2: really interested in the Starling relationship. But when i flew
Speaker 2: here on a United Airlines flight, I was able to
Speaker 2: access Wi Fi in flight because I'm a T Mobile customer.
Speaker 2: You've got different options there. What's the big picture strategy?
Speaker 4: Well, first of all, I'm glad you acknowledged that benefit.
Speaker 4: This is so exciting.
Speaker 2: We have partnerships with because United doesn't have starlin is
Speaker 2: my point a direct, And.
Speaker 4: We have partnerships with most of the major US airlines
Speaker 4: such that T Mobile customers get free Wi Fi on
Speaker 4: flights and it's so great. And we're doing that through
Speaker 4: satellite connectivity with a number of partners. But what you're
Speaker 4: asking about is our exclusive era raingement with SpaceX. We
Speaker 4: have a technology alliance and we intend to be the
Speaker 4: first ones to bring satellite connectivity to your day to
Speaker 4: day usage of your mobile phone. And the vision here
Speaker 4: that's joined between us is to eliminate dead zones. The
Speaker 4: idea that if you can see the sky, you're connected
Speaker 4: and you can message, text and eventually make phone calls
Speaker 4: and have some data to be connected to the people
Speaker 4: and the issues that.
Speaker 5: You care about.
Speaker 2: An interesting technology conversation and you acknowledge the competition and
Speaker 2: growth across your industry as well. Might see that T
Speaker 2: Mobile CEO and all of course president of T Mobile
Speaker 2: as well. Now, I told you this was a day
Speaker 2: where you need to buckle up. We have a lot
Speaker 2: of earnings coming thick and fast. AMD shares currently up
Speaker 2: six percent. At one point in the session, we're up
Speaker 2: eleven percent, putting them on track for their biggest drump
Speaker 2: since February that following positive earnings results showcasing a boost
Speaker 2: in sales from the company's AI Accelerate to the family
Speaker 2: of Mi I three hundred, but also some interesting recovery
Speaker 2: in the PC business. Joining us now is a d C.
Speaker 2: Lisa Sue. Good morning to you, Lisa. You know, I
Speaker 2: think that's where everyone was looking, right, Am I three hundred,
Speaker 2: and whether or not you could go beyond the four billion,
Speaker 2: and you said four point five billion. I wondered if
Speaker 2: we could start by discussing the factors behind that. What changed,
Speaker 2: whether it was supply or demand in shipping more of
Speaker 2: the I three hundred family.
Speaker 6: Well, good morning, Ed, it's great to be here with
Speaker 6: you today. Look, we had a very strong second quarter,
Speaker 6: very pleased with the overall growth that we saw, really
Speaker 6: led by the data center business. So our data center
Speaker 6: business more than doubled year on year in the second quarter,
Speaker 6: and we see you know, a strong second half there
Speaker 6: as well as well as strengthened PCs. So you know,
Speaker 6: to your question about you know I three hundred and
Speaker 6: what are we seeing an AI, you know, we're seeing
Speaker 6: an environment where everybody needs more data center AI infrastructure.
Speaker 6: You know, computing is really the foundation of what drives
Speaker 6: you know, sort of all of these AI capabilities going forward.
Speaker 5: You know, I three hundred has been.
Speaker 6: Well into the qualifications at numerous of our top customers.
Speaker 6: And you know what we saw over the past quarters,
Speaker 6: We've passed some very significant milestones in both one, you know,
Speaker 6: ramping up our supply chain, but also passing important you know,
Speaker 6: data center customer milestones where customers have moved our product
Speaker 6: into production.
Speaker 5: So it's an exciting time right now.
Speaker 6: You know, we did update our full year AI guidance
Speaker 6: from greater than four billion a quarter ago to greater
Speaker 6: than four point five billion I think we're seeing great
Speaker 6: traction in our hardware and software milestone. So overall, I'm
Speaker 6: feeling really good about the setup going into the second
Speaker 6: half of the year.
Speaker 2: Lisa, I'm really interested in kind of the design and
Speaker 2: performance differences for all the AI accelerators that are out there.
Speaker 2: You and I have talked about the technology differences, but
Speaker 2: on the call you gave the example of Microsoft and
Speaker 2: its use in the quarter of the MI I three
Speaker 2: hundred generation. When you're speaking to a hypers Gala, when
Speaker 2: might they opt for using m I three hundred over
Speaker 2: in Video's h one hundred, and I suppose to a
Speaker 2: lesser extent, GOUDI, what is the specification or performance driver
Speaker 2: that would make it a better solution in a certain
Speaker 2: use case.
Speaker 7: Yeah.
Speaker 6: Well, first of all, you know, i'd like to, you know,
Speaker 6: say that Microsoft is a phenomenal partner.
Speaker 5: They're a great partner for us.
Speaker 6: You know across you know the data center as well
Speaker 6: as you know the client businesses, and when you see
Speaker 6: in particular, you know how complex these AI systems are.
Speaker 5: You know, you want to have, you know, the best
Speaker 5: technology capability.
Speaker 6: You know, I can go into speeds and feeds, but
Speaker 6: I won't I think it's suffice it to say you
Speaker 6: need this type of computing for both training and inference.
Speaker 6: In our case, you know, m I three hundred is
Speaker 6: the leading inference accelerator today. We have the highest memory,
Speaker 6: the highest memory, you know bandwidth, and that's really helpful.
Speaker 6: You know, when you're asking questions to you know, something
Speaker 6: like you know a chat, GPT or LAMA model, and
Speaker 6: you want your answers to return faster. You want the
Speaker 6: fastest inference accelerator out there, and I three hundred does
Speaker 6: very very well in that framework. And then when you
Speaker 6: take a step back and just look at the overall
Speaker 6: AI market, I mean, the overall AI market is growing
Speaker 6: so fast there is no one solution fits all. Actually,
Speaker 6: you know, you do have different workloads will be optimized
Speaker 6: with different hardware. So I think we have a tremendous opportunity.
