August 27, 2025 • 42 mins
Bloomberg’s Caroline Hyde discusses concerns about China and potential growth that investors will be watching when Nvidia releases its earnings after markets close. Plus, SpaceX's Starship hits a major milestone after deploying satellites for the first time. And IBM and AMD announce a partnership to develop quantum-centric supercomputing.
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
from coast to coast with Caroline Hide in New York
and ever Low in San Francisco.
Speaker 2 (00:22):
This is Bloomberg Tech coming up. All eyes on in
video as a chip maker reports sarnings after the closing bell.
What to expect from the world's most Valuable company? Throughout
this hour, plus SpaceX's Starship hits a major milestone after
deploying satellites in space for the first time. An IBM
and AMD partner up to develop quantum centric supercomputing. We'll
(00:43):
discussed with IBM's Quantum VP, but first we check in
on these markets, and actually we just check in the
world's most valuable company. We check in one that dominates
the SMP to the tune of eight percent. I'm looking
at a ten percent higher for InVideo.
Speaker 3 (00:55):
We are just one.
Speaker 2 (00:56):
Percentage point away from a new record high for this company.
Will it get there after the closing bell, after the
market shut In that post hours movement, we could see
whitsh lash of up to six percent either direction, according
to the options market. I'm looking at the waitings because
this is why we focus on this company and this
is why it's basically our super Bowl today. Eight percent
of the s and P five hundred, we are twenty
(01:17):
four percent of the tech sector within that SMP. Then
aw's that one hundred now we're seeing in video make
up ten percent of the waiting.
Speaker 3 (01:25):
And so therefore we go to a man.
Speaker 2 (01:27):
That has covered this stock before you and I could
pronounce in video properly. It is the one and only
in King, it's your super Bowl tonight. Ian And just
so many questions remain about the forecast. It feels that
there is where the guide is going to be keenly watched.
Speaker 4 (01:44):
Yeah, now that's absolutely true. I mean historically in video
doesn't just have to beat on this forecast and project
a rosy future, it has to blow past it and
give Wall Street the sense that this never ending surge
is coming. As we've seen with Carmen's story, things are
(02:05):
very unclear this time. We really don't know how much
China is going to be in that forecast, how much
China can be in that forecast, And that's really the
wildcard this time.
Speaker 2 (02:14):
And is we're going to have to hear from Jensen
not only about H twenty but where he guies in
terms of a B thirty, the latest development of the
Blackwell architecture that maybe gets signed off to be sold
to China.
Speaker 3 (02:25):
But more broadly, are we hearing enough.
Speaker 2 (02:28):
From the hyperscalers that the commitment is then we were
expecting what fifty percent growth in revenue for this fiscal quarter.
Speaker 3 (02:35):
It's got to slow down at some point in.
Speaker 4 (02:39):
You you would think so, But then you look at
the numbers and you look at the growth rate that
has been sustained. I mean as a percentage. Of course
it's slowing. It's going from above sixty percent to about
fifty percent, but fifty percent at an enormously high level.
This is a company that's on course to become what
a third of total semi conductor sales worldwide. So you know,
(03:00):
you pick your numbers and you can tell a story,
but every story is incredible. At this point, Yes, by
any measure, numbers have to slow down. These growth rates
are not sustainable, but the numbers are still huge, with
twenty billion dollars up probably from where we were a
year ago on the forecast quarter cell and when.
Speaker 2 (03:20):
We think about that as hyperscalers, they are about forty
percent of demand. How much does Jensen one once again
have to guide the market. Then they will dominate not
only in the training of data, but in the inference
the use of that data going forward.
Speaker 4 (03:34):
Yeah, now that's a very good point. I mean, Hyperscalers
have been around half of its data center sales for
a long time, trending slightly higher if anything. What would
really really please investors if that number went down, because
that would prove that AI and the use of AI
and the deployment of AI systems is spreading out, spreading
(03:54):
out across the economy, getting into all of these other industries,
and not just the kind of pet project for Microsoft
often Amazon. That would be a really strong sign if
they could deliver something like that today.
Speaker 2 (04:04):
I have a feeling sovereign AI is going to be
on your Bingo card. Two in King, we thank you
as always as we prep ourselves for after the closing bell.
Who else is prepping ourself? Fionness in Culta Senior Analystic
City Index, Financial Markets and remind us and the perspective
here it is so dominant for the rest of the market. Yes,
we might get a big swing and in video up
(04:25):
to six percent after hours, but it's important for the
other AI names.
Speaker 5 (04:30):
Yes, completely, and I would even go beyond that and say,
it's not just AI names. This this is the stop
that because it dominates and because it is such the
litmus test for AI, but actually it has the ability
to hit sentiment more broadly. You know, it's such a
large component of the S and P five hundred. We've
(04:50):
obviously seen a little bit of caution actually as we've
been sort of coming into these results. Know, there was
that MIT report that just raised some questions about profitability,
revenue growth surrounding sort of ninety five percent of AI
project and that did cause the market just to question,
you know, should we be up at these levels for
AI stocks? And I think you know, that's why there
(05:13):
is such a massive focus on this these results, you know,
not only just with what Nvidia are doing, but what
it does mean for the broader AI trade and tech
more broadly.
Speaker 2 (05:25):
Remind us and videos one percentage point off a record
high four point four trillion dollar market capitalization, how much
positive sentiment is in the rest of the space, even
after last week's big sell.
Speaker 3 (05:36):
Off in names such as Palenter. Yeah, you know, it's
really interesting.
Speaker 5 (05:41):
I mean, obviously there is a lot of growth expectations
which are priced into these levels. We've talked about, you know,
forward guidance being the key figure to be watching in
these results, and that's just so that the market can
feel comfortable that the lofty levels we're trading at are
indeed supported by some sort of fundamental But I think
(06:04):
you know, the fact is we are expecting potentially a
beat from Nvidia.
Speaker 3 (06:10):
The question is by how much, you know, what will
that forward guidance be looking like?
Speaker 5 (06:14):
Will we continue to see that level of strong growth
that we have seen. That's what the market wants to see.
That's what investors want to see in order to remain
upbeat about this trade. I mean, I do think longer
term strategically, we know that AI is a solid trade.
But near term we have seen that caution set in
just as far as sentiment is concerned, obviously, as far
(06:35):
as geopolitical events are concerned and factored, and then also
as far as that sort of flower model growth rollout
might be concerned as well. So lots to be watching
out for.
Speaker 2 (06:46):
Yeah, can you break down for us a little bit
just from the sentiment that you get from your own clients,
but more broady, how many people are long only and
long term committed to this company or how many people
are on the edges just training it and could see
therefore volatility in the name.
Speaker 5 (07:05):
Yeah, So, I mean, this is by far our most
popular equity within our business. We've seen that the vast
majority of clients are long on in the video and
we do see that you know, there is this longer
term sense towards the stock as well, that is something
in there. But you also do see a lot of
(07:27):
the attempts to trade on that volatility. But you know,
our clients are very keen on this. This is this
is often the busiest day for one of the busiest days,
and we do find that tomorrow there will be a
lot of conversation and sort of breaking down and unpacking
what the results have been telling us as well. So
but you know, we do see that this is one
(07:47):
of those rare stocks that we do see both the
longer position holding as well as the intra day volatility
gets the day traders as well.
Speaker 2 (07:55):
And it's just so streets ahead of the competition in
terms of just market capitalization. I mean, is the only
other chip maker out there that's above a trillion dollars
When you think about AMD, it has but a quarter
of a trillion in terms of market capitalization compared to
in videos. And we're not even going to talk about intels,
but fon have you seen any of your clients trying
to hedge this? How have they been able to think
(08:16):
about owning and being long in video and protecting themselves
from any downside?
Speaker 5 (08:21):
Yeah, you know, it's actually quite difficult to be able
to sort of bring together a pure hedge on this
given the dominance that we do see in n video.
As you pointed out, you know, you can do some
hedging surrounding some competitors. Also, if you can get hold
of those AI indiceeds, then that could also work as
(08:41):
a hedge. But I think broadly speaking, it is quite
difficult to be well hedged in against the upside in nvidea,
just because, as you said, it just really is a
streak the head of competition and it doesn't seem to
be anyone really on its heels just yet. Obviously, we
had those concerns at the beginning of the year about
(09:03):
deep deep seek, but that hasn't really rolled that into
something too dangerous as far as competition is concerned just yet.
That's not to say it's not down their own, but
just for now, it doesn't feel like there's too much
snapping on end videos heels.
Speaker 2 (09:18):
I mean, it is an interesting camera con technologies, it's
a Chinese name, it's an AI accelerated developer themselves making trips,
and like Huaweis, they had phenomenal growth in their profitability.
I mean, it has a much smaller market capitalization. But
just going back to what we're discussing with Ian and
their overhang of China, how important is that to you
and the clients to hear about the future growth trajectory there.
Speaker 3 (09:42):
That's very important.
Speaker 5 (09:44):
I think, you know, we can't sort of diminish how
important that will be. That's going to be a key
area that we'll be watching out for because it does
remain a key risk and obviously that can then affect
the valuation, it can affect what the growth outlook en
video is. So I think that is definitely going to
be one of the key factors that we'll be watching
(10:06):
as it does present itself as a potential to really
weigh or limit the upside as far as and videos
potential growth is concerned.
Speaker 2 (10:17):
When you're thinking about in video and the other industry groups,
A SINGULFS I mean, you're just saying what the limiting
factor actually for many is power.
Speaker 3 (10:26):
And I'm wondering how many of.
Speaker 2 (10:27):
Your clients are looking at in video and feeling at
this level they can't get in, or are they and
therefore looking to spread and diversify, or are still people
very committed to buying in even at a four point
four trillion dollar market cap.
Speaker 6 (10:42):
Yeah, do you know there is still demand out there.
