From the heart of where innovation, money and power collide in Silicon Valley and beyond. This is Bloomberg Technology with Caroline Hide.
And Ed Ludlow live from New York.
I'm Caroline Hyde and I'm Jackie Devalas in Washington. This is Bloomberg Technology coming up.
The AI sell off continues, with the chip sector under pressure after earnings fail to turn the tide. This is Chinese AI competition fuels anxiety in the United States, but stock gains over in Asia. And President Trump is set to meet with some of the biggest US tech leaders next week to discuss the trade policy impact US manufacturing and much more. But first we've got to check in
on these markets. They're still in sell off mode. We bounce off of our lows for the nawstep, we're still off by more than a percent point.
Then that's that one.
Hundred dragged lower from a points perspective by in video, by Broadcon, by Amazon, And notably, we're on track for a third week of declines, the longest losing streak since back in August. But I shine like what happened in Chinese tech. We're up more than five percent on the Hangsang Tech index. We go delve into why with the AI impact coming from Ali Barber from ten Cent, move on and look at the individual movers that are affecting
the chip trade here in the United States. In Video off by two point four percent, we drag lower on a points perspective. Broadcom has its numbers after the bell AI still likely to drive growth twenty percent in excess of revenue.
Gains, but we are worried more.
About whether they can live up to the hype cycle that I've been so used to and shake off the rest sentiment that has consumed Marvell. Of by seventeen percent, they managed to post more than sixty percent revenue growth that investors don't care. Blomberg's Bailey Lipschualtz is here for why fundamentals ultimately, Bailey don't matter at this moment because we are selling what we used to love.
We're selling what we used to love, and it's causing so much concern consternation. You have the tear risk or at least the headaches around that. As you mentioned, Marvel down more than seventeen percent at one point, the biggest intra day decline in about a decade. This is a big move for a big stock. All eyes will be on Broadcom as you mentioned later this evening, But the big question is what does that AI demand look like?
Can China actually replicate what we're seeing for a much cheaper price, and how does that ultimately impact the markets, especially in a day or a week that we've been seeing with sawing moves on the major exchanges. Based on every headline around trade.
Bailey, it's clear that hardware names here are getting really hit hard. What are we seeing on the software side? Are they insulated any more than we're seeing for the semiconductor stocks?
Maybe a bit, Jackie, But the big question still is what do earnings look like? What does growth look like? If you're saying that maybe companies aren't going to have to spend as much or maybe they're going to find cheaper alternatives, that's obviously going to hit your hardware, your semiconductors makers. But the big question if you're a software company is how are you going to use cheaper costs potentially to improve your offerings and what does that actually mean?
And the big question at the end of the day is what does the valuation actually look like and how are you being valued? What is a fair value how does that compare to the broader market, and in a market that really is driven by seven stocks, if not one stock, how does your company fit into that landscape? And how can investors appropriately value and allocate resources.
That's Bloomberg's Biley Lipsheldznthemus for joining us. A series of new AI tools from China sparked frenzy trading in the nation's stock market, propelling an index of tech companies to a multi year high. Bloomberg's Isabell Lee joins us Now for more, Isabelle walk us through some of those new AI features and the companies in particular that are spurring this excitement.
So we have a lot of news overnight in China, we saw ali Baba stock surgeon more than eight percent, although it's worth noting that the ADRs right now are parent back some of those games. Investors are probably digesting some of those news, taking their profits. So Alibab unveiled their new open AI source model. It's open source and it's marked lea better than the previous one using just a fraction of data from deep sks R one employees.
Ten Cent also unveiled a new open source model, so did a company called Kaishaw Technology, and earlier this week Managed Ai launched water called General AI Agent. So all of this basically has boosted Chinese textures by five point four percent of its highest since twenty twenty one. And Alabama in particular I want to Highlight has been on a tear. It gained some one hundred and fifty three dollar billion dollars in market value since it's January low.
So what does this tell us that the next deep seek to disrupt the global AI industry could definitely come from China.
It's extraordinary that Asali Baba has surged, we've lost about forty percent of market capitalization for Marvell and the likes here in the United States is about when we're thinking about these models. They are showing that you can do more with less when it comes to data, when it also comes to compute power.