Speaker 6: I think we're very excited about the overall market growth.
Speaker 6: And then as more customers get a chance to use
Speaker 6: our AMD Instinct roadmap, I think we're getting very positive feedback.
Speaker 2: Lisa, you address head on the call. I think that
Speaker 2: the investment cycle for AI has legs, it will continue,
Speaker 2: but just interesting what you just said can you kind
Speaker 2: of a portion of how much of that spend or
Speaker 2: investment is going to training versus inference at this stage.
Speaker 3: Yeah.
Speaker 6: Absolutely, So when we look at this cycle, ed, you know,
Speaker 6: you and I have talked about this before. I mean,
Speaker 6: we're forecasting that the overall market for AI accelerators when
Speaker 6: you look out and let's call it twenty seven, twenty
Speaker 6: eight and beyond time frame, you know, will you know,
Speaker 6: be you know, four hundred billion dollars plus, which is
Speaker 6: you know, huge market overall.
Speaker 5: I think in.
Speaker 6: That you're gonna need a lot of training and you're
Speaker 6: gonna need a lot of inference. You know, today I
Speaker 6: would say that, you know, most people would say that
Speaker 6: you're building foundation with training. So training is a place
Speaker 6: where you know, you want the largest models uh to
Speaker 6: really be capable of uh uh you know, of using
Speaker 6: all of the large data infrastructure. But going forward, you
Speaker 6: would expect that, you know, inference demand will actually surpass training.
Speaker 6: Most people believe that, and you know, I think this
Speaker 6: isn't this. You know, we'll see how this plays out
Speaker 6: over the next couple of years. But you're going to
Speaker 6: need technology for both training and inference. And at the
Speaker 6: end of the day, You're also going to have a
Speaker 6: very diverse set of models and a very diverse set
Speaker 6: of needs. So you have the largest found national models
Speaker 6: out there, but then you also have you know, many
Speaker 6: enterprises our training on their own data and they'll use
Speaker 6: you know, sort of a different type of infrastructure for that.
Speaker 2: Lisa, what's actually being done to address the supply constraints
Speaker 2: such as they are that the impact your abilities with
Speaker 2: I three hundred, Well, you know.
Speaker 6: I would say overall, when you look at the semiconductor
Speaker 6: supply chain, it's been amazing. I mean, we have substantially
Speaker 6: increased the overall capacity as an industry to address this
Speaker 6: very high AI demand. We've also addressed from an a
Speaker 6: MD standpoint, our supply chain has been expanding every quarter.
Speaker 6: You know, we announced in the second quarter that we
Speaker 6: did over a billion dollars of revenue in you know
Speaker 6: AI accelerators, which is a fantastic number. We see that
Speaker 6: increasing every quarter as we go into the second half
Speaker 6: of the year. The supply chain will continue to be
Speaker 6: tight as we go into twenty twenty five, and that
Speaker 6: just says a bit of about just how.
Speaker 5: Much demand there is out there.
Speaker 6: We have great partnerships with our supply chain partners, and
Speaker 6: we're working on expanding that as fast as possible.
Speaker 2: Lisa that the dominant player in the market for AI
Speaker 2: accelerators that go in Stata centers is committed to this
Speaker 2: cadence of essentially a new generation of chip annually. What
Speaker 2: does AMD do to compete with that and develop new
Speaker 2: products going forward?
Speaker 6: Well ed, what we see in the market, you know,
Speaker 6: spending time with you know, the industry leaders, is this
Speaker 6: market is moving so fast that you have to be
Speaker 6: on an annual cadence. So we announced last month that
Speaker 6: we have accelerated and expanded our roadmap.
Speaker 5: You'll see us later this year.
Speaker 6: We're going to launch our MI I three twenty five series,
Speaker 6: which is the next next step in our roadmap. Next
Speaker 6: year in twenty twenty five, will launch our Mi I
Speaker 6: three fifty series, which is a brand new architecture. And
Speaker 6: we're already well on our way to four hundred series,
Speaker 6: which we'll launch in twenty twenty six. So we are
Speaker 6: on an annual cadence. Not only that, it's not just
Speaker 6: about the accelerator, you know, you know, CPUs continue to
Speaker 6: be very very important. We see that overall networking continues
Speaker 6: to be very important. Overall system capability is also very important,
Speaker 6: and we are investing in bringing all of those capabilities
Speaker 6: together to really help our customers with the best infrastructure,
Speaker 6: you know, for their AI workloads.
Speaker 2: Lisa, what I love about the Bloomberg Technology audience is
Speaker 2: there's gonna be a big body of people out there
Speaker 2: who think a MD and they think PC and gaming.
Speaker 2: You know, that's kind of the reality of it. You
Speaker 2: painted this kind of positive picture for PC, at least
Speaker 2: for your company in the second half of the year.
Speaker 2: Is that a story of a market recovery and broadly
Speaker 2: the market doing well or is AMD doing something specific
Speaker 2: to outperform in that environment.
Speaker 5: Yeah, we see a couple of things.
Speaker 8: Ed.
Speaker 6: First of all, the PC market is a good market.
Speaker 6: You know, the second half of the year is typically
Speaker 6: strong than the first half. Anyways, from a market standpoint,
Speaker 6: we see some positive signs in the market. I will
Speaker 6: say I'm very excited about AIPCS. I view AIPCS as
Speaker 6: an inflection point for what PCs can do in all
Speaker 6: of our daily lives, whether you're talking about a corporate
Speaker 6: environment or a consumer home environment. So that's a positive.
