We're from Mahard.
We're Innovations, Money and Power Collie in Silicon Vallet NBN.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Ahmed Ludlow, Good morning from San Francisco. Caroline highs off today. This is Bloomberg Technology. Coming up on the program. Full coverage of tech earnings as Amazon and Apple prepare to report this week. We'll discuss with Denny Fish of Janis Henderson plus Walmart buying Tiger Global's flip cart.
Steak for one point four billion dollars.
We'll break down the company's big bet on the Indian retailer and shares of Sofi surging today as the online bank raises revenue guidance. We'll look at the results with CEO Anthony Nota. For this week's m Live Pole survey, we asked investors if they intend to increase or decrease their exposure to tech stocks over the next six months.
That's the question.
The data shows many betting that the great tech rally of twenty twenty three has saying power that some appear skeptical that the artificial intelligence era will live up to the hype.
Interesting. This is the numbers.
We're going to break those down very shortly into the AI theme.
It's three to five years is the way you buy these. This is not going to be a short term story.
Zach is super expensive relative to the rest of the market.
This train is crowded. I think it's going to unraveled.
I look at this as a nineteen ninety five moment, biggest transformation that we've seen in Tach in thirty years.
There's a massive growth opportunity ahead of them. The AI creators and the beneficiaries seem to be centered in large cap tech and that's where you have to go to take advantage of it.
But I think that's why this is just what's going to wed Obviously Spiede, fed and Marca. It's the star of a new tech bomb.
Marking joining us now Denny Fish, he manages the four point three billion dollar Janie Hennis and Global Technology and Innovation Fund. Same question to you, Although your focus is pretty clear, do you increase your exposure to certain corners of the tech market right now?
What do you pull back?
Well? Definitely, I mean my job running in a sector fund is I'm always invested in technology. Yeah, so so clearly you know, we move capital around based on where we feel the best opportunities are, you know, and you know, if we just look over the last week and just you know, think about their earnings that we've seen, and you know, and some of the data points that are giving us some direction going forward. You know, the you know, large tech names, you know, things have been pretty good
so far. The digital advertising names Meta and Alphabet, you know, things are starting to get better. The semiconductor complex, you know, for the most part, has actually been a little bit better than expectations as we get through sort of the trough of the cycle and a lot of the parts of that sector. And then you know, generally speaking, software has been pretty good too. So you know, all things considered, things things have been pretty good.
Let's go back to last week.
Is there a common thread between all of the names that reported They give you a kind of macro view of the tech sector right now?
Yeah, yeah, it really does. So, as I mentioned, there are certain parts that are getting better, like digital advertising, which is good. And then you know, in semis it's really been all about the areas that are really really good. You talked about on semiconductor today they reported this morning, Uh, you know, exposure to auto has been great. Silicon carbide is one of the most you know, significant themes within semis right now, you know, and then clearly accelerated computing.
If you just listen to the transcripts and the earnings calls from Microsoft, from Meta, from Alphabet, from others within the semi ecosystem, it's just accelerated computing i e. You know, GPUs and FPGAs, they're just sucking all the air out of the room right now. And so that's a really
important theme. And then you know something that maybe isn't as well noticed by the average investor within the silicon or the semiconductor supply chain because of this growth in accelerated computing, it's creating the need for different types of packaging as well. So there are a lot of you know, interesting ways to actually play that. And then also, you know, talking about silicon carbide for example, material science is having a bigger and bigger impact within the semiconductor supply chain
as well. So those are really really interesting areas because that's what enables evs the grid like anything that's you know, power enabled.
Go back to that idea on packaging really quick. We have the Intel CEO Packed now singer on with us Friday. It's kind of an area of their business that they don't talk about as much, or perhaps we didn't ask, but we are trying to find out what happens when we get past the hype of Nvidia and the H one hundreds, right, what's left for the rest to come in? And you seem to suggest there are other opportunities.
Yeah, absolutely, I mean we could go down to the most basic level. So if you even think about Intel, you know they're now, you know, ramping up a foundry business.
Okay, the foundry.