But we didn't hear from Amazon, from.
Microsoft, from the hyperscals that they were pulling back on investment in general to AI infrastructure.
Absolutely, in the previous round of the earning season, you saw those big tech companies like Microsoft and Meta even doubling down on their AI cap expend They're still remaining committed there's still all in when it comes to developing AI, but these Chinese tech companies are showing us that it can just couse a fraction to make big waves and
to develop Ali Baba. Investors are really warming up to this, as you can see with a performance overnight and just in general, the company has just really stabilized after years long of crackdown by the Chinese company. It's growing powerless and AI really shows that it has Bejing support and it's really helping galvanize a strong comeback.
Isabell Lei on all things China, We thank you. Let's just take a check therefore. On sentiment across the board, Jordan Klein joins US managing director and TMT set to specialists at Mizuho.
Your notes are a must read today.
You call it survival mode, and ultimately AI related stocks are just getting hammered.
Fundamentals don't matter.
Yeah, that's right, Thanks for having me.
We're in one of those nasty periods where they don't matter. They didn't really matter when the stocks were all going up and the momentum crowd was chasing these to new highs. Valuations didn't matter either, So it's a good reminder, although a painful one, that you know, what goes up can come down.
I've covered tech a long time.
And I think this is this does happen, especially when you have these new exciting growth narratives like AI reminds me a little bit of the dot com.
I don't think this is anything like that, meaning it won't end that way.
These companies are still reporting very good fundamentals and evaluations that are way lower than they were back, you know, twenty.
Five years ago.
But you know, it is crowded, it is a very popular trade and it's not working, so it doesn't really matter what the companies say. But eventually it will and I think that kind of comes back maybe later this year in the back.
Half and here and now there's a lot of anxiety building about the competition in China. I spoke with Mike over at Iconic Capital yesterday, Mike Anders, who leads, of course, what is ultimately the family office of all tech billionaires, and this is what he had to say about d seeing just take a listen.
I think there was both a surprise in how how quickly they were able to catch up, but I think there was also you know, a lot of I mean, the key takeaway was they can make this technology for cheaper than our models, and you know, this wake up call around efficiency versus you know, our route force spending.
How much does that wake.
Up call matter to some of these US based semiconductor names right now, Jordan.
It's a very good question.
I think it did you know a month ago or two months ago when we were at higher levels and these stocks and this was.
Much more novel or a surprise.
I think now as we get further along and we learn more about what China's doing and how they're training and creating models, you know, leveraging basically these US large language models at much you know, I guess faster pace and less expense. It is, you know, creating maybe the view that the growth and size down the road could
be smaller for some of these hardware semi companies. But that being set on the flip side, it's creating I think more interest and excitement across internet and software because those are the kind of companies that could dramatically benefit from lower costs faster time to market. So it's kind of a double edged sword, but good for some, maybe not as good for others.
And today I don't see these US.
Big large cloud hyperscalers slowing or cutting back despite what's happening in China Jordan.
That's exactly right, which makes me realize so many of these large companies that reported earnings last month mentioned that they were largely unconcerned with this deep seek fear that it would take away some of their demand. But all of a sudden, you're seeing more of a sensitivity. Is that going to persist every time China comes out with news about a new AI model? Well, what can kind of overcome some of that sensitivity that we're seeing.
Yeah, I actually think the answer to that is it's not creating this shock factor with.
You know, investors in terms of what it could mean.
I think that you know, it's evolving, and that's kind of the dynamic of AI is that there's going to be news headlines and evolution that's going to be way faster than we've seen in other new areas of tech in the past, and investors are going to have to just deal with the volatility associated with that. But at the end of the day, you know, if you listen to what these companies are saying, and a lot of them have been speaking at Big Tech conferences this week.
They're all kind of saying the same thing that, you know, we're full steam ahead.
We see a lot of opportunity to monetize AI.
It's very early days, and we can't air on the side of investing and developing and spending less.
You know, we'd rather err on the side of spending more.
So.
I think that's the backdrop we're in.
