From the heart of where innovation, money and power collide in Silicon Valley and beyond. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Live from New York.
This is Bloomberg Technology coming up. Trade tensions they ramp higher as US and China accused one another of violating recent agreements.
If we bring you the tech impact, that's.
As big tech stocks have actually been back in the driver's seat, outperforming the S and P five hundred for.
Eight consecutive weeks.
But Tesla is under pressure with sales falling aggressively in France to a three year low.
Can musks return from.
Doge turning around for first, let's checking on these markets which websaw on the day. We were in risk aversion mode a little bit earlier, and now we tread backwater to flat. Remember May was a stellar month and the Nazarck Cup nine percent for the S and P five hundred, having one of its.
Best Mays in years.
But we are up just a tenth of a percent as we try and shake off what is anxiety around trade tensions and we get a dose of manufacturing reality. Is manufacturing numbers come in weak. Looking at the Golden Dragon Index. This is, of course the NASA Golden Dragon. Looking at some of the tech giants in China, that too recovers up a tenth of a percent. Move on to individual movers because there are some laggards out there,
and notably Tesla has been off today. More broadly, and we are going to keep a keen eye on what's happening with two point seven percent to the lower as we worry about sales in France. We'll dig into that later in the show. Byd this is the Wrong Taker. We'll bring you what bid shares have been doing. Their depository receiats have been basically trading flat, but here we have it off by about two tenths of a percent.
Was lower in Chinese trading.
That as the competition fierce competition is getting some criticism from the government itself and government related entities. But focusing more broadly on China, not just the EV sector, We're going to look at what it has been happening with the Golden Dragon index. Look, as we say, just recovering, but after the last three days that has been having let's call it a plummet following remarks. Now we know of President Trump saying that Beijing is violated at trade talks.
More pain could be install course, as China issues its own claims that the US has preached recent deal itself grimgs.
Mike Shepard joins US.
Look, the tensative agreements of Switzerland are unwinding themselves somewhat.
Well, they really are, Cara. We are seeing this datent that have been achieved in Geneva just a few weeks ago rapidly fade away. On Friday, we saw President Donald Trump accuse Beijing of violating the spirit of that understanding without offering too many specifics, but his trade advisor Jamison Greer helped fill in the blanks, and the US concerns seemed to center on what they see as Beijing's failure to lift barriers on exports of rare earth minerals to
the US quickly enough whatever was discussed in Switzerland. On the flip side, though, we are seeing China come back very strong today accusing the US of violating its promises under that agreement with some recent steps, and we saw those with the American move to unveil new guidelines that are coming on AI chip export controls, and that included a warning to US allies against using Huawei's Ascend chip,
which is a challenge of course to Nvidia. The US has also moved to restrict exports and sales of chip design software to China, which is a big deal for China's own AI and tech ambitions. And then finally the icing on the cake of course, the revocation of Chinese
student visas. All of those things in China's bill of goods against the US this morning, and this raises questions about whether hjion Paying and Donald Trump will actually speak by phone as Donald Trump has said he would like to and mind.
What's so notable is that two of those moves of the three that you outline completely tech focused. Is it going to be technology that remains the eye of the storm when this attack.
Well, it's either the eye of the storm, Caro, or the thing that is driving the direction of the storm. Because remember this comes on top of years of escalating restrictions on exports to China imposed by the US and really also twisting allies arms to take part in those as well. Remember this is not just semiconductor exports, it's
also sales of chip making machinery to Beijing. All of this is designed to curb China's ambitions in areas like artificial intelligence, and this is really starting to take a toll in a way politically between Washington and Beijing, and we're seeing tech emerge as this flashpoint and could be what unravels whatever understanding may have emerged engine Even now, there is a lot of time before the ninety day pause expires, and the two sides still could find a
way back to the bargaining table and to maybe have that call between the two leaders. But right now the direction of travel is not heading in that way, at least from what we are seeing.
Caro make Shepherd breaking it down, We thank you, and let's stick with how markets are reacting, but more broadly, how they should be thinking about this trade uncertainty. An expert is Eliza Toovin, managing director at Gano Global. We turn to your years of advising government, the CIA, and of course, more broadly the field of enterprise. How bad is this looking? How much we were turning to escalation now?