You can't produce GPUs without foundry okay. And at the same time, uh, the foundry can't exist without sem of conductor capital equipment. So so that's really really important. And these are all derivative plays. And then you can't actually
design GPUs without electronic design automation software. And so these are all like really really good sub industries within you know, this bigger broader theme in ways that you can that should have multi year tailwinds associated with the question always comes back to, Okay, what you know, what percentage of the business is actually being driven by AI or or you know, other things, and really, you know, they're the real direct plays like the Anvitias of the world, but
then they are all these other different, you know, players within the eCos that also benefit as well.
We had Jonathan Curtis of Franklin Templeton on the show last week, director of Portfolio Management, and he explained the reason he counts references to AI or artificial intelligence in the earnings transcripts is because it shows intention. It's evidence of a willingness to jump into that field. Do you put any value in that data set simply talking about AI?
Well, everybody's talking about AI right now, so you really have to distill fact from fiction. But there are you know, a really great conference call last week was the Meta conference call, and it wasn't just talking about AI, but very very specific ways in which the company is leveraging
AI to actually improve its economics. And so it's everything from increasing the effectiveness of ad targeting, so return on ads then goes up for their customers being able to auto generate content, which is really really interesting, you know,
it's kind of the fundamental principle of generative AI. And then one of the things that they've wanted to do for years is monetize their messaging platforms more effectively with click to messaging, and now with AI and empowering, that should enable them to actually monetize WhatsApp, Facebook Messenger, Instagram messaging in a much more meaningful way than they have historically.
Susan Lee, the Meta CFO, is on the program talking about how AI recommendations kind of played a role in that outlook for the current period being strong. We have to think about this week, Amazon and Apple to literal megacaps, with megaanames in the world of technology. What are you expecting or hoping to hear from them.
Yeah, yeah, that's a good question to expect end hope, Well, I think in Amazon's case, there's a wider range of outcomes, and the hope would be that we see a real nice inflection in North American retail profitability because that's been the part of the business that has had a tougher time because of for builds and over hiring during the pandemic, having to digest their logistics investments. But we're starting to get through that and so seeing progress there will be important.
We had Prime Day, you know, which you know was clearly the best Prime Day ever, and so should hear more about that, and then Amazon Web Services is obviously a big component of the valuation of the company. We expect it to continue to decelebrate but stable, much in the same way that Microsoft was and Google was with
their cloud computing platforms. And then the hope there would be that as you know, we're that we're getting through the optimizations that all of the cloud providers have talked about over the last couple of quarters, just given some of the macroheadwinds. And then last but not least, you know, advertising, it's a very significant part of the profitability equation for Amazon.
And what we've seen out of Meta, what we've seen out of Alphabet, what we saw out of Roku late last week, the advertising market seems to be getting and so that that should that should bode well for Amazon as well. So I think you mix all that up, you know, hoping for a you know, a good, you know, better than expected report with key improvements in those three areas.
Danny, of all the names you hold in your funds, which from a technology perspective impressed you the most, which is the innovator right now?
Big or small?
Yeah, Yeah, that's that's that's a good question. I would say if we think about the two companies that have probably been on their front foot more than any others as it relates to AI, Clearly Microsoft. You know, it was very pression of them to do the investment into open Ai. They had a lot of investments across their portfolios well before people were even talking about it, you know, chat GPT was the moment in November, but they were laying the tracks for you know, how they're positioned over
the last several years. You know, clearly in Vidia, I mean you just it's it's the only like real one pure play on AI because they dominate the market for GPUs and then you know, they dominate accelerated computing and you know, and that's where all the capital's going. You know, it's interesting if you actually dissect capex that we've heard, which is growing across all the major platforms, and look at you know, the percentage that's going to accelerated computing
and compute versus what's going to buildings. It's a material increase for you know, a company like Nvidia.
So those would be two.
Then you failed with Janice Anderson such a broad knowledge base and a lot of companies in those Funds, Thank you for your time. Walmart is staking its claim in India's retail market, paying one point four billion dollars to Tiger Global Management for its remaining stake in e commerce company Flipcart. Reports say VC firm Excel also agreed to sell it's one percent steak in flip Cart to Walmart,
joining us. Now with all the details, Bug's Brendan case who covers Walmart and Hemma Palmer out of New York covering all things Hedge Funds. Okay, Brendan, let's start with you. What's the Walmart side of this story? Why go to boost the steak and flip Cart.