Unfortunately, it's just we're we're in a market dynamic that's basically punishing these companies no matter what they say. But eventually I think that changes and we get back to a more favorable backdrop.
Let's also talk about how President Trump is starting to ramp up commentary and policies really around boosting domestic production and the companies that are perhaps benefiting from that, but also kind of seeing some pressure from other parts of the market. Do you think that his support for the industry, American companies and production could perhaps outset or outweigh some of this anxiety that we're seeing every time China comes out with a new advancement.
Well, I think what we are seeing is that President Trump and his administration has taken a markedly different approach to AI than the Biden administration, and I think that's very good for these companies and the evolution in terms of this like arms race in AI, meaning he thinks
this is critical technology. We have to be very supportive, and I think the restrictions are the controls against China or adversaries getting access to this is probably the biggest change, but I think that was going to happen no matter
who was president in calling the shots. So my view, and I think investors view, is that he's going to continue to do whatever he can to support you know, America leading or sustaining a lead and winning in this AI race doesn't mean China and other countries can't catch up, but if anything, they're going to continue to spend more of their own money, both in Europe and China because they know now they can't rely on the United States.
And in some areas that's going to help, like equipment companies that sell the tools and make these chips, because more companies and countries are going to need them.
Jordan, I go back to your confidence for the second half. But in your note, you're saying this is a true crisis of confidence in the here and now. What gets us into that confidence in the second half.
Yeah.
I mean I wish I knew definitively what the catalyst or the event would be, and a lot of times you don't even know, but the stocks basically kind of tell you as they start to trade more positively on
fundamentals that are constructive, and that's just a process. I personally think it's going to be more when we get middle of the year and in Vidia is seeing an accelerated ramp and their new Blackwell product that has multiple variants, you know, either underway or coming out later this year first quarter, you probably see that as their July earnings. But one of the things to remember is these stocks
are very sensitive to earnings revisions. So when in Vidio was beating and raising by eight, nine, ten percent, the stock was legging up as more money came in. Lately, in the last several reports, they've beaten and raised, but it's been hoist and you're seeing that even with the mag seven, the beats and raises aren't as significant as they were. So if Nvidia kind of mid year, let's say in a quarter or two, aided by Blackwell, because the demands there they got to get the production, can
start to beat and raise by larger amount. I think that causes again all these stocks to act better, but ultimately that has to happen until for these to kind of start to outperform again.
Storting Kline from a zooh ho, thanks so much for joining us. We're also watching shares of Pinduoduo. They're down by about tenths three tenths of one percent. This is the parent company of Teamu. It's reporting a thirteen percent rise in sales for the December quarter. These are strong results attributed to Beijing's policy, though the shares are clearly reflecting some anxiety about how President Trump's tariffs on China
could dent e commerce sales overall. Caroline, while said coming up well.
Technique is a set to meet with President.
Trump as his administration.
Eyes a repeal of the Chips Act. This is blue my technology.
President Trump is set to meet with top tech leaders next week to discuss trade policy and US manufacturing. According to sources, the CEOs of HP, Intel, IBM, and Qualcom have discussed meeting with the administration on Monday. For more, Bloomberg's Kaylee Lines joins us, Now, there's been a lot going on in Washington. What's the sentiment these tech CEOs are walking into and what could come out of these meetings.
Well, clearly there are a number of things they likely want to discuss with the President. I would note we haven't gotten confirmation from the White House this is happening, and most of the companies aren't confirming either. HP, though, has said that their plan is to be there on Monday and that one of the things they want to discuss is trade policy. That is likely true for all of these companies, many of which have exposure to countries
that are now facing higher tariffs. China, for example, is a big supplier share for company like Intel or HP for example, and that has twenty percent tariffs on it. Now there's a massive question that we have gotten news from Howard Lutnik today about Canada and tariffs and USMCA compliance perhaps having tariffs delayed for a month, but only a month till April second, when reciprocal tariffs could kick in. So that has implications for vast networks of supply chains
for these companies. The other thing likely on the agenda as well, considering the remarks we got from the President in his ajoint addressed to a Joint Session of Congress, this week about repealing the Chips Act is whether or not that is actually a serious effort on the part of this administration. As a company like Intel as well as TSMC have made massive investment pledges in the United States due to that funding that was provided by Congress.