Speaker 6: I think we are also just launching a whole new
Speaker 6: generation of chips. You know, we call it our Zen
Speaker 6: five family, both notebooks and desktops. They are fantastic. We're
Speaker 6: really happy with the reception for those, and so we
Speaker 6: see that as an opportunity. That is, you know, our
Speaker 6: product roadmap. Launching usually gives us a lift into the
Speaker 6: second half of the year and then you know, in
Speaker 6: the medium term, you know, going into twenty twenty five,
Speaker 6: you're going to see a lot more aipcs. You're also
Speaker 6: going to see you know, we believe in enterprise refresh cycle.
Speaker 6: So I think there are positive indicators for the PC market,
Speaker 6: you know, going forward.
Speaker 2: Would you be able to give me some sort of
Speaker 2: forward looking commentary on the gaming business, in particular when
Speaker 2: that might see some improvement.
Speaker 6: Yeah, I mean, let me talk a little bit about gaming.
Speaker 6: You know, first of all, the gaming segment is a
Speaker 6: great segment. You know, we truly you know, value the
Speaker 6: strong partnerships we have with the market leaders like Microsoft
Speaker 6: and Sony in the in the console cycle.
Speaker 5: Now, typically these console cycles.
Speaker 6: You know, do have an EBB and a flow, and
Speaker 6: so we're in the second half of the console cycle,
Speaker 6: let's call it the fifth year, and so we do
Speaker 6: we have seen a decline in revenue. I think that
Speaker 6: was very much as expected. We would expect that, you know,
Speaker 6: it would take until the next refresh cycle for you
Speaker 6: to see a substantial change in that.
Speaker 5: But this is very much a market that.
Speaker 6: We know, we love, and we believe has you know,
Speaker 6: great you know, long term alignment.
Speaker 5: You know, with our roadmap and our.
Speaker 2: IP Lisa, I acknowledge you've kind of had a very
Speaker 2: busy twenty twenty four. You spend a lot of time
Speaker 2: on aeroplanes. I think about computex in particular.
Speaker 3: All day.
Speaker 2: You were on stage with a number of partners, and
Speaker 2: we talk just now about the sort of legacy gaming
Speaker 2: and PC business. I just wondered if you have any
Speaker 2: sort of evidence or data you can give me that
Speaker 2: those partners are putting a MD into sales channels where
Speaker 2: you might not have any experience, for example, like in
Speaker 2: the public sector or selling your technology to governments rather
Speaker 2: than just the hyperscalers.
Speaker 5: Yeah.
Speaker 6: Yeah, that's a great question. First of all, you know,
Speaker 6: we love our partnerships, ed. I think partnerships are you know,
Speaker 6: what makes this industry truly special. Right, every company has
Speaker 6: their secret sauce, their great product. But when you put
Speaker 6: it together and really bring the best of you know,
Speaker 6: the the industry together. Is when you get the you know,
Speaker 6: the great payoff when you look at our business. First
Speaker 6: of all, you know, let me talk a little bit
Speaker 6: about our enterprise server business. I'm super pleased to see
Speaker 6: the progress that we're making there. When you think about
Speaker 6: you know, the server CPU market, let's call it, you know,
Speaker 6: outside of AI, there's a whole set of workloads that
Speaker 6: need the best you know, general purpose computing. That's what
Speaker 6: we have with our you know, fourth generation EPIC, and
Speaker 6: we just launched our fifth generation you know EPIC. Previewed
Speaker 6: our fifth generation EPIC as well, very very important you
Speaker 6: know foundation for you know, these enterprise data centers. We
Speaker 6: made substantial progress here in the first half of the year.
Speaker 6: I would say one third of our new design wins
Speaker 6: are actually from customers that I've never used a m
Speaker 6: D before. So this that's exactly what you said is,
Speaker 6: you know, as we introduce a m D more to
Speaker 6: the broader enterprise, you know customers, we're seeing great traction
Speaker 6: primarily because we have you know, the best performance per
Speaker 6: dollar and the best performance per WAT you know out there.
Speaker 6: So we do see a tremendous opportunity in the enterprise market,
Speaker 6: both on the traditional compute side as well as AI
Speaker 6: as well as a I p C.
Speaker 5: So all of those are great opportunities.
Speaker 2: Lisa, I know you've got to go to your next meeting,
Speaker 2: so very quickly. What's the talent story for AMD in
Speaker 2: getting the best people?
Speaker 6: We are very very happy with the talent story, and
Speaker 6: we have a tremendous engineering team. They're doing great things
Speaker 6: on hardware and software. And we just announced our intent
Speaker 6: to acquire a fantastic AI company, Silo AI, that's based
Speaker 6: in Europe that also adds great talent to the company.
Speaker 5: So this is a war for talent, and I would
Speaker 5: say we're very happy.
Speaker 6: With the great engineering capabilities that we have to move
Speaker 6: the road map forward.
Speaker 2: AMD CEO, Lisa, So it's great to have you here.
Speaker 2: Back on Bloomberg Technology, Thank you. Okay, let's get back
Speaker 2: quickly and check in on Microsoft. This is what shares
Speaker 2: look like. Top line growth of twenty nine percent for
Speaker 2: Azure missed estimates of thirty one percent. There was an
Speaker 2: eight percent contribution from AI, but there's a concern about
Speaker 2: the spend they had to make to get there. We're
Speaker 2: also going to get a look at meta results tonight
Speaker 2: after the market close in the United States. The stock
Speaker 2: kind of buoyant, and you think about the read through.
Speaker 2: Let's see what happens. Coming up on the program, We're
Speaker 2: gonna have more on earnings. We're going to discuss a
Speaker 2: story about Uber and BYD's new partnership, and a whole
Speaker 2: lot more. Take a break, take a breath, will be
Speaker 2: right back. This is Bloomberg Technology. Uber and China's BYD
Speaker 2: are teaming up to bring one hundred thousand electric vehicles
Speaker 2: to the ride heiling app, starting off in Europe and
Speaker 2: Latin America before expanding elsewhere, not the United States. Joining
Speaker 2: US is Bloomberg Intelligence analysts Man Deep saying, I find
Speaker 2: this fascinating. The idea in the first instances EV availability
Speaker 2: to gig economy drivers on the platform.