I think from Walmart's standpoint, what this deal shows is the company's willingness to deepen its bet on India. Walmart's been pairing its international portfolio in recent years. It's gotten out of markets like the UK, Brazil, Japan, and if you look at what's left, the jewels in the crown are big important businesses in Mexico and Canada, an important business in China, and then India where Flipkart is one of the biggest e commerce companies in the country.
Hemma other side of the table, Tiger why did they sell?
Yeah, So, Tiger also been very keen on Indian investments. They were an early investor in flip cart back in two thousand and nine, getting in at like a forty two million dollar valuation. What this deal lets them do is in this environment when there are so few your IPOs, it helps them provide distributions to their investors and provide a return to them. They got a pretty good price for their exit given how early they got in.
Yeah.
Here on Bloomberg Technology, guys, I think we focus on India a lot simply because there's so many people there, right, Brendan, it's a big market opportunity. What's Walmart said about India and its potential for them?
So, from the perspective of Walmart executives in Arkansas, India is very very meaningful. They first went into Flipkart in twenty eighteen. They bought a majority stake for sixteen billion dollars. That's actually Walmart's biggest ever acquisition. And now they've got flip cart going toe to toe with Amazon and other companies in India. The other part of it is phone pay, which is a digital payments company which used to be part of flipcart. The two separated in December, and Walmart's
got really high hopes for both companies. It's talked about the potential for an initial public offering. Timing remains murky, but that's definitely something that could move the needle for the parent company as a whole.
Hem A.
You outline the reasons why Tiger got out of this investment, right, but give me some of the history. Why did they first get in and has it been a success for them?
Yeah, so they had been an early investor in a number of Asia Asian companies. They got into flipcot in two thousand and nine. They built up a stake of a billion dollars over the years. In the past five six years, they sold some of their steak and this is the final exit for them. But what this means for investors in the fund is investors are getting a three point five billion dollar return. That's the gain on that basically one billion dollar investment. So it's a pretty good exit.
You know.
Keep in mind that the valuation of flip kurt is the deal was valued lower than the last round, but not terribly lower. You know, the the last round was about thirty eight billion dollars the valuation of flip cart, and this deal was done at a valuation of about thirty five.
It's an interesting on the e commerce side, Brendan. It kind of fits in with the Walmart we know, but you and I spend a bit of time out in Arkansas looking under the hood. Pardon the punt of what else Walmart's investing in on the tech side. Where does flip cart fit in in within the broader tech strategy for Walmart?
Certainly flip cart and phone pay are a big piece
of the puzzle. Yeah, I think it's fair to say that Walmart has learned a lot from those companies and will probably can continue to learn more from those companies if you shift the focus back to the US, You're still talking about a big focus on e commerce, and in terms of an investment, the way that's kind of manifesting itself right now is in sort of a rethinking, kind of an overhaul of a lot of distribution centers and a lot of stores, basically boosting the bet on automation,
robotics and trying to just become more efficient in terms of fulfilling the online demand.
That they have.
All right, team reporting thanks to Bloomberg's hem Obama out of New York. Brennan case had adelas mister big Box. We call him mister Walmart. Time for talking tech. First Up, Disney and NBC are paying lobbyists to watch over legislation that would bar them from using AI as a state tax break. The New York bill comes as both companies battle Hollywood writer and actor strikes over the future use
of AI, displacing workers in film and TV productions. Plus Curve Finance, a native token of one of crypto's top decentralized exchanges, tumbled after the platform said it had been hacked. A glitch in programming language Viper, which is widely used in DeFi apps, led to estimated losses ranging from twenty to forty million US dollars, and US and European officials are growing increasingly concerned by China's rush into the product
of legacy chips. President Biden limited controls over China's ability to secure these advanced chips the power AI models, but Beijing's responded by pouring billions of dollars into factories for the so called legacy chips that are not banned and are still essential to the global economy. Let's stick with a story and bring in Bloombo's Cada lines outed DC. The concerns are clear. The question is what are they going to do about it?
Yeah, and it's a really tough question ed because they want to tread semi lightly with China here. They are trying to be very targeted, narrow specific in the restrictions they put into place so as not to escalate in dramatic fashion this trade war in tit for tat that is going on between the largest economies. Hence why the Biden administration specifically focused on this advanced chip making technology.