I will just note though, that what reaction we got from Congress yesterday does indicate it's not likely a full repeal would happen. He would run into issues with the filibuster and the Senate is even sub Senate Republicans like the Finance Chair Mike Crapo, have suggested while they're open to reform of that legislation, they don't want to see it pulled back entirely.
What's interesting is whose names aren't that You would have thought Nvidia is the key one in the line of fire when it comes to China.
Well, that's true, especially when we consider another element of economic state craft, if you well, Caroline, which is export controls. That is another factor for these companies. It's not just about the cost of the things they may need to import, but what kind of products they make and technology they are actually able to export. That is another open question here. And while Jensen Wang may not be among those expected
at the White House on Monday. He has already met with President Trump over the course of this administration, as have other tech executives who have similar vulnerabilities. Here you can think of Tim Cook for Apple and the like. So obviously they're all making the rounds as they try to get on the right side of this White House.
That's Bloomberg's Kaylee Lines, thanks so much for joining us.
So first, it's kind bill aimed at keeping kids and teens safe online, and.
It's headed to the desk of Utah Governor Spencer Cox. The measure would require.
App stores to verify users ages and require parental permission for those under eighteen. Nicole Lopez, global director of Youth Safety Policy for Meta.
Joins US now.
And what's interesting is ultimately for the responsibility shifts from the social media platforms such as Meta Meta over to Apple and to Google. Do you have sympathy though for Apple's argument here that they're going to have to take too much data to the amount that they really need. Ultimately, you don't need data restrictions on every app, only some of them.
Look Apple's messaging last week and their solution is a positive first step, but it really doesn't go far enough in that first its protections are optional, they're not automatic, and second, the protections only apply with the team's approval, not the parents, and parents overwhelmingly tell us that they want to have the final say in terms of verifying their kids age and also having concent over any app that their team wants to download. And so, frankly, it
isn't the right solution here. It just doesn't go far enough, Nicole.
What else is Meta doing in the event that, like you said, this measure doesn't go far enough and people find loopholes around it. What can be found on Meta that can perhaps catch some of this?
Yeah, Meta has invested millions and millions billions of dollars into just that. We want to create safe and age appropriate experiences and we're not abandoning, nor are other apps, any of the age assurance methods that we have in place, and so we're going to continue to invest in AI and age verification checkpoints because we do know the reality is that people will try to bypass the app store solution. So there will be those age liers, but there'll be fewer of them.
And app store solution for Utah, but there's loads of other states in fact, also looking at these sorts of laws. How quickly might that unfold?
Nicole?
It's unclear how quickly it will unfold, But what I can say is this, we applaud Utah for taking this first step. There's sweeping legislation. It's been introduced by even over a quarter of the states, and it's across party lines. You have Alabama and Kentucky just last week introducing similar legislation. You have New Mexico, you have Alaska and other states
that are also doing this. So this is really picking up momentum because again, this is what parents want, and so we're excited about it, and we also hope that Congress you know, follows suit.
Yeah, take us there.
Why not a federal rule here rather than the patchwork a state by state.
Well, we think that the states are listening to parents, So we are excited about this. You know, if the federal government picks it up as well, we think it would be a great, great solution. So we're excited to see what develops. It's unclear at this point though, how quickly things move.
Well, one thing that is clear is that CEO Mark Zuckerberg seems to have a good relationship with President Trump. Do you think that could perhaps perhaps swing perhaps some of the momentum for bringing federal legi in this space a step forward.
That's above my pay grade. What I can say, though, is that this is what parents want. There's a recent Morning Console poll that found that close to eighty percent of parents want this one stop shop solution at the app store level. And I also want you to know I work two hats. I am first and foremost a parent. I'm a parent to tweens who are online quite a bit and on tech quite a bit. The other hat is the tech hat, you know, in terms of my job at Meta, this solution is common sense. It makes
sense on both sides. And the point is parents are overwhelmed. Their teens are on an average of forty apps per week, and this app store legislation really makes it easier in parents than that. It's simple, it's manageable, it's effective, and it gives parents visibility into what their teens are doing online. So we think it makes sense.
