Alphabet and Microsoft Earnings, Neuralink's Brain Implant | Bloomberg Technology

31 Jan 2024 (10 months ago)

welcome (0s)

Bloomberg Technology is a show that covers the intersection of economy, power, and technology.
Hosts Caroline Hyde and Ed Ludlow introduce the show and discuss the upcoming segments.

The market overview shows that December was relatively hot, raising questions about the Federal Reserve's ability to pull back on rates.
Key companies reporting earnings include Alphabet, Microsoft, and Tesla.
The 10-year gilt yields are up as the market repricing occurs.
Europe's GDP came in better than expected, avoiding a recession.
Cryptocurrency prices are showing slow recovery from the $40,000 level.

The focus is on Alphabet and Microsoft's earnings and the pressure to deliver on the hype surrounding artificial intelligence (AI).
Jackie reports from Washington on the expectations and challenges of seeing revenue and profit driven by AI.
Microsoft's Copilot product and Google Cloud's profitability are mentioned as key indicators of AI integration success.
Alphabet's advertising business and the upcoming release of the Gemini search engine are discussed.
The conversation highlights the need for evidence of AI's impact on revenue and profitability.

Adam Benjamin discusses the broader AI trend and its long-term impact.
He emphasizes that the AI evolution is still in its early stages and requires infrastructure development and training of models.
Benjamin mentions the differentiation that will occur in 2024, with true AI winners emerging and others falling behind.
He also addresses concentration risk and argues that the Magnificent Seven companies have broad exposure and different core markets.

AI adoption is crucial for businesses across all sectors.
Companies that fail to adopt AI risk losing their competitive edge.
Key performance indicators for tech companies include revenue growth, profitability, and market penetration.
Investors are looking for long-term winners and are patient with AI progress as long as it moves in the right direction.
Neuralink has its first patient, marking a step towards controlling computers with the mind.
Super Micro Computer, an AI server maker, has seen a significant rise in its stock price due to an updated sales forecast.
Super Micro Computer has outperformed NVIDIA in recent months.