Hi, Caroline, great to be on with you, and I agree with Michael Shepherd that the honeymoon.
We saw coming out of Geneva.
A few weeks ago is now shattered and we're back in this cycle of escalation between the US and China, and I agree with you that at the center of this is technology. What's interesting about China's very strenuous reaction to the US export controls on the Huawei assnship is their propaganda apparatus has long been arguing that the US export controls are ineffective and that China can work around them.
But I think the level of emphasis they're putting on this, you know, the volume at which they're really screaming for these things to be removed, indicates just how effective and how painful they are on China.
So we're going to be.
Seeing to see, watch to see how the US reacts going forward. China is trying to press the US very hard to make more concessions. After Geneva, the tariffs came down significantly, but really at the heart of those tensions were China's export control on rare earth and then the US export controls on AI chips and related tooling.
Let's go to.
AI chips first before we get to rares, because there's not only the criticism coming from China but some US companies. I just think of what Jensen Wong was telling our own ed Ludlow last week how much basically we're forcing China to innovate, and how he longs to be able to access that much.
Do you ever see that happening.
I think it's all about this scale of compute that's needed. China can always find workarounds through smuggling, through making some of their own chips, but it's really all about scaling, and as you talk about on your show a lot, really being able to make enough chips to supply the rapidly escalating demands of compute in this age of AI is at issue, and that's where the US still has this very large.
Lead just being able to scale up.
So if China is able to extract any additional concessions from the US so that they can get more chips legally, that's going to help them kind.
Of shrink the gap faster.
However, if the US keeps these export controls in place and enforces them strictly and gets allies and partners on board on some of the tooling, some of the aspects where countries like Japan and the Netherlands and Germany are strong, then this gap between the US and China compute stance to lengthen over the coming months and years.
But both sides have chips on the table here that they can play, and play hard. I was just at the Reagan National Economic Forum on Friday where there was a lot of anxiety just how confident Chinese leadership is at the moment that they too can fight back. Liza, what about the rare earth's signals? How much pain could that levee on US industry itself as well?
We know that the auto manufacturers and the defense manufacturers were they came crying to the US government before the Geneva talks and said that these things are starting to impose pain and in starting to impose work stoppages, and that's something.
That it's a gray rhino.
I mean, the US national security establishment has known about this dependency on China for rare earth processing for years, but they haven't come up.
With a solution at scale. But I think what was.
Interesting over the last month is that China has broken the glass on actually using this coercive instrument. It's actually now ratcheting up pressure it. Shei Jinping has an appetite for leverage, and now that he knows he has this leverage over the US you're going to see him pushing again and again to kind of recycle this leverage and
try to extract more concessions from the US. But rather than bending over and giving China more concessions, over the last couple of weeks, you've seen them doubling down with this empowered Commerce department, strengthening and broadening the export controls.
So you don't expect the US to blink in this moment. What advice do you give to the private sect right now as to how tough this could get for access to RAS and indeed, in the flip side of you're a Chinese company access to US chips.
Well, I think that the private sector needs to remember that this isn't just a competition about tech and trade, I mean tariffs and technolog The export controls, of course, are incredibly important to markets, but perhaps even more important is to watch the geopolitical tensions that are unfolding in the Indo Pacific around Taiwan in the South China Sea.
Secretary of Defense Pete Hegseth, just on Saturday at the Shangri Law Forum was warning that a Taiwan crisis could be imminent, and we know that China frequently has military drills kind of these practice exercises around Taiwan and in the South China Sea, and it's had the habit lately of not announcing these in advance, so it's not giving markets heads up that these are going to happen.
Why does it do that.
It wants to preserve ambiguity if outside observers aren't sure if this is just a drill or if it's something more an actual rehearsal for something like a blockade. That's
very worrisome because it shrinks the window of warning. And that's something that we're watching very closely at Garno Global kind of the links between these technology export controls terrors and the potential for some kind of supply chain disrupting crisis around Taiwan that could prevent the chips from getting out of Taiwan, perhaps for a couple of weeks or longer.