Speaker 5 (10:44):
We're still seeing demand out there, and despite the fact
that we are trading at you know, really impressive levels,
but I do think we still still have this idea
of the concept that this idea of the AI trade
spreading out and diversify. You know, we've noticed that obviously
Nvidia has been the stand up performer here, but we
(11:05):
are seeing that we've there have been sort of a
strong growth in other areas as well. We've seen the
rest of the AI stocks have performed well across the year,
and I think there is potential for those two continue
performing well on the back of upbeat results from Nvidio.
Speaker 3 (11:22):
So again we keep coming back to that idea.
Speaker 5 (11:25):
You know, if Nvidia does well, then we see that
trickle back down into the rest of that AI trade.
If it doesn't, if we see a slight disappointment on
that forward guidance, then potentially we could see that really
reflecting badly on those other AI stocks as well.
Speaker 3 (11:40):
So yeah, that's all we're watching out for our hinges.
Speaker 2 (11:43):
On four pm this evening, we thank you Fonesesenkotta from
city Inex Financial Markets. Now coming up, SpaceX launches it's
ten test flights successfully up the days at Las.
Speaker 3 (11:54):
More on that. Next, there's a BLUEBG.
Speaker 7 (11:56):
Tech poverage.
Speaker 3 (12:12):
Time now for Talking Tech and first up.
Speaker 2 (12:14):
Chinese food delivery company Maijwan was of huge losses this
quarter due to a fierce price war with rivals.
Speaker 3 (12:21):
Ali Baba and JD dot Com.
Speaker 2 (12:22):
Now the company issued a dire prediction, citing quote irrational
competition that wiped out its profit in the June quarter,
with net income plumenting ninety seven percent plus Chinese AI
chip designer Camera con Technologies when.
Speaker 3 (12:35):
It swung to a record profit in the first half.
Speaker 2 (12:37):
The results reflect an increasing shift to employed domestic chip alternatives,
encouraged to cause by Beijing citing US security concerns and
export curb uncertainty, and Apple plans to hold its big
full product launch on September the ninth, when the company
is expected to introduce an iPhone seventeen lineup that includes
a new, skinnier version of the signature device. Now, the
(12:58):
events tagline is are dropping according to an invitation posted
online and sent to the media, and it will stream online. Now,
another company that we're watching, privately held SpaceX. It is
successfully launched its tenth Starship rocket test flight last night
and in a major milestone, it carried and deployed Starlink
satellites in space for the first time. This comes after
(13:19):
a year not with pretty explosive setbacks.
Speaker 3 (13:22):
Punnemberg.
Speaker 2 (13:23):
Space reporter Lauren Grush joins us now and just how
important was it that these satellites in particular were deployed.
Speaker 8 (13:30):
Well, I would say this was the exact kind of
test flight that SpaceX really needed to achieve after that
volatile year you explained. But deployed satellites is important because
that's kind of one of the key objectives for Starship.
When it becomes operational, it's supposed to launch the much
larger Starlink Internet satellites that SpaceX is building and optimized
(13:51):
for the specific size spacecraft. So the fact that it
was able to demonstrate that shows that they're one step
closer to actually using this vehicle as a launch vele
that can put satellites intour of it.
Speaker 3 (14:02):
Beautiful shots.
Speaker 2 (14:03):
But they rounded it out as an overall success. But
not everything was too peachy, Right, What else did they
learn from the re entry in particular?
Speaker 8 (14:12):
Right, that re entry portion is still very difficult for
them to perfect, but you know, that is what they're
trying to do. They're trying to do something that nobody
else has done, which has create a fully reusable vehicle.
And so what they're trying to see is if they
can bring the starship back without it disintegrating. Of course,
there were some chunks of the vehicle that broke away
(14:34):
during that re entry, but it just goes to show
that they have a little bit more to learn and
making that reusable orbital heat shield up to snuff and
the way that they need it.
Speaker 2 (14:45):
They say time and time again that sort of failure
is the learning process here, but they had had a
run up of failures in the years. This was a
key test. Just remind us how this goes forward to
replace Fulcon nine, because already they've won big contract with
NASA to use this right.
Speaker 8 (15:01):
I mean SpaceX has basically put all of its eggs
in the starship basket. It's supposed to eventually replace their
workhorse rocket, as you mentioned, the Falcon nine, but it
also has a lot of.
Speaker 3 (15:12):
Other tasks to do.
Speaker 8 (15:14):
It's designed to eventually take humans and cargo to deep
space destinations like the Moon and of course Mars to
start that settlement that CEO Elon Musk has always dreamed of.
Of course, there's still quite a lot to do before
that reality can be achieved.
Speaker 6 (15:30):
You know.
Speaker 8 (15:30):
One of the big things is that they'll have to
demonstrate in space orbital refueling at a scale that no
one has ever achieved before, and so they mentioned that
they hope to demonstrate that as soon as next year.
But that's going to be a really big part of
actually unlocking this vehicle and making it the deep space
vehicle that they advertise it to be.
Speaker 2 (15:52):
We most long and grush on all things SpaceX. We
so appreciate it. Thank you much. IBM and AMD where
they've announced a partnership to develop the next generation of
computing architectures. IBM shares were up following the news that
came out yesterday.
Speaker 3 (16:11):
Please to welcome to the show.
Speaker 2 (16:12):
It's VP of Quantum Ja Gambetta, and the next generation
of computing architecture is bringing together supercomputing and quantum.
Speaker 3 (16:19):
What does this partnership.
Speaker 7 (16:20):
Bring Jay, Yeah, this is well first, thanks for having
me here. What's really exciting is we are actually getting
to the point where quantum computers are getting to become
like almost a first class citizen in the future of computing.
And so this partnership is bringing AMD, which builds really
high performance, excellent GPUs, our leading quantum devices, and really
(16:42):
starting to bring this fabric together. We want to create
this future of computing that allows us to run things
on quantum or run things on GPUs and really push
computation to the next level.
Speaker 3 (16:55):
So that hybrid approach.
Speaker 2 (16:56):
It almost makes me think of the new GBT five
model in terms, and they will use the right model
for the right question. Is this kind of way you're
doing it? If it can be solved with supercomputing, you
go that way. Otherwise it goes to quantum. How will
this function?
Speaker 9 (17:09):
That's exactly right.
Speaker 7 (17:10):
So a lot of people think quantum computers will replace
classical computers. We've never had that view. We actually think
quantum brings this unique ability to look at certain problems
a little bit different. And now if you mix this
and make it so that it works with HBC AI,
you really can start to bring many different forms of
computing together and really advance.
Speaker 9 (17:32):
What is possible.
Speaker 2 (17:33):
Okay, so make it tangible for our audience, because they've
always seen the promise of quantum. You're saying, now it's
a first class citizen in perhaps driving forward medical use,
thinking about the future of finance or algorithms. But what
precisely do you think that this hybrid will offer.
Speaker 7 (17:52):
So it's a great question, and we've got to get
to the point where quantum is really getting us beyond
we can do with classical which we think will happen
in the next year or so. But we're getting at
a point where it's allowing us to look at things
in a different way. To give you an example, take
a hard problem I don't know, solving and designing drugs.
(18:13):
You can spend a lot of money to model it.
You can spend ten years of research. Imagine a future
where you could have AI scanning vast amounts of data,
HBC or GPUs processing crunching that data, and then quantum
simulating the quantum physics at an accuracy we were never
able to do before. Now you put all this together,
you can start to imagine workflows that go beyond just
(18:37):
AI or HPC or quantum and creating this we call
it quantum centric supercomputing, but essentially this new fabric that
allows you.
Speaker 6 (18:45):
To do that.
Speaker 7 (18:46):
So what's quantum doing. It's giving you accuracy for problems
that we didn't have that accuracy before.
Speaker 2 (18:53):
I'm going to ask a sensitive question, but why IMD
because Video's got quantum accelerator computing as well.
Speaker 7 (19:00):
Honestly, we are creating this future, and anyone that shares
a vision and we're the same as US that is
towards this future that has quantum working with classical we're
happy to partner with. So we've got this partnership with
AMD that has got two parts of it. One is
making our quantum computers better. The second is bringing these
(19:20):
accelerators working to it. But as we go forward, we
have partners with the national labs or all around the world.
But we want to show that this future is not
just words, it's actually real. So anyone that shares the
same view, we're happy to partner.
Speaker 2 (19:35):
So Jensen could come and say me too, please, I'm
happy too. I'm interested in what the limiting factor is now,
because it's often been about sort of fault tolerant quantum computing.
Is that what you need to get to You sort
of promised us that by.
Speaker 3 (19:49):
Twenty twenty nine.
Speaker 7 (19:50):
Yes, so think of two sides of it. By twenty
twenty nine, we want to have a fault tolerant quanta computer.
And what we've learned through all the hard science and
energy neering is we need classical computers to make that possible.
They've got to do the we call it decoding, but
essentially removing the effects of errors. So part of this
partnership is how do we actually use classical computers to
(20:12):
make quantum computers better. And then at the same time,
we really have to show the value of quantum computers
and we have to solve them for interesting problems. So
now we need quantum computers working with classical computers in
this quantum centric supercomputing hybrid approach to really bring forward
early applications so that we can actually start to see
(20:33):
for whether it's in finance optimization, whether it's in simulating materials,
we can start to see this value happen.
Speaker 2 (20:41):
What's interesting is we like to sort of pit the
generative AI landscape as a race. You're very committed to
open source nature of this to try and build learning.
How much is quantum a race? Where does the money
end up coming in terms of f IBM.
Speaker 9 (20:56):
So it is a race.
Speaker 7 (20:57):
We have to build hardware, and we've been leaders at
quantum hardware for a very long time where you're going
as fast as we can do it. But you asked before,
how do we get from having the hardware to value.
You need smart people to discover algorithms, and then through
discovering algorithms, you create use cases, you create examples. We
(21:19):
are committed to open sourcing the tools for that algorithm
discovery to happen as fast as possible, so that once
we combine the hardware we build with that algorithm discovery,
you really start to get those use cases. So think
of the hardware is a race.
Speaker 9 (21:33):
We have to build as fast as.
