July 31, 2025 • 44 mins
Bloomberg’s Caroline Hyde speaks with Figma CEO Dylan Field from the New York Stock Exchange as his company goes public in one of the year’s biggest IPOs. Plus, Qualcomm CEO Cristiano Amon joins Bloomberg’s Ed Ludlow to discuss how the company is adapting to declines in handset demand. And Arm CEO Rene Haas says the company made a conscious decision to invest heavily in the previous quarter.
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
from coast to coast with Caroline Hyde in New York
and Eva Low in San Francisco.
Speaker 2 (00:22):
This is Bloomberg Tech coming up.
Speaker 3 (00:24):
Figma CEO joins us live from the NYC Shares a
due to start trading in one of the year's biggest IPOs.
Plus Microsoft and Meta sore on the back of earnings
and their big bets on AI. We'll also dive deep
into the latest chip earnings. We speak with the CEOs
of ARM and Qualcomm. We have a massive show for you.
(00:45):
This is what the technology earning story looks like right
now and last night, Microsoft are Meta dominating.
Speaker 4 (00:51):
Actually some of.
Speaker 3 (00:52):
The games have called off a little bit but very
simple equation. We see AI fueled growth. The capex commitment
is there, but on the top line, you're really starting
to see AI maker contribution. Apple and Amazon are after
the bell and that is a big focus because some
of the themes are similar to Matter and Microsoft.
Speaker 4 (01:08):
Some are not.
Speaker 3 (01:09):
Tariffs a big equation, but Amazon under pressure to show
it's keeping pace with the games. We saw in cloud
from Microsoft last night, but remember Alphabet last week. Then
there's the chip makers. Right shares of ARM under pressure
as the chip maker posted second quarter results with we
can then expected outlook for profit. Some were surprised by that.
(01:30):
In an investor base, this is the company says they're
going to increase spending to better capitalize on the AI
boom for more delighted to say that. Were joined by
Armed CEO Renee has Renee, good morning to you, welcome
back to Bloomberg Technology. That there's actually like a lot
of granular questions about what you're spending on, whether it's
a kind of shift to offer more in the AI
(01:50):
domain beyond the core CPU. Could you just explain a
little bit of where that's based.
Speaker 5 (01:57):
Yeah, happy to and good morning Ain. Thanks for thanks
for having me this morning. So a few things going
on with our business. We just came off our first quarter.
We're in our first fiscal year. We've never actually in
the first quarter ever had a billion dollars in revenue.
That that's a record. Our royalties are our way up
twenty five percent year on year. But also what's fueling
(02:18):
growth for us are these compute subsystems that we've talked about.
We now have five customers shipping we had three customers
in the last quarter that have taken on that product,
two in the data center, one in PCs, and we
also announced our automotive compute subsystems. All of that is
fueling demand for more and more ARM technology across the board.
(02:39):
We expect to be at the end of the year
over fifty percent market share ARM CPUs in the data center.
So as a result of all that, we are really
doubling down on investing in this space. We see a
huge opportunity for growth. We see huge opportunity for ARM
based compute. We're the only AI compute platform that can
(02:59):
run from very very small devices such as earbuds, milliwatts
up in the data center, in the megawatts and gigawatts.
So yes, we are investing more aggressively than we had anticipated,
but I am very convenienced the right thing to do.
Speaker 3 (03:13):
You talked about Project Stargate as an opportunity, and that
project uses ARM for the core CPU, right, But I
think I'm right in saying you talked about there's a
unique opportunity to provide solutions. Is that an expansion of
the CPUIP or building on top of it, or are
we talking about ARM moving into not just AI accelerators,
(03:36):
but high performance compute systems more generally, that would represent
quite a shift in the business model for you.
Speaker 4 (03:42):
Rene.
Speaker 5 (03:44):
Yeah, so Stargate is an amazing opportunity slash endeavor. I think,
as you know, I'm not only the CEO of ARM,
but I sit on the board of SoftBank, so I'm
fairly close to what's going on with Stargate, which is
a joint venture between soft Bank and open Ai about
really bringing a huge amount of investment for data centers.
We announced a five hundred billion dollar investment in January.
(04:07):
I think when Mossa and Sam we're talking a couple
of weeks ago, Sam had talked about expanding this out
the ten gigawatts or the x number of years. That's
a lot of compute and in a ten gigawatt investment
or five hundred billion dollars, there's a lot of opportunity
for innovation. Right now while we're talking about is the
fact that we are the CPU of choice. Grace Blackwell
(04:28):
is the device that's being used. I think, as you know,
Grace is based on ARM. So right now, that's all
we're saying publicly, but you can imagine with that type
of investment. With those type of demands for compute and power,
there's a lot of opportunity for ARM to do even
more than we're doing today.
Speaker 3 (04:43):
But I think that's what the market is trying to understand.
If more means more than enhancing the CPU IP and
moving into more of the sack, basically is would that
be a fair assessment.
Speaker 6 (04:55):
Yeah.
Speaker 5 (04:56):
What we said on the call yesterday is that we
are now exploring those opportunity and they can come in
latch and WAT shapes or forms. Doesn't necessarily need to
be an end solution. There are things such as chiplets.
These are essentially computer subsystems that use RP but deliver
in the physical form. One of the things that we
see with these data centers is that customization allows for
(05:20):
a lot of opportunity to increase performance and power efficiency.
So we have a lot of optionality in terms of
what we do there, and we're looking at everything right now.
Speaker 3 (05:30):
The shares are down more than eleven percent and at
one point in the session on track for their biggest
drop since last August. What you said about new licensing activity,
which I think appears to have taken a bit of
a pause, is that that is a normal fluctuation that
you see, But why should investors not be so concerned
about that? And I'm just going off off of the
(05:52):
share reaction as we have it to last night's print.
Speaker 5 (05:55):
Yeah, yeah, you know, as far as the share reaction,
you know, really can't comment on that. But one of
the things about our licensing activity is that it is
it's pretty robust and pretty sticky. What do I mean
by that? So these compute subsystems that we're licensing, we're
actually now on the second generation of licensing those That
means customers who have licensed the previous generation are now
(06:18):
licensing the next generation. The reason that we have such
good continuity in our licensing activity is that the software
that runs on ARM is so ubiquitous that the change
to a different architecture alternative, it's a pretty large lift
that consumers really would not see much benefit from. So
(06:39):
what we think we see in licensing is from quarter
to quarter it may be a little bit lumpy, meaning
that a deal that could have signed in June may
sign in July, and that may affect the financials, But
in terms of the overall health of the trajectory of
the license activity, it's very very strong. We've seen record
licensing revenue over the last number of years, and people
have just thought, could your licensing revenue really grow given
(07:02):
the market share is so high, But we see growth rene.
Speaker 3 (07:06):
Some of the math that everyone's trying to do on
tariffs is how much of a pull in or pull
forward there was in one age? So what were you
seeing in terms of orders coming in for the first
half that may not materialize in the second half if
people were trying to front run the impact of tariffs
in the end markets you work.
Speaker 5 (07:22):
With, Yeah, we're not feeling that very much. And part
of the reason for that is again when we went
to our new compute subsystems, that the royalty rates are
much higher than what we traditionally had seen. We grow
much faster than the market. You know, what does that mean?
We were up twenty five percent year on year in
terms of royalties. Some of the end markets that we
(07:45):
would participate in we're up single digits in some cases
one to two percent. So we're really not seeing, as
far as I can tell, any effect of people pulling
ahead orders because the tariffs et cetera, et cetera. I
think what we're seeing is our royalty growth really being
fueled by investments we made a number of years ago
around these computer subsystems.
Speaker 3 (08:06):
A renee just there with me, please if you will.
Have got some breaking news. The President has posted on
true social that he has extended a tariff deal with
Mexico for ninety days. He had a phone call with
Shinebomb and is extending the tariff deal with Mexico for
ninety days. Will bring more to our audience on that
as we get it and more analysis Mexico to pay
(08:27):
a fifty percent tariff on aluminum and copper. If tariffs
is not that that signal for you, Rena in the
second half of this year, What are the headwinds that
you baked into your projections?
Speaker 5 (08:40):
You know, the geopolitics and tariffs and things of that
nature are still something we're all learning about as an industry.
So as a result, we didn't give full your guidance.
We haven't didn't do that in the last quarter. So
we're trying to get a handle in terms of what
the next six months look like. But I would say
the fundamentals are very very strong. Again when you look
(09:01):
at the share that we're gaining in the data center,
almost fifty percent by the end of the year, all
the growth of AI, stargate being a huge opportunity for US,
and ARM being the only compute platform that can address
AI from the smallest of devices to the very largest.
We're very, very bullish in terms of long term demand.
The quarter to the quarter tear of things. We'll just
(09:21):
have to say how those all settle out over the
next number of months and days.
Speaker 4 (09:26):
Rene really really quick.
Speaker 3 (09:27):
You've made some gains into automotive, which I find absolutely fascinating.
Just explain the outlook for that business and where the
traction is.
Speaker 5 (09:36):
Yeah, thank you for asking. It's actually a very similar
story to some of the other markets that we serve in.
And by that, what do I mean? And first off,
power efficiency really matters, particularly in these evs where the
compute requirements for autonomous driving is very very high. There's
a lot of software that's now been ported and written
(09:56):
to ARM. If you look at the players in this area,
whether it's Tesla doing their own ships or in Video
or Qualcom, all those compute chips are based on ARM.
ARM is the compute platform for autonomous and as more
and more computer requirements go up, power efficiency being a
very very big key, that's a very very good trajectory
(10:18):
for us in the long run, and again it follows
a very similar formula we see in other markets.
Speaker 3 (10:23):
Renee very quickly, Christiano Amon is on later in the hour.
Investors want you to and are asking when you'll bury
the hatchet and go back to being the important long
term partners that you were.
Speaker 5 (10:36):
Qualcom's a great partner. They do a lot of business
with ARM. As you know, we are in the litigation
with them that is still ongoing, so I can't comment
on that. But Qualcom is a long term partner of
ARM and they have a lot of products based on us.
