Alphabet and Microsoft Earnings, Neuralink's Brain Implant | Bloomberg Technology
- 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.
tech check (00:01:00)
- 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.
big tech and ai (00:03:00)
- 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's perspective (00:04:30)
- 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.
Big Tech Earnings (00:10:00)
- 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.
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