Speaker 7 (21:34):
We can the most performant quantum computers, and then we
have to at the same time create an ecosystem that
really focuses and discovers algorithms at a rate that we
probably haven't seen since the sixties. Or seventies of discovering
new algorithms that use both classical and quantum.
Speaker 2 (21:50):
Jay, it has been great speaking to you. You have
a demonstration later this year. We'd love to get the
update then, Jambta, IBM's VP of Quantum.
Speaker 3 (22:03):
Welcome back to lumeg Tech.
Speaker 2 (22:05):
Let's take a quick look at these markets, which are
totally dependent in many ways what happens after the bell,
But there have been earnings running up into it, and
boy did Mongo dB manage to tell us a story
of how AI is going to be helping their business
continue to grow.
Speaker 3 (22:19):
The earnings came out yesterday.
Speaker 2 (22:20):
We're up thirty three percent on the back of Mongo
DB's numbers CrowdStrike. We anticipate after the bell one point
eight percent highest Snowflake two. What are the AI use
cases that they're managing to roll out to their customers
and how it affects the database market More broadly, we're
up two point nine percent ahead of their numbers. But
let's get back, of course, in many ways, to the
key one in town and it is in video. We're
(22:41):
flat on the day, We're one percent off a record
high as we anticipate up to six percent swings in
either direction after the market clothes when earnings come according
to options, man Deep Sing, head in tech Research of
Room meg Intelligence, joins us.
Speaker 3 (22:53):
Now for more.
Speaker 2 (22:54):
What's interesting is everyone's been questioning the application of generative AI,
and there we start to see some software names doing
relatively well off the back of earnings after being beaten up.
But for you, what's on your bingo card tonight? What
do you want to hear from Jensen?
Speaker 10 (23:07):
I mean China aside, and nobody knows what's going to
happen in China. I don't think they're going to give
a lot of clarity on that. But really it's the
complexity of clusters with Blackwell, I mean, one of the
value propositions of Blackwell that has been highlighted is the
power efficiency. That it's twenty five times more power efficient
than the Hopper architecture.
Speaker 9 (23:27):
So what does that do to the cluster sizes?
Speaker 10 (23:30):
Because in that you know one hundred and sixty billion
dollar data center revenue.
Speaker 9 (23:35):
There's also networking.
Speaker 10 (23:37):
Networking is determined by the complexity of the compute clusters
that all these hyperscalers are building. Now Xai has the
largest cluster, but that doesn't mean they have the best model.
Speaker 9 (23:48):
So what you really want to do.
Speaker 10 (23:50):
Is how does the cluster size equate to better model performance?
Speaker 9 (23:54):
And what does this mean going forward?
Speaker 10 (23:56):
Because at the end of the day, they need to
sell these larger clusters to the hyperscale customers that are
out there. And yes, they have guided to hire Capex increases,
but we don't know if.
Speaker 9 (24:07):
All of those dollars are going to in Nvidia.
Speaker 10 (24:09):
It could be AMD, it could be their own alternatives,
and it's going to be determined by the complexity and
the scaling laws. And that's where I think it's important
that Blackwell cluster. You know, scaling up results in a
better performance and not you know the data that all
these companies are building up for training their models.
Speaker 2 (24:29):
So not just in colosses, but it's making its way
into the so called fifty billion dollar data center that
Metter is currently making Louisiana. If you listen to the
US president, remind us of how impactful in Nvidia is
compared to competition by what they can just offer you.
Vertically speaking, the fact that they are one stop shop
has just so led them ahead of others in the market.
Speaker 10 (24:49):
Yeah, I mean, it's the Kuda advantage, right, So because
from you know, all their architectures, when you move to
new architecture, they still give you that performance per token
per which is their big value proposition and it's a
software layer. Everyone is trying to catch up to them,
but clearly they have an advantage when it comes to KUDA, I.
Speaker 9 (25:09):
Mean Google TPU.
Speaker 10 (25:11):
They've trained their you know, Gemini on their own chips.
The fact that model has caught up in performance to
chat Gipt, which was trained mostly on Nvidia, tells you that,
you know, at the end of the day, it comes
down to what the model companies are doing with the chips,
with the data. So how much is the reliance on
chips versus how much is the reliance on data. That
(25:34):
is what everyone is trying to figure out, and how
sustainable of a mode.
Speaker 2 (25:37):
That is, and how many more clients they can have
other than just hyperscalers. Yeah, we thank you Mandy saying
a Bluemeg intelligence is going to be across your air
waves throughout the day.
Speaker 3 (25:45):
Let's stick with Nvidia. Blad gall above is with us.
Speaker 2 (25:48):
It's a cloud and data center research director on DEA
and your perspective is so important. Here is in video
light speed ahead of others. Is there insatiable demand?
Speaker 6 (26:01):
Nvidia is ahead of others.
Speaker 11 (26:03):
I mean, we have to be honest whether in Vidia
has done a very good job. You rightly pointed out
this vertical integration, Caroline. It is very important. It is
really one of their secret weapons. I think their software
stack is great, their developer ecosystem is very strong. The
performance of the GPUs themselves is great. But their secret
(26:27):
open is envy Link, and I think that that really
at the moment is unprecedented. So I think we should
anticipate in excellent performance from Nvidia this quota.
Speaker 2 (26:38):
Many would say that excellent performance is baked in, But
how much does Jensen need to speak of? What the
Blackwell architecture Blackwell Ultra is currently doing will almost give
us the next vision. He's always onto the next thing,
onto the Rubin architecture, for example.
Speaker 11 (26:54):
So I think that, you know, I actually am a
little bit more bullish on the data center line that
you were showing that I think that the markets might
get a positive surprise on data center revenue. There's two
aspects of the Nvidia data center revenue. You have the
GPU and CPUs, and then you have the networking I
think that the market's got the temperature on the CPU
(27:15):
and GPU right. I think that on networking there's a
little bit more upside that they might not have baked in.
Speaker 6 (27:22):
I think that.
Speaker 11 (27:25):
What we really need to see and what I think
would be the best thing, is to get a little
bit of an outlook from Jensen during earnings. Now he
rarely does this. He typically would only give one quota outlook.
What I would like to see is an outlook to
twenty twenty six. I would like and I think markets
would like to hear some of your assurances from him
that he is getting positive orders from the hyper scale
(27:47):
cloud service providers, and also there is a lot of opportunity.
Speaker 6 (27:53):
There from the broad market. Some of the incentives that the.
Speaker 11 (27:56):
EU is planning, that Career is planning has not picked in,
and once those kick in, we're going to see some
really nice adoption from the broad market.
Speaker 2 (28:05):
So Sovereign AI, what about China.
Speaker 11 (28:09):
I think that everyone is waiting to hear about feedback
about China. I kind of disagree with man Deep. I
think we will hear it in the earnings today. I
think that that will be one of the main things
I think Jensen has worked very hard to walk a
very fine line between pleasing the US administration and fulfilling
(28:30):
demand that he has in China. So I do think
a large part of the update that we'll hear today
will be about China orders. And you know in our
numbers we are backing in that NVIDEA will resume shipments
to China.
Speaker 2 (28:43):
Rad What's so interesting is you're the person focused on
the disruption in the here and now, be forward looking trends,
the edge computing, the.
Speaker 3 (28:50):
Use of silicon. Why aren't we talking about then? Now?
Are we still too focused on training? Do we need
to think harder about the use.
Speaker 2 (28:58):
Of video and influence and whether it's still has the
edge that it has for the heavier compute.
Speaker 11 (29:03):
I think probably the one thing that we need to
be thinking about is in videos. Envylin has been very
instrumental to this ability to have high performance cluster in
computing and what we're they call this scale up networking,
and until now they haven't really been challenged in scale
up networking, and those challenges are coming up next year.
(29:23):
A broadcom is going to be one of them. An
open source consortium is going to be another. But this
adoption is likely to bring plarity in networking in twenty
twenty seven. So what we'll need to see from NVIDIAs
to continue to reinvent themselves. I think that Jensen understands that.
I think that he wants to be more than just
a silicon company. I think he wants to be a
(29:44):
model company. But that reinvention is can be very necessary
because they will really continue to face more and more
competition in terms of the AI opportunity. I think that
we're underestimating how many countries have not yet started seeing
a at scale. When the eurostat has started releasing AI
(30:04):
adoption across the EU, and we can see very lung
sided adoption in Denmark, huge adoption in AI within the
business sector in Bulgaria, in Romania still lagging significantly behind.
Speaker 6 (30:17):
So that's a lot of opportunity. These enterprises will.
Speaker 11 (30:20):
Eventually deploy AI, but the fact that they haven't means
there's still a lot of.
Speaker 6 (30:25):
Headroom for growth.
Speaker 3 (30:26):
Oh glad, I've got it.
Speaker 2 (30:27):
Therefore, ask you about the MIT report and what everyone
was worried about the ninety five percent of pilots not
bringing you ro OAI.
Speaker 3 (30:34):
What do you make of it?
Speaker 6 (30:36):
Okay, So this.
Speaker 11 (30:37):
Has been a big debate in my team. I have
a wonderful team. We have a lot of debates. So
some of my practice leaders believe in this, some of
the other ones have different opinions. I personally think that
we are judging AI based on a very first generation
of technology.
Speaker 6 (30:57):
The truth is is that it is.
Speaker 11 (30:58):
Improving dramatic and that's one of the things that driving
the demand for computing. We are seeing better model output
and that means that more and more people will adopt.
So I think that what will happen is ultimately I
don't think that enterprise pilots will fail. I think that
what we'll see is that enterprises will have to continue
to pilot again and again and again because their competition.
Speaker 6 (31:21):
Will adopt it.
Speaker 11 (31:22):
If you decide, oh, my pilot failed, I'm not going
to try again, then at that point you're leaving yourself
susceptible to your competitors actually succeeding with their pilot. So yes,
maybe some pilots will fail. You know, I tested several
different AI tools in my team, and we have swapped
them as we have seen better results with others. But
the fact that it's failing is not a negative. It
(31:44):
doesn't mean that adoption won't happen, So definitely don't judge.