They didn't really touch.
Anything bigger than fourteen nanometers, so that leaves legacy chips is essentially fair game for China, typically those twenty eight nanimeters and wider, and that is really what they're ramping up here. Yes, that technology is more than a decade old, but as you allude to it, it is still very
critical in terms of things like smartphones and evs. It is the shortages of legacy chips that were such a problem in the pandemic era, when chip shortages wiped billions of dollars off of company's ability to sell things like cars, for example. So this is highly critical. And the concern here is that if China can dominate that market, flood the market essentially with these legacy ships, that even Western companies are going to be dependent on China for them.
That goes Beijing more leverage. So the US and Europe are looking into we understand how they could potentially rain China back here, but again they don't want to cast too wide a net for fear of the retaliation that could bring from Beijing.
Well that's exactly my point that you're in DC. This seems to be a worrying story at a time where the main act is in DC are trying to get us on a friendlier footing with China.
Yeah. Yeah, it's a difficult tight rope that the Biden administration in particular is trying to walk at as you do have administration officials like Secretary of Save Anthony B. Lincoln or Treasury Secretary Jen Ellen actually making the trip to China to try and re establish communication with their counterparts at the same time that you have this tit
for tat back and forth on triggered measures. And that's why when we're looking forward to things like what we understand could be an executive order on outbound investment into China in just a couple of weeks in mid August. They're trying to keep it very narrow, very specific. We understand that executive order, we'll focus on things like semiconductors, AI and quantum computing. They aren't trying to put a
wide cast on on outbound investment into China. Just keep it focused on what would protect US national security interest and not harm China too greatly economically, because the line continually out of the administration is that this isn't about to do damage to the China economy. It is only about protecting national security and interest and really just de risking rather than decoupling with China. But it's a very difficult equation for these officials D.
And it's another example of the US and EU being aligned in this particular issue over China.
As Kadie lyons, how a, DC, thank you.
We are going to talk more about chips later in the program, but coming up SOFI shares surging today. We're going to discuss why with the CEO of the company, Anthony Nodo. That's coming up next. This is Bloomberg Technology. Welcome back to Bloomberg Technology Ed Lodlow here in San Francisco. Now, if there is one single name that we're watching, it is so Fi. Biggest jump on an industra basis in the year, up more than eighteen percent, now raising its
full year revenue guidance. Adding members in the quarter just gone. There's a lot of momentum in this stock and in this company. Let's get more on the company's earnings and bring in Sofi CEO Anthony Noo. Anthony, welcome to Bloomberg Technology, and thank you for your time. I want to understand something better. The five hundred eighty four thousand members that you added in the court have just gone. What does that mean? Are they depositors? What kind of services are they using?
Sure, the members are someone that has a product with us. So in the quarter we added five hundred and eighty four thousand members, up forty four percent. The two largest pieces of that were so Fi Money, which is a checking savers account. You get four point four percent interest on savings. If you do direct deposit with us, you can spend any time anywhere you want, no restrictions, no fees.
And we also because we're treating you as a member, you get access to our member benefits reward programs as well as a free certified official planner. In addition to that, we offer a credit card that would be in that number. In addition to that, we also offer brokers so you can buy single stocks without commissions ETFs. We have six robo accounts, and then we offer cryptocurrency and we most
recently did an IPO oddity IPO. So in addition to four different types of loans, we have those products that I just mentioned, and then we also have a technology platform revenue segment.
On the depositor and deposit side. Is this as simple as you taking business from the regional banks that suffered in the first half of this year.
We're taking business, but it's not from the regional banks.
It's from the largest banks in the country, the top five banks in the country by deposit accounts or checking sales accounts.
That's where we're getting the bulk of our market share from.
We've positioned so far over the last five and a half years to be a one stop shop for all your financial services needs. So we give you all the products that you need on a daily basis, but then we're also there for the big decisions you have to make financially like buying a home, paying for college education, starting to invest for retirement, and so it's the everyday products and then those larger products.
Many of the large.
Banks have abandoned unsecured personal loans or walked away from home loans. Our goal is to put the member at the center of what we're doing, and we have to be there for everything they do and have that lifetime relationship in order to help them get their money right to reach the point they have enough of it to do what they want, whether that's owning a home, retiring in a certain age, whatever career they may want to have, or size family.