Speaker 3: What did you make of it?
Speaker 7: Yeah, I mean, look, Uber has so far done a
Speaker 7: great job of establishing a network outside the US, and
Speaker 7: obviously they don't have access to the China market. So
Speaker 7: these are the parkets where it has the number one position,
Speaker 7: and you know, moving to the the EV side makes
Speaker 7: a ton of sense. So clearly Tesla is in partnering
Speaker 7: with them. I mean, we know Tesla wants to go
Speaker 7: to robotaxis through their own app. They're not looking to
Speaker 7: use one of these right sharing guys. And I think
Speaker 7: it makes sense for Uber to collaborate with all these OEMs,
Speaker 7: whether it's BYD or Kia or anyone or.
Speaker 3: Just real quick collaborate.
Speaker 2: No financial terms between the two companies disclosed. I found
Speaker 2: the autonomous paragraph very important. You know, BYD's future autonomous
Speaker 2: capabilities on the Uber platform, you know about my reporting
Speaker 2: on robotaxi with Tesla. That seems like a response, right,
Speaker 2: This is acknowledging the market state of affairs.
Speaker 7: It is, but I mean, look, all these companies are
Speaker 7: behind Tesla and veim or when it comes to developing
Speaker 7: the software capabilities for autonomous driving. So I would still
Speaker 7: say Uber doesn't have the platform to have, you know, robotaxis,
Speaker 7: because all these companies just aren't there when it comes
Speaker 7: to the software development.
Speaker 3: Mande. Let's talk about Mike.
Speaker 2: I think we know the Microsoft story right, Slower than
Speaker 2: hoped for growth on asual cloud services in AI and Capex.
Speaker 2: There was something Amy Hood said on the call that
Speaker 2: I just saw straight away that I don't see being discussed,
Speaker 2: which is a fifteen year time horizon to monetize the CAPEX.
Speaker 2: That's a bit of a clue of how long this
Speaker 2: is going to take to be real, right, Yeah.
Speaker 7: And look, all these chips are changing. So with Nvidia
Speaker 7: coming up with their latest architecture, they talked about shipping Blackwell.
Speaker 7: Imagine if you are a consumer of these AI services,
Speaker 7: you want access to the latest chips, and so that
Speaker 7: automatically drives a compression to you know, your cloud workloads
Speaker 7: that are that are using the earlier version of the chips.
Speaker 7: So I think that's what we saw in the print.
Speaker 7: Like you know, there was some sort of substitution going
Speaker 7: on in terms of CPU to more GPUs and also
Speaker 7: the pricing compression from the latest.
Speaker 3: Version of the chips.
Speaker 2: I don't know who badged out of Bloomberg's world, like
Speaker 2: quarters first last night, me or you, but we got
Speaker 2: another long day today and I think Meta probably the focus.
Speaker 2: What's the Bloomberg Intelligence expectation for this quarter?
Speaker 7: I mean, you want to see top line growth in
Speaker 7: excess of twenty percent, and remember the comps get tougher
Speaker 7: in the second half.
Speaker 3: So this is the last quarter which is they had
Speaker 3: such a great year last year exactly.
Speaker 7: In the second half, and so clearly you want to
Speaker 7: see ad pricing continue to trend higher. Pinterest wasn't very
Speaker 7: convincing last night in terms of that ad pricing, and
Speaker 7: given Meta has the most GPU allocation, they should They
Speaker 7: are the biggest deployers it.
Speaker 3: That's the thing, just real quick.
Speaker 2: We know they're buying that volume of h one hundreds,
Speaker 2: we know the capex commitment. So what is it they're
Speaker 2: going to have to do to tell the market with
Speaker 2: this is a success for us in AI and.
Speaker 3: They don't have a cloud revenue.
Speaker 7: That's five billion dollars rounder it coming from AI, So
Speaker 7: it has to reflect in that ad pricing and AD
Speaker 7: revenue and you want to see that. Woman, I'm the
Speaker 7: twenty percent plus growth rate.
Speaker 2: Man Deep saying, senior analyst of Bloomberg Intelligence. It's so
Speaker 2: awesome to be here next to you in.
Speaker 3: New York City.
Speaker 2: Welcome back to Bloomberg Technology, Ed Lovelow in New York City.
Speaker 2: This is what the names reporting after market clothes are
Speaker 2: currently doing. Chip stocks are buoyant, partly because of AMD's earnings,
Speaker 2: partly because in Vidia's a top pick at Morgan Stanley
Speaker 2: and that stock is going off like a rocket this morning.
Speaker 2: But there are some other stories. You just got the
Speaker 2: lowdown on meta from Bloomberg's man Deep Singh.
Speaker 3: Basically, how does all.
Speaker 2: The investment in AI infrastructure translate to advertising pricing, Because
Speaker 2: at the end of the day, they don't have a
Speaker 2: cloud business. There's still a social media platform with a
Speaker 2: lot of other stuff going off. One mover to the
Speaker 2: downside in earnings is Pinterest. It's off by more than
Speaker 2: thirteen percent. They gave this guidance on revenue R sales
Speaker 2: for the third quarter, top end of the range nine
Speaker 2: hundred million, but even the top end of the range
Speaker 2: was below street estimates. Now, what's also interesting about pinterest
Speaker 2: is the size of its user base, so many stories
Speaker 2: within that. It's bringing CEO Interest Bill ready for more
Speaker 2: and Bill, good morning to you. Thank you for joining
Speaker 2: us here on Bloomberg Technology. Let's start with that guidance,
Speaker 2: get it done. What were the factors behind the range,
Speaker 2: which again it's below street estimates.