That's metas Nicole Lopez, thank you so much for joining us.
Welcome back to rue Meg Technology. I'mkaren Hide in New.
York and I'm Jackie Devalas in Washington, and we're both looking at the markets.
Jackie, let's check in on the Semiconductor index in particular. At one point, every single member of this twenty member index was in the red.
We now have just two in the green.
But ultimately we're dragged off by two and a half percent, and we've got to dig into the individual move us that push us lower because we are filled with anxiety, whether or not it's about trade, whether or not it's about China building their own generative AI models that need less data, less compute, or indeed, whether it's ultimately fundamentals don't matter.
At this moment. We've got video off by two point four percent.
We're going to get more fundamentals from Broadcom later after the bel the earnings. But can they shake off the anxiety that we're still seeing the big hyperscale is pouring money into custom silicon. Can the AI trades still work for them?
Remember they have shared two hundred billion.
Dollars in market capitalization alone this year. I'm looking at Marvel off by seventeen percent. They actually beat expectations.
In their quarter that it's just gone in the one that they look forward to, they.
Say they're going to have revenue of more than sixty percent.
Growth, not enough for the investor base.
As they're still so worried about ultimately whether we've just seen too much hype in some of these names we sell our winners.
Jackie, there's anger in Canada towards President Trump and his advisor Elon Musk. It's putting on pressure on Elon Musk's satellite business, Starlink. Bloomberg's Bruce Einhorn Joyce is joined this.
Now for more.
Bruce, help us understand the stakes here for Starlink. How much of the footprint do they have in Canada versus other customers.
Starlink has a big market in Canada. Canada is their largest market outside of the United States. They have about half a million subscribers in Canada. In many ways, it's a perfect market for Starlink. Really big country, lots of remote areas where there's no fiber connection, no other terrestrial link for Internet for people to use, so a lot
of people want to use Starlink satellites. A bunch of provincial governments have had or have been talking with SpaceX about deals to have Starlink available to provide access in remote and rural areas. Some of those are now at risk as Canadians are angry about the US, the tariffs and Elon Musk's roll in the Trump administration.
But there is such dependence.
You speak to individuals who, yes, feel deeply angered, but ultimately, if they're going to get any access to the Internet, they've got to stick with Starlin.
Where's the where's the competitives?
That is a big dilemma for some people. You might have some patriotic Canadians who want to you know, support their country and in you know, what seems to be a trade war with the US by shunning US products. But shunning Starlink is difficult for a lot of people because what are you going to turn to. Starlink is by far the market leading satellite internet service for low Earth orbit satellites, which is, you know, the preferred kind if you want to have really fast Internet connections. Uh,
and there just aren't options available for people at the moment. Telesat, for instance, a big Canadian company, has plans to have a lower orbit network in place, but there's still several years off from having that ready. Amazon has plans for Project Kuyper, which is a Starlink alternative. Again they're not ready. There is European company one Web, which is based in London, owned by Utel Sat which is based in Paris, so they have satellite a satellite network available. They don't do
retail the way that uh Starlink does. They don't go direct to consumers. So there just aren't a whole lot of options for Canadians who want to sever their links with Starling. That said, the one thing to keep in mind is there are governments that have said they're doing things.
So the other day, after the tariffs took effect, Premier Doug Ford of Ontario, the country's largest province, said that they were tearing up their contract that they had just announced last year with Starlink to provide internet access to rural and remote areas of the province.
See how consumers follow blue Megs. Buru s Einhorn. We thank you.
Look more news breaking when it comes to the threat of tariffs, and it looks as though Mexico gets a reprieve for now on US MCA goods coming across truth social President Trump saying that they will he will pause tariffs on Mexico for US MCA goods until April the second. Now, remember this isn't just auto's. We're thinking about agricultural goods.