Speaker 3 (10:49):
As you know, renee Haus of ARM. Really appreciate your
time on Bloomberg Tech. Thank you very much. More on
the chip sector. As I said, Christiano, I'm on the
Qualcom CEO will be on later in the hour with
the latest on their earnings and up next, FIGMA CEO
Dylan Field joins us. This is company goes public. We'll
head down to the New York Stock Exchange for that
(11:09):
conversation that's next.
Speaker 4 (11:11):
This is Bloomberg Tech.
Speaker 7 (11:17):
To our world TV and radio audiences. Hi, welcome you
back to Bloomberg Tech outside the New York Stock Exchange
sat with the latest listing. The CEO of Figma, Dylan Field,
joins me now and to your thirteen million users, to
the thousands of global employees worldwide, how's it feel tomorrow?
Speaker 8 (11:37):
It feels surreal And just thank you for having me
and for being here with us today. It's just amazing
to see the community turn out and also just to
view with the team the contributions of fig Maine's past present,
and also just all the things we've learned and contin
to learn from our community. They all just kind of
show up today in physical manifestation and I can be
(11:59):
more grateful.
Speaker 7 (12:00):
I mean, the vibes, there's a like DJ there's so
many of your employee base, as you say, your figmates,
those who have batch you early. Why this Why does
what does it show about your community?
Speaker 8 (12:11):
Well, I mean what we really wanted to do is
involve the design community in this experience today that we're having,
because I think it's not just that Figma's going public today.
Design is going public today. Yeah, And if you think
back several decades, you know, back, you know, twenty years ago,
(12:32):
the sort of mindset was that design was lipstick on
a pig. This is how you make it pretty, and
maybe a decade ago it was design is how it works.
Speaker 6 (12:42):
And then today you know, twenty twenty.
Speaker 8 (12:45):
Five, in a world where software accomplish is increasing so much,
it's easier than ever to create software. Yes, I think
we're now in a world where design is the differentiator.
That's been our thesis for ten years. We've seen it
play out, but it's even more clear now the design
craft point of view. That's what sets companies apart, and
(13:07):
so we're just trying to be this engine for product
sign and development. And to be able to celebrate design
today with all of our friends and community is such
a privilege.
Speaker 7 (13:19):
What sets you apart to be able to enable design
versus the whole plethora of generative AI startups that is
suddenly hearing on these seat and making things very cheap
to build.
Speaker 9 (13:30):
To say, as you say, design, yeah, I think that
there's such an opportunity for us with Pigma Make to
be able to help people go from prompt all the
way to app and we're very focused on that and
improving that surface area.
Speaker 8 (13:47):
We have so much more to come there, but already
you can not only do things through prompting, but.
Speaker 6 (13:53):
You can also copy and paste.
Speaker 8 (13:54):
Things in from your Pigma design your canvas into FIGA make.
There are times you want to edit via prompt. There
are also times you want to edit in a more
direct manipulation way where you go into the canvas and
you're able to see many different options in the option space.
Speaker 6 (14:11):
We think both are important and both.
Speaker 8 (14:12):
Have to work really well together, and so that's something
we're excited to uniquely enable. And I just think in general,
we're kind of in this ms dos era of AI
and if we're able to get to the point where
we really well it was true. And if we're able
to get to the point I mean I used to
say tellnet era and people are like, let's tell net
so you know, stop for that and went down as das.
(14:33):
But if we're able to get to this point where
people can really explore the latent space of these models
and what we generated and see the entire option space
of what they can do, then humans designers can add
that craft yeah, and really figure out how to differentiate
and also the system in their head, not just the
(14:53):
design and the technology system, but also the business constraints.
And that's why it's important to over the floor is ceiling,
bring more people into the design process.
Speaker 7 (15:03):
So that one point two billion dollars that you raised
through this process, where.
Speaker 6 (15:07):
Does that go?
Speaker 7 (15:07):
Where does that get allocated to ensure that you're building well.
Speaker 8 (15:10):
So one thing that was unique for the transaction was
because of the cash balance we have at Pigma.
Speaker 6 (15:16):
You know, due to.
Speaker 8 (15:17):
Rounds we've raised but never really used cash that we've generated,
and also the break up fee, we had quite a
cash balance. And so it's a transaction that is a
lot of secondary and then there's some primary, but mostly
for the release of RSUs and so it's more synthetic
primary and the U. So I mean we already have
(15:40):
quite the cash balance, it's more less what we're exiting
the transaction with.
Speaker 6 (15:44):
And when we think.
Speaker 8 (15:46):
About the future of how to deploy that. First of all,
we want to be good scom Stewart's of capital always.
But I did put my founder letter in the S one. Yeah,
expect us to make old moves. And I want people
to know that in the US, in the community because
as we're going to invest in AI, we're going into
an investment cycle here and it's important people are aware
of that.
Speaker 7 (16:06):
You are going to invest, you're not going to be
focusing on profitability, you'll be focusing on growth.
Speaker 8 (16:11):
We are focusing on growth, and we're focusing on all
the great things that we can do right now and
enable for our users, the value we can create for
our customers.
Speaker 7 (16:18):
Using the public markets are going to give you that mandwidth.
Speaker 8 (16:21):
Well, that's their choice. That's why I want to make
sure I call it out upfront. Yeah, And another thing
that I think is important to note is in terms
of big swings, I can't say when or if, but
my intention is to do big swings when it comes
to scaled M and.
Speaker 6 (16:36):
A and well a lot of companies. Well, when I think.
Speaker 8 (16:40):
About how we approach the process, we're always surveying, we're
always trying to learn, and there's so much that can
be applicable of FIGMA when you think of the breadth
of product design and development and that entire process which
we're really trying to cover. And not all the gaps
we have will be filled with us building, our buying.
Speaker 6 (17:01):
A lot of them will be partnerships. But I wanted
to call.
Speaker 8 (17:04):
It out because for skilled MNA, as you do that,
it is often misinterpreted by markets.
Speaker 6 (17:09):
It creates volatility.
Speaker 8 (17:12):
People get, you know, sometimes they don't understand the really
good stuff and obviously will be prudent. You know, it
has to be an amazing team, an amazing asset has
to be something that we think that the team is
culturally consistent the least, but preferably culture ad Yeah, and
they're going to create new dimensionality to our culture that
(17:32):
we didn't have before, and we're going to learn from them.
But third and most importantly, it has to be a
main priority going forward. That's the minimum, and we will
hold a high bar for what we if and when
we do that to our TV.
Speaker 6 (17:45):
And radio audiences.
Speaker 7 (17:46):
We're with Dylan Field, the CEO of Figma, which has
just gone public, And if we cast our minds back,
the valuation that you're currently at looks at about twenty
million dollars and that was the amount that Adobe wanted
to pay to buy you that didn't work out. Just
talking about M and A, was this the right.
Speaker 6 (18:00):
Path to be independent?
Speaker 7 (18:01):
How does that make you feel?
Speaker 8 (18:03):
I mean, you've been so focused on this path for
years now, and I'm just really excited to be here today.
The Adobe stuff kind of feels like so long ago now. Yeah,
and yeah, just as we look forward, I mean, there's
so much to build in such breadth of opportunity.
Speaker 6 (18:22):
We have, like I said the founder letter, more ideas
than ever.
Speaker 8 (18:25):
Yeah, and it's all about prioritization and it's all about
clarity for the team. And that's what we're trying to do,
is to create that clarity.
Speaker 7 (18:33):
I mean talking about demand. You are forty times over
subscribed to those retail investors that want to get in
on this, what do you say for the short term
if the shares pop?
Speaker 8 (18:43):
The only message I can give you if you're on
the retail side is understand what we do. We have
our s one out there. We've done our best to
present it in a really readable way of read the
document and look at our numbers. Understand where we're headed
and what we offer. Play with a product, you know,
(19:06):
become a designer. I think you know that's true for
a lot of people and a lot of companies. If
designs how you win or lose. You speak part of
the process too. But the more you can dive in
and the better you can understand it, the better you
can make a decision on things. And that's the main
advice they give anyone, whether they're joining Figma, trying to
invest in Figma. Those are both investments. Yeah, of time
(19:28):
of money, and that's important. Is so deeply understanding.
Speaker 7 (19:31):
Dylan Fields, CEO of Figma, on the day of their
IPO from the New York Souck Exchange head back.
Speaker 3 (19:37):
To you, Caroline down the NYSC with still a waiting
trading for Figma and it is one of the most
anticipated IPOs of the year. Now some breaking news, President
Trump announcing moments ago on truth Social that the current
tariff rates for Mexico have been extended for another ninety days.
Speaker 4 (19:54):
Let's get out to Washington, d C.
Speaker 3 (19:56):
Blombos Tyler Kendall, And a part of this is the
President explained it Tyler to allow more time for negotiation
between Mexico and the United States.
Speaker 4 (20:05):
Right exactly.
Speaker 10 (20:06):
Ed. He says that there will be an additional ninety
days and they'll hope to in some sort of trade
agreement in that time. But he did write in that
post on truth Social that it could be even extended
beyond that. Now, our understanding, according to the President is
that Mexico will continue to pay the twenty five percent
tariff that has been in place, and those sector specific
tariffs aren't changing. Twenty five percent for autos, and then
(20:28):
fifty percent for steel and aluminum. Keep in mind that
Mexico had been faced with a thirty percent tariff threat
if they weren't able to make a deal by tomorrow,
August first. And it's really important context here that the
negotiations with Mexico have always been on a totally separate track.
While Mexico was yes of faced with tariffs on the
(20:49):
same sort of legal basis IIPA, the International Emergency Economic
Powers Act, they were tariff months before so called Liberation Day,
with the legal basis being from the administration. That this
is over concerns about the border in FETNAH flow is
something that the President also mentioned in his post on
truth Social There's a few different threads here that we're
going to be watching moving forward. But importantly we should
(21:11):
highlight that the aspect of USMCA compliance and that those
goods are of course shielded here from the tiers. The
latest data I pulled it about eighty three percent of
goods that came from Mexico last year ed wore USMCA compliant,
but that still leads about eighty billion dollars worth of
imports that are exposed to a higher.
Speaker 3 (21:29):
Tear Bloomberg s Tylo Kendo in DC. Thank you very much.