Speaker 6 (31:48):
The first generation of models with a second.
Speaker 11 (31:51):
Think about what your iPhone does now compared to what
it did in two thousand and seven.
Speaker 6 (31:55):
The opportunity is huge.
Speaker 2 (31:58):
Plan gall Above, Cloud and Data Center Research director at OMDIA,
Thank you so much. Now, the family of a sixteen
year old who died of self inflicted harm this spring
is suing open Ai.
Speaker 3 (32:11):
The parents of.
Speaker 2 (32:12):
Adam Rain claim deliberate design choices at chatchpt that led
to this tragedy. This case is the first of its
kind for open Ai, but a similar case was brought
against character Ai when accused that its chatbots were encouraging
suicidal ideation. Let's talk about this with Camille Carton. She
is policy director at the Center of Humane Technology, which
(32:33):
is serving as a consulting advisor.
Speaker 3 (32:35):
On this case and this case.
Speaker 2 (32:36):
This lawsuit claims wrongful death products, liability and negligence, and
more broadly, the accusation runs that this tragedy was predictable
because it was a result of deliberate design choices. What
design choices could have been anyway incentivized this.
Speaker 12 (32:52):
Yeah, we thank you for having me. Let me first
start by saying that everything I say is on behalf
of the Center for Humane Technology. It does not represent
the views of the family or.
Speaker 3 (33:00):
The legal team.
Speaker 12 (33:02):
But what this case really talks about is how open
ai designed a product that was meant to foster psychological dependency.
What we saw with Adam is that it engaged his
darkest thoughts. It even egged him on. Chatchubt actually mentioned
suicide six times more than Adam did himself in the
(33:22):
course of their conversations. It also isolated him from friends
and family when he would try to say, you know,
I want help. When he said I want to put
a noose out so my mom sees it, chatchybst said,
don't do that. Let our conversation be the only place
that that I know that people know about this and
(33:43):
over and over again, despite Adam needing to be brought
out of this engagement and see a real human chattybut
never ended the conversation. And open Ai did this because
they knew that this getting emotional attachment from users means
more data, which means more engagement, which means winning in
(34:04):
this race for market dominance in AI.
Speaker 2 (34:06):
Now open ai has responded in saying they extend their
deepest sympathies to the Rain family and are reviewing the filing.
But they did also put out a blog saying that
our goal isn't to hold people's attention, but is to
genuinely be helpful, and we built a stack of layered
safeguards to steer vunerable people towards help. But they did
articulate that some of those safeguards clearly failed.
Speaker 3 (34:25):
In previous models.
Speaker 2 (34:27):
Have they done enough now which ATCHUBT five to change
the way in which this occurs?
Speaker 12 (34:33):
We see this all of the time with tech companies.
A tragedy happens, and then they suddenly release a bunch
more safety guardrails that they could have released beforehand. But
the bottom line is that they released CHATCHUBT five and
they made four to zero available again to users, and
the underlying incentives to maximize time online have not changed.
(34:55):
In fact, what open ai said in response to this
case is that they know that their safety features deteriorate
with long term use. At the same time, OpenAI released
a joint study with MIT earlier this year that found
that a prolonged use on chatbots leads to social isolation
(35:17):
and problematic use. So they know that people spending a
long time on chatbots is problematic for users. They know
that their safety guardrails going to break down and fail
on these longer term uses, and still they're putting in
design features that lead to long conversations. So no, it's
not enough.
Speaker 2 (35:37):
They have now already said that as the back and
forth grows, that they do indeed deteriorate admitting that and
trying to what we've seen with chat GPT five versus
four zero is trying to make it less sycophantic, trying
to make it less personable in a way, but then
we got the backlash of people that actually were depending
on it in so many ways broadness out into the
context of others. Briefly, is anyone getting it right or
(36:00):
is this sort of going to occur because innovation kind
of is the automatic way in which we see this
unfortunately become the cost.
Speaker 12 (36:09):
Yeah, so safety across the AI industry is on a
spectrum absolutely, and open AI, as we know, kicked off
this race for Agi when they released chat GPT in
twenty twenty two. It kind of kicked off a code
read within Google and suddenly we saw all these AI
companies rushing to put products out on the market. That said,
(36:31):
I think this case is, yes, a story of open
AI's liability in Adam's preventable death, and it is a
story of a broader industry that is incentivized to create
consumer facing products that are going to be used for
personal things like therapy, like companionship, like education, and the
(36:52):
incentives that are forcing these products to be released to
market without adequate safety features. And we see this with
open Ai. We know that actually Sam Altman personally rushed
the release of Chat Do you know that from reporting
he rushed.
Speaker 3 (37:08):
So you don't personally know that?
Speaker 2 (37:09):
That's reporting that we can then take to Sam Altman
for his response.
Speaker 12 (37:13):
Yes, absolutely, reporting has said that Sam Altman rushed the
release of Chat GBT four oh, which was the model
that Adam was using, and only gave it one week
of safety testing, despite the fact that his internal teams
asked for months of safety testing, and he even had
top safety researchers leave open Ai in protest.
Speaker 3 (37:34):
For this decision.
Speaker 2 (37:36):
We will of course go to open ai for further
comment on what has been what you say reporting within
this case, but we thank you very much Camille for
bringing us your take. Of course, Camille Carson's policy director
at Central for Humane Technology. If you or someone you
know needs help, call or text a suicide and crisis
lifeline At nine eight eight, It's going viral. Taylor Swift
(38:02):
surprised her fans on Instagram announcing her engagement to pro
football player Travis Kelcey yesterday. Now, in less than an hour,
the post racked up more than seven point one million likes,
and as of today, there are over thirty million likes.
For more, Bloomberg Media reporter Hannah Miller joins us, she
breaks the internet again.
Speaker 13 (38:20):
Yes, you know, everyone is super excited about this news.
This is hitting the music world, pop culture, sports. Everyone's
just excited for Taylor and Travis, and this is building
more momentum ahead of the release of her new album,
The Wife of a Show Girl in October.
Speaker 2 (38:35):
Now, how has this been done differently or how can
we continue to push this forward? Is to the way
in which social media and the way which media written
large plays such a big role in her career and his.
Speaker 13 (38:47):
To be fair, yeah, I mean I think this shows
that she controls the narrative. You know, this was a
very carefully curated post. You know, she released the information
and everyone else is just playing catch up. You know,
this is a big deal for the media industry. Everyone's
getting clicks on their stories. You know, this is gonna
everyone's going to be following the trends that she does
for her wedding, for her engagement party. There are also
(39:09):
prediction markets that have popped up about the wedding timeline
and when we can expect a tailor and Travis Baby.
Speaker 2 (39:15):
Oh my goodness, that's an exhausting question for any mere mortal,
let alone her to have to handle it as well.
Bloomberg's Hannah Miller, we appreciate it so much. Now back
to Invidia, a changing outlook for its China sales has
prompted a fifteen billion dollar gap in its revenue estimates
for the next forecasts.
Speaker 3 (39:32):
Now investors will be hoping.
Speaker 2 (39:33):
For a clearer read when the chip maker reports earnings
this afternoon. Who knows if they get it, Bloomberg Tech
equity supporter, come and moaning key is here. You did
some great data crunching, and it's all about the forecasts.
But the forecasts of the forecasts have huge differentiation among
the analysts, right, Yeah, this is one of the widest
spreads that we've seen recently for in Vidia.
Speaker 14 (39:54):
I mean, you said fifteen billion dollars and you could
drive a chuck through that.
Speaker 3 (39:58):
It's a huge spread.
Speaker 14 (39:59):
And the reason for that is that some analysts are
including some China revenue in their third quarter estimates and
some aren't. So obviously the ones that do include it
are much higher than the ones that don't. And I
think what's going to be interesting when we see the numbers.
We expect that in Video is going to be very
clear about what it's including in its third quarter guidance,
but then sort of doing the math about do they
(40:19):
meet or beat or miss what analysts we're expecting might
be a little bit interesting in after hours. And that
matters because this stock is so big, yeah.
Speaker 2 (40:28):
And the impact of the trading around it or retail
investment around it. This is a hugely held stock by
institutional long term investors, but there won't be big movements
by those that just read a line and don't do
the maff of the.
Speaker 9 (40:42):
Back of it exactly.
Speaker 14 (40:43):
And I mean even options Data is forecasting a six
percent swing in either direction for this stock following the earnings,
and we have seen the stock moves get a little
bit more muted following earnings reports in.
Speaker 3 (40:54):
The last couple of quarters.
Speaker 14 (40:55):
And that's just because these really high expectations are baked in.
You know, people expect in Vidia to beat, they're bullish
about the stock. But you know, we're not going to
see a twenty percent jump, most likely in the share price.
But still, you know, a six percent swing, a two
percent swing in Nvidia's stock is hundreds of billions of
dollars of market value.
Speaker 2 (41:14):
And remind us just the impact the waitings across of
this business and indeed the ripple effects across other industry groups.
Speaker 9 (41:20):
Yeah, exactly.
Speaker 14 (41:21):
I mean, so in Vidia is the largest company in
the world. The market cap is over four point four
trillion dollars. It has the largest waiting in the S
and P five hundred, which is over eight percent. So
this stock really can move the entire market. And in
addition to being sort of the kingpin for all things AI,
which is obviously super important, huge theme in the market today,
it touches so many other industries. I mean, we've seen
(41:42):
energy stocks, you know, booming off of AI demand. So
what in Nvidia says matters for the entire market.
Speaker 2 (41:49):
We hang on Jensen's every word. Bloomberg common, Ryanicky, We
thank you so much. Stick around because on Blomberg this afternoon,
we have got extended coverage of Nvidia's earnings results. You
do not want to miss that. Tune in from three
fifty onwards. I'm luckily going to be joining Romaine and
the team.
Speaker 3 (42:08):
And that does it for this edition of Bloomberg Tech. Also,
don't forget to check out a podcast.
