WEBVTT - Week Ahead: Tesla, Alphabet, Intel 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look now at some stocks making news

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<v Speaker 1>in the week ahead. I'm Nathan Hager, joined by Bloomberg

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<v Speaker 1>News senior equities reporter Bailey Lipshultz, and another really big

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<v Speaker 1>week for earnings. We are right in the thick of it, Bailey,

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<v Speaker 1>and we're gonna be hearing a lot from big tech

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<v Speaker 1>names as well, starting this Wednesday with Tesla. I guess

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<v Speaker 1>Elon Musks wants us to think about Tesla as a

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<v Speaker 1>tech company more than a car company.

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<v Speaker 3>Right, No, exactly when you talk to Elan or even

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<v Speaker 3>just look at what he posts on social media conversations

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<v Speaker 3>around the company, Tesla is no longer just a car company.

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<v Speaker 3>It's the future of taxis, it's a robot company. It's

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<v Speaker 3>increasingly in terms of capital expenditure, a AI company, and

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<v Speaker 3>a chip making company. So that's kind of the big

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<v Speaker 3>push to no longer think about Tesla just as the

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<v Speaker 3>company that makes electric vehicles.

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<v Speaker 1>But going into these earnings, of course, we did get

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<v Speaker 1>some delivery numbers on the core business from Tesla kind

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<v Speaker 1>of a beat when it comes to their second quarter

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<v Speaker 1>vehicle deliveries. I mean, how does that set the bar

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<v Speaker 1>in terms of what we could hear on some of

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<v Speaker 1>those other aspects of the business you were just talking about.

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<v Speaker 3>Yeah, No, I think that sets kind of a clear

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<v Speaker 3>expectation for what the core business will deliver. The big

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<v Speaker 3>question from that is, Okay, what are the financial implications

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<v Speaker 3>from strong deliveries? How does that ultimately impact the business

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<v Speaker 3>on the top and bottom line. Again, this is a

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<v Speaker 3>company that hasn't grown car sales as quickly as many

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<v Speaker 3>on Wall Street would have anticipated, But the big question

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<v Speaker 3>now shifts towards Okay, how much is the company spending

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<v Speaker 3>on things like tara fab, the partnership to build out

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<v Speaker 3>chips alongside SpaceX, How is the company thinking about spending

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<v Speaker 3>for optimists? This robot that they've long been talking about

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<v Speaker 3>but haven't really delivered, kind of a key update on

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<v Speaker 3>the humanoid robot project in recent months, in recent core

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<v Speaker 3>and really the big key topic of discussion on the

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<v Speaker 3>earnings call expected to be around robotaxi.

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<v Speaker 1>And also on Wednesday, we're going to hear from another

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<v Speaker 1>company that we think of more traditionally, I think as

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<v Speaker 1>a tech company, one of those big mag seven players

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<v Speaker 1>in Google parent alphabet of course, one of the big

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<v Speaker 1>spenders in this big wave of AI Capex that it

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<v Speaker 1>seems like we've been talking about all year long.

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<v Speaker 3>Yeah, I think when you look at analyst expectations, yes

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<v Speaker 3>we will in the wake of earnings talk about software. Yes,

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<v Speaker 3>in the wake of that, we'll be talking about cloud growth.

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<v Speaker 3>But it does come back to that CAPEX number. And

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<v Speaker 3>we saw analysts coming out from City saying they continue

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<v Speaker 3>to expect all of these hyperscalers to not only deliver

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<v Speaker 3>greater revenues, but also to spend more. And this has

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<v Speaker 3>been a market that has been so heavily driven by

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<v Speaker 3>these mag seven names, these big spenders continuing to spend

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<v Speaker 3>and spend on AI infrastructure. So the big question will

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<v Speaker 3>be are they able to build out their TPUs. They're

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<v Speaker 3>kind of chipping that opportunity again. This is a company

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<v Speaker 3>that plays across the entire suite of technology, and can

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<v Speaker 3>they deliver on the upside because over the last two

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<v Speaker 3>weeks they're up about three percent, which stands out in

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<v Speaker 3>a market that's been up one day and down the.

