Chip Fluctuations and Musk's SEC Probe

one hundred best week in months. Hey, but not without major fluctuations in the semiconductor space after Intel's dismal earnings and there's new curbs for China made chips. Then Elon Musk faces an SEC probe over his role in misguided claims about Tesla's autopilot system the Bloomberg scoop and thousands of tech workers got laid off after they came to the US on work is what one nonprofits doing about it?

But first I check in all these markets, and Ed was talking about it, the fact that we see resilience, even though there's some worrying signs amid a number of the earliers that came out this week, and we think of the intels and Microsoft of course Texas instruments as well. But then as that manages to push on up more than a percentage point. In fact, we are really seeing this particular index on a role highest in September over the last year, four straight weeks of growth that we've

seen four straight weeks of games. We haven't seen that back since August two. Or Country World and Next also gets a slight bid today, up about a quarter percent, nowhere near the enthusiasm in the US though many focused on the Federal Reserve next sweep. Many focused, of course on what it means for interest rate path. We're looking at Bloomberg Commodity Index. Interesting me thinking ahead of China's reopening after the looonar New Year next week, maybe some

money coming back out of copper for example. Let's look it on. Let's look at what is a really for out and out technology focus That is the socks. Because as much as we saw that enthusiasm around the NASDAC head, really the chip sector ruling US lower off by seven tenths of ascent for the lived at Philadelphia Semiconductor Index. Yeah, look, I'm going to start on the positive here and focus

straight on Tesla. Really big jump on Friday, continuing the momentum for earnings, but the thirty three percent gain on the week it's best week going back to May of two thousand thirteen. Clearly investors are believing what Elon must has to say about momentum. The negative is behind me, right? Which is Intel having its worst week since December, It's biggest drop on Friday for a single session since September.

Is this a question about what's happening in a cyclical chip sector or is this a question about what is happening with Intel specifically? That is the question that I have. What is wrong with Intel? So great? We had the best person talk with about this, Daniel Flax, Managing director senior research analysts covering the technology sector broadly at New Burger Berman seven billions of course in assets under management. That is the question what is wrong with Intel? Dan? Intel?

He is going through a multi year transition, and if we step back and think about the past decade, the

company uh lost competitiveness. They weren't making products that were as cutting edge as they had previously, and so what's changed in the last couple of years is You've had CEO Pat Gelsinger come back to the company really reinvest aggressively, bringing new people like CFO Dave's inster UH whom we think highly of along with Pat and and they are working to to UH execute better on the product roadmaps, UH deliver value to customers and certainly when we speak

to the customers, Intel remains strategic and so looking out, I think there's a multi year journey still ahead for Intel. But if they can make better products, I think UH, I think they can deliver value for customers and ultimately for shareholders as well, then it's replating this out further.

How worried about you about the end markets? You know, you look at PC, desktop, also servers, and what Intel had to say about the first half of this year in particular, what does that tell you about what's to come for the technology sector. Certainly we're in a period where where there's cyclical headwinds. Um If we think back over the past couple of years, there was enormous demands save for for PCs as one example, during lockdowns during during during the worst of COVID, and so there's a

little bit of digestion of that. So I I expect over the next several months the the industry will work through UH. Inventories in PCs is one example. The economy is slowing, its impacting enterprises as they spend. But if we look out till later this year and really further into four I think we'll see better growth. And so the companies that have the products, that have the solutions UH,

those can benefit. And if we step back and look at some of the secular trends, so for example, artificial intelligence UH, the the ability to deliver value in areas like drug discovery. Look at a company like in video it two faces cyclical headwinds, but they have tremendous growth drivers and product cycles in areas like the data center. So we still see opportunities. Certainly their near term headwinds though.

Talk about those headwinds that aren't just perhaps cyclical in nature, Daniel, but they're also related to geopolitics, and the video is just one of them, which of course has China exposure. I'm thinking today of the the scoop really coming from Bloomberg talking about how the Biden administration is getting closer to getting Japan the Netherlands to come on side to limit China's access to the semiconductor technology that it so wishes to build. How is that help or hindrance to

some of these US players. I think the geopolitical and the trade tension click. Clearly, it's been with US for several years and it's continuing to intensify. It is having impact on some companies ability to ship the most advanced technologies into markets like China. But but I think globally demand for these products over the next several years is likely to be healthy, and that's driven by by build out example of the cloud in really this digital infrastructure.