And see this stock's up more than eighteen percent, biggest jump in a year.
What do you make of that reaction?
You know, the team has been working incredibly hard over the last five and a half years to build out this complete suite of products, and for the first time, fifty percent of our growth on a year year basis came from non lending products. And that was the lending products were the first products that we've had. Everything else has been introduced since then. So fifty percent of our year year revenue growth came from our financial services segment
and our technology platform segment. So it's the first time we can truly say that our strategy of being a one stop shop is now playing out in the actual financial.
Results on the revenue side.
On the profit side, we had our fourth consecutive quarter of record Ebadah, but most importantly, we're on track for
gap profitability by the fourth quarter. With the one segment of our three that is still losing money, but it only lost four million dollars in a quarter on a contribution profit basis, and then improved from a loss of twenty four million dollars in Q one of this year and forty four million dollars in Q four of last year, and so this segment should become profit by the end of the year, reinforcing the fact that only are we giving the consumer a great, complete, one stop shop, but
our financial results also reflect the completeness of that diversification.
You had a goal of thirty percent return on equity. That's double JP Morgan. Is that still insite that goal?
Yes, absolutely, we believe we'll have thirty percent EBA dot large margins long term and twenty percent gap net income margins long term, and that should position us to have that thirty percent or higher roe the mix of businesses
that we have. It's not just the financial services products, but it's also a technology platform business where we able processing of payments DEBNAC payments as well as banking in a box for other providers, including B to B and we have over one hundred and twenty five million accounts in that segment that are generating over eight billion dollars
of transactions a year that we get paid for. So we have a mix that's much more like American Express than a traditional bank in that we have both at this large technology business in addition to these high row products like credit card as well as invest products.
Anthony so far has been very close to the student loans story, and since last we spoke, we've had some kind of clarity from the regulatory side. I just wondered if you could update us on kind of what opportunity you're now seeing in student loans for the company.
Yes, the student loan refinancing business this quarter was still relatively depressed as it has been for the last three years while the moratorium I'm paying federal student loans was in place. For those that are not familiar, we take federal student loans and help our members re finance them at a lower rate or extending the terms they have a lower monthly payment, even if it's at the same or higher rate.
That business was our largest.
And most profitable through Q four of twenty nineteen, and then when the more term got put in place, which.
Was necessary given the pandemic and.
The crisis we were under, the business went to be very, very small, about a quarter of what it used to be. So we anticipate that that will come back more strongly in twenty twenty four. There will start to be a pickup in Q three and more in Q four, but our outlook for it has not changed since the beginning of the year, which was an expectation that the federal payments would resume come September October time period, which is
what will happen now. There's forty million people in the United States that still have a federal student loan, and a portion of those people can refinance with So far, to date in a company's history, we haven't even financed more than one million student loan refinancing members. So there's a large opportunity still ahead of us, but one that's not reflected in today's results, nor does are improved dial look reflect any greater expectation than before.
Anthony, before we lose you, I want you to recool your days at Twitter. The idea of an everything app going from a social media platform adding banking, adding in other financial services. Do you think that that's a reality for X to become a platform like that.
Yeah.
When I joined the company in early twenty eighteen, five and a half years ago, every fintech company said they want to be a one stop shop. Five and a half years later, only so far has done it. In addition to those competitors not being able to accomplish what we have, look at the incumbents.
They still haven't been able to put all their.
Products on a digital platform and be a one stop shop. It's not easy to do. It's an incredibly large investment. We've been definite funding it for five and a half years, so it's a pretty tall amountain to climb. We kind of feel like we've climbed that mountain or on the other side, and we wish everyone luck trying to get over it.
Hopefully it will be good for the industry, and the more.
Reliable fintech companies can be, the more trusted they can be we think will benefit from that. I think it's a tall task to go after, but one we've done successfully.
So I wish other people luck.
A tool, toolpath to go after. Can Ela Musk do it? Based on his experience with PayPal and his career so far.
We take everyone seriously, anyone that wants to compete in the industry, whether it's in a single product or across the entire platform. There's a lot of competition and we're no strangers seeing that. We have companies that are one hundred times bigger than us that we're competing with, and we've been able to do quite well, and I'm confident
that will be the case. I don't think anyone has bigger aspirations than we have a so far, and as leader, I'm responsible for making sure we deliver on that every second of every hour of every day.