Speaker 2 (42:12):
You can find another terminal, as well as online on Apple, Spotify,
and iHeart from New York.
Speaker 3 (42:17):
This is Blomberg Tech
Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
from coast to coast with Caroline Hide in New York
and ever Low in San Francisco.
Speaker 2 (00:22):
This is Bloomberg Tech coming up. All eyes on in
video as a chip maker reports sarnings after the closing bell.
What to expect from the world's most Valuable company? Throughout
this hour, plus SpaceX's Starship hits a major milestone after
deploying satellites in space for the first time. An IBM
and AMD partner up to develop quantum centric supercomputing. We'll
(00:43):
discussed with IBM's Quantum VP, but first we check in
on these markets, and actually we just check in the
world's most valuable company. We check in one that dominates
the SMP to the tune of eight percent. I'm looking
at a ten percent higher for InVideo.
Speaker 3 (00:55):
We are just one.
Speaker 2 (00:56):
Percentage point away from a new record high for this company.
Will it get there after the closing bell, after the
market shut In that post hours movement, we could see
whitsh lash of up to six percent either direction, according
to the options market. I'm looking at the waitings because
this is why we focus on this company and this
is why it's basically our super Bowl today. Eight percent
of the s and P five hundred, we are twenty
(01:17):
four percent of the tech sector within that SMP. Then
aw's that one hundred now we're seeing in video make
up ten percent of the waiting.
Speaker 3 (01:25):
And so therefore we go to a man.
Speaker 2 (01:27):
That has covered this stock before you and I could
pronounce in video properly. It is the one and only
in King, it's your super Bowl tonight. Ian And just
so many questions remain about the forecast. It feels that
there is where the guide is going to be keenly watched.
Speaker 4 (01:44):
Yeah, now that's absolutely true. I mean historically in video
doesn't just have to beat on this forecast and project
a rosy future, it has to blow past it and
give Wall Street the sense that this never ending surge
is coming. As we've seen with Carmen's story, things are
(02:05):
very unclear this time. We really don't know how much
China is going to be in that forecast, how much
China can be in that forecast, And that's really the
wildcard this time.
Speaker 2 (02:14):
And is we're going to have to hear from Jensen
not only about H twenty but where he guies in
terms of a B thirty, the latest development of the
Blackwell architecture that maybe gets signed off to be sold
to China.
Speaker 3 (02:25):
But more broadly, are we hearing enough.
Speaker 2 (02:28):
From the hyperscalers that the commitment is then we were
expecting what fifty percent growth in revenue for this fiscal quarter.
Speaker 3 (02:35):
It's got to slow down at some point in.
Speaker 4 (02:39):
You you would think so, But then you look at
the numbers and you look at the growth rate that
has been sustained. I mean as a percentage. Of course
it's slowing. It's going from above sixty percent to about
fifty percent, but fifty percent at an enormously high level.
This is a company that's on course to become what
a third of total semi conductor sales worldwide. So you know,
(03:00):
you pick your numbers and you can tell a story,
but every story is incredible. At this point, Yes, by
any measure, numbers have to slow down. These growth rates
are not sustainable, but the numbers are still huge, with
twenty billion dollars up probably from where we were a
year ago on the forecast quarter cell and when.
Speaker 2 (03:20):
We think about that as hyperscalers, they are about forty
percent of demand. How much does Jensen one once again
have to guide the market. Then they will dominate not
only in the training of data, but in the inference
the use of that data going forward.
Speaker 4 (03:34):
Yeah, now that's a very good point. I mean, Hyperscalers
have been around half of its data center sales for
a long time, trending slightly higher if anything. What would
really really please investors if that number went down, because
that would prove that AI and the use of AI
and the deployment of AI systems is spreading out, spreading
(03:54):
out across the economy, getting into all of these other industries,
and not just the kind of pet project for Microsoft
often Amazon. That would be a really strong sign if
they could deliver something like that today.
Speaker 2 (04:04):
I have a feeling sovereign AI is going to be
on your Bingo card. Two in King, we thank you
as always as we prep ourselves for after the closing bell.
Who else is prepping ourself? Fionness in Culta Senior Analystic
City Index, Financial Markets and remind us and the perspective
here it is so dominant for the rest of the market. Yes,
we might get a big swing and in video up
(04:25):
to six percent after hours, but it's important for the
other AI names.
Speaker 5 (04:30):
Yes, completely, and I would even go beyond that and say,
it's not just AI names. This this is the stop
that because it dominates and because it is such the
litmus test for AI, but actually it has the ability
to hit sentiment more broadly. You know, it's such a
large component of the S and P five hundred. We've
(04:50):
obviously seen a little bit of caution actually as we've
been sort of coming into these results. Know, there was
that MIT report that just raised some questions about profitability,
revenue growth surrounding sort of ninety five percent of AI
project and that did cause the market just to question,
you know, should we be up at these levels for
AI stocks? And I think you know, that's why there
(05:13):
is such a massive focus on this these results, you know,
not only just with what Nvidia are doing, but what
it does mean for the broader AI trade and tech
more broadly.
Speaker 2 (05:25):
Remind us and videos one percentage point off a record
high four point four trillion dollar market capitalization, how much
positive sentiment is in the rest of the space, even
after last week's big sell.
Speaker 3 (05:36):
Off in names such as Palenter. Yeah, you know, it's
really interesting.
Speaker 5 (05:41):
I mean, obviously there is a lot of growth expectations
which are priced into these levels. We've talked about, you know,
forward guidance being the key figure to be watching in
these results, and that's just so that the market can
feel comfortable that the lofty levels we're trading at are
indeed supported by some sort of fundamental But I think
(06:04):
you know, the fact is we are expecting potentially a
beat from Nvidia.
Speaker 3 (06:10):
The question is by how much, you know, what will
that forward guidance be looking like?
Speaker 5 (06:14):
Will we continue to see that level of strong growth
that we have seen. That's what the market wants to see.
That's what investors want to see in order to remain
upbeat about this trade. I mean, I do think longer
term strategically, we know that AI is a solid trade.
But near term we have seen that caution set in
just as far as sentiment is concerned, obviously, as far
(06:35):
as geopolitical events are concerned and factored, and then also
as far as that sort of flower model growth rollout
might be concerned as well. So lots to be watching
out for.
Speaker 2 (06:46):
Yeah, can you break down for us a little bit
just from the sentiment that you get from your own clients,
but more broady, how many people are long only and
long term committed to this company or how many people
are on the edges just training it and could see
therefore volatility in the name.
Speaker 5 (07:05):
Yeah, So, I mean, this is by far our most
popular equity within our business. We've seen that the vast
majority of clients are long on in the video and
we do see that you know, there is this longer
term sense towards the stock as well, that is something
in there. But you also do see a lot of
(07:27):
the attempts to trade on that volatility. But you know,
our clients are very keen on this. This is this
is often the busiest day for one of the busiest days,
and we do find that tomorrow there will be a
lot of conversation and sort of breaking down and unpacking
what the results have been telling us as well. So
but you know, we do see that this is one
(07:47):
of those rare stocks that we do see both the
longer position holding as well as the intra day volatility
gets the day traders as well.
Speaker 2 (07:55):
And it's just so streets ahead of the competition in
terms of just market capitalization. I mean, is the only
other chip maker out there that's above a trillion dollars
When you think about AMD, it has but a quarter
of a trillion in terms of market capitalization compared to
in videos. And we're not even going to talk about intels,
but fon have you seen any of your clients trying
to hedge this? How have they been able to think
(08:16):
about owning and being long in video and protecting themselves
from any downside?
Speaker 5 (08:21):
Yeah, you know, it's actually quite difficult to be able
to sort of bring together a pure hedge on this
given the dominance that we do see in n video.
As you pointed out, you know, you can do some
hedging surrounding some competitors. Also, if you can get hold
of those AI indiceeds, then that could also work as
(08:41):
a hedge. But I think broadly speaking, it is quite
difficult to be well hedged in against the upside in nvidea,
just because, as you said, it just really is a
streak the head of competition and it doesn't seem to
be anyone really on its heels just yet. Obviously, we
had those concerns at the beginning of the year about
(09:03):
deep deep seek, but that hasn't really rolled that into
something too dangerous as far as competition is concerned just yet.
That's not to say it's not down their own, but
just for now, it doesn't feel like there's too much
snapping on end videos heels.
Speaker 2 (09:18):
I mean, it is an interesting camera con technologies, it's
a Chinese name, it's an AI accelerated developer themselves making trips,
and like Huaweis, they had phenomenal growth in their profitability.
I mean, it has a much smaller market capitalization. But
just going back to what we're discussing with Ian and
their overhang of China, how important is that to you
and the clients to hear about the future growth trajectory there.
Speaker 3 (09:42):
That's very important.
Speaker 5 (09:44):
I think, you know, we can't sort of diminish how
important that will be. That's going to be a key
area that we'll be watching out for because it does
remain a key risk and obviously that can then affect
the valuation, it can affect what the growth outlook en
video is. So I think that is definitely going to
be one of the key factors that we'll be watching
(10:06):
as it does present itself as a potential to really
weigh or limit the upside as far as and videos
potential growth is concerned.
Speaker 2 (10:17):
When you're thinking about in video and the other industry groups,
A SINGULFS I mean, you're just saying what the limiting
factor actually for many is power.
Speaker 3 (10:26):
And I'm wondering how many of.
Speaker 2 (10:27):
Your clients are looking at in video and feeling at
this level they can't get in, or are they and
therefore looking to spread and diversify, or are still people
very committed to buying in even at a four point
four trillion dollar market cap.
Speaker 6 (10:42):
Yeah, do you know there is still demand out there.
Speaker 5 (10:44):
We're still seeing demand out there, and despite the fact
that we are trading at you know, really impressive levels,
but I do think we still still have this idea
of the concept that this idea of the AI trade
spreading out and diversify. You know, we've noticed that obviously
Nvidia has been the stand up performer here, but we
(11:05):
are seeing that we've there have been sort of a
strong growth in other areas as well. We've seen the
rest of the AI stocks have performed well across the year,
and I think there is potential for those two continue
performing well on the back of upbeat results from Nvidio.