Speaker 9: Sure, yeah, I mean if you look at Q two,
Speaker 9: you know we put up record user growth.
Speaker 1: We hit a new all time high end users.
Speaker 9: We came in above our guidance on revenue twenty one
Speaker 9: percent plus revenue growth with six inser basis points of
Speaker 9: margin expansion. So Q two is a really strong quarter.
Speaker 9: As we look ahead to Q three, we have a
Speaker 9: five point tougher comps. We're laughing lapping much tougher comps,
Speaker 9: and you saw that from some of our larger peers
Speaker 9: as well. But when you step back from that, you
Speaker 9: know we're growing faster than our larger peers that have
Speaker 9: already reported. We're seeing our best product market fit in years.
Speaker 9: Gen Z's our largest fastest growing audience, and we're winning
Speaker 9: share of wallet with some of the largest, most sophisticated
Speaker 9: advertisers out there. So the fundamentals of the business are
Speaker 9: all really sound and we feel great about those and
Speaker 9: as we guided forward, it's relatively consistent growth with where
Speaker 9: we've been once you adjust for currency fluctuations, despite the
Speaker 9: fact that we have a five point tougher comp So
Speaker 9: I think you saw that in some of the reactions
Speaker 9: on our larger peers. I think you're seeing some of
Speaker 9: that here as well. But if you pull back from it,
Speaker 9: the fundamentals of business have never been better. For Pinterest Bill.
Speaker 2: Something you told my colleagues at Bloomberg News is that
Speaker 2: historically Pinterest is a great place for windows shopping. But
Speaker 2: I think the quote is that all the stores were
Speaker 2: closed helped me understand that.
Speaker 9: Yeah, so, you know, I came in two years ago
Speaker 9: and at that time Pinterest was primarily about browsing and
Speaker 9: there weren't a lot of clicks and conversions to speak
Speaker 9: of for advertisers. We've made tremendous progress in making it
Speaker 9: so that users can actually take action on the things
Speaker 9: they find on Pinterest, and this has been right at
Speaker 9: the core of how we've accelerated user growth. Last time
Speaker 9: I was on the show last quarter, we talked about
Speaker 9: seven consecutive quarters of accelerating user growth. We put up
Speaker 9: consistent performance to that on users again this quarter, and
Speaker 9: at the core of that is that actionability. And not
Speaker 9: only do users love that actionability. You know, Pinterest is
Speaker 9: where gen Z goes to shop, but it's great for advertisers.
Speaker 9: This is our third quarter in a row of more
Speaker 9: than doubling the number of clicks we sent to advertisers
Speaker 9: year on year, which is why you see us gaining
Speaker 9: share with the largest, most sophisticated retailers out there that
Speaker 9: are increasing share of wallet with Pinterest, and we're seeing
Speaker 9: that start to take hold across retail, which we cited
Speaker 9: as a place of broad strength for us and a
Speaker 9: driver of our really strong result in Q two, and
Speaker 9: the we're excited by as we look ahead, Bill.
Speaker 2: Just really quick, because you're talking about your user base, right,
Speaker 2: So we've just shown a graphic that shows the scale.
Speaker 2: Forty percent of that is gen Z And there's always
Speaker 2: a question about the actions that audience takes, right, do
Speaker 2: they actually buy anything having spent time on the platform.
Speaker 1: Yeah.
Speaker 9: Absolutely. I think this is you know two things I'd
Speaker 9: say about gen Z. One, they're the taste makers for
Speaker 9: you know, the next generation. So pinterst is really unique.
Speaker 9: And it's not just the people shop on Pinterest. People
Speaker 9: curate their taese on Pinterest. It's a completely unique behavior
Speaker 9: on Pinterest relatives to the rest of social media, where
Speaker 9: people are planning outfits and planning what they're going to
Speaker 9: buy long before they do it. And so that gives
Speaker 9: us really rich signal to feed our AI for recommendations,
Speaker 9: and so that taste making that happens is not just
Speaker 9: good for gen Z, but they're the taste makers for
Speaker 9: the next older generations, where we deliver more relevant recommendations there.
Speaker 9: And then to your point on gen Z buying, Yes,
Speaker 9: Penterest is where gen Z goes to shop and we
Speaker 9: see that same behavior that you know gen Z. Yes,
Speaker 9: it spans teenagers, but also spans all the way up
Speaker 9: through you know, recent college grads and people that are
Speaker 9: in their first jobs and their first apartments, and so
Speaker 9: we see a lot of shopping behavior there and it's
Speaker 9: really consistent across demographics on the platform.
Speaker 2: Bill Pinterest does not sell political advertisements. Are you able
Speaker 2: to kind of quantify the impact of that policy in
Speaker 2: terms of a missed opportunity?
Speaker 1: Yeah, it's a great question.
Speaker 9: You know, we've done a number of things to invest
Speaker 9: in the positivity of the platform that if you look
Speaker 9: at them on a short term optimization, you know, like
Speaker 9: political ads, you could say, Okay, there'll be a lot
Speaker 9: of money spent on political ads over the over the
Speaker 9: coming quarter. However, we don't take that money because we
Speaker 9: see that that's an investment in the long term health
Speaker 9: of our platform.
Speaker 1: As we're winning with gen Z.
Speaker 9: One of the top reasons gen Z sites as why
Speaker 9: they come to pinterest is they see it as an
Speaker 9: oasis away from the toxicity they experience elsewhere on social media.
Speaker 9: So as we've done things like making Pinterest private only
Speaker 9: for under sixteen, we've actually seen that come through and
Speaker 9: drive user growth and engagement for us, and we're seeing
Speaker 9: it cut through with advertisers too, where advertisers also want
Speaker 9: to be in a brand safe environment. Brands are built
Speaker 9: on positivity, and brands don't want to show up next
Speaker 9: to negative, polarizing content. And so you know, yes, there'll
Speaker 9: be a lot of money spent on political ads, but
Speaker 9: we're consciously choosing not to take those because we think
Speaker 9: that's in the long term interest of our platform for
Speaker 9: both users and advertisers.