And so in the near term the restrictions are going to impact companies that that do sell in certain cases with certain products into China. But I think ultimately that demand UH does grow and those companies like a SM Lithography is one example, we will continue to have attractive

multi year growth prospects. What about the R and D that then is still needed as we see the cyclical nature, the fall away of PC demand, the fact that we're going to see slowing revenues that some analysts just said we're what was phenomenal staggering was one of the words used. Are we're still going to have to see this sort of spend come in that means of seeing these fabs come up in the United States and all bringing it

closer shore. I think the build out in the United States, in Europe, in other geographies outside of Asia will continue, but but it's a multi year process to build them and to equip them, and and of course a modern fab could cost around twenty billion dollars, so it's no small financial undertaking. I think the the industry will remain cyclical. But but if we look out to the middle and really the latter part of the decade, demand for silicon

is likely to continue growing. And that's because it's not just in PCs and smartphones. It's really going everywhere. And that I think is the bigger story in many ways in terms of this transformation of the industrial landscape putting intelligence into all sorts of devices. You have companies like Qualcom for example, that do that. So there's a lot of growth even with cyclicality. Words an I want to go to Calcom really quickly. They report next week. The

story there is about diversifying away from the smartphone. Do you think that they'll buck the trend we've seen in a limited way so sl far from the chip sector. They're they're also going to be impacted by it by some of the smartphone industry inventories that have built up. But as we look out over the next several months, I think what we'll see is that China is beginning to open up. China is an enormous market for smartphones and other mobile devices, and Quacom will benefit from that

from that growth rebound. I think the bigger story, though, beyond that, is their success in areas like automobiles, where they have a thirty billion dollar design wind pipeline, and so CEO Christiano amon I think is making the right investments. They're diversifying the company and their intellectual property in key areas like connectivity and security and automation are powerful and valuable to customers. Daniel Gregg's have some time with the

have a wonderful weekend. Daniel Flax, Managing director, SENI to research analyst over a Newberger berm and really going through whole host of names in the chip space. We've got another one for you, because let's talk about in Vidia. It's conserving pretty well of late and the president of the CEO, Jensen Kuang, who's been doing particularly well to be perhaps building his wealth, largely in part because of

the sore and popularity of chat GPT. This man has seen his fortune climb by three percent this year of eighteen billion dollars now is his overall fortune after videos become basically a dominant player empowering AI applications, automous cars, robots, to crypto, to mining. Of course, and speciality that's made at one of Wall Street's top wages for how to

profit from the rapid business interest in AI. So I guess in spite of Intel's fall, in spite of the doom and the gloom ed, it feels as though in particular there's some hope around chipmakers. Morgan Stanley actually had this take on it. We do like some of the semiconductors down here that that look like they're starting to put encycliculturals in the traditional sense. Some of the software services companies nice pivot there from semiconductors to software companies.

And we can delve into one key software company now because Salesforce appointing three new independent directors to its board as the pressure builds from activists and mrs. Of course, that's talked to be mostly Anna Baker for more on this, And really it was the scoop from d Hammond yesterday and from your team that we would likely to see these caster characters come onto the board, and well it occurs to the Anna, So some of the casts of characters have come on the board Value Act. Uh you

know that mystery activist investor. We were trying to figure out who else was in there besides Starboard, Elliott and Jeff of it. So this is really the start of something. Value Acts certainly will have an influence on the board. They're very interested in, you know, corporate governance and making changes, but in a friendly way with the company. But there's still the question of what happened with these other activists

who are still very much involved. And the shares were muted today, so um, you know, the news was received okay by the market, but I think there's going to be some more action on this one. Leona. Let's stick with that kind of main protagonist. Then I suppose for one of a better description, who is Mason will fit and talk to us about Value Act. They track record what it is they come into companies and do well.

They're based on your part of the world. San Francisco may have a A A thirteen billion under management, and Mason Morpha is no stranger to tech apology. He sat on the Microsoft board for about four years from fourteen to seventeen. I heard the stock in that time doubled, So he will definitely bring that experience public board experience with him.