They're included in this more manufactured goods, textiles. It depends on the specific region and origin more broadly than it does mean that there's a broader reprieve to these tariffs Mexican goods as it stands. Now, let's return to the impact that this is having on SpaceX and more broadly SpaceX competitor Utelsat there's been on an absolute tear as you can see in terms of it share price something nearly.
Two hundred percent year to date.
This as the European leaders are looking for Starlink alternative for Ukraine, that there are strained relations between Washington and Kieva course, and it's raising fears that Starlin service could be disrupted. Utelsat CEO Eva Benenk spoke with Bloomberg earlier.
Just take a listen.
Until now we have been together with Starling there. But it's clear that everybody's asking us today can you actually replace, especially the very large number of terminals that Starling has across Ukraine. And that's something we're looking very actively at.
Yes.
Interest in backing defense tech and AI startups is high among venture investors too. Shield Ai has just closed a two hundred and forty million dollar funding ground that valued the startup at five point three billion dollars. We should all so disclose that one of those investors is Bloomberg Beta,
owned by Bloomberg LP, which also owns Bloomberg News. Brandon Sang is shields Ai co founder and president, joining me now to talk more about where you're going to put that two hundred and forty million dollars to use.
Thank you so much. This round was really about supercharging one of our new products, called hive Mind Enterprise and Highmind Enterprise is an enterprise software suite that enables companies, governments OEMs to develop, tests, evaluate, and deploy autonomy across a number of different unmanned systems across a number of different domains at scale. It's really a page out of Amazon Web Services playbook that had a great internal product
that then they then commercialized. We've done the exact same thing at shield Ai. We spent the past ten years building the world's best aipilot. Along the way, we built incredible development tools, infrastructure and pipelines. In about a year and a half ago, we made the decision, you know what, We're going to package this up. We're going to commercialize it.
We're going to bring it to market so.
We can enable our customers to deploy millions of AI pilots.
There are a lot of strategic investors interested, Brandon. Look, you in this round have L three, Harris and Hanwa Aerospace. But we understand that you're going to be closing another round in a few weeks time from yet more strategics. Why do they want in and who's calling you?
The demand is very high for autonomy worldwide, and I think what you're seeing is a lot of strategics recognize this demand from the customer base and they don't have the best solution in house to develop tests in deploy autonomy. And so that demand that you're seeing from the strategics is a recognition of demand from the broader marketplace along with the recognition that the autonomy is a hard thing to build. We make it faster, we make it in shield AI makes it faster, we make it easier. And
we've been doing this for ten years. We've got real world results in customers' hands on the battlefield today.
Well, let's talk about some of those defense customers. A lot of what's driving the optimism in this particular sector is the fact that you can both tap the commercial side and government contracts. What does that breakdown look like for you guys, Yeah.
One hundred percent.
Look, we still sell directly to the US government, US military and our allied governments. And I'd be remiss if I didn't mention our Vbat aircraft, which after we flew in Ukraine last year against Russian jammers, against jamming, GPS, jamming communications, no impact to our aircraft because of our AI pilot that we had flying the aircraft. We're seeing massive demand in the aircraft aspect of our business. Now, what Highmind Enterprise really allows us to do. It allows
us to supercharge the industrial base. It allows us to tap into those commercial markets, and it is you know, somewhat you can make the analogy. It's a little bit of what like Pallanteer did ten years into their business, where they started to pursue the commercial markets, seeing a need from what they had built for the government. In the commercial sector, we see that exactly same need. A lot of commercial companies trying to figure out how to develop and deploy autonomy.
There's been a lot of conflicts around the world, and now you're seeing European countries really start to communicate that they're going to bolster defense spending. Is that a good thing for you guys?
Certainly we are seeing the same messaging and we're having those conversations every day with our European customers. They very much are acknowledging that their defense budgets are going up. They have to figure out what capabilities, what technology, what products they want. I think there's also a recognition they're turning to things that have worked when GPS or communications is being jammed. They don't want to do things the exact same way that they've been done for the thirty
plus years. They're going to smaller, more affordable distributed systems that are powered by autonomy.
Brandon Zem thanks for joining US president and co founder shield Ai on the fundraise now coming up female founders, so few of VC deal counts and a declining value in twenty twenty before.