Let's get to another earning story. Shares of Roadblocks absolutely
storing today after the gaming platform reported a fifty one
percent increase in bookings last quarter and a daily active
use account the top one hundred and eleven million. Bloomberg
Cecilia Deanastasia joins us to explain what gardening has to
(21:50):
do of all of this. We can get that to
that in a minute, but go through the numbers. What
is Roadblocks doing well right now?
Speaker 11 (21:57):
Roadblocks is attracting a lot of users and connect them
to any of the millions of games in the platform.
Roadblocks filtered a lot of users who would be excited
about its hit game, grow Garden to that game. That's
twenty two million concurrent players at one moment in July,
and the wealth is not just concentrated at Grogarden. Roadblocks's
(22:17):
chief executive officer, Dave Bazuki was bragging today that more
than seventy five percent of the people who were playing
Grow Garden every day also played another game on the platform.
So it's bringing people in and then just channeling them
to other games that the company knows they'll love.
Speaker 3 (22:34):
So grow Garden is kind of key. I know that,
like in terms of their servers, it's a big use
of capacity right now. But in the month of July,
which was still currently in the platform has like several
titles that have ten million daily active users.
Speaker 4 (22:51):
Kind of explain that landscape to us. Cecilia.
Speaker 11 (22:55):
Of course, when you log onto Roadblocks, you have a
sort of a big cat of games at the platform,
things that you might like, and Roadblocks has done a
really good job figuring out what a specific user might
be interested in, whether it's like a driving game or
a role playing game or a fighting game, and creators
have been making games at the same time that based
(23:18):
on data that they have, they know that will be
popular on the platform. And over the last year, four
games have been published to the platform that have attracted
a concurrent ten million users, which is.
Speaker 4 (23:32):
A top Cecilia.
Speaker 3 (23:34):
Roadblocks has come in for a lot of criticism on safety,
particularly around child safety, but looking at the narrative from leaders,
they want to have a leadership position in safety in
this domain.
Speaker 6 (23:45):
Right yes.
Speaker 11 (23:47):
Roadblocks's chief executive officer, Dave Zuki says that he wants
the company to be a leader on safety and the
companies implemented dozens of safety changes over the last year
intended to ensure children are not put in contact with
people or materials who might cast them harm.
Speaker 3 (24:05):
Bloomberg Cecilia the Anastasi, thank you very much and join
us tomorrow for a conversation with Roeblock CEO Dave Bazooki.
Speaker 4 (24:11):
The stock up more than twelve percent all time highs.
Speaker 3 (24:15):
We want to welcome our Bloomberg TV and radio audiences worldwide.
Speaker 4 (24:18):
Shares a quod Com under a bit of pressure.
Speaker 3 (24:20):
The company posted third quarter results showing a bit of
lackluster growth in the smartphone market. But this story longer
term has been a move into other areas. Delighted to
say that quid coom CEO Christiano Amon joins us now
and you and I've discussed this so many times, the
move into IoT and in particular automotive. So I thought
that a good starting point would be to ask when
(24:44):
smartphone and handset is no longer the majority of revenue
and when that kind of tipping point or how close
toward that tipping point is where your diversification efforts have
shifted the business model.
Speaker 12 (24:56):
Very good, ed, great talking to you. Look, I've i
don't really understand what not to like about it. We
have been consistently delivering what we said we're going to do.
I think the company has changed. The company created a
lot of growth opportunities. And to answer your question, we outline,
I think in last year on our investor day a
(25:18):
plan that we're going to have twenty two billion dollars
of non handset business by fiscal twenty nine, and at
that point we expect the company to be diversified at
a fifty percent non handset revenue, and we continue to
execute on that plan. We're happy with it. We provided
a new metric, the new metric that we provided as
(25:39):
we as we provide guide for fiscal twenty five, we
now expect that we will have this second consecutive year
of QCT or chip business non apple growth of fifteen percent.
So we have second year double district growth non apple revenue.
(26:01):
So I think the company continued to diversify, continue to
generate growth. We executed what we said we're going to
do and we're happy with it. And we're creating optionality
for the company in other areas for example, data center,
in robotics, all of those which are going to be
upside to the plan. So we're just going to continue
to execute on our strategy.
Speaker 3 (26:20):
The data point is new right qct x Apple revenues,
and I was interested to read and understand it. You've
also like communicated quite a lot about this this shift
as Apple moves away from your modems for iPhone. May
I ask, like what you think investors need to understand
and remodel for or even what is it that miss
(26:42):
investors are misunderstanding about that that process.
Speaker 12 (26:45):
Christiana, Look, I believe that investors are probably still over
indexing on this short term and I and they've been
focuning about Qualcom as a handset company. I think the
handset market has been a market that has not been growing.
(27:05):
And then you have this conversation about the fact that
Apple's transition to their own modem. You have to step back,
and you have to step back, and you have to
understand the Qualcom has very very unique and competitive IP
across many areas. We're no longer just a communications company.
We have very compelling computing IP both on the CPU,
(27:29):
on the GPU, on the AI accelerator of our NPU,
and this IP is creating leadership position in other industries.
Actually execute on our growth and diversification. Out of nowhere,
we create an automotive business. We're now going into the
era of AI at the edge with industrial our IoT
(27:50):
had a great quarter and exceeded expectations because of a
new personal AI devices like the Meta glasses growing on Android.
We had outline where we're going to be doing five percent.
The market will grow on Android five percent per year.
At our investor day, we're doing in around ten percent.
(28:12):
So the company is showing its growth and earnings power
fifteen percent.
Speaker 4 (28:18):
Yes, sir, I'm sorry to interrupt you.
Speaker 3 (28:20):
There's so much I want to get through because I
understand the calculus on the long term. The thing that
many were trying to understand is the pull forward effective tariffs.
Did you see in the data or anything that would
suggest orders went in in one h or the race
recent quarter and then won't show up in the second
half of this year.
Speaker 12 (28:39):
Now, and that's reflected in our in our guide, we
had a strong guide in the handsets for the next quarter.
I think we'll remind folks that we don't have flagship
lines in this quarter and we have seen no pullings.
Speaker 3 (28:53):
If you're listening live on bloom Bag TV and radio.
We're speaking to the Qualcom CEO, Christiano. I'm on Christiano.
I don't know if you remember, but you know two
years ago, almost of the day you and I sat
on stage and did a demo of an on device
running of an LM in aeroplane mode. Two years on,
I'd like to ask if that shows up yet in
revenues and how that's playing out in the real world.
Speaker 12 (29:14):
Yes, you have to. You have to look on on
how people are using those devices. And we provide an
interesting data point with the Samsung galax S twenty five,
that is to what they're selling right now compared to
the prior phone. The Galaxy has twenty four. The use
of Google Gemini is three x triple. So what you're
(29:37):
starting to see more and more you have people using AI.
It's a mistake to be talking about is this cloud connected?
Is this on device connected? Is both? The smartphone is
the most cloud connected device in the world, and we
have a lot of processing power in our devices and
we see that playing out. And in this quarter we
said something very unique aad We said, first time ever
(29:59):
we show one billion parameter model running on a glass,
on the smart glass. So think about, for example, the
use case of everything you say to the glass, you
can have an immediate response with the model running local rdes.
And this is how this is going to evolve.
Speaker 3 (30:14):
As you know, I'm probably one of the few journalists
on the planet that likes to rip apart things including
cars and servers. And I've been thinking a lot about
your automotive business. You've made gains, sales are up, but
I wanted you to talk through the equation of content
per vehicle and whether that's the key metric that's going
to drive growth.
Speaker 12 (30:36):
The most of our growth right now is exactly converting
our pipeline into revenues. Remember we outline a very large
pipeline of design wins. As those cars are being launching,
they're launching, they're getting to sop those started to show
their revenue. That's what's driving our growth. We're actually not
our growth has not been driven by the side of
(30:57):
the market. Is by converting. It's above shared converting the pipeline.
Having said that, we see content in automotive accelerating.
Speaker 6 (31:05):
More and more.
Speaker 12 (31:06):
Computing is going to the car in the digital cockpit
for GENAI use cases, a lot of OEMs, adding use
cases on the dashboard, of the car on the entertainment
because we're going to be working from the car, get
entertained from the car, We're going to talk to the car.
The second thing that we see is content for ADS
(31:27):
and autonomy, and that is adding a lot of processing content.
And we have a runway ahead as a lot of
these software defined vehicles change micro controllers into a central
computing so we have a roadmap to continue to increase content.
Speaker 3 (31:43):
Christiano I asked this same question earlier in the hour
to arm CEO Rene has So I'm going to ask
you the same question out of share objectivity and fairness
long time partners, when will you bury the hatchet? My
understanding is investors want to see movement towards that look.
Speaker 12 (32:02):
The most important thing we had a trial. We are
incredibly happy with the trial outcome. It determined that Qualcom
is fully licensed for Orion CPUs and will continue to
be able to build armed compatible CPUs. So, from our perspective,
(32:23):
as our ability to continue to build incredible products and
ship to our customers win great shape. And I think
you should be looking at Qualcom as a company that
has the ability to provide one of the best armed
compatible CPUs and We're going to bring that across every
one of our markets.
Speaker 3 (32:44):
Cristiano, i'mon Qualcom CEO. Thank you for your time here
on Bloomberg Tech.
Speaker 7 (32:58):
We are outside the New York Stock Exchange and the
very early back is ol Figmo, which today goes public.
A Moonhamin of Klima Perkins joins us now and Klima
Perkins history with Dylan Field, the CEO goes way back,
and I'm just interested as to your perspective of what
you saw in him in that series be Rab.
Speaker 6 (33:17):
Yeah.
Speaker 13 (33:17):
So we've been fortunate partners with Dylan Field for the
last eight years or so, and Dylan always embodied the
spirit of what we embody at Clina Perkins. We want
to back founders who'll make history, and Dylan is certainly
one of those. If we actually look back at our
investment memo from twenty seventeen, we wrote something like Dylan
and Evan are special founders and they reference as such,
(33:42):
and they've built a team around themselves that will help
them scale.
Speaker 6 (33:45):
And that absolutely still holds today.