Uh and you know they're they're known for making changes, as I mentioned in a friendly way with the company, So it'll be good to have some sort of uh investor viewpoint on the board to help because the shares are trading so great for Salesforce bloom Bosleyana Baker leading a big week for our deal's team out of New York, Thank you so much. Meanwhile, back here in San Francisco, regulators investigating Elon Musk's role in shaping Tesla's self driving

car claims. The review is part of an ongoing SEC probe of the company's statements about its autopilot driver autopilot driver assistant system that, according to a Bloomberg surce, officials awaghing whether Mosque specifically may have inappropriately made forward looking statements and carry this this story, this reporting hot on the heels of that other scoot from Danna Hole in Sean o'caine earlier this month about the video right the

emails where Elon Musk is directing the language used behind how they described Autopilot in those nation stages, and the SEC is just hot in his heels, isn't it? In every sort of direction of this. But ultimately it all comes down to the fact, and it's almost reminiscent of what he's just been in court trying to explain around

his tweet of funding secured. Is when you're a CEO, the leader of a business, the visionary, when you say certain things, people believe them and they end up being forward looking guidance basically whether or not he wants them to be. Yeah, and Boomberg's source pointing out this is an extension of the existing SEC probe, which was originally reported by a number of media outlets back in October.

It's Today's Bloomberg Big Take Daiy Albert Kurt Wagner taking a deep dive into one of Elon Musk's most faithful supporters. She Twitter's head of trust and safety and seems willing to overlook protocol to appease her new boss. Those cut Wagner joins us now on it. So, first and foremost, who is Yeah, so Ella is the head of Trust and Safety at Twitter. So she's essentially in charge of a lot of the teams that work on you know, keeping Twitter safe. Right. They used to fight misinformation, they

used to take down hate speech. Um. You know, this is the same group that, for example, was responsible for suspending President Donald Trump a few years ago. Right. And so this is a pretty high profile job. A lot of these decisions we've seen be very controversial over the years. So the person who kind of runs trust and safety at Twitter has always been a high profile role in that regard because the decisions that are made are so

important to free speech on the internet. Right. And so she stepped into a very senior position under Elon in just the last couple of months. But that was what I found so interesting about this. You and I have done a lot of reportings together over recent months and more than recent months, honestly, and that was the name I didn't recognize. You know, we we documented on a day by day basis the people leaving Twitter those that chose to stay. So now my question is what is

it that she's doing? You know, what is the crux of your big tape story that you've learned about her role within the building. Yeah, well you probably aren't familiar with her name because she really just joined Twitter over the summer, just a few months before Elon Musk took over, Right, So she was not necessarily a senior leader in the way that a lot of employees were, someone who a lot of employees were familiar with by the time that

the deal closed. Right. But what we you know, pointed out in our big take and why I think this is an interesting story is that, you know, they're kind of bucking a lot of the trends of of of trust and safety over at Twitter these days. Right. I mean, this is a this is an organization that exists at Facebook and YouTube and all the other social players, and you know, the last couple of years, we've seen these groups get really refined. Right. They have tons of policies,

they have tons of procedures. Um, there's a there's kind of a standard way of doing some of this stuff, right, and under Elon, a lot of that has gotten thrown out the window. And so we've seen, um, you know, for example, they're just got rid of their COVID misinformation policies. One example, you may remember ed a few weeks ago they just started suspending journalists, uh, sort of without a great explanation, right, And so what we've seen is just kind of like this playbook that I think a lot

of folks are familiar with get tossed out. And that's why we find it interesting. Well, give us some some sort of granularity around the decisions or actions that she is carrying out I suppose on a month behalf. Yeah, Well, typically these types of things would go through a strict process, right, you know, they might go through multiple teams, multiple layers,

certainly multiple levels of review. And what we've seen, and what we mentioned in our story was that, you know, we've seen screenshots of things like, hey, we want this account suspended on the order of Elon, or want to suspend it on the order of Ella, right, and these are just again not the way that usually these checks

and balances tend to work. And so there's a lot of people in the world of trust and safety who are worried that there's simply just too much power being held by one or two people here in this instance, and that you know, if they're not following a lot of these checks and balances that were used to you know, you don't know exactly where where that's going to end up, right, And again, these journalists being sort of suspended out of the blue is just one example, but you can imagine