That's calling it her pitchbook.
We're going to be speaking with Lorraina Yee of McKinsey Global Institute on the gender gap in tech.
This is Room Made Technology.
Pitchbook out with its latest report taking a look at female founders and investors in the USBC sector. Overall, the research firm found that both deal counts and value declined in twenty twenty four among.
Female led USBC deals.
Let's talk more about the gender gap in tech in finance the Lorraine McKinsey Global Institute Director and author of the book The Broken Rung And ultimately this is a book about opportunity, how they can succeed in spite.
Of that broken rung.
Loraina, But what you articulate is a gender technology gap. How does that feed into this narrative that women are raising less leading less technology businesses, they're able to get VC funding.
Well, it's no surprise that we don't see women represent the technology gap, which actually starts with the education gap of women getting technical degrees all the way to the leadership and how they're represented in work.
That's not a surprise.
What we wanted to focus on is in spite of that, in spite of those breaks, you may see, how are some women succeeding and how do we make that transparent for everyone. So it's things like pick a company, not just a job, go into the power alley, those p and L roles in companies and make big, bold moves in your careers as and invest in your networks.
Larina, you write that half of a person's lifetime earnings come from experience and then the other half comes from education. How does AI play into this differential. Is it poised to improve it or make it worse for women?
Well, we are in between, so let's see how it goes. But what we have found is that in the United States women are not getting those technical degrees. We've been at about twenty two twenty six percent women computer scientists for decades. But the thing that we want to focus on, and you mentioned this experience capital, is fifty percent of your lifetime earnings comes from what you learn.
On the job.
So how you gain skills on the job matters so much so for women who didn't get it in school, they've got to be really strategic to gain ground in technology skills now in the job, and with AI, to that point it becomes ever more important. We know that AI is accelerating job transitions. We know that up to seventy percent of work that we do today could be automated over the next couple of decades with AI.
So instead of fearing it. Women need to.
Become the master of those skills, get ahead of it and manage against that.
And so Doarina, what do they do?
Do they self invest to ensure that they're ahead of the AI game? Do they push their employeers to be investing in them and reskilling.
All of the above, And you need to bet in yourself. So in terms of what companies offer, it's really interesting. Actually, most employees, whether they're men or women, have come to the realization about seventy percent in the United States that AI will change at least thirty percent of their day to day activities over the next two years, and they are hungry for their leaders to invest more in them. So if you're one of those companies, you're in good stead.
You should sign up for all of that and be an advanced pilot in rolling out AI. But let's say you're in a company that's not investing. You will have to invest outside with your time and make it a habit. I mean, the great thing about AI is it's so intuitive. As a user, it's really fun. I mean, it's an incredibly new technology and you're not behind because everyone over the last two years is trying to gain those skills. But I think the last thing is you have to
bet on yourself. You are your very best bet, and you can do this. You can become a technologist because the other thing, it's not just about those hard technology skills to win in AI.
We're going to need soft skills.
We're going to need the ability to ask great questions, the ability to think about risks and ethics, the ability to think about reasoning and what do the results mean?
And so these are skills that are great for women.
Werena. There's a lot of budget cuts and STEM education programs are expected to be part of them. What does this mean for what the gender gap looks like going forward thirty seconds?
I mean, if we're cutting these programs, this is going to hurt both men and women. So hopefully what we'll see is an increased investment in using AI to help with that education gap, and particularly this is incredibly important for women.
That's Laurna McKinsey, Global Institute Director and senior partner. Thanks so much for joining us.
Let's check back in on the chip stops because Marvel having a really ugly day. In fact, it's had a pretty ugly rundown from its highs back in January off by fifteen percent on the day, were off by more than forty percent from our highs. This is the company actually managed to meet expectations with its earnings, but it wasn't enough. Ultimately, a sixty percent growth in revenue guide not living up to the expectations of the market. And it's all about custom chips here, and we're wondering what
that means broad Com too. Let's really just sign a line on where there is a bright spot for AI spending or not company with Broadcom earnings after the closing bell, let's dig in with Ian King, who joins us now and in Broadcom has a similar exposure custom chips ultimately, and we've had nothing but reassuring words from the hyperscalers.