Speaker 2: Bill, let's talk about osificial intelligence, but I think some
Speaker 2: granularity is important. So wah large language models or partners
Speaker 2: and you're building on top of and you're able to
Speaker 2: give a sense of the specific AI spend that's related
Speaker 2: to kind of add targeting and add improvement, bit pricing
Speaker 2: or something else.
Speaker 1: Yeah, this is AI is a core competency for us.
Speaker 9: I've talked about on prior earnings calls where when you
Speaker 9: look at the fact that we're not only growing users
Speaker 9: at record levels, we're actually deepening engagement per user. A
Speaker 9: big part of that is on the increasing relevancy of
Speaker 9: our recommendations, and so I shared on a prior call
Speaker 9: that through large language models, we saw a ten percentage
Speaker 9: point lift and the relevancy of our recommendations.
Speaker 1: That's really really encouraging.
Speaker 9: It is why users are coming back to finding more
Speaker 9: of what they're looking for on pinterest. But to your
Speaker 9: question on spend, we've also delivered really great margin expansion
Speaker 9: this past quarter, even as we were investing in AI,
Speaker 9: we delivered six hundred basis points of margin expansion and
Speaker 9: you've seen that consistently over the last two years. And
Speaker 9: the reason for that is that we're delivering great user
Speaker 9: engagement from the AI, but it's user engagement that is
Speaker 9: highly monetizable. More than half the users on pinterests are
Speaker 9: there to shop, so we're turning that AI investment into
Speaker 9: really great return through higher engagement, and then advertisers want
Speaker 9: to meet those users where they're shopping, and that's driving
Speaker 9: acceleration and AdSpend for us.
Speaker 1: And so you've seen that in the results.
Speaker 9: But we're really finding that we can deliver great return
Speaker 9: on our AI investments, and we have really unique signal.
Speaker 9: I think this is one thing that is underappreciated across
Speaker 9: the industry, and so much like cloud commuting.
Speaker 1: Much like cloud computing, I.
Speaker 9: Think everyone have access to basic building blocks, but who
Speaker 9: has really unique signal? And the curation of shopping behavior
Speaker 9: on Pinterest gives us really unique signal to feed our
Speaker 9: AI bill.
Speaker 2: The stock's down significantly in the session. It's down sort
Speaker 2: of twelve percent year to date, that big year last year,
Speaker 2: I think more than fifty percent gain in the stock.
Speaker 2: You're two years into this job, So what's the biggest
Speaker 2: action you've taken and one that you want to take.
Speaker 9: Yeah, so it's a great question, and I think you know,
Speaker 9: I certainly you don't like to see volatility, but we've
Speaker 9: seen volatility before. If you step back from it, we
Speaker 9: have consistently over the last two years or demonstrated steady
Speaker 9: progress and improving the overall health of the business on
Speaker 9: on top line, on bottom line, on user growth and engagement.
Speaker 9: You know, so that the fundamentals have are sound and improving,
Speaker 9: and we've delivered a say do ratio one on these
Speaker 9: things and we'll look to continue.
Speaker 1: To do that. The things have been the biggest drivers
Speaker 1: in the business.
Speaker 9: I would say one really investing in AI and the
Speaker 9: actionability on the platform via that AI, so relevancy, actionability,
Speaker 9: and then positivity in terms of delivering a safe space
Speaker 9: for our users. State is simply, you know, our users
Speaker 9: go to pinterest because it's a place they can invest
Speaker 9: in themselves without the sort of comparative performative nature you
Speaker 9: know that they experience on the rest of social media,
Speaker 9: and that's why they're there for that commercial intent. So
Speaker 9: we're going to continue to invest in those things. They're
Speaker 9: really working well for us. When you zoom out over
Speaker 9: the multi quarter period, you know, it's been a fundamental
Speaker 9: change introductory of the business, and we're going to keep
Speaker 9: investing in those things that are working because again, our
Speaker 9: fundamentals have never been healthier than what they are.
Speaker 2: And right now, CEO Bill Ready, thank you for coming
Speaker 2: back on Bloomberg Technology.
Speaker 1: Thank you.
Speaker 3: Okay.
Speaker 2: The other big story, of course is Microsoft and its
Speaker 2: cloud revenue slightly missing expectations, but my goodness, it's testing
Speaker 2: the patients of investors who are anxious to see that
Speaker 2: investment in AI payoff. That includes Miszuo his analysts. They're
Speaker 2: saying they're less excited about the near term and favoring
Speaker 2: a few other services like service Now or Oracle over
Speaker 2: the next couple of quarters, though the firm still reiterates
Speaker 2: a price target at four hundred and eighty dollars. On Microsoft,
Speaker 2: I want to bring in Daniel o'reagan, TMT Equity Trading
Speaker 2: MD and Missuo Americas. You know, I want to go
Speaker 2: back to what I was talking to man Deep sing
Speaker 2: about that comment on the on the call from cfo
Speaker 2: Amy heard at Microsoft saying to monetize all the investment
Speaker 2: in data center is a fifteen year timeline.
Speaker 3: How did you react to that?
Speaker 1: Well, thanks for having me.
Speaker 10: I actually thought they did an excellent job of really
Speaker 10: threading the needle, especially on the CAPEX side. I think
Speaker 10: what they did over and over again is really emphasize
Speaker 10: that this spending is going to be very, very meticulous,
Speaker 10: and what they did is it's predicated on demand. They
Speaker 10: constantly look for signals and spend accordingly. And again, a
Speaker 10: lot of these signals are near term, but a lot
Speaker 10: of them are very long term, with north of ten
Speaker 10: to fifteen year parameters. I think they're spending for the future,
Speaker 10: and I think they're going to maximize the opportunity.
