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

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

welcome (00:00:00)

  • 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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