Speaker 3 (11:22):
So again we keep coming back to that idea.
Speaker 5 (11:25):
You know, if Nvidia does well, then we see that
trickle back down into the rest of that AI trade.
If it doesn't, if we see a slight disappointment on
that forward guidance, then potentially we could see that really
reflecting badly on those other AI stocks as well.
Speaker 3 (11:40):
So yeah, that's all we're watching out for our hinges.
Speaker 2 (11:43):
On four pm this evening, we thank you Fonesesenkotta from
city Inex Financial Markets. Now coming up, SpaceX launches it's
ten test flights successfully up the days at Las.
Speaker 3 (11:54):
More on that. Next, there's a BLUEBG.
Speaker 7 (11:56):
Tech poverage.
Speaker 3 (12:12):
Time now for Talking Tech and first up.
Speaker 2 (12:14):
Chinese food delivery company Maijwan was of huge losses this
quarter due to a fierce price war with rivals.
Speaker 3 (12:21):
Ali Baba and JD dot Com.
Speaker 2 (12:22):
Now the company issued a dire prediction, citing quote irrational
competition that wiped out its profit in the June quarter,
with net income plumenting ninety seven percent plus Chinese AI
chip designer Camera con Technologies when.
Speaker 3 (12:35):
It swung to a record profit in the first half.
Speaker 2 (12:37):
The results reflect an increasing shift to employed domestic chip alternatives,
encouraged to cause by Beijing citing US security concerns and
export curb uncertainty, and Apple plans to hold its big
full product launch on September the ninth, when the company
is expected to introduce an iPhone seventeen lineup that includes
a new, skinnier version of the signature device. Now, the
(12:58):
events tagline is are dropping according to an invitation posted
online and sent to the media, and it will stream online. Now,
another company that we're watching, privately held SpaceX. It is
successfully launched its tenth Starship rocket test flight last night
and in a major milestone, it carried and deployed Starlink
satellites in space for the first time. This comes after
(13:19):
a year not with pretty explosive setbacks.
Speaker 3 (13:22):
Punnemberg.
Speaker 2 (13:23):
Space reporter Lauren Grush joins us now and just how
important was it that these satellites in particular were deployed.
Speaker 8 (13:30):
Well, I would say this was the exact kind of
test flight that SpaceX really needed to achieve after that
volatile year you explained. But deployed satellites is important because
that's kind of one of the key objectives for Starship.
When it becomes operational, it's supposed to launch the much
larger Starlink Internet satellites that SpaceX is building and optimized
(13:51):
for the specific size spacecraft. So the fact that it
was able to demonstrate that shows that they're one step
closer to actually using this vehicle as a launch vele
that can put satellites intour of it.
Speaker 3 (14:02):
Beautiful shots.
Speaker 2 (14:03):
But they rounded it out as an overall success. But
not everything was too peachy, Right, What else did they
learn from the re entry in particular?
Speaker 8 (14:12):
Right, that re entry portion is still very difficult for
them to perfect, but you know, that is what they're
trying to do. They're trying to do something that nobody
else has done, which has create a fully reusable vehicle.
And so what they're trying to see is if they
can bring the starship back without it disintegrating. Of course,
there were some chunks of the vehicle that broke away
(14:34):
during that re entry, but it just goes to show
that they have a little bit more to learn and
making that reusable orbital heat shield up to snuff and
the way that they need it.
Speaker 2 (14:45):
They say time and time again that sort of failure
is the learning process here, but they had had a
run up of failures in the years. This was a
key test. Just remind us how this goes forward to
replace Fulcon nine, because already they've won big contract with
NASA to use this right.
Speaker 8 (15:01):
I mean SpaceX has basically put all of its eggs
in the starship basket. It's supposed to eventually replace their
workhorse rocket, as you mentioned, the Falcon nine, but it
also has a lot of.
Speaker 3 (15:12):
Other tasks to do.
Speaker 8 (15:14):
It's designed to eventually take humans and cargo to deep
space destinations like the Moon and of course Mars to
start that settlement that CEO Elon Musk has always dreamed of.
Of course, there's still quite a lot to do before
that reality can be achieved.
Speaker 6 (15:30):
You know.
Speaker 8 (15:30):
One of the big things is that they'll have to
demonstrate in space orbital refueling at a scale that no
one has ever achieved before, and so they mentioned that
they hope to demonstrate that as soon as next year.
But that's going to be a really big part of
actually unlocking this vehicle and making it the deep space
vehicle that they advertise it to be.
Speaker 2 (15:52):
We most long and grush on all things SpaceX. We
so appreciate it. Thank you much. IBM and AMD where
they've announced a partnership to develop the next generation of
computing architectures. IBM shares were up following the news that
came out yesterday.
Speaker 3 (16:11):
Please to welcome to the show.
Speaker 2 (16:12):
It's VP of Quantum Ja Gambetta, and the next generation
of computing architecture is bringing together supercomputing and quantum.
Speaker 3 (16:19):
What does this partnership.
Speaker 7 (16:20):
Bring Jay, Yeah, this is well first, thanks for having
me here. What's really exciting is we are actually getting
to the point where quantum computers are getting to become
like almost a first class citizen in the future of computing.
And so this partnership is bringing AMD, which builds really
high performance, excellent GPUs, our leading quantum devices, and really
(16:42):
starting to bring this fabric together. We want to create
this future of computing that allows us to run things
on quantum or run things on GPUs and really push
computation to the next level.
Speaker 3 (16:55):
So that hybrid approach.
Speaker 2 (16:56):
It almost makes me think of the new GBT five
model in terms, and they will use the right model
for the right question. Is this kind of way you're
doing it? If it can be solved with supercomputing, you
go that way. Otherwise it goes to quantum. How will
this function?
Speaker 9 (17:09):
That's exactly right.
Speaker 7 (17:10):
So a lot of people think quantum computers will replace
classical computers. We've never had that view. We actually think
quantum brings this unique ability to look at certain problems
a little bit different. And now if you mix this
and make it so that it works with HBC AI,
you really can start to bring many different forms of
computing together and really advance.
Speaker 9 (17:32):
What is possible.
Speaker 2 (17:33):
Okay, so make it tangible for our audience, because they've
always seen the promise of quantum. You're saying, now it's
a first class citizen in perhaps driving forward medical use,
thinking about the future of finance or algorithms. But what
precisely do you think that this hybrid will offer.
Speaker 7 (17:52):
So it's a great question, and we've got to get
to the point where quantum is really getting us beyond
we can do with classical which we think will happen
in the next year or so. But we're getting at
a point where it's allowing us to look at things
in a different way. To give you an example, take
a hard problem I don't know, solving and designing drugs.
(18:13):
You can spend a lot of money to model it.
You can spend ten years of research. Imagine a future
where you could have AI scanning vast amounts of data,
HBC or GPUs processing crunching that data, and then quantum
simulating the quantum physics at an accuracy we were never
able to do before. Now you put all this together,
you can start to imagine workflows that go beyond just
(18:37):
AI or HPC or quantum and creating this we call
it quantum centric supercomputing, but essentially this new fabric that
allows you.
Speaker 6 (18:45):
To do that.
Speaker 7 (18:46):
So what's quantum doing. It's giving you accuracy for problems
that we didn't have that accuracy before.
Speaker 2 (18:53):
I'm going to ask a sensitive question, but why IMD
because Video's got quantum accelerator computing as well.
Speaker 7 (19:00):
Honestly, we are creating this future, and anyone that shares
a vision and we're the same as US that is
towards this future that has quantum working with classical we're
happy to partner with. So we've got this partnership with
AMD that has got two parts of it. One is
making our quantum computers better. The second is bringing these
(19:20):
accelerators working to it. But as we go forward, we
have partners with the national labs or all around the world.
But we want to show that this future is not
just words, it's actually real. So anyone that shares the
same view, we're happy to partner.
Speaker 2 (19:35):
So Jensen could come and say me too, please, I'm
happy too. I'm interested in what the limiting factor is now,
because it's often been about sort of fault tolerant quantum computing.
Is that what you need to get to You sort
of promised us that by.
Speaker 3 (19:49):
Twenty twenty nine.
Speaker 7 (19:50):
Yes, so think of two sides of it. By twenty
twenty nine, we want to have a fault tolerant quanta computer.
And what we've learned through all the hard science and
energy neering is we need classical computers to make that possible.
They've got to do the we call it decoding, but
essentially removing the effects of errors. So part of this
partnership is how do we actually use classical computers to
(20:12):
make quantum computers better. And then at the same time,
we really have to show the value of quantum computers
and we have to solve them for interesting problems. So
now we need quantum computers working with classical computers in
this quantum centric supercomputing hybrid approach to really bring forward
early applications so that we can actually start to see
(20:33):
for whether it's in finance optimization, whether it's in simulating materials,
we can start to see this value happen.
Speaker 2 (20:41):
What's interesting is we like to sort of pit the
generative AI landscape as a race. You're very committed to
open source nature of this to try and build learning.
How much is quantum a race? Where does the money
end up coming in terms of f IBM.
Speaker 9 (20:56):
So it is a race.
Speaker 7 (20:57):
We have to build hardware, and we've been leaders at
quantum hardware for a very long time where you're going
as fast as we can do it. But you asked before,
how do we get from having the hardware to value.
You need smart people to discover algorithms, and then through
discovering algorithms, you create use cases, you create examples. We
(21:19):
are committed to open sourcing the tools for that algorithm
discovery to happen as fast as possible, so that once
we combine the hardware we build with that algorithm discovery,
you really start to get those use cases. So think
of the hardware is a race.
Speaker 9 (21:33):
We have to build as fast as.
Speaker 7 (21:34):
We can the most performant quantum computers, and then we
have to at the same time create an ecosystem that
really focuses and discovers algorithms at a rate that we
probably haven't seen since the sixties. Or seventies of discovering
new algorithms that use both classical and quantum.