Speaker 1: Management has said over and over again that.
Speaker 10: The risk of missing out on the AI trade greatly
Speaker 10: outweighs the risk of overspending. And I think they're excellent
Speaker 10: stewards of capital obviously, and I would trust them with
Speaker 10: whatever capex plans they have.
Speaker 2: Just really quick on Microsoft, you know, they seem a
Speaker 2: victim of you better not miss estimates at all in
Speaker 2: this environment.
Speaker 3: Is that fair?
Speaker 1: Yeah, it was definitely fair.
Speaker 10: So Azure grew thirty percent year of the year, which
Speaker 10: is absolutely tremendous for most companies, But considering that Microsoft
Speaker 10: is probably the second most crowded long and all of
Speaker 10: tech outside of Nvidia, it was a price to perfection
Speaker 10: even on this recent pullback, So again it was a
Speaker 10: the low end of guidance. They put out thirty to
Speaker 10: thirty one. We heard that the byside was closer to
Speaker 10: thirty one to thirty two. Initially the stock did sell
Speaker 10: off eight percent as a knee jerk reaction, but really
Speaker 10: as the conference call started to get underway, they really
Speaker 10: did an incredible job of explaining exactly where the weakness
Speaker 10: came from, and they aped too exactly Europe. Given the
Speaker 10: geopolitical risk there and the economy, that was a great
Speaker 10: spot to point out and then two more importantly, and
Speaker 10: this is when the stock really started to rebound.
Speaker 1: It's a capacity issue. This is not a demand problem.
Speaker 10: They simply don't have enough chips in infrastructure to satisfy
Speaker 10: this AI demand. So I think once they alleviated that,
Speaker 10: the stock really rebounded and it's almost back to flat.
Speaker 10: And then one other thing that when you go a
Speaker 10: little deeper, made a lot of sense.
Speaker 1: This really stood out.
Speaker 10: AI demand actually helped grow azure by eight percent this quarter.
Speaker 10: Last quarter was seven percent, So you're actually seeing an
Speaker 10: acceleration in AI demand that's really are owing to provide
Speaker 10: real ROI, which I don't think is going to start
Speaker 10: anytime soon.
Speaker 2: Daniel Vaging, TMT Equity Trading Managing Director and Zoo America's
Speaker 2: great command of the numbers, really appreciate it. I think
Speaker 2: we have to go back to Nvidia. Look at the
Speaker 2: performance of Nvidia shares in the moment, considering AMD and
Speaker 2: considering Microsoft, this is a stock almost twelve percent. The
Speaker 2: catalyst is that Morgan Stanley has raised Nvidia back to
Speaker 2: being its top pick after what it sees as a
Speaker 2: sell off, giving an attractive point of entry. But that's
Speaker 2: a really big jump. It impacts markets more broadly, I
Speaker 2: think we should just keep an eye on that throughout
Speaker 2: the day. This is Bloomberg Technology. This is Bloomberg Technology,
Speaker 2: and you're looking at a liveshot of the principal room.
Speaker 2: Check out the Bloomberg Technology podcasts. You can find it
Speaker 2: on the terminal so as online at Apple, Spotify and
Speaker 2: also iHeart this is Bloomberg. It's time for talking tech
Speaker 2: and first up, Samsung ramps up its fifth gen high
Speaker 2: bandwidth memory chip production. The electronics giant says it's set
Speaker 2: to start mass producing its Lady's chips this year and
Speaker 2: expects it to contribute sixty percent of HBM total sales.
Speaker 2: Plus Intel plans to eliminate thousands of jobs. That's according
Speaker 2: to sources, who say the chip maker is set to
Speaker 2: announce the job cuts as early as next week.
Speaker 3: Is it looks to reduce costs.
Speaker 2: And fund an ambitious turnaround, and sources also tell Bloomberg
Speaker 2: the Biden administration is planning to exempt chip making equipment
Speaker 2: makers from Japan and the Netherlands from upcoming export restrictions
Speaker 2: to China, adding that the plans are fluid and may change,
Speaker 2: and I want to get to that story with Bloomberg's
Speaker 2: Ian King, who's standing by in San Francisco. You look
Speaker 2: at some of the names that are impacted in ASML,
Speaker 2: in Tokyo Electron. This is significant peace of Bloomber reporting.
Speaker 8: Yeah. I mean, there's a lot of reporting going on
Speaker 8: around this, from US and from our rivals. It's an
Speaker 8: unclear situation right now. What we do know is there
Speaker 8: are more rules coming. There is going to be more
Speaker 8: pressure put on China via those rules. What has been
Speaker 8: in flux as how impactful that would be on some
Speaker 8: of the companies around the world, whether the Biden administration
Speaker 8: would go full in on trying to force the allies
Speaker 8: to follow suit, or whether, as we're seeing now from
Speaker 8: our reporting, they're going to get a pass on this,
Speaker 8: and perhaps those rules may not be quite as comprehensive
Speaker 8: and as effective as we had thought, or as Dutch
Speaker 8: or Japanese investors had perhaps feared.
Speaker 2: Let's talk about the Intel story. The reporting is that
Speaker 2: according to our sources, you know, it's a significant reduction
Speaker 2: in headcount. Intel's a company that has one hundred and
Speaker 2: ten thousand staff approximately around the world. The point of
Speaker 2: difference is it's bab or foundry business, right that's kind
Speaker 2: of accounts for the size relative to peers. What do
Speaker 2: we know about this and why is it significant?
Speaker 8: Okay, so there are a couple of things that work here. Obviously,
Speaker 8: Intel has had significant erosion in its revenue base based
Speaker 8: on losing market share and the fact that its products
Speaker 8: just haven't been as strong. What it's trying to do
Speaker 8: in the to turn itself around is to spend a
Speaker 8: lot of money on new fabs, new technology, new R
Speaker 8: and D to get back in the game, but also
Speaker 8: to expand its business. Something doesn't quite fit there, right.