Speaker 13 (33:47):
Just as we look at the team that was up
there ringing the bell with us, and it's quite a
few of those folks with us back in twenty seventeen immemberon.
Speaker 7 (33:55):
Like, we're looking at a photo as you speak of
you with Dylan, And what's so interesting is it was
your first ever check that you wrote a kind of Perkins.
I mean, I don't know if you could say what
the valuation was back then, but it was definitely sub
two hundred million, and now it's worth potentially twenty billion.
I'm looking at indications, so this stock is going to
double as it opens. How does that make you feel
(34:16):
that it's a forty.
Speaker 6 (34:17):
Billion dollar company?
Speaker 13 (34:18):
Yeah, well, I guess nothing surprises me with this company.
Speaker 6 (34:21):
Yeah.
Speaker 13 (34:22):
And just going back to when we first invested, it
was a bit of this unmistakable love for the product
that we see here on here at the ny I
see today if you look around, you see just like
the Coachella for design that is happening around us or here.
And that was actually the love that people had for
(34:42):
the product.
Speaker 6 (34:44):
In twenty seventeen.
Speaker 13 (34:46):
The user base may have been small, the product may
have been early, but you would walk around cafes around
San Fantisco with people using Figma to design things and
digital products even at that time.
Speaker 6 (34:57):
And that really just kind of continues on and I
had some of this.
Speaker 13 (35:00):
Perspective from early investments in box Entigma, where I saw
great products built that had this amazing bottomed up enterprise adoption,
and Figma sort of followed that path as well. And
what was really just stood out for Figma though, was
the depth of engagement that Figma had in those days,
which really spoke to designers were using Pigma daily to
(35:23):
get their job done, and that sort of like that
Dow Morow.
Speaker 2 (35:26):
That depth of engagement was incredible.
Speaker 13 (35:28):
Even then, and now it's you know, just expanded multifold
the depth.
Speaker 7 (35:33):
Of engagement in the stock. I'm just think old that
there's a seventy five to eighty dollars per share innication
on the.
Speaker 6 (35:39):
Stock right now. That is even as in the S one.
Speaker 7 (35:43):
Dinner Field is very clear that he's focused on building
this company. He's not looking at profit, he's looking at
being thoughtful. But he's investing in M and A and
he's investing in innovation. Yeah, how important is that investment?
Self investment growth over profitability? See when he's got gender
to AI startups coming at him.
Speaker 13 (36:02):
Yeah, AI is probably the biggest thing that's happened to us.
Maybe in all time, it will have a tremendous societal
and economic impact on all of us, and we're excited
about it. And we're excited about it, not just at
Pigma overall as a kind of persons, we're excited about it.
But as we think about AI and what the capabilities
(36:25):
of AI, which is to create more software faster, there's
an important role that design plays. It is melding both
the machine intelligence in artificial intelligence with human creativity, and
that is precisely where Pigma plays, is that we are
the platform that where products get built and where AI
(36:48):
products get built. And that's the position that we have.
Speaker 7 (36:52):
Going back to where the stock is indicated, there was
a very very thorough process as the company went out
and roadshowed and really a test of demand. But at
the share price doubles on day one and you have
an influx of retail investors. You've got the head of
products at X saying this is going to be the
mean stock of all mean stocks. Do you want that
(37:12):
as someone who's going to be I'm assuming holding this
stock for the longer term?
Speaker 6 (37:16):
Yeah, I think we want people to go and learn
about Figma.
Speaker 13 (37:22):
If you haven't used it, tried it, go play with
it and have more people use the products, and we
have not just one product that are design product. We
have now eight products, and I think there's something for everyone.
Even my young children who are just outside here use
Figma products to design websites, to build products. Yeah, and
so I think there is a market for a lot
(37:44):
more people than are tens of millions of users today
out there. And so if it gives an opportunity for
folks to get to know Figma products, that's a great
thing and a global.
Speaker 7 (37:55):
Products because I think what stands out for me reading
the s one is that eighty percent of users and
there's thirteen million of them on a monthly active basis,
are actually outside the United States. What does the global
nature of this business mean to you?
Speaker 13 (38:07):
Yeah, to your point, eighty percent is international. And it's
actually also eighty percent of users of Figma are non designers.
Speaker 6 (38:17):
And if you think about it, there are billions.
Speaker 13 (38:20):
Of people consuming digital products today that are designed inside
of Pigma. If you look at Google Maps, if you're
pailing a ride throuber or streaming a show on Netflix,
those are all products that are today being designed inside
of Pigma. So the global impact and scale is tremendous.
And ninety five percent of the Fortune five hundred are customers.
Speaker 7 (38:43):
Of Pigma, but you need that to go public in
this moment. Does the other portfolio companies need to be
that international to have this level of demand or is
it just having a growth story.
Speaker 13 (38:52):
I think generally speaking, more software companies go international faster
as the world gets louder. And that's just been our
experience alway, My.
Speaker 7 (39:02):
Moone has been great having time with you. Here are
any stuff exchange my having be thanking so much for
kinda Perkins fact in the studio.
Speaker 4 (39:09):
Great job of the NSC.
Speaker 3 (39:11):
Carolina coming up on the program with Yoko Yoshioka from
the Wealth Enhancement Group joins us, and we're going to
get to Meta and Microsoft earnings because those stocks are
making big move also discussing the road ahead. We've got
Apple and Amazon posting earnings after the bell today. It's
just an astonishing twenty four hours.
Speaker 2 (39:27):
This is Bloomberg Tech, big day for US Tech.
Speaker 3 (39:40):
Let's get back to earnings after Microsoft and Meta showcase
some records spending on AI sending both of those stocks
soaring postmarket and now in this session as well. Yoko
Yoshioka joins US portfolio consulting director at the Wealth Enhancement Group.
Speaker 4 (39:55):
I'm going to start with Meta.
Speaker 3 (39:56):
It wasn't just the ad pricing in the court of
Gone or talking up all of the AI prowess or
narrowing the capex range. The thing that surprised many was
them saying next year twenty twenty six, we will grow capex.
Speaker 4 (40:11):
What did you make of that?
Speaker 14 (40:13):
Or now it tells you that the spending on AI
really does continue. I mean, I think everybody's been concerned
that the spending is going to drop off a little bit,
but from a dollar perspective, MENA talked about how twenty
twenty six we'll see you substantial increase in capex similar
to what we saw in twenty twenty five, so very
(40:35):
strong for the overall infrastructure of AI.
Speaker 3 (40:39):
I think what Meta was trying to explain is how
AI is improving existing product. So there was strong ad pricing.
I mentioned that because some of the Chinese advertisers pulled
back in the period, but they still did well. What
people still struggle with is the future. How Meta presents
its AI to the world.
Speaker 4 (40:56):
Did you have that question answered?
Speaker 14 (41:00):
Think with the way Meta is approaching AI, you know,
I think they're trying to figure out how much they
want to keep sort of closed and how much they
want to open it up to the rest of the world.
And I think that's still up for grabs a little
bit here, and I think they're going to just keep
trying to test what's best for them. But for Meta,
(41:21):
they're really seeing that ROI come through, and I think
that's what investors like to see.
Speaker 3 (41:27):
Just very quickly, on Microsoft and asule, we've got a
revenue number for fiscal twenty five, and we've got growth numbers.
Speaker 4 (41:32):
What did you learn?
Speaker 14 (41:34):
Sure, So for Microsoft, you know we continue to see
again strong numbers, and you know the cloud continues to grow,
helped by AI. So I think we want to stay
the course with Microsoft. I don't think you want to
drop off that train. But we know that concentration continues
to be an issue within the index, and these names
(41:56):
just keep getting bigger.
Speaker 4 (41:58):
Off to the bell.
Speaker 3 (41:59):
We have Apple and we have Amazon, which you most
excited about. I mean Amazon, they'll be read across from Microsoft. Apple,
my goodness, there are many headwinds in front of that company.
Speaker 14 (42:10):
Sure, I think Apple is the one that I'm probably
interested in and a little concerned about simply because they've
been a little bit slower when it comes to AI deployment,
and you know, just the iPhone hardware upgrade cycle is
what everybody's been waiting for, and we have yet to
really see an acceleration there.
Speaker 3 (42:32):
We just showed that the estimate is for Apple to
swing back to growth in Greater China, so away from
tariffs the end market there.
Speaker 4 (42:38):
How close do you watch that?
Speaker 2 (42:41):
Sure?
Speaker 14 (42:41):
I think in the short term we're continuing to watch
that because it's been such a you know, high topic
of conversation. But I think for us, you know, we
try to look at the long term and how Apple
will continue to be, you know, it's a little bit
more like a consumer staple at this point. With the
raiser raise of Blade model.
Speaker 3 (43:00):
Okay, I want to bring some news that's broken. In
the last few minutes. In Vidia has said in an
emailed statement that it won't allow back door access to
its systems and that there are no back doors in
its chips. That was response to a story overnight where
China's Internet regulator had summoned in video representatives. They were
concerned based on comments that lawmakers in the US had
(43:22):
made that they would require in video to have some
kind of backdoor access. Clearly this China issue with the
H twenty is not as smoothed out as we thought.
Speaker 4 (43:32):
Just your reaction to that basic story.
Speaker 14 (43:35):
I think in general we are more positive than negative
on this story, just given that, again we all thought
that the China market was completely closed for in Vidia
going forward, and there are still details that need to
get worked out. But eventually we think it'll get worked
out and it will be a positive in that in
(43:56):
Video will be allowed to sell to China.
Speaker 3 (43:59):
Is there a part very quickly, Iko, for China to
go back to being proportionately the level of revenues for
in video that it once was.
Speaker 14 (44:08):
I think there is probably a path, it's just the
details need to get worked out. There still seems like,
you know, as we build out AI security tends to
be a big issue and so we're going to have
to figure that out.
Speaker 3 (44:22):
Yoko Yoshirka from the Wealth Enhancement Group. Great to have
you back on the program. Thank you very much. Astonishing
day for US technology. That does it for this edition
of Bloomberg Tech. But there's a lot to recap, just
critically important conversations with CEOs, including Figma CEO on their
IPO day.
Speaker 4 (44:40):
Find that recap on the podcast and you know where
to find it on the.