But is it going to be enough that you nailed it.
I mean, everybody's saying, no problem, everything's fine. Demand is still great. It's just a case of can we supply it? Well, that's not enough if you are in video, if you are Marvel, what you showed everybody was Look, we have to have blowout numbers before people are reassured Marvel was good in video was good. Broadcom will likely be good again Later today but will that be enough?
Probably not.
Oh apologies, there I was living Jackie, take a moment. It is my fault entirely in. Let's move forward then and just think about what if they're not going to have blow our earnings. If we're thinking about also some of the implications on tariffs and many of these companies, big tech companies about to go to Trump next week, where are we going to get any sort of ease to our anxiety around the chip trade right now?
Yeah, it's going to be difficult. As you say that, we've got the demand concerns, and on the flip side of that, what you just pointed to with tariffs is also indicating that the supply side is going to get squeezed their prices, that their costs are actually going to go up, because as you know, this is a globalized supply chain. Everything comes from somewhere else, Everything gets assembled
somewhere else before it ships somewhere else. Efficiency was wide all came into being, and now that is being challenged by the policy of the current president of the US.
Just feeding into broadcoms in markets. Then we had Jordan Klein from a Zuho on saying that basically the second half of the year is when we're going to get our confidence back when ultimately you see in videos chips being taken up blackwell really home run in terms of production. What are we likely to eventually see coming from Broadcom because we're also worried about exposure to Apple, right, yeah.
I mean the idea here is that if in Video has a really good second half with this new product range, guess what, you're going to need more networking and that is good for Broadcom because Broadcom is also a major networking chip provider, so it's kind of a derivative trade there. But yes, Apple is a major coaster of Broadcom has been all along. They've been dancing backwards and forwards on whether Broadcom is the solution for the iPhone long term. As we know, Apple.
Likes to do its own chips.
That's gone backwards and forwards, and that concerned Lingers over Broadcam. Broadcom last time out said, hey, don't worry about it. We're well engaged with Apple. They need us, but we'll see I've.
Already lost more than two hundred billion dollars in market cap over the course of this year.
In King, thanks so much. It's gonna be a busy day for you.
Meanwhile, another start that we're watching for after the bell HPE companies set to report their earnings and Brody Ford is here to break it down. And what sort of confidence are we going to hear from Antonio NR here Because he's trying to also vindicate a key deal that he wants to get done and that's been blown apart by the US government.
I imagine their CEO is speaking more with their lawyers right now than he ever hoped to. Yeah, they agreed about a little over a year ago to purchase Juniper Network, saying that networking would be this kind of new core of their company. Regulators said, it looks like you're trying to snuff out some competition by buying it. Obviously HPE disagrees,
and they're working on convincing regulators of that. But it's it's soaking up a lot of attention within the company I hear, and you know, so we'll be looking for any updates on that lawsuit tonight.
As well as on the general AI server moment. I mean, right now, these companies like HPE, Dell, super Micro have kind of found this whole new business line of selling high powered compute for AI and HPE has been a bit of a laggard, but they've picked up some big deals. So we'll be looking for that backlog.
Backlog that also needs to prove that the margin remains resilient.
Right.
You've written so much about the fact that this is ultimately not that profitable for server makers right now.
Totally.
Yeah, for server makers, it's all about, you know, what can you bundle in with the server, because when you sell a server, you're really kind of reselling Nvidia chip and you're not making a whole lot of money on it, so they try to sell additional goods along with it.
And I mean, speaking of margins, they're already getting crunched on tariffs, right, I mean some of their peers, you know, their long lost relative HP said that, you know, tariffs would be crunching their margins, and I would expect to see similar commentary tonight from HPE.
HP CEOs well CEO likely to go and speak that to Trump to next week. Brady Ford, good to have you, Thank you busy day ahead of those earnings after the bell. That does it for this edition of Bloomberg Technology. Do not forget to check out our podcast find Out on the terminal, as well as online on Apple, Spotify, and iHeart. This is Bloomberg technology.