All right.
So far shares up more than eighteen percent, raising net revenue guidance to one point ninety seven billion to two point zero three billion for twenty twenty three. Thank you for your time, so Fi see thank you appreciate right coming up.
Here on Bloomberg Technology.
Hassan al Kuri on semi CEO going to join to discuss the semi conductor device company's second quarter results and an update on silicon carbide.
This is Bloomberg Technology.
Three two Power.
Airwork SpaceX sent the largest commercial communications satellite ever into orbit this weekend. The payload was on top of its Falcon Heavy taking off from the launch pad at NASA's Kennedy Space Center in Florida. The Jupiter three satellite weighs nine metric tons and is.
The size of a bus.
It's going to provide wireless internet over North and South America, operated by Hughes Network Systems.
We are just over thirty.
Let's talk chips shares of on semire up after making the most of power in image sensing and chip sales, giving an outlook for the third quarter above expectations. It was also a record quarter for automotive revenues and silicon carbide revenues grew four times year over year.
For more.
Hassan al Kuri on Semi CEO here with us. Hassan, thank you so much for your time. Look the third quarter outlook above expectations. What gave you the confidence there? What are the factors behind that?
Yeah, like two years ago.
We have doubled down on part and water of an industrial but more importantly on the technology of power and sensing. Those are the technologies that are driving all of the mega trends you talk about as far as electrification of the vehicle, but also the infrastructure necessary to support that electrification, like the renewable energy, energy generation and energy distribution in
the form of charger fast chargers. That business has been ranking for us and that's what is going to provide that growth in the third quarter, which also provided that growth in the second chord.
You know, I was reading the transcript from the Earning School and the word secular comes up right. This is a secular demand story. So what happens when the technology transitions happened? How do you maintain momentum when there is secular demand?
First, you have to pre invest. You know, we've been investing in our silken car Bye specifically, but also image sensing for autonomous driving. We've been investing over the last two years. When we started our transformation, we talked about these trends as being the trends for us for the
future that are going to support that growth. Above the semiconductor market growth reierated that view in our analyst day a few months ago, and now that has started delivering, and you can see the penetration of evs from a total vehicles made has been increasing quarter on quarter year over year, only to reach maybe fifty by twenty thirty. So this is a multi decade long mega trend that we're participating in.
There are some OEMs.
I think Tesla actually has discussed this about wanting to reduce their exposure silicon carbide due to the expense. How do you manage that mindset among the end customer.
It's actually very a good opportunity for us. We're in a very good position. We provide both silicon and silicon carbide power. You know, you've heard me talk about hybrid module capability where a single module we are able to put silicon carbide and silicon power in order to give the most optimal solution for a customer system meet. We've had that where in production with it in industrial we're going to production and automotive should literally plays very well
into how we also see the market. So one thing I would know, the reduction of silicon carbite is not on a vehicle to vehicle basis.
It's a different platform.
You know, if you want ultra high performance, long range silicon carbite is it if you're talking about city driving, where you're going to charge it maybe every evening short run. Of course IGBT can do the job. And if you want something in between, that's where IGBT and cilic carbyte comes in.
Again.
Our focus, we only win when our customer wins, and that's the most optimal solution. Whether it's silicon or silic carbte, we're able to support both and that's the strategy we have.
Yeh hasan on Semi was into silicon carbide early. You know the advantages from a energy efficiency stamp. But I see some of your competitors kind of coming around silicon carbide. They have scale, So how do you stay competitive without the same sort of scale that something the competition has.
Well, Compared to any of the competition, we either have
more scale or we're ad scale. You know, scale is not an issue because if you look at some of the some of our peers or competitors that you're describing, they've had issues either ramping at the pace we have done it, or they're not vertically integrated, meaning they still dependent on material or sourcing material from third party or merchant market, which adds to the risk in the supply resiliency or supply assurance we have to give our customers.
Where we are on top of the technology innovation, we're able to give our customers supply assurance through a supply resilient network. We've proven that. We've proven that in the ramp. You know, going four x year over year is not something you just stumble upon. It's something you keep executing
to every day. We've proven our execution and we're going to continue delivering and that adds the confidence that our customers have, and you've seen that confidence translate into long term supply agreements that have reached a record dis quarter as well.