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<v Speaker 1>Next, and certainly when you think about those TPUs, you

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<v Speaker 1>think as well about the competition with Nvidia and the GPUs.

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<v Speaker 1>There where is Alphabet in terms of that aspect of

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<v Speaker 1>the business.

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<v Speaker 3>They're working to build it out. It's obviously very early days.

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<v Speaker 3>These are two technologies that are somewhat complimentary. They do

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<v Speaker 3>kind of compete, but I don't think many people would

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<v Speaker 3>say the core business from the TPUs, the core business

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<v Speaker 3>from Google and Alphabet is going after Jensen Wong's lunch,

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<v Speaker 3>if you will. So the big question is can they

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<v Speaker 3>find kind of a niche opportunity within the TPUs, and again,

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<v Speaker 3>can they use that to really bolster and fill out

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<v Speaker 3>a suite of offerings, Because when you think about the

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<v Speaker 3>debate we've been having for even just large language models

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<v Speaker 3>in some of those frontier labs. Anthropics obviously well ahead

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<v Speaker 3>of Opening Eye these days, but Google its zone offering,

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<v Speaker 3>Microsoft has its own offering. That's another corner of the

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<v Speaker 3>market that I think people will be interested in what

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<v Speaker 3>management says on the call.

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<v Speaker 1>All right, and after those two major companies report Wednesday,

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<v Speaker 1>we're going to hear from Intel on Thursday. How are

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<v Speaker 1>we thinking the chip maker is going to fare after

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<v Speaker 1>what we heard last week from IBM about missing out

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<v Speaker 1>on the spending shift.

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<v Speaker 3>Not great. I think es vibes are off, vibes are off.

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<v Speaker 3>The one thing I want to call out is that

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<v Speaker 3>Taiwan Semi reported earnings that if you talk to most investors,

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<v Speaker 3>look pretty darn good, and the stock traded down. So

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<v Speaker 3>how high are expectations for the entire semiconductor ecosystem. You

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<v Speaker 3>have to keep in mind last twelve months, Intel's up

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<v Speaker 3>three hundred and forty three hundred and fifty percent. There's

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<v Speaker 3>a high bar to clear. Yes, there's the partnerships and

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<v Speaker 3>kind of the optimism around its relationship with the US government,

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<v Speaker 3>but we are hitting a point where we've seen so

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<v Speaker 3>much volatility in these semiconductor names that I don't think

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<v Speaker 3>a beaten raise is enough to drive the stock hire

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<v Speaker 3>And the big question will be a what does the

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<v Speaker 3>buyside really want to see? And be will they look

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<v Speaker 3>at it and say, all right, great, Maybe I want

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<v Speaker 3>to take some chips off the table, just because if

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<v Speaker 3>you use Taiwan Semi as an example to look at,

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<v Speaker 3>you can have a pretty dark good quarter, but you

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<v Speaker 3>might be priced to professor.

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<v Speaker 1>So are you thinking then that it's almost a foregone

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<v Speaker 1>conclusion that we could see some profit taking following these

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<v Speaker 1>earnings given what you've just been talking about, or is

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<v Speaker 1>there a chance that we could see a little bit

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<v Speaker 1>of a pop to the upside.

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<v Speaker 3>You would have to see a pretty dark good quarter.

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<v Speaker 3>They've been up the last three times after earnings beat expectations,

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<v Speaker 3>but again that was before a lot of this latest

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<v Speaker 3>rally has taken place, and before the company as it

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<v Speaker 3>is now is a half a trillion dollar semiconductor baker.

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<v Speaker 2>This Stock Movers report from Bloomberg Radio. Check back with

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<v Speaker 3>Mm hmm