Speaker 8: You know, you have a need for resources and you
Speaker 8: have staff that they're essentially in place to support a
Speaker 8: bigger business. So what we understand that's going on and
Speaker 8: maybe announced as early as tomorrow when they report earnings,
Speaker 8: is that they're going to have to get rid of
Speaker 8: some of this staff to basically save money to give
Speaker 8: them money to spend on these fight back efforts.
Speaker 2: Bloomberg z and King out of San Francisco, Thank you
Speaker 2: very much. NBC Universal says AD revenue for the Paris
Speaker 2: Olympics has surpassed the record one point two five billion
Speaker 2: sold for Tokyo's twenty twenty Games. A source that the companies,
Speaker 2: who's familiar with the company's ad spend told Bloomberg that
Speaker 2: strong ratings have translated into greater demand for the unsold
Speaker 2: inventory that NBC brought into the games. Primetime viewership so
Speaker 2: far has averaged thirty three point eight million viewers, up
Speaker 2: seventy seven percent from Tokyo, likely due to favorable US
Speaker 2: time zones. And the Paris Olympics is not all about sports,
Speaker 2: It's also about business. Today, the Chinese tech giant Ali
Speaker 2: Barber and its B to B platform Alibarber dot com
Speaker 2: is announcing a partnership with the International Olympic Committee for
Speaker 2: an initiative aiming to help athletes start their own businesses
Speaker 2: become entrepreneurs. The campaigns called same player, new game for more.
Speaker 2: Let's bring in Kor Jung, president of Ali Barber, come
Speaker 2: Whies in Paris. Good afternoon to you. Why make this
Speaker 2: arrangement with the IOC.
Speaker 11: Actually, Alibaba Group is working partners with i WOC as
Speaker 11: a global partner since twenty seventeen, seven years ago, and
Speaker 11: at first we are committing to transform Olympic Games into
Speaker 11: digital area.
Speaker 1: And now we are working.
Speaker 11: With IOC for the new athlete the Stistics file program.
Speaker 11: Since we meet with many of the athletes, we can
Speaker 11: feel that the successful entrepreneurs and athletes actually share the
Speaker 11: same of the common characterisms. Of the common qualities from
Speaker 11: passion to resilience okay, self discipline, push the boundary and
Speaker 11: has a goal set a very very clear goal under.
Speaker 11: These are the kind of characteristics for the successful entrepreneur
Speaker 11: which you see a lot of entrepreneurs on Aliaba dot com.
Speaker 2: Hello, yeah, mister John, I went think we haven't much
Speaker 2: time and I wanted to ask you about the other initiative,
Speaker 2: which is an AI enhanced e commerce search. So Alibaba
Speaker 2: dot com is a B to B platform merchants selling
Speaker 2: to other businesses. Why is an AI powered or enhanced
Speaker 2: search important?
Speaker 3: So today we launch the new product.
Speaker 11: We think it's bigger than Alibaba dot Com itself. So
Speaker 11: previously the search is a kind of a passive mode.
Speaker 11: You key in the keywords and then come up with
Speaker 11: the links with the different kind of pages. And now
Speaker 11: we use the AI technology, we can empower the search
Speaker 11: engine to be a proactive one. So the expertise of
Speaker 11: the human and the technology can work together, helping them
Speaker 11: to generate the more ideas, more original kind of products
Speaker 11: and help them to fee ters of the selection product
Speaker 11: and suppliers. And in the end we can use our
Speaker 11: solution technology, our digital supply chains, combiners of search eendinge.
Speaker 1: Together to fulfill their dream.
Speaker 11: So the f list can use their kind of expertise
Speaker 11: in the ideas in their innovations and we can use
Speaker 11: the technology to help to help them to transform their
Speaker 11: ideas into reality.
Speaker 2: Quote young president Valibarba dot Com joining us from Paris,
Speaker 2: thank you so much for being on boombog technology. I've
Speaker 2: got to go back to Nvidia. This is what the
Speaker 2: state of players in the session up twelve percent. The
Speaker 2: catalyst probably is Morgan Stanley's making it its top chip
Speaker 2: or AI pick once again. But there's probably read through
Speaker 2: from AMD's earnings, right, AMD's AI accelerator, the mi I
Speaker 2: three hundred.
Speaker 3: They upgraded the kind of sales forecast.
Speaker 2: But it's a market where Nvidia dominates, so maybe there's
Speaker 2: upsides that maybe the market saying okay, if AMD is
Speaker 2: so positive about the continued spending on AI infrastructure in
Speaker 2: video gets feel through as well. There's a lot of
Speaker 2: other things going on in the market, right. We're keeping
Speaker 2: an eye on Meta, which reports later today after the
Speaker 2: US market close. It is up two point three percent,
Speaker 2: buoyant ahead of the earnings.
Speaker 3: Why hard to know? Maybe there's some read through from Meta.
Speaker 3: One investor I was speaking to is making the point.
Speaker 2: Meta trades at around twenty one times forward earnings. Microsoft,
Speaker 2: by comparison thirty one times forward earnings. They're different beasts,
Speaker 2: maybe metas something you look at slightly differently in this
Speaker 2: environment to some of the other megacaps that are in aiplay.
Speaker 2: It has the infrastructure spend, doesn't have a cloud business though, Okay,
Speaker 2: that does it For this edition of Bloomberg Technology. Don't
Speaker 2: forget an incredible episode with a number of CEO interviews
Speaker 2: recap on the podcast you know where to find it, Apple, Spotify, iHeart,
Speaker 2: and everywhere in the bloom Averse from New York City.
Speaker 3: This week. This is Bloomberg Technology.