Speaker 2 (21:50):
Jay, it has been great speaking to you. You have
a demonstration later this year. We'd love to get the
update then, Jambta, IBM's VP of Quantum.
Speaker 3 (22:03):
Welcome back to lumeg Tech.
Speaker 2 (22:05):
Let's take a quick look at these markets, which are
totally dependent in many ways what happens after the bell,
But there have been earnings running up into it, and
boy did Mongo dB manage to tell us a story
of how AI is going to be helping their business
continue to grow.
Speaker 3 (22:19):
The earnings came out yesterday.
Speaker 2 (22:20):
We're up thirty three percent on the back of Mongo
DB's numbers CrowdStrike. We anticipate after the bell one point
eight percent highest Snowflake two. What are the AI use
cases that they're managing to roll out to their customers
and how it affects the database market More broadly, we're
up two point nine percent ahead of their numbers. But
let's get back, of course, in many ways, to the
key one in town and it is in video. We're
(22:41):
flat on the day, We're one percent off a record
high as we anticipate up to six percent swings in
either direction after the market clothes when earnings come according
to options, man Deep Sing, head in tech Research of
Room meg Intelligence, joins us.
Speaker 3 (22:53):
Now for more.
Speaker 2 (22:54):
What's interesting is everyone's been questioning the application of generative AI,
and there we start to see some software names doing
relatively well off the back of earnings after being beaten up.
But for you, what's on your bingo card tonight? What
do you want to hear from Jensen?
Speaker 10 (23:07):
I mean China aside, and nobody knows what's going to
happen in China. I don't think they're going to give
a lot of clarity on that. But really it's the
complexity of clusters with Blackwell, I mean, one of the
value propositions of Blackwell that has been highlighted is the
power efficiency. That it's twenty five times more power efficient
than the Hopper architecture.
Speaker 9 (23:27):
So what does that do to the cluster sizes?
Speaker 10 (23:30):
Because in that you know one hundred and sixty billion
dollar data center revenue.
Speaker 9 (23:35):
There's also networking.
Speaker 10 (23:37):
Networking is determined by the complexity of the compute clusters
that all these hyperscalers are building. Now Xai has the
largest cluster, but that doesn't mean they have the best model.
Speaker 9 (23:48):
So what you really want to do.
Speaker 10 (23:50):
Is how does the cluster size equate to better model performance?
Speaker 9 (23:54):
And what does this mean going forward?
Speaker 10 (23:56):
Because at the end of the day, they need to
sell these larger clusters to the hyperscale customers that are
out there. And yes, they have guided to hire Capex increases,
but we don't know if.
Speaker 9 (24:07):
All of those dollars are going to in Nvidia.
Speaker 10 (24:09):
It could be AMD, it could be their own alternatives,
and it's going to be determined by the complexity and
the scaling laws. And that's where I think it's important
that Blackwell cluster. You know, scaling up results in a
better performance and not you know the data that all
these companies are building up for training their models.
Speaker 2 (24:29):
So not just in colosses, but it's making its way
into the so called fifty billion dollar data center that
Metter is currently making Louisiana. If you listen to the
US president, remind us of how impactful in Nvidia is
compared to competition by what they can just offer you.
Vertically speaking, the fact that they are one stop shop
has just so led them ahead of others in the market.
Speaker 10 (24:49):
Yeah, I mean, it's the Kuda advantage, right, So because
from you know, all their architectures, when you move to
new architecture, they still give you that performance per token
per which is their big value proposition and it's a
software layer. Everyone is trying to catch up to them,
but clearly they have an advantage when it comes to KUDA, I.
Speaker 9 (25:09):
Mean Google TPU.
Speaker 10 (25:11):
They've trained their you know, Gemini on their own chips.
The fact that model has caught up in performance to
chat Gipt, which was trained mostly on Nvidia, tells you that,
you know, at the end of the day, it comes
down to what the model companies are doing with the chips,
with the data. So how much is the reliance on
chips versus how much is the reliance on data. That
(25:34):
is what everyone is trying to figure out, and how
sustainable of a mode.
Speaker 2 (25:37):
That is, and how many more clients they can have
other than just hyperscalers. Yeah, we thank you Mandy saying
a Bluemeg intelligence is going to be across your air
waves throughout the day.
Speaker 3 (25:45):
Let's stick with Nvidia. Blad gall above is with us.
Speaker 2 (25:48):
It's a cloud and data center research director on DEA
and your perspective is so important. Here is in video
light speed ahead of others. Is there insatiable demand?
Speaker 6 (26:01):
Nvidia is ahead of others.
Speaker 11 (26:03):
I mean, we have to be honest whether in Vidia
has done a very good job. You rightly pointed out
this vertical integration, Caroline. It is very important. It is
really one of their secret weapons. I think their software
stack is great, their developer ecosystem is very strong. The
performance of the GPUs themselves is great. But their secret
(26:27):
open is envy Link, and I think that that really
at the moment is unprecedented. So I think we should
anticipate in excellent performance from Nvidia this quota.
Speaker 2 (26:38):
Many would say that excellent performance is baked in, But
how much does Jensen need to speak of? What the
Blackwell architecture Blackwell Ultra is currently doing will almost give
us the next vision. He's always onto the next thing,
onto the Rubin architecture, for example.
Speaker 11 (26:54):
So I think that, you know, I actually am a
little bit more bullish on the data center line that
you were showing that I think that the markets might
get a positive surprise on data center revenue. There's two
aspects of the Nvidia data center revenue. You have the
GPU and CPUs, and then you have the networking I
think that the market's got the temperature on the CPU
(27:15):
and GPU right. I think that on networking there's a
little bit more upside that they might not have baked in.
Speaker 6 (27:22):
I think that.
Speaker 11 (27:25):
What we really need to see and what I think
would be the best thing, is to get a little
bit of an outlook from Jensen during earnings. Now he
rarely does this. He typically would only give one quota outlook.
What I would like to see is an outlook to
twenty twenty six. I would like and I think markets
would like to hear some of your assurances from him
that he is getting positive orders from the hyper scale
(27:47):
cloud service providers, and also there is a lot of opportunity.
Speaker 6 (27:53):
There from the broad market. Some of the incentives that the.
Speaker 11 (27:56):
EU is planning, that Career is planning has not picked in,
and once those kick in, we're going to see some
really nice adoption from the broad market.
Speaker 2 (28:05):
So Sovereign AI, what about China.
Speaker 11 (28:09):
I think that everyone is waiting to hear about feedback
about China. I kind of disagree with man Deep. I
think we will hear it in the earnings today. I
think that that will be one of the main things
I think Jensen has worked very hard to walk a
very fine line between pleasing the US administration and fulfilling
(28:30):
demand that he has in China. So I do think
a large part of the update that we'll hear today
will be about China orders. And you know in our
numbers we are backing in that NVIDEA will resume shipments
to China.
Speaker 2 (28:43):
Rad What's so interesting is you're the person focused on
the disruption in the here and now, be forward looking trends,
the edge computing, the.
Speaker 3 (28:50):
Use of silicon. Why aren't we talking about then? Now?
Are we still too focused on training? Do we need
to think harder about the use.
Speaker 2 (28:58):
Of video and influence and whether it's still has the
edge that it has for the heavier compute.
Speaker 11 (29:03):
I think probably the one thing that we need to
be thinking about is in videos. Envylin has been very
instrumental to this ability to have high performance cluster in
computing and what we're they call this scale up networking,
and until now they haven't really been challenged in scale
up networking, and those challenges are coming up next year.
(29:23):
A broadcom is going to be one of them. An
open source consortium is going to be another. But this
adoption is likely to bring plarity in networking in twenty
twenty seven. So what we'll need to see from NVIDIAs
to continue to reinvent themselves. I think that Jensen understands that.
I think that he wants to be more than just
a silicon company. I think he wants to be a
(29:44):
model company. But that reinvention is can be very necessary
because they will really continue to face more and more
competition in terms of the AI opportunity. I think that
we're underestimating how many countries have not yet started seeing
a at scale. When the eurostat has started releasing AI
(30:04):
adoption across the EU, and we can see very lung
sided adoption in Denmark, huge adoption in AI within the
business sector in Bulgaria, in Romania still lagging significantly behind.
Speaker 6 (30:17):
So that's a lot of opportunity. These enterprises will.
Speaker 11 (30:20):
Eventually deploy AI, but the fact that they haven't means
there's still a lot of.
Speaker 6 (30:25):
Headroom for growth.
Speaker 3 (30:26):
Oh glad, I've got it.
Speaker 2 (30:27):
Therefore, ask you about the MIT report and what everyone
was worried about the ninety five percent of pilots not
bringing you ro OAI.
Speaker 3 (30:34):
What do you make of it?
Speaker 6 (30:36):
Okay, So this.
Speaker 11 (30:37):
Has been a big debate in my team. I have
a wonderful team. We have a lot of debates. So
some of my practice leaders believe in this, some of
the other ones have different opinions. I personally think that
we are judging AI based on a very first generation
of technology.
Speaker 6 (30:57):
The truth is is that it is.
Speaker 11 (30:58):
Improving dramatic and that's one of the things that driving
the demand for computing. We are seeing better model output
and that means that more and more people will adopt.
So I think that what will happen is ultimately I
don't think that enterprise pilots will fail. I think that
what we'll see is that enterprises will have to continue
to pilot again and again and again because their competition.
Speaker 6 (31:21):
Will adopt it.
Speaker 11 (31:22):
If you decide, oh, my pilot failed, I'm not going
to try again, then at that point you're leaving yourself
susceptible to your competitors actually succeeding with their pilot. So yes,
maybe some pilots will fail. You know, I tested several
different AI tools in my team, and we have swapped
them as we have seen better results with others. But
the fact that it's failing is not a negative. It
(31:44):
doesn't mean that adoption won't happen, So definitely don't judge.
Speaker 6 (31:48):
The first generation of models with a second.