that being extrapolated to a bunch of different accounts. Her rise or indeed her remaining. How have people talked about that and the way in which she's navigated her career with Twitter? Sure? Well, I mean I think the issue is not at all that Ella is is I'm incompetent or anything like that. I mean, she's had a bunch

of really strong roles at tech companies before. She's described to us as an incredible operator, someone who's very organized, he's very passionate, who who's very um, you know, emotional about the things that that she cares about. But I don't think she had much experience doing uh, you know, speech policy, right, Like a lot of times will see with trust and safety, their their academics or their lawyers, or the people who have maybe spent their whole life

thinking about things like affection two thirty. That does not that is not Ella's background, right, And so I think there's a little bit of concern Again, from people who were within Twitter's trust and safety, but even just like the broader industry that you know, she's now in a role that requires that type of nuance, and you know, it's something that you build over time, and I'm just not sure that she's been in that role long enough,

especially with Ellen and how he operates that it's instilling a lot of confidence in people right now. Bloom bes Kurt wagging a great report saying keeping us posted on what's happening inside the bird's nest. We'll get more from you next week, Thank you very much. Meanwhile, the information says Apple plans to develop software to help users of its mixed reality headset build their own acts. The company's working on its own are content for its three thousand

dollar headset. According to the report, Apple hopes that even people who don't know computer code can use the software to tell the headset via Syrie to build an a r app. That application would then be available on its app store for others to download. Carrol, you reckon you can be an app developer through the headset? Is that within your skill set? Most definitely probably through chat GPT rank.

I mean we've played around with the headsets I can't imagine going as far as sort of coding within it or making a command to beyond video games. It's interesting use case. Yeah, I mean, I'm going to leave it to the professionals, But I mean, who knows how creative we can become when left to war own devices. I first need the three thousand dollars you can give me that why I can then start doing it. Yeah, I mean, this story about the headsets just not going to go away?

Is it? Anyway? Coming up? More pain for Indian tycoon Galton at Danney's Corporate Empire will tell you the extent of the damages caused by that short sells report. That's next. This is bloom Buck Who are Hindenberg Research? The u S investment firm says it specializes in forensic financial research and publishing short sellers reports. Hindenberg's in the news again with wide ranging allegations against conglomerates owned by galtam Adani,

Asia's richest person. Founded by a guy called Nate Anderson, the firm's named after the seven Hindenburg disaster. Hindenberg says it looks for similar man made disasters that may be floating around the market and aims to shed light on them. Hindenberg says it seeks results around covering hard to find information from quote atypical sources, but warns investors, opinions and investigative commentary are his own readers advised. The use of

its material is at your own risk. The firm really hit the headlines in targeting electric truck making the killer, and it's founded Trevor Milton. They claimed Milton deceived investors. Ultimately Milton resigned. There was a criminal investigation and trial and Milton was found guilty of securities and Wye fraud. Now that you know what Hindenberg does, here's a little bit more about why you heard about them this week.

It issued a report on Tuesday detailing wide ranging allegations of corporate malpractice at A Darni Enterprises following a two year investigation. The market route that followed a raised more than fifty one billion dollars of value this week across the Empire, which is owned by Gautamer Danny, Asia's richest man. The Darney Group, the main listed part of the conglomerate, disputed Hindenberg's allegations Thursday, but it's stopped just kept plunging.

The firm lost almost on Friday, biggest drop Carrow since seen an issue as he wants to raise funds. An issue is well, because tell us why this is a technology story. What is it in the conglomerate that in our industry? Two reasons One a on he's moved into media companies. But to the thesis from Hindenburg is that even his cement companies trade, they have multiples like text stocks,

and that for them was a worrying side. And Hindenberg, again a short seller, take a caution what they say, but they see potential downside drop from where they think these assets are really valued. Well, that's certainly made their impact from a monetary value perspective over there in India. So we're going to keep all over that sort of a story. Welcome back to Bloomberg Technology. I'm Karen Hyde

back in New York, San Francisco based Ed Ludlow. You're there, and and actually both of us took a keen eye on what's happening in terms of earnings, particularly credit card giant American Express today right because their shares absolutely spiraling higher up ten and it's because the company gave a pretty upbeat revenue forecast. They had record number of new cardholders two and I actually got to have a quick

chat with the CEO CT Scurry earlier this morning. He's talking about as resilient customer base, of course a pretty premium customer ed, but he also has some really interesting takes some technology, particularly when it comes to small businesses, because he was saying, look, I've noticed that digital advertising spenders down for those small businesses that I serve, And he said, to quote him, I don't know if that's a function of the economy or a function of confusion.