Speaker 3 (44:43):
Bloomberg terminal and online on Apple, Spotify and iHeart from
San Francisco and today from the New York Stock Exchange.
Speaker 4 (44:51):
This is Bloomberg Tech.
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
from coast to coast with Caroline Hyde in New York
and Eva Low in San Francisco.
Speaker 2 (00:22):
This is Bloomberg Tech coming up.
Speaker 3 (00:24):
Figma CEO joins us live from the NYC Shares a
due to start trading in one of the year's biggest IPOs.
Plus Microsoft and Meta sore on the back of earnings
and their big bets on AI. We'll also dive deep
into the latest chip earnings. We speak with the CEOs
of ARM and Qualcomm. We have a massive show for you.
(00:45):
This is what the technology earning story looks like right
now and last night, Microsoft are Meta dominating.
Speaker 4 (00:51):
Actually some of.
Speaker 3 (00:52):
The games have called off a little bit but very
simple equation. We see AI fueled growth. The capex commitment
is there, but on the top line, you're really starting
to see AI maker contribution. Apple and Amazon are after
the bell and that is a big focus because some
of the themes are similar to Matter and Microsoft.
Speaker 4 (01:08):
Some are not.
Speaker 3 (01:09):
Tariffs a big equation, but Amazon under pressure to show
it's keeping pace with the games. We saw in cloud
from Microsoft last night, but remember Alphabet last week. Then
there's the chip makers. Right shares of ARM under pressure
as the chip maker posted second quarter results with we
can then expected outlook for profit. Some were surprised by that.
(01:30):
In an investor base, this is the company says they're
going to increase spending to better capitalize on the AI
boom for more delighted to say that. Were joined by
Armed CEO Renee has Renee, good morning to you, welcome
back to Bloomberg Technology. That there's actually like a lot
of granular questions about what you're spending on, whether it's
a kind of shift to offer more in the AI
(01:50):
domain beyond the core CPU. Could you just explain a
little bit of where that's based.
Speaker 5 (01:57):
Yeah, happy to and good morning Ain. Thanks for thanks
for having me this morning. So a few things going
on with our business. We just came off our first quarter.
We're in our first fiscal year. We've never actually in
the first quarter ever had a billion dollars in revenue.
That that's a record. Our royalties are our way up
twenty five percent year on year. But also what's fueling
(02:18):
growth for us are these compute subsystems that we've talked about.
We now have five customers shipping we had three customers
in the last quarter that have taken on that product,
two in the data center, one in PCs, and we
also announced our automotive compute subsystems. All of that is
fueling demand for more and more ARM technology across the board.
(02:39):
We expect to be at the end of the year
over fifty percent market share ARM CPUs in the data center.
So as a result of all that, we are really
doubling down on investing in this space. We see a
huge opportunity for growth. We see huge opportunity for ARM
based compute. We're the only AI compute platform that can
(02:59):
run from very very small devices such as earbuds, milliwatts
up in the data center, in the megawatts and gigawatts.
So yes, we are investing more aggressively than we had anticipated,
but I am very convenienced the right thing to do.
Speaker 3 (03:13):
You talked about Project Stargate as an opportunity, and that
project uses ARM for the core CPU, right, But I
think I'm right in saying you talked about there's a
unique opportunity to provide solutions. Is that an expansion of
the CPUIP or building on top of it, or are
we talking about ARM moving into not just AI accelerators,
(03:36):
but high performance compute systems more generally, that would represent
quite a shift in the business model for you.
Speaker 4 (03:42):
Rene.
Speaker 5 (03:44):
Yeah, so Stargate is an amazing opportunity slash endeavor. I think,
as you know, I'm not only the CEO of ARM,
but I sit on the board of SoftBank, so I'm
fairly close to what's going on with Stargate, which is
a joint venture between soft Bank and open Ai about
really bringing a huge amount of investment for data centers.
We announced a five hundred billion dollar investment in January.
(04:07):
I think when Mossa and Sam we're talking a couple
of weeks ago, Sam had talked about expanding this out
the ten gigawatts or the x number of years. That's
a lot of compute and in a ten gigawatt investment
or five hundred billion dollars, there's a lot of opportunity
for innovation. Right now while we're talking about is the
fact that we are the CPU of choice. Grace Blackwell
(04:28):
is the device that's being used. I think, as you know,
Grace is based on ARM. So right now, that's all
we're saying publicly, but you can imagine with that type
of investment. With those type of demands for compute and power,
there's a lot of opportunity for ARM to do even
more than we're doing today.
Speaker 3 (04:43):
But I think that's what the market is trying to understand.
If more means more than enhancing the CPU IP and
moving into more of the sack, basically is would that
be a fair assessment.
Speaker 6 (04:55):
Yeah.
Speaker 5 (04:56):
What we said on the call yesterday is that we
are now exploring those opportunity and they can come in
latch and WAT shapes or forms. Doesn't necessarily need to
be an end solution. There are things such as chiplets.
These are essentially computer subsystems that use RP but deliver
in the physical form. One of the things that we
see with these data centers is that customization allows for
(05:20):
a lot of opportunity to increase performance and power efficiency.
So we have a lot of optionality in terms of
what we do there, and we're looking at everything right now.
Speaker 3 (05:30):
The shares are down more than eleven percent and at
one point in the session on track for their biggest
drop since last August. What you said about new licensing activity,
which I think appears to have taken a bit of
a pause, is that that is a normal fluctuation that
you see, But why should investors not be so concerned
about that? And I'm just going off off of the
(05:52):
share reaction as we have it to last night's print.
Speaker 5 (05:55):
Yeah, yeah, you know, as far as the share reaction,
you know, really can't comment on that. But one of
the things about our licensing activity is that it is
it's pretty robust and pretty sticky. What do I mean
by that? So these compute subsystems that we're licensing, we're
actually now on the second generation of licensing those That
means customers who have licensed the previous generation are now
(06:18):
licensing the next generation. The reason that we have such
good continuity in our licensing activity is that the software
that runs on ARM is so ubiquitous that the change
to a different architecture alternative, it's a pretty large lift
that consumers really would not see much benefit from. So
(06:39):
what we think we see in licensing is from quarter
to quarter it may be a little bit lumpy, meaning
that a deal that could have signed in June may
sign in July, and that may affect the financials, But
in terms of the overall health of the trajectory of
the license activity, it's very very strong. We've seen record
licensing revenue over the last number of years, and people
have just thought, could your licensing revenue really grow given
(07:02):
the market share is so high, But we see growth rene.
Speaker 3 (07:06):
Some of the math that everyone's trying to do on
tariffs is how much of a pull in or pull
forward there was in one age? So what were you
seeing in terms of orders coming in for the first
half that may not materialize in the second half if
people were trying to front run the impact of tariffs
in the end markets you work.
Speaker 5 (07:22):
With, Yeah, we're not feeling that very much. And part
of the reason for that is again when we went
to our new compute subsystems, that the royalty rates are
much higher than what we traditionally had seen. We grow
much faster than the market. You know, what does that mean?
We were up twenty five percent year on year in
terms of royalties. Some of the end markets that we
(07:45):
would participate in we're up single digits in some cases
one to two percent. So we're really not seeing, as
far as I can tell, any effect of people pulling
ahead orders because the tariffs et cetera, et cetera. I
think what we're seeing is our royalty growth really being
fueled by investments we made a number of years ago
around these computer subsystems.
Speaker 3 (08:06):
A renee just there with me, please if you will.
Have got some breaking news. The President has posted on
true social that he has extended a tariff deal with
Mexico for ninety days. He had a phone call with
Shinebomb and is extending the tariff deal with Mexico for
ninety days. Will bring more to our audience on that
as we get it and more analysis Mexico to pay
(08:27):
a fifty percent tariff on aluminum and copper. If tariffs
is not that that signal for you, Rena in the
second half of this year, What are the headwinds that
you baked into your projections?
Speaker 5 (08:40):
You know, the geopolitics and tariffs and things of that
nature are still something we're all learning about as an industry.
So as a result, we didn't give full your guidance.
We haven't didn't do that in the last quarter. So
we're trying to get a handle in terms of what
the next six months look like. But I would say
the fundamentals are very very strong. Again when you look
(09:01):
at the share that we're gaining in the data center,
almost fifty percent by the end of the year, all
the growth of AI, stargate being a huge opportunity for US,
and ARM being the only compute platform that can address
AI from the smallest of devices to the very largest.
We're very, very bullish in terms of long term demand.
The quarter to the quarter tear of things. We'll just
(09:21):
have to say how those all settle out over the
next number of months and days.
Speaker 4 (09:26):
Rene really really quick.
Speaker 3 (09:27):
You've made some gains into automotive, which I find absolutely fascinating.
Just explain the outlook for that business and where the
traction is.
Speaker 5 (09:36):
Yeah, thank you for asking. It's actually a very similar
story to some of the other markets that we serve in.
And by that, what do I mean? And first off,
power efficiency really matters, particularly in these evs where the
compute requirements for autonomous driving is very very high. There's
a lot of software that's now been ported and written
(09:56):
to ARM. If you look at the players in this area,
whether it's Tesla doing their own ships or in Video
or Qualcom, all those compute chips are based on ARM.
ARM is the compute platform for autonomous and as more
and more computer requirements go up, power efficiency being a
very very big key, that's a very very good trajectory
(10:18):
for us in the long run, and again it follows
a very similar formula we see in other markets.
Speaker 3 (10:23):
Renee very quickly, Christiano Amon is on later in the hour.
Investors want you to and are asking when you'll bury
the hatchet and go back to being the important long
term partners that you were.
Speaker 5 (10:36):
Qualcom's a great partner. They do a lot of business
with ARM. As you know, we are in the litigation
with them that is still ongoing, so I can't comment
on that. But Qualcom is a long term partner of
ARM and they have a lot of products based on us.
Speaker 3 (10:49):
As you know, renee Haus of ARM. Really appreciate your
time on Bloomberg Tech. Thank you very much. More on
the chip sector. As I said, Christiano, I'm on the
Qualcom CEO will be on later in the hour with
the latest on their earnings and up next, FIGMA CEO
Dylan Field joins us. This is company goes public. We'll
head down to the New York Stock Exchange for that
(11:09):
conversation that's next.