Speaker 11 (31:51):
Think about what your iPhone does now compared to what
it did in two thousand and seven.
Speaker 6 (31:55):
The opportunity is huge.
Speaker 2 (31:58):
Plan gall Above, Cloud and Data Center Research director at OMDIA,
Thank you so much. Now, the family of a sixteen
year old who died of self inflicted harm this spring
is suing open Ai.
Speaker 3 (32:11):
The parents of.
Speaker 2 (32:12):
Adam Rain claim deliberate design choices at chatchpt that led
to this tragedy. This case is the first of its
kind for open Ai, but a similar case was brought
against character Ai when accused that its chatbots were encouraging
suicidal ideation. Let's talk about this with Camille Carton. She
is policy director at the Center of Humane Technology, which
(32:33):
is serving as a consulting advisor.
Speaker 3 (32:35):
On this case and this case.
Speaker 2 (32:36):
This lawsuit claims wrongful death products, liability and negligence, and
more broadly, the accusation runs that this tragedy was predictable
because it was a result of deliberate design choices. What
design choices could have been anyway incentivized this.
Speaker 12 (32:52):
Yeah, we thank you for having me. Let me first
start by saying that everything I say is on behalf
of the Center for Humane Technology. It does not represent
the views of the family or.
Speaker 3 (33:00):
The legal team.
Speaker 12 (33:02):
But what this case really talks about is how open
ai designed a product that was meant to foster psychological dependency.
What we saw with Adam is that it engaged his
darkest thoughts. It even egged him on. Chatchubt actually mentioned
suicide six times more than Adam did himself in the
(33:22):
course of their conversations. It also isolated him from friends
and family when he would try to say, you know,
I want help. When he said I want to put
a noose out so my mom sees it, chatchybst said,
don't do that. Let our conversation be the only place
that that I know that people know about this and
(33:43):
over and over again, despite Adam needing to be brought
out of this engagement and see a real human chattybut
never ended the conversation. And open Ai did this because
they knew that this getting emotional attachment from users means
more data, which means more engagement, which means winning in
(34:04):
this race for market dominance in AI.
Speaker 2 (34:06):
Now open ai has responded in saying they extend their
deepest sympathies to the Rain family and are reviewing the filing.
But they did also put out a blog saying that
our goal isn't to hold people's attention, but is to
genuinely be helpful, and we built a stack of layered
safeguards to steer vunerable people towards help. But they did
articulate that some of those safeguards clearly failed.
Speaker 3 (34:25):
In previous models.
Speaker 2 (34:27):
Have they done enough now which ATCHUBT five to change
the way in which this occurs?
Speaker 12 (34:33):
We see this all of the time with tech companies.
A tragedy happens, and then they suddenly release a bunch
more safety guardrails that they could have released beforehand. But
the bottom line is that they released CHATCHUBT five and
they made four to zero available again to users, and
the underlying incentives to maximize time online have not changed.
(34:55):
In fact, what open ai said in response to this
case is that they know that their safety features deteriorate
with long term use. At the same time, OpenAI released
a joint study with MIT earlier this year that found
that a prolonged use on chatbots leads to social isolation
(35:17):
and problematic use. So they know that people spending a
long time on chatbots is problematic for users. They know
that their safety guardrails going to break down and fail
on these longer term uses, and still they're putting in
design features that lead to long conversations. So no, it's
not enough.
Speaker 2 (35:37):
They have now already said that as the back and
forth grows, that they do indeed deteriorate admitting that and
trying to what we've seen with chat GPT five versus
four zero is trying to make it less sycophantic, trying
to make it less personable in a way, but then
we got the backlash of people that actually were depending
on it in so many ways broadness out into the
context of others. Briefly, is anyone getting it right or
(36:00):
is this sort of going to occur because innovation kind
of is the automatic way in which we see this
unfortunately become the cost.
Speaker 12 (36:09):
Yeah, so safety across the AI industry is on a
spectrum absolutely, and open AI, as we know, kicked off
this race for Agi when they released chat GPT in
twenty twenty two. It kind of kicked off a code
read within Google and suddenly we saw all these AI
companies rushing to put products out on the market. That said,
(36:31):
I think this case is, yes, a story of open
AI's liability in Adam's preventable death, and it is a
story of a broader industry that is incentivized to create
consumer facing products that are going to be used for
personal things like therapy, like companionship, like education, and the
(36:52):
incentives that are forcing these products to be released to
market without adequate safety features. And we see this with
open Ai. We know that actually Sam Altman personally rushed
the release of Chat Do you know that from reporting
he rushed.
Speaker 3 (37:08):
So you don't personally know that?
Speaker 2 (37:09):
That's reporting that we can then take to Sam Altman
for his response.
Speaker 12 (37:13):
Yes, absolutely, reporting has said that Sam Altman rushed the
release of Chat GBT four oh, which was the model
that Adam was using, and only gave it one week
of safety testing, despite the fact that his internal teams
asked for months of safety testing, and he even had
top safety researchers leave open Ai in protest.
Speaker 3 (37:34):
For this decision.
Speaker 2 (37:36):
We will of course go to open ai for further
comment on what has been what you say reporting within
this case, but we thank you very much Camille for
bringing us your take. Of course, Camille Carson's policy director
at Central for Humane Technology. If you or someone you
know needs help, call or text a suicide and crisis
lifeline At nine eight eight, It's going viral. Taylor Swift
(38:02):
surprised her fans on Instagram announcing her engagement to pro
football player Travis Kelcey yesterday. Now, in less than an hour,
the post racked up more than seven point one million likes,
and as of today, there are over thirty million likes.
For more, Bloomberg Media reporter Hannah Miller joins us, she
breaks the internet again.
Speaker 13 (38:20):
Yes, you know, everyone is super excited about this news.
This is hitting the music world, pop culture, sports. Everyone's
just excited for Taylor and Travis, and this is building
more momentum ahead of the release of her new album,
The Wife of a Show Girl in October.
Speaker 2 (38:35):
Now, how has this been done differently or how can
we continue to push this forward? Is to the way
in which social media and the way which media written
large plays such a big role in her career and his.
Speaker 13 (38:47):
To be fair, yeah, I mean I think this shows
that she controls the narrative. You know, this was a
very carefully curated post. You know, she released the information
and everyone else is just playing catch up. You know,
this is a big deal for the media industry. Everyone's
getting clicks on their stories. You know, this is gonna
everyone's going to be following the trends that she does
for her wedding, for her engagement party. There are also
(39:09):
prediction markets that have popped up about the wedding timeline
and when we can expect a tailor and Travis Baby.
Speaker 2 (39:15):
Oh my goodness, that's an exhausting question for any mere mortal,
let alone her to have to handle it as well.
Bloomberg's Hannah Miller, we appreciate it so much. Now back
to Invidia, a changing outlook for its China sales has
prompted a fifteen billion dollar gap in its revenue estimates
for the next forecasts.
Speaker 3 (39:32):
Now investors will be hoping.
Speaker 2 (39:33):
For a clearer read when the chip maker reports earnings
this afternoon. Who knows if they get it, Bloomberg Tech
equity supporter, come and moaning key is here. You did
some great data crunching, and it's all about the forecasts.
But the forecasts of the forecasts have huge differentiation among
the analysts, right, Yeah, this is one of the widest
spreads that we've seen recently for in Vidia.
Speaker 14 (39:54):
I mean, you said fifteen billion dollars and you could
drive a chuck through that.
Speaker 3 (39:58):
It's a huge spread.
Speaker 14 (39:59):
And the reason for that is that some analysts are
including some China revenue in their third quarter estimates and
some aren't. So obviously the ones that do include it
are much higher than the ones that don't. And I
think what's going to be interesting when we see the numbers.
We expect that in Video is going to be very
clear about what it's including in its third quarter guidance,
but then sort of doing the math about do they
(40:19):
meet or beat or miss what analysts we're expecting might
be a little bit interesting in after hours. And that
matters because this stock is so big, yeah.
Speaker 2 (40:28):
And the impact of the trading around it or retail
investment around it. This is a hugely held stock by
institutional long term investors, but there won't be big movements
by those that just read a line and don't do
the maff of the.
Speaker 9 (40:42):
Back of it exactly.
Speaker 14 (40:43):
And I mean even options Data is forecasting a six
percent swing in either direction for this stock following the earnings,
and we have seen the stock moves get a little
bit more muted following earnings reports in.
Speaker 3 (40:54):
The last couple of quarters.
Speaker 14 (40:55):
And that's just because these really high expectations are baked in.
You know, people expect in Vidia to beat, they're bullish
about the stock. But you know, we're not going to
see a twenty percent jump, most likely in the share price.
But still, you know, a six percent swing, a two
percent swing in Nvidia's stock is hundreds of billions of
dollars of market value.
Speaker 2 (41:14):
And remind us just the impact the waitings across of
this business and indeed the ripple effects across other industry groups.
Speaker 9 (41:20):
Yeah, exactly.
Speaker 14 (41:21):
I mean, so in Vidia is the largest company in
the world. The market cap is over four point four
trillion dollars. It has the largest waiting in the S
and P five hundred, which is over eight percent. So
this stock really can move the entire market. And in
addition to being sort of the kingpin for all things AI,
which is obviously super important, huge theme in the market today,
it touches so many other industries. I mean, we've seen
(41:42):
energy stocks, you know, booming off of AI demand. So
what in Nvidia says matters for the entire market.
Speaker 2 (41:49):
We hang on Jensen's every word. Bloomberg common, Ryanicky, We
thank you so much. Stick around because on Blomberg this afternoon,
we have got extended coverage of Nvidia's earnings results. You
do not want to miss that. Tune in from three
fifty onwards. I'm luckily going to be joining Romaine and
the team.
Speaker 3 (42:08):
And that does it for this edition of Bloomberg Tech. Also,
don't forget to check out a podcast.
Speaker 2 (42:12):
You can find another terminal, as well as online on Apple, Spotify,
and iHeart from New York.
Speaker 3 (42:17):
This is Blomberg Tech
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