And he's talking about the fact that at the moment TikTok Twitter, where you're looking at meta at Google, the regulatory implications, some of the political implications of societal he's saying, that's a lot to deal with to try and digest as a small business as to whether you want to be putting your money to work there. Well, he's interesting on the other side, the consumer side as well, because you know, I scroll my phone often, see a product I like on social jump jump into it. That's part

of the e commerce ecosystem for me. What jumped out a company giving guidance for the year incidents, and I think it is a technology right because it's payment, it's people facilitating transactions, and great job getting on the phone because we need to know what's going on. Yeah, he was really saying, I've got clarity out and I've got confidence to four Who else can say that and I can. I can tell you not many people in perhaps the crypto world. I've got that sort of level of foresight

right now. And let's just go to that now. Because Anthony Scaramucci Skybridge Capital, we know the kind of pain that that's been in. It's lost in fact, and its biggest funds after some pretty wrong way bets, whether it's crypto that they invested with or of course they now bankrupt FTX relationship. Let's bring in the one and only Shanali Bassak, who's about to head out to Miami to meet a few crypto players as well as hedge fund Glitterati. Talk to us about scar Mucci and how much he's

been burned by the space Listen. He has been pivoting Skybridge to focus more and more on crypto the last couple of years. And remember this is not just buy encryptocurrencies. He had a stake in f t X in various rounds of the financing, so he was really hurt in November when FTX filed for bankruptcy. We also know there's another issue here that f t X Ventures had taken a stake here in Skybridge, and so that had come up for a question and when they filed for bankruptcy

on whether he'd be able to buy his steak back. Now, the big issue here is Skybridge tumbled thirty nine percent last year. It is significantly tumbled. A big question here because they have limited withdrawals when it comes to Skybridge. What I know about Skybridge is a lot of the bitcoin, for example, that they bought was that about eighteen thousand dollars on average. So to some extent that they could see some rebound this year, it would be hugely helpful

because of the route that they're facing. Because remember Skybridge is not just invested in cryptocurrencies and crypto kind of venture here. They're also invested in a lot of hedge funds. And while some hedge funds have had a tough year, there are a couple that did a little better last year too. So taking the good with the bad in a tough year for Anthony Scaramuchi. I hope the audience got the audible gasp from Caroline in the background because I gave a similar one there. I guess, I guess

my question right. You're you're a fund. I think on the crypto side, they're looking a lot at private companies. As you said, they also invest in some hedge funds. That was how did they get them selves out that

and back on the right track. Yeah, you know, I can't help but talk already about this big Miami trip that many hedge fund managers are making into this weekend into next week, because starting Sunday night, starting Monday, you have the Managed Funds Association, a big hedge fund community, starting off with a series of events on restoring faith in crypto at a reception also that's sponsored by coin Base. So you do have the crypto community really pushing here

to restore that faith. You have Mike Novograt speaking at a separate conference Eye Connections, also in Miami to start restoring faith in crypto. You have a lot of fund managers alongside traditional fund managers talking to the same big investors to bring people back in. In my own conversations, what I'll tell you is that there are a lot of people out there that still say, listen, bitcoin didn't fail last year, even though so much of the market did.

There's a lot of conversation among traditional asset managers that will be down there next week about whether they buy some of these claims out of bankruptcy. And there is a lot of question around how to invest as a traditional investor. But again there are still a lot of people who have felt a lot of pain from last year. Head Well, the big headline this Friday is the bloombergtion.

Ali Basso because off to Miami, So Miami watch out, and I'm sure we'll get a lot of headlines from her, not just have crypt over the world of fintech as well, and staying on fintech, Fidelity again slashing its valuation. This is interesting of ants group. According to filings, Fidelity cut its estimate for ant by about nine percent to sixty three point eight billion dollars as at the end of November.