Speaker 4 (11:11):
This is Bloomberg Tech.
Speaker 7 (11:17):
To our world TV and radio audiences. Hi, welcome you
back to Bloomberg Tech outside the New York Stock Exchange
sat with the latest listing. The CEO of Figma, Dylan Field,
joins me now and to your thirteen million users, to
the thousands of global employees worldwide, how's it feel tomorrow?
Speaker 8 (11:37):
It feels surreal And just thank you for having me
and for being here with us today. It's just amazing
to see the community turn out and also just to
view with the team the contributions of fig Maine's past present,
and also just all the things we've learned and contin
to learn from our community. They all just kind of
show up today in physical manifestation and I can be
(11:59):
more grateful.
Speaker 7 (12:00):
I mean, the vibes, there's a like DJ there's so
many of your employee base, as you say, your figmates,
those who have batch you early. Why this Why does
what does it show about your community?
Speaker 8 (12:11):
Well, I mean what we really wanted to do is
involve the design community in this experience today that we're having,
because I think it's not just that Figma's going public today.
Design is going public today. Yeah, And if you think
back several decades, you know, back, you know, twenty years ago,
(12:32):
the sort of mindset was that design was lipstick on
a pig. This is how you make it pretty, and
maybe a decade ago it was design is how it works.
Speaker 6 (12:42):
And then today you know, twenty twenty.
Speaker 8 (12:45):
Five, in a world where software accomplish is increasing so much,
it's easier than ever to create software. Yes, I think
we're now in a world where design is the differentiator.
That's been our thesis for ten years. We've seen it
play out, but it's even more clear now the design
craft point of view. That's what sets companies apart, and
(13:07):
so we're just trying to be this engine for product
sign and development. And to be able to celebrate design
today with all of our friends and community is such
a privilege.
Speaker 7 (13:19):
What sets you apart to be able to enable design
versus the whole plethora of generative AI startups that is
suddenly hearing on these seat and making things very cheap
to build.
Speaker 9 (13:30):
To say, as you say, design, yeah, I think that
there's such an opportunity for us with Pigma Make to
be able to help people go from prompt all the
way to app and we're very focused on that and
improving that surface area.
Speaker 8 (13:47):
We have so much more to come there, but already
you can not only do things through prompting, but.
Speaker 6 (13:53):
You can also copy and paste.
Speaker 8 (13:54):
Things in from your Pigma design your canvas into FIGA make.
There are times you want to edit via prompt. There
are also times you want to edit in a more
direct manipulation way where you go into the canvas and
you're able to see many different options in the option space.
Speaker 6 (14:11):
We think both are important and both.
Speaker 8 (14:12):
Have to work really well together, and so that's something
we're excited to uniquely enable. And I just think in general,
we're kind of in this ms dos era of AI
and if we're able to get to the point where
we really well it was true. And if we're able
to get to the point I mean I used to
say tellnet era and people are like, let's tell net
so you know, stop for that and went down as das.
(14:33):
But if we're able to get to this point where
people can really explore the latent space of these models
and what we generated and see the entire option space
of what they can do, then humans designers can add
that craft yeah, and really figure out how to differentiate
and also the system in their head, not just the
(14:53):
design and the technology system, but also the business constraints.
And that's why it's important to over the floor is ceiling,
bring more people into the design process.
Speaker 7 (15:03):
So that one point two billion dollars that you raised
through this process, where.
Speaker 6 (15:07):
Does that go?
Speaker 7 (15:07):
Where does that get allocated to ensure that you're building well.
Speaker 8 (15:10):
So one thing that was unique for the transaction was
because of the cash balance we have at Pigma.
Speaker 6 (15:16):
You know, due to.
Speaker 8 (15:17):
Rounds we've raised but never really used cash that we've generated,
and also the break up fee, we had quite a
cash balance. And so it's a transaction that is a
lot of secondary and then there's some primary, but mostly
for the release of RSUs and so it's more synthetic
primary and the U. So I mean we already have
(15:40):
quite the cash balance, it's more less what we're exiting
the transaction with.
Speaker 6 (15:44):
And when we think.
Speaker 8 (15:46):
About the future of how to deploy that. First of all,
we want to be good scom Stewart's of capital always.
But I did put my founder letter in the S one. Yeah,
expect us to make old moves. And I want people
to know that in the US, in the community because
as we're going to invest in AI, we're going into
an investment cycle here and it's important people are aware
of that.
Speaker 7 (16:06):
You are going to invest, you're not going to be
focusing on profitability, you'll be focusing on growth.
Speaker 8 (16:11):
We are focusing on growth, and we're focusing on all
the great things that we can do right now and
enable for our users, the value we can create for
our customers.
Speaker 7 (16:18):
Using the public markets are going to give you that mandwidth.
Speaker 8 (16:21):
Well, that's their choice. That's why I want to make
sure I call it out upfront. Yeah, And another thing
that I think is important to note is in terms
of big swings, I can't say when or if, but
my intention is to do big swings when it comes
to scaled M and.
Speaker 6 (16:36):
A and well a lot of companies. Well, when I think.
Speaker 8 (16:40):
About how we approach the process, we're always surveying, we're
always trying to learn, and there's so much that can
be applicable of FIGMA when you think of the breadth
of product design and development and that entire process which
we're really trying to cover. And not all the gaps
we have will be filled with us building, our buying.
Speaker 6 (17:01):
A lot of them will be partnerships. But I wanted
to call.
Speaker 8 (17:04):
It out because for skilled MNA, as you do that,
it is often misinterpreted by markets.
Speaker 6 (17:09):
It creates volatility.
Speaker 8 (17:12):
People get, you know, sometimes they don't understand the really
good stuff and obviously will be prudent. You know, it
has to be an amazing team, an amazing asset has
to be something that we think that the team is
culturally consistent the least, but preferably culture ad Yeah, and
they're going to create new dimensionality to our culture that
(17:32):
we didn't have before, and we're going to learn from them.
But third and most importantly, it has to be a
main priority going forward. That's the minimum, and we will
hold a high bar for what we if and when
we do that to our TV.
Speaker 6 (17:45):
And radio audiences.
Speaker 7 (17:46):
We're with Dylan Field, the CEO of Figma, which has
just gone public, And if we cast our minds back,
the valuation that you're currently at looks at about twenty
million dollars and that was the amount that Adobe wanted
to pay to buy you that didn't work out. Just
talking about M and A, was this the right.
Speaker 6 (18:00):
Path to be independent?
Speaker 7 (18:01):
How does that make you feel?
Speaker 8 (18:03):
I mean, you've been so focused on this path for
years now, and I'm just really excited to be here today.
The Adobe stuff kind of feels like so long ago now. Yeah,
and yeah, just as we look forward, I mean, there's
so much to build in such breadth of opportunity.
Speaker 6 (18:22):
We have, like I said the founder letter, more ideas
than ever.
Speaker 8 (18:25):
Yeah, and it's all about prioritization and it's all about
clarity for the team. And that's what we're trying to do,
is to create that clarity.
Speaker 7 (18:33):
I mean talking about demand. You are forty times over
subscribed to those retail investors that want to get in
on this, what do you say for the short term
if the shares pop?
Speaker 8 (18:43):
The only message I can give you if you're on
the retail side is understand what we do. We have
our s one out there. We've done our best to
present it in a really readable way of read the
document and look at our numbers. Understand where we're headed
and what we offer. Play with a product, you know,
(19:06):
become a designer. I think you know that's true for
a lot of people and a lot of companies. If
designs how you win or lose. You speak part of
the process too. But the more you can dive in
and the better you can understand it, the better you
can make a decision on things. And that's the main
advice they give anyone, whether they're joining Figma, trying to
invest in Figma. Those are both investments. Yeah, of time
(19:28):
of money, and that's important. Is so deeply understanding.
Speaker 7 (19:31):
Dylan Fields, CEO of Figma, on the day of their
IPO from the New York Souck Exchange head back.
Speaker 3 (19:37):
To you, Caroline down the NYSC with still a waiting
trading for Figma and it is one of the most
anticipated IPOs of the year. Now some breaking news, President
Trump announcing moments ago on truth Social that the current
tariff rates for Mexico have been extended for another ninety days.
Speaker 4 (19:54):
Let's get out to Washington, d C.
Speaker 3 (19:56):
Blombos Tyler Kendall, And a part of this is the
President explained it Tyler to allow more time for negotiation
between Mexico and the United States.
Speaker 4 (20:05):
Right exactly.
Speaker 10 (20:06):
Ed. He says that there will be an additional ninety
days and they'll hope to in some sort of trade
agreement in that time. But he did write in that
post on truth Social that it could be even extended
beyond that. Now, our understanding, according to the President is
that Mexico will continue to pay the twenty five percent
tariff that has been in place, and those sector specific
tariffs aren't changing. Twenty five percent for autos, and then
(20:28):
fifty percent for steel and aluminum. Keep in mind that
Mexico had been faced with a thirty percent tariff threat
if they weren't able to make a deal by tomorrow,
August first. And it's really important context here that the
negotiations with Mexico have always been on a totally separate track.
While Mexico was yes of faced with tariffs on the
(20:49):
same sort of legal basis IIPA, the International Emergency Economic
Powers Act, they were tariff months before so called Liberation Day,
with the legal basis being from the administration. That this
is over concerns about the border in FETNAH flow is
something that the President also mentioned in his post on
truth Social There's a few different threads here that we're
going to be watching moving forward. But importantly we should
(21:11):
highlight that the aspect of USMCA compliance and that those
goods are of course shielded here from the tiers. The
latest data I pulled it about eighty three percent of
goods that came from Mexico last year ed wore USMCA compliant,
but that still leads about eighty billion dollars worth of
imports that are exposed to a higher.
Speaker 3 (21:29):
Tear Bloomberg s Tylo Kendo in DC. Thank you very much.
Let's get to another earning story. Shares of Roadblocks absolutely
storing today after the gaming platform reported a fifty one
percent increase in bookings last quarter and a daily active
use account the top one hundred and eleven million. Bloomberg
Cecilia Deanastasia joins us to explain what gardening has to
(21:50):
do of all of this. We can get that to
that in a minute, but go through the numbers. What
is Roadblocks doing well right now?