Hassan, I've reported on some tier ones that have come into the space. For example, BOSH buying TSI, a small Northern Californian silicon carbide name is further m and A for you guys, something that's on the table or is it just not necessary?
I would say MNA is not necessary for us to achieve what we need to achieve. You know, everything we've outlined at our analyst date, we're able to achieve organically through execution and the market drivers are there for us to grule with. However, we always look and we use
M and A and we use that as complimentary. You know, if we can able to get an MNA asset to accelerate something we are doing, or make it even better and faster, or be better use of capital rather than us investing in it, we're absolutely going to do it. You know, about eighteen months ago, we acquire a g Tech, which is a substrate manufacturing company, and that gave us the capability and we applied our ability to scale and from the time we acquired it, meaning a fourteen month period,
we five x that capacity. So we'll use our benefit as our scale and our capabilities, and we'll use MNA as a complementary aspect. But there's nothing I would sit here and say we are missing something to achieve our goals or our long term financial target. But we will use MNA if we can accelerated better.
Hassan.
In China, they've been domesticating their supply for silicon car by kind of hand in hand with the broader ev supply chain there, does China still represent an opportunity for you?
China is an opportunity for us. You know, we've had engagement always set our revenue and our exposure overall is geographically distributed and more important importantly, is customer diverse. So we don't have a region that we have additional focus on versus others. So that makes us very comfortable to be able to manage the supply and.
The demand side of it. That's one.
As far as silicon carbide specifically in China, the focus today in China is really on the substrate manufacturing. So from a device and module capability, we are far ahead. We're a few generations ahead. That's why a lot of marquee names in China have ltessays multi year ltsays with on Semi. That's proof that we're able to provide what somebody local cannot. Of course, the only way you can do that, whether it's China or Europe or North America,
you have to keep innovating. That's how you relain ahead, regardless of work reagion all.
Right, thanks to Hasan A Kuri on Semi CEO talking everything Silicon Carbine. Yay, the artist formerly known as Kanye West, has been reinstated on x, the social media platform formerly known as Twitter. This comes following a nearly eight month suspension for breaching a company rule against inciting violence. X told The Wall Street Journal that the account won't be eligible for monetization, nor will advertisements appear next to posts.
Yay has yet to post on the platform.
Neither Yay nor X responded to Bloomberg's requests for comment. All right, this is the other top top story on bloomberg dot com and the terminal. Apple is just weeks away from introducing the iPhone fifteen and next generation watches. New lineup marks another stepping stone towards the company's dream iPhone. Though changes to the Apple Watch they're going to be modest. Here with all the details. Who else Bloomberg's Mark German I learned a new word today, bezel.
What's that?
A bezel is.
Basically the smartphone term for the border around the screen. And so for this year, the big visual change on the iPhone fifteen pro, at least from the front, will be that those borders are going to get about a third thinner.
Now, that might not seem like a lot, but.
The technology behind it, funny enough, is inside Apple is called LiPo LPO, and it's basically a special manufacturing technology that allows them to get the screen, closer to the borders, closer to the edges, and so it's a big visual improvement. Someday in the future, Apple wants to have a borderless phone with no buttons, no camera cutouts in the front, and so of course this is another step towards that.
In the Power On, I encourage the audience to go and read the latest power on. It has those new details about what we expect. You kind of more downbeat about upgrades to the watch. Why are they going to be modest?
So last year was a pretty significant update for the Apple Watch. You had the apple Watch Ultra, which is the first all new Apple Watch design. That was the first all new Apple Watch design four years, right, so quite a bit of time. You had a redesigned apple Watch sc which is the entry level Apple Watch, and then you had a pretty minor update to the main
apple Watch with the Series eight. But nonetheless you had three new models, right, and so you can't really do three new models, including two new designs in one year and then the next year expect anything major, right, So this year is pretty moderate. You're going to see a new apple Watch Series nine that's the standard Apple Watch, and then you're going to see a second generation Apple Watch Ultra. I would expect some new colors, but faster
processors is going to be the talk. In addition to the new watch, a West ten of the models for the spot.
All right, Bloomberg's mark and check out his latest power on on Bloomberg dot Com.
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