That's down from two hundred and thirty five billion just before ants i Po was halted in November, has been overhauling its business to comply with Chinese government demands. As we have been discussing Caroline about the situation in mainland China for some time now, I would have broader broaden out this discussion around valuations, particularly from the venture capital perspective, and bring in Blouziberry general part at Lucks Capital. Interesting

what we've just heard. There are lots of threads valuations in China. But I just actually want to go with the week that was this. This has been a really volatile week, not just in terms of markets but headlines markets to the upside. As a VC that's just heard all of that from our program and sat through a week like this, what's your experience of the week been. What's your takeaway from this week's news cycle? I mean, you know, Nazdak is up about ten percent this year, right,

so in some sense this is good news. But at the end of the day, vcs we invest in early stage technology companies for us at Lux Capital specifically, we invest in the intersection of technology and sciences, and this is a great time to be building those companies. Great talent is becoming available. They're starting companies to solve real

world problems. You know, think about physical security, think about saving lives all the shootings and gun detection technology for example, that We've invested in drug discovery companies, automation, autonomy, bringing manufacturing back to the US. So regardless of what sector you look at right now, there's interesting companies that are getting founded and invested in. And the good thing is that nobody's looking at exits, you know, for these companies

in the next year or two. We're just making sure these companies are fully funded and are able to create great products and take them to market. Butw Caroline and I were reflecting on our weekly Twitter spaces earlier that the headlines on layoffs came right at the beginning of this week, and you there's been so many stories from the world of technology that you forget. Actually throughout it have been some some pretty negative headlines, especially those around layoffs,

IBM Spotify being examples. Does that represent an opportunity for a venture captists like you? Are you kind of putting pressure on your portfolio founders to say, hey, go out there and hire these people. They're on the market. My inbox is filled with the regimes that have come in from people who have been laid off from these companies, and I'm absolutely working hard to get them, you know, hired. It's some of the best talent hired into our portfolio companies.

This is two years ago that we told our portfolio companies to raise capital because we sort of knew in some ways that the peak had arrived. We obviously didn't know exactly when, but we wanted them to raise as much capital as they're good to be able to survive the long term. And these companies that are sitting on that capital now is not only able to hire these candidates, but also able to acquire some other companies along the way to bring more technology into the mix and and

bring it to their customers. Let's talk about hype or not therefore, because amid some of the concerns and the and the worries about the technology pulling back valuations, putting back people being like, go, there feels like there's another sort of n f T crypto vibe around AI. Can you tell us about what you're feeling there? But as to whether you're getting that exuberance, what are we at the dawn of a new Internet stage? Uh? I think

there's something called the Gardner's hype cycle. So every new technology it comes with its own hype and you just have to sort of live through it and know that there will be ups and downs along the way, and that's okay. Um, there is a lot of noise around AI,

but AI is also real. I think, you know, there's something unique that happens with these you know, chat bots and LM and other things that have happened that when you have very large parameters we're talking about twenty billion parameters or more, you start to see very interesting results. And I think people are now starting to figure out

how to utilize them to solve real world problems. So we're seeing you know, the applications of AI in new industries like healthcare, like education, like in construction, in autonomy and and and automation, and I think there's going to be a real companies built. We're super excited about that. At the same time, you know, just like any other industry, I wouldn't just say that for f t X, for crypto.

This same thing happened in the world of drones and b R a R. You have to be just very careful that you build real world companies that are solving problems and creating real value for the customers at the end. Yeah, and real value is something that's now being questioned. For example, for a public company like Tesla, which a lot of it's big focus long term value is about automated driving.

I know that's a narrative expertise for you. I know that's somewhere that you've been investing in with some of your portfolio companies and leading that for Lux Capital. Where are we in that overall hype cycle that we're just talking through. I mean, look, there's some level of autonomy available to all of us. You know, if you can buy a car now, it will do self driving, it will do lane keeping, you will update, uh, you know,

new software will update more frequently. But obviously Tesla is further advanced than most of the other automotive o EM's out there. But I think automotive and autonomous technologies here. But I also want to add that AI m L similar technology platforms such as um fontomous driving is being applied to other industries as well. Right distributed sensor sensors are being used to detect guns and weapons that entrances to buildings. A I m L is being applied to