Speaker 11 (21:57):
Roadblocks is attracting a lot of users and connect them
to any of the millions of games in the platform.
Roadblocks filtered a lot of users who would be excited
about its hit game, grow Garden to that game. That's
twenty two million concurrent players at one moment in July,
and the wealth is not just concentrated at Grogarden. Roadblocks's
(22:17):
chief executive officer, Dave Bazuki was bragging today that more
than seventy five percent of the people who were playing
Grow Garden every day also played another game on the platform.
So it's bringing people in and then just channeling them
to other games that the company knows they'll love.
Speaker 3 (22:34):
So grow Garden is kind of key. I know that,
like in terms of their servers, it's a big use
of capacity right now. But in the month of July,
which was still currently in the platform has like several
titles that have ten million daily active users.
Speaker 4 (22:51):
Kind of explain that landscape to us. Cecilia.
Speaker 11 (22:55):
Of course, when you log onto Roadblocks, you have a
sort of a big cat of games at the platform,
things that you might like, and Roadblocks has done a
really good job figuring out what a specific user might
be interested in, whether it's like a driving game or
a role playing game or a fighting game, and creators
have been making games at the same time that based
(23:18):
on data that they have, they know that will be
popular on the platform. And over the last year, four
games have been published to the platform that have attracted
a concurrent ten million users, which is.
Speaker 4 (23:32):
A top Cecilia.
Speaker 3 (23:34):
Roadblocks has come in for a lot of criticism on safety,
particularly around child safety, but looking at the narrative from leaders,
they want to have a leadership position in safety in
this domain.
Speaker 6 (23:45):
Right yes.
Speaker 11 (23:47):
Roadblocks's chief executive officer, Dave Zuki says that he wants
the company to be a leader on safety and the
companies implemented dozens of safety changes over the last year
intended to ensure children are not put in contact with
people or materials who might cast them harm.
Speaker 3 (24:05):
Bloomberg Cecilia the Anastasi, thank you very much and join
us tomorrow for a conversation with Roeblock CEO Dave Bazooki.
Speaker 4 (24:11):
The stock up more than twelve percent all time highs.
Speaker 3 (24:15):
We want to welcome our Bloomberg TV and radio audiences worldwide.
Speaker 4 (24:18):
Shares a quod Com under a bit of pressure.
Speaker 3 (24:20):
The company posted third quarter results showing a bit of
lackluster growth in the smartphone market. But this story longer
term has been a move into other areas. Delighted to
say that quid coom CEO Christiano Amon joins us now
and you and I've discussed this so many times, the
move into IoT and in particular automotive. So I thought
that a good starting point would be to ask when
(24:44):
smartphone and handset is no longer the majority of revenue
and when that kind of tipping point or how close
toward that tipping point is where your diversification efforts have
shifted the business model.
Speaker 12 (24:56):
Very good, ed, great talking to you. Look, I've i
don't really understand what not to like about it. We
have been consistently delivering what we said we're going to do.
I think the company has changed. The company created a
lot of growth opportunities. And to answer your question, we outline,
I think in last year on our investor day a
(25:18):
plan that we're going to have twenty two billion dollars
of non handset business by fiscal twenty nine, and at
that point we expect the company to be diversified at
a fifty percent non handset revenue, and we continue to
execute on that plan. We're happy with it. We provided
a new metric, the new metric that we provided as
(25:39):
we as we provide guide for fiscal twenty five, we
now expect that we will have this second consecutive year
of QCT or chip business non apple growth of fifteen percent.
So we have second year double district growth non apple revenue.
(26:01):
So I think the company continued to diversify, continue to
generate growth. We executed what we said we're going to
do and we're happy with it. And we're creating optionality
for the company in other areas for example, data center,
in robotics, all of those which are going to be
upside to the plan. So we're just going to continue
to execute on our strategy.
Speaker 3 (26:20):
The data point is new right qct x Apple revenues,
and I was interested to read and understand it. You've
also like communicated quite a lot about this this shift
as Apple moves away from your modems for iPhone. May
I ask, like what you think investors need to understand
and remodel for or even what is it that miss
(26:42):
investors are misunderstanding about that that process.
Speaker 12 (26:45):
Christiana, Look, I believe that investors are probably still over
indexing on this short term and I and they've been
focuning about Qualcom as a handset company. I think the
handset market has been a market that has not been growing.
(27:05):
And then you have this conversation about the fact that
Apple's transition to their own modem. You have to step back,
and you have to step back, and you have to
understand the Qualcom has very very unique and competitive IP
across many areas. We're no longer just a communications company.
We have very compelling computing IP both on the CPU,
(27:29):
on the GPU, on the AI accelerator of our NPU,
and this IP is creating leadership position in other industries.
Actually execute on our growth and diversification. Out of nowhere,
we create an automotive business. We're now going into the
era of AI at the edge with industrial our IoT
(27:50):
had a great quarter and exceeded expectations because of a
new personal AI devices like the Meta glasses growing on Android.
We had outline where we're going to be doing five percent.
The market will grow on Android five percent per year.
At our investor day, we're doing in around ten percent.
(28:12):
So the company is showing its growth and earnings power
fifteen percent.
Speaker 4 (28:18):
Yes, sir, I'm sorry to interrupt you.
Speaker 3 (28:20):
There's so much I want to get through because I
understand the calculus on the long term. The thing that
many were trying to understand is the pull forward effective tariffs.
Did you see in the data or anything that would
suggest orders went in in one h or the race
recent quarter and then won't show up in the second
half of this year.
Speaker 12 (28:39):
Now, and that's reflected in our in our guide, we
had a strong guide in the handsets for the next quarter.
I think we'll remind folks that we don't have flagship
lines in this quarter and we have seen no pullings.
Speaker 3 (28:53):
If you're listening live on bloom Bag TV and radio.
We're speaking to the Qualcom CEO, Christiano. I'm on Christiano.
I don't know if you remember, but you know two
years ago, almost of the day you and I sat
on stage and did a demo of an on device
running of an LM in aeroplane mode. Two years on,
I'd like to ask if that shows up yet in
revenues and how that's playing out in the real world.
Speaker 12 (29:14):
Yes, you have to. You have to look on on
how people are using those devices. And we provide an
interesting data point with the Samsung galax S twenty five,
that is to what they're selling right now compared to
the prior phone. The Galaxy has twenty four. The use
of Google Gemini is three x triple. So what you're
(29:37):
starting to see more and more you have people using AI.
It's a mistake to be talking about is this cloud connected?
Is this on device connected? Is both? The smartphone is
the most cloud connected device in the world, and we
have a lot of processing power in our devices and
we see that playing out. And in this quarter we
said something very unique aad We said, first time ever
(29:59):
we show one billion parameter model running on a glass,
on the smart glass. So think about, for example, the
use case of everything you say to the glass, you
can have an immediate response with the model running local rdes.
And this is how this is going to evolve.
Speaker 3 (30:14):
As you know, I'm probably one of the few journalists
on the planet that likes to rip apart things including
cars and servers. And I've been thinking a lot about
your automotive business. You've made gains, sales are up, but
I wanted you to talk through the equation of content
per vehicle and whether that's the key metric that's going
to drive growth.
Speaker 12 (30:36):
The most of our growth right now is exactly converting
our pipeline into revenues. Remember we outline a very large
pipeline of design wins. As those cars are being launching,
they're launching, they're getting to sop those started to show
their revenue. That's what's driving our growth. We're actually not
our growth has not been driven by the side of
(30:57):
the market. Is by converting. It's above shared converting the pipeline.
Having said that, we see content in automotive accelerating.
Speaker 6 (31:05):
More and more.
Speaker 12 (31:06):
Computing is going to the car in the digital cockpit
for GENAI use cases, a lot of OEMs, adding use
cases on the dashboard, of the car on the entertainment
because we're going to be working from the car, get
entertained from the car, We're going to talk to the car.
The second thing that we see is content for ADS
(31:27):
and autonomy, and that is adding a lot of processing content.
And we have a runway ahead as a lot of
these software defined vehicles change micro controllers into a central
computing so we have a roadmap to continue to increase content.
Speaker 3 (31:43):
Christiano I asked this same question earlier in the hour
to arm CEO Rene has So I'm going to ask
you the same question out of share objectivity and fairness
long time partners, when will you bury the hatchet? My
understanding is investors want to see movement towards that look.
Speaker 12 (32:02):
The most important thing we had a trial. We are
incredibly happy with the trial outcome. It determined that Qualcom
is fully licensed for Orion CPUs and will continue to
be able to build armed compatible CPUs. So, from our perspective,
(32:23):
as our ability to continue to build incredible products and
ship to our customers win great shape. And I think
you should be looking at Qualcom as a company that
has the ability to provide one of the best armed
compatible CPUs and We're going to bring that across every
one of our markets.
Speaker 3 (32:44):
Cristiano, i'mon Qualcom CEO. Thank you for your time here
on Bloomberg Tech.
Speaker 7 (32:58):
We are outside the New York Stock Exchange and the
very early back is ol Figmo, which today goes public.
A Moonhamin of Klima Perkins joins us now and Klima
Perkins history with Dylan Field, the CEO goes way back,
and I'm just interested as to your perspective of what
you saw in him in that series be Rab.
Speaker 6 (33:17):
Yeah.
Speaker 13 (33:17):
So we've been fortunate partners with Dylan Field for the
last eight years or so, and Dylan always embodied the
spirit of what we embody at Clina Perkins. We want
to back founders who'll make history, and Dylan is certainly
one of those. If we actually look back at our
investment memo from twenty seventeen, we wrote something like Dylan
and Evan are special founders and they reference as such,
(33:42):
and they've built a team around themselves that will help
them scale.
Speaker 6 (33:45):
And that absolutely still holds today.
Speaker 13 (33:47):
Just as we look at the team that was up
there ringing the bell with us, and it's quite a
few of those folks with us back in twenty seventeen immemberon.
Speaker 7 (33:55):
Like, we're looking at a photo as you speak of
you with Dylan, And what's so interesting is it was
your first ever check that you wrote a kind of Perkins.