looking for threats in those systems. Completely different industry, you know, a company like Evolved Technologies focused on that, completely different than autonomous technology. But using the same paradigms and using some of the same technologies, and in some ways we call it the peace dividend of the autonomous wars, that all the technology that's getting developed from autonomous cars are going to be used in many other industries and create

value elsewhere as well. Fascinating. I've got to get you back. Really always loved speaking with the VC community at the moment about where there is they really focused to be getting the value below. We thank you so much, of course below it's so very hears of course, the Black's capital. Let's check in though on some of the public side of the equation. We're just talking about Tessa and some

of the other discussions. But I mean, chip stocks have really been taking it hard, right then, Yeah, and I want to go back to Intel because at one point on Friday, the stocks down the most since October one. It paired some of its declines. I think we had our biggest drops since September, the worst week for this stock in about five weeks. But you know, this kind of killed the momentum, right, I know, then, has that

one d pushed higher Friday? The Philadelphia Semiconductor Index or socks did react negatively but again paired some of its losses. What was astonishing for the market is that expectations for Intel were already pretty low, and this was even worse than that the forecast for the first quarter and outlook for the rest of the year, and with so many chip names still to report next week and particularly get Qualcom right, Caroline, I think now we're probably bracing a

little bit. You know, we're probably a bit concerned about the outlook, particularly for consumer electronics for the rest of Some of the turns of phrase being used by the analysts, Bernstein calling it astonishingly bad and stunning. So um, I mean, just we hope, well, I suppose for many we hope that it's not going to replicated next week were coming up d Well, maybe next week we'll hear more of this as well. Tech layoffs. Look, it's impacting workers on

temporary visas too. There is no one nonprofit that's trying to learn a hand in all of that. We talk about it time and time again at tech companies cutting costs, looking at the future that perhaps as a bit bleaker and in particular it's affecting the workers, isn't it. In particular? H one b visa holders whose status in the US is directly tied to their employment, and so you and

I we took to our audience. We got on overall the focus on Twitter because some companies like Spotify Day at the beginning of the week when they announced layoffs, said they're going to be helping out the employees who were on visas. And interestingly, when we asked our audience, should this be standard, said yeah, yeah, they should be. Yeah, you know, you know, and I'm not surprised by that. Caroline.

Think about where I am in San Francisco, the Bay Area, even where you are on the East Coast, not just New York, with cities like Chicago, other cities. Many of these workers are here in this sector technology, whether they're on the s West Side or otherwise on visas. You know, it's just an incredibly difficult situation for them. We've got a perfect guest to talk about this, Brad Henderson, CEO

of P thirty three. This is a not for profit in Chicago which is basically trying to directly help with this. Right Brad, You're basically saying, let's take what is an available portion of the workforce and find a solution here talk us through what you're trying to achieve. Sure, we're really trying to respond at this moment in time where so many people are being laid off, and if you think about our workforce in the technical field, it is

far and born. Many of these individuals have sixty days right now to find a job or leave the country with their families. And so what excites us in Chicago is we're just stock full of these companies that do real things in the real economy and read people's lives, and we're actually have tons of open positions, a hundred and sixty thou jobs in technical fields open in Chicago.

Go today and really just to reach out to the thousands of people around the country who are in dire straits but highly skilled, and say, if you've got sixty days and you want to find a great opportunity to have an impact on a business that matters, go to our website, apply to a job, and contribute to our economy, and talk to us about the fact that actually that adds in many ways to diversity. When I think of h one b vs is, I think of all my husband was on one until we're lucky enough to get

our green cards. But there's also an awful lot of people coming from India in particular, this is people of color. That is this going to add diversity of thought as well? Over in Chicago. Sure, if you think about the long term trajectory for tech, we are short in our country, hundreds and hundreds of thousands of jobs, talented people. I've apologized to have thousands of people. How where do you find those folks? You're gonna have to find new channels.

Those channels exist for talented people in countries like India and countries in Africa and Europe, etcetera. And they exist in other forms of diversity neighborhoods in Chicago that I haven't always had access to jobs like this. In order for us to meet the challenge of the technical age, we need to find talent wherever we can find it, and diversity ends up being a huge strength and meeting

those objectives. Brad was showing a graphic on the screen which outlines how severe some of the cuts have been at names like Meta, Sales Force, Alphabet, Microsoft, IBM. Are these the names where these workers that are reaching out to you coming from Are you literally getting interest in inquiry from the technology sector. It's been two days since their job board is up, We've had sixteen thousand unique

visitors from all across the country. From the very names that you're describing, we're getting to engage with people who may have been focused on engineering tweets, who now bet an opportunity to look at a company like Walgreens, which is a Chicago based company who's using a digital technology to transform healthcare UH and and really access those people who had jobs in big tech on tweets and social media projects can put them to work companies like Walgreens

solving critical healthcare challenges. We're seeing folks from all over the country respond to that how easy or difficult is it to transfer an H one B visa? How much is it going to have to be an uphill battle for some of these companies like a Walgreen space where you are, who want to have this talent. This is the best part about what we're trying to do here is if you think about the broader question of reforming the U. S. Immigration system, that's really hard and going

to take a very long time. This program, there's actually quite a misnomer that it's cumbersome or particularly costly. All the companies we're working with our companies that already go through this process, that already have budget to support these workers transfers. So the jobs are just sitting there waiting.

And what we've done on our job board, I think one of the things that's really made it so the workers around the country have responded to what we're doing is all the jobs we posted, it's thousands of jobs available at this site are ones that are H one B VISA eligible. And so the reality is this one is actually pretty straightforward. They do this, it's affordable. They've got a process of aguaring and out every time someone applies, and so for this particular program, it's just a matter

of doing the right thing and connecting the dots. Brad Henderson, fixing a real problem right here right now for many we thank you and indeed their families. It's the CEO of P thirty three. And what an interesting way to actually be looking at what is in many ways just a market inefficiency. There there's the people who want the work, who need it very swiftly, and it's just trying to find the right way to line them up. Yeah, I cannot believe what he's just told us that their ports

or their board has been open for two days. Sixteen thousand people have inquired and the majority of them all you know, many of them is he put it from the technology sector. You know. It shows what's happening in real times in this economy and how quickly it's moving.

It's happening. We have a new stock marketing session and it's artificial intelligence Q and umber of stocks and investors destintly trying to get in on the AI tech trend the way they do it, or maybe they buy into a small cat name like C three AI and makes enterprise AI applications. It's stock on a record month so far and getting like a buzz feed, its shared price spiking three on the week because it announces a deal with open ai to be using it within its content creation.

We've also had little known voice AI makers like SoundHound AI also on the upside. We're getting in video. The chip maker which has its chips used by AI surfaces, also getting bit up some on the month. This all feels pretty reminiscent of the past. Quite recently, everyone was trying to have an n f T kind of part

of their business. Maybe back in seen you remember when Long Island iced tea rebranded its company name as long Blockchain, and therefore we also go back to the n nineties when suddenly every company had an Internet strategy or changed its name to dot com. These sort of fads do come and go. The question is, as a one got staying power, what do you think in fad or here to stay? So it's a case by case basis right on on all of these things, what the AI does,

and the valuations, the money behind it. The buzz Feed story, Um, I'm a journalist, you're a journalist being replaced by I. But I get the business case. You know, buzz Feed's got to feed the content on its site and you look at the market response, all yeah, thankfully, I think that's it's going to be. It's games and it's quizz as. We hope that it's going to be really putting those

AI applications towards. But what warriores me is it suddenly becomes a scavenger hunt for the right ticker symbol, right the acronym that you're using when it comes when you summarize what your business does on a Bloomberg for example, and what C three AIY s A R go like no wonder, it's getting a load of interest. Yeah, and look there's real momentum behind this dog. I think the Friday rally was looking at a jump of around over a few months basis. But the month to date performance

the stocks up six so far in January. And I go to analyst recommendations on the Bloomberg only one by on this three cells only, and there's seven holds. Like the analysts looking at the stock aren't thinking that it should have this sort of a price level at moment. The overall price targets the next twelve months is sixty three. It's more the euphoria on round. It feels a little bit mini. Yeah, no fundamentals here. And then we spoke

about Jensen and the video earlier in the show. Right, this is driving wealth and is driving valuation, Yeah, stonishing. Next week we're going to have a lot more on the driving wealth and valuations when it comes to earnings. Right, But for so far, that does it for this additional bloom bleg technology. Don't forget lots of earnings to come next week and catch our podcast wherever you get it. This is Bloomberg