I mean, I don't know if you could say what
the valuation was back then, but it was definitely sub
two hundred million, and now it's worth potentially twenty billion.
I'm looking at indications, so this stock is going to
double as it opens. How does that make you feel
(34:16):
that it's a forty.
Speaker 6 (34:17):
Billion dollar company?
Speaker 13 (34:18):
Yeah, well, I guess nothing surprises me with this company.
Speaker 6 (34:21):
Yeah.
Speaker 13 (34:22):
And just going back to when we first invested, it
was a bit of this unmistakable love for the product
that we see here on here at the ny I
see today if you look around, you see just like
the Coachella for design that is happening around us or here.
And that was actually the love that people had for
(34:42):
the product.
Speaker 6 (34:44):
In twenty seventeen.
Speaker 13 (34:46):
The user base may have been small, the product may
have been early, but you would walk around cafes around
San Fantisco with people using Figma to design things and
digital products even at that time.
Speaker 6 (34:57):
And that really just kind of continues on and I
had some of this.
Speaker 13 (35:00):
Perspective from early investments in box Entigma, where I saw
great products built that had this amazing bottomed up enterprise adoption,
and Figma sort of followed that path as well. And
what was really just stood out for Figma though, was
the depth of engagement that Figma had in those days,
which really spoke to designers were using Pigma daily to
(35:23):
get their job done, and that sort of like that
Dow Morow.
Speaker 2 (35:26):
That depth of engagement was incredible.
Speaker 13 (35:28):
Even then, and now it's you know, just expanded multifold
the depth.
Speaker 7 (35:33):
Of engagement in the stock. I'm just think old that
there's a seventy five to eighty dollars per share innication
on the.
Speaker 6 (35:39):
Stock right now. That is even as in the S one.
Speaker 7 (35:43):
Dinner Field is very clear that he's focused on building
this company. He's not looking at profit, he's looking at
being thoughtful. But he's investing in M and A and
he's investing in innovation. Yeah, how important is that investment?
Self investment growth over profitability? See when he's got gender
to AI startups coming at him.
Speaker 13 (36:02):
Yeah, AI is probably the biggest thing that's happened to us.
Maybe in all time, it will have a tremendous societal
and economic impact on all of us, and we're excited
about it. And we're excited about it, not just at
Pigma overall as a kind of persons, we're excited about it.
But as we think about AI and what the capabilities
(36:25):
of AI, which is to create more software faster, there's
an important role that design plays. It is melding both
the machine intelligence in artificial intelligence with human creativity, and
that is precisely where Pigma plays, is that we are
the platform that where products get built and where AI
(36:48):
products get built. And that's the position that we have.
Speaker 7 (36:52):
Going back to where the stock is indicated, there was
a very very thorough process as the company went out
and roadshowed and really a test of demand. But at
the share price doubles on day one and you have
an influx of retail investors. You've got the head of
products at X saying this is going to be the
mean stock of all mean stocks. Do you want that
(37:12):
as someone who's going to be I'm assuming holding this
stock for the longer term?
Speaker 6 (37:16):
Yeah, I think we want people to go and learn
about Figma.
Speaker 13 (37:22):
If you haven't used it, tried it, go play with
it and have more people use the products, and we
have not just one product that are design product. We
have now eight products, and I think there's something for everyone.
Even my young children who are just outside here use
Figma products to design websites, to build products. Yeah, and
so I think there is a market for a lot
(37:44):
more people than are tens of millions of users today
out there. And so if it gives an opportunity for
folks to get to know Figma products, that's a great
thing and a global.
Speaker 7 (37:55):
Products because I think what stands out for me reading
the s one is that eighty percent of users and
there's thirteen million of them on a monthly active basis,
are actually outside the United States. What does the global
nature of this business mean to you?
Speaker 13 (38:07):
Yeah, to your point, eighty percent is international. And it's
actually also eighty percent of users of Figma are non designers.
Speaker 6 (38:17):
And if you think about it, there are billions.
Speaker 13 (38:20):
Of people consuming digital products today that are designed inside
of Pigma. If you look at Google Maps, if you're
pailing a ride throuber or streaming a show on Netflix,
those are all products that are today being designed inside
of Pigma. So the global impact and scale is tremendous.
And ninety five percent of the Fortune five hundred are customers.
Speaker 7 (38:43):
Of Pigma, but you need that to go public in
this moment. Does the other portfolio companies need to be
that international to have this level of demand or is
it just having a growth story.
Speaker 13 (38:52):
I think generally speaking, more software companies go international faster
as the world gets louder. And that's just been our
experience alway, My.
Speaker 7 (39:02):
Moone has been great having time with you. Here are
any stuff exchange my having be thanking so much for
kinda Perkins fact in the studio.
Speaker 4 (39:09):
Great job of the NSC.
Speaker 3 (39:11):
Carolina coming up on the program with Yoko Yoshioka from
the Wealth Enhancement Group joins us, and we're going to
get to Meta and Microsoft earnings because those stocks are
making big move also discussing the road ahead. We've got
Apple and Amazon posting earnings after the bell today. It's
just an astonishing twenty four hours.
Speaker 2 (39:27):
This is Bloomberg Tech, big day for US Tech.
Speaker 3 (39:40):
Let's get back to earnings after Microsoft and Meta showcase
some records spending on AI sending both of those stocks
soaring postmarket and now in this session as well. Yoko
Yoshioka joins US portfolio consulting director at the Wealth Enhancement Group.
Speaker 4 (39:55):
I'm going to start with Meta.
Speaker 3 (39:56):
It wasn't just the ad pricing in the court of
Gone or talking up all of the AI prowess or
narrowing the capex range. The thing that surprised many was
them saying next year twenty twenty six, we will grow capex.
Speaker 4 (40:11):
What did you make of that?
Speaker 14 (40:13):
Or now it tells you that the spending on AI
really does continue. I mean, I think everybody's been concerned
that the spending is going to drop off a little bit,
but from a dollar perspective, MENA talked about how twenty
twenty six we'll see you substantial increase in capex similar
to what we saw in twenty twenty five, so very
(40:35):
strong for the overall infrastructure of AI.
Speaker 3 (40:39):
I think what Meta was trying to explain is how
AI is improving existing product. So there was strong ad pricing.
I mentioned that because some of the Chinese advertisers pulled
back in the period, but they still did well. What
people still struggle with is the future. How Meta presents
its AI to the world.
Speaker 4 (40:56):
Did you have that question answered?
Speaker 14 (41:00):
Think with the way Meta is approaching AI, you know,
I think they're trying to figure out how much they
want to keep sort of closed and how much they
want to open it up to the rest of the world.
And I think that's still up for grabs a little
bit here, and I think they're going to just keep
trying to test what's best for them. But for Meta,
(41:21):
they're really seeing that ROI come through, and I think
that's what investors like to see.
Speaker 3 (41:27):
Just very quickly, on Microsoft and asule, we've got a
revenue number for fiscal twenty five, and we've got growth numbers.
Speaker 4 (41:32):
What did you learn?
Speaker 14 (41:34):
Sure, So for Microsoft, you know we continue to see
again strong numbers, and you know the cloud continues to grow,
helped by AI. So I think we want to stay
the course with Microsoft. I don't think you want to
drop off that train. But we know that concentration continues
to be an issue within the index, and these names
(41:56):
just keep getting bigger.
Speaker 4 (41:58):
Off to the bell.
Speaker 3 (41:59):
We have Apple and we have Amazon, which you most
excited about. I mean Amazon, they'll be read across from Microsoft. Apple,
my goodness, there are many headwinds in front of that company.
Speaker 14 (42:10):
Sure, I think Apple is the one that I'm probably
interested in and a little concerned about simply because they've
been a little bit slower when it comes to AI deployment,
and you know, just the iPhone hardware upgrade cycle is
what everybody's been waiting for, and we have yet to
really see an acceleration there.
Speaker 3 (42:32):
We just showed that the estimate is for Apple to
swing back to growth in Greater China, so away from
tariffs the end market there.
Speaker 4 (42:38):
How close do you watch that?
Speaker 2 (42:41):
Sure?
Speaker 14 (42:41):
I think in the short term we're continuing to watch
that because it's been such a you know, high topic
of conversation. But I think for us, you know, we
try to look at the long term and how Apple
will continue to be, you know, it's a little bit
more like a consumer staple at this point. With the
raiser raise of Blade model.
Speaker 3 (43:00):
Okay, I want to bring some news that's broken. In
the last few minutes. In Vidia has said in an
emailed statement that it won't allow back door access to
its systems and that there are no back doors in
its chips. That was response to a story overnight where
China's Internet regulator had summoned in video representatives. They were
concerned based on comments that lawmakers in the US had
(43:22):
made that they would require in video to have some
kind of backdoor access. Clearly this China issue with the
H twenty is not as smoothed out as we thought.
Speaker 4 (43:32):
Just your reaction to that basic story.
Speaker 14 (43:35):
I think in general we are more positive than negative
on this story, just given that, again we all thought
that the China market was completely closed for in Vidia
going forward, and there are still details that need to
get worked out. But eventually we think it'll get worked
out and it will be a positive in that in
(43:56):
Video will be allowed to sell to China.
Speaker 3 (43:59):
Is there a part very quickly, Iko, for China to
go back to being proportionately the level of revenues for
in video that it once was.
Speaker 14 (44:08):
I think there is probably a path, it's just the
details need to get worked out. There still seems like,
you know, as we build out AI security tends to
be a big issue and so we're going to have
to figure that out.
Speaker 3 (44:22):
Yoko Yoshirka from the Wealth Enhancement Group. Great to have
you back on the program. Thank you very much. Astonishing
day for US technology. That does it for this edition
of Bloomberg Tech. But there's a lot to recap, just
critically important conversations with CEOs, including Figma CEO on their
IPO day.
Speaker 4 (44:40):
Find that recap on the podcast and you know where
to find it on the.
Speaker 3 (44:43):
Bloomberg terminal and online on Apple, Spotify and iHeart from
San Francisco and today from the New York Stock Exchange.
Speaker 4 (44:51):
This is Bloomberg Tech.
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