Well, that's crucial to our audience, So thanks for making that link. Visitobin of course, managing director at Garno Global. Great to have some time with you. Coming up, let's talk about chips more. But Broadcomm's results this week, they're likely to actually show ai demand is still booming. We can talk about what's expected, how it could impact the
wider market. This is bloombag technology. Let's talk about how the same tech giants that contributed to the S and P five pounders decline in April, they are now driving the recovery in US equities. Just taking video and put a bow on a better than expected earning season for big tech last week by delivering a strong outlook for revenue despite US restrictions on sales of its to China.
This is as we expect.
Earning some Braolcom this week, you see the shares are also trading higher.
Lue Meg's run.
Bastantaker has been writing about how the Magnificent Seven in particular have helped bounce back of our lows some phenomenal recovery numbers.
Hey, thanks for having me. So this earning season was a real test for big tech, especially given just how uncertain the backdrop has become, given tariffs, given all sorts of geopolitical tensions, given concerns about AI spending in the ROI from AI, and I would say that broadly speaking, this group passed with flying colors. I'd say the notable exception was Apple, which is dealing with a number of
its own sort of idiosyncratic issues. But the major companies like Microsoft, Nvidia, Meta Alphabet quite strong across the board, showing pretty positive trends.
And these are all companies.
That have allowed the market to really recover off the low that we saw early in April.
It's interesting that we're not back to our record highs. We're actually inching in on them.
Ryan.
Meanwhile, looking at the S and P five hundred, the valuation story, that's starting to get a little dicey, right when you're looking at magnificent seven names.
Yeah, so I'd say these names got pretty cheap by a lot of metrics in the whole tear off cell off in early April. They have come back quite dramatically, I think in videos up something like forty five percent or so since that low. So these are pretty remarkable
gains and it has come back in the valuation. But I would say sort of the countering argument to this is growth is expected to remain pretty strong for a lot of these companies, and if you look at something like the PEG ratio, they are all treating at fairly modest ratios on that metric. So the valuations have come back some but the growth that was just affirmed in these most recent reports also pretty positive.
We're looking at the moment of how pricey perhaps they are from a price to forward looking earnings perspective at least Umeg's ran for Selca.
It's great to have you on as always.
Let's get you even more of a take here and particularly on AI demand what it means for certain companies about to give us their numbers. Angelo Zeno's with us VPN senior equity analyst over at CFRA Research. We think, think about how in Nvidia helped the market recover. We saw the numbers looking good. What about Broadcom as well? We're still going to get AI optimism there.
Yeah, so thanks for having me, Caroline, and I think, yeah, to your point, I think it's going to be very strong. We're looking for top line growth of about twenty percent
here for the for the April quarter. And listen, I think when you kind of look overall the trends that we've seen here over the last couple couple of weeks or you know, since Q one earning season really starting with you know, Alphabet and Microsoft at the start of earning season up until in video last week, the trend on the compute side of things is I think much stronger than anybody had anticipated, and really something that Gentsen Wong last year, really last week really pounded the table on.
So when you kind of think about the drivers here specifically for you know, the AI semi names here, over the next couple of years, it really is going to be tied to compute and the higher demand for computer is going to drive higher capital spending plans, right, which is what we saw Q one earning season. So we think those trends remain intact here. For broadcams specifically, they've got to buy a sixty forty split in semis versus software, So the semi side will continue to drive that demand.
But software shouldn't be ignored because the profitability there and growth continues to be very good.
I mean, we're expecting strong things from broad Comm you too. Look your top semi conductive names are in Video and Broadcom, AMD, Marvell. I'm looking at how much some of those names have already driven the S and P five hundred recovery. A great chart from Ryan's story is that in Vidio makes up twelve percent. Basically, the S and P five hundred is rebound since April, but swiftly after them was Microsoft that you named as being a winner of late broadcom some five percent.
But is the valuation getting a little too.
Rich now given the amount of geopolitical anxiety we're just talking about with Eliza Tobin.
Yeah, I mean, I think as far as the valuation is concerned, you know, it's it's not as attractive as it was four to six weeks ago. But I will tell you that the valuations has just got you know, just hit you know, basement level values. I mean, you were talking about Nvidia at one point trading about seventeen eighteen times on our twenty twenty six estimate.
They're now try closer.
To about twenty four to twenty five times on twenty twenty six expectations. And I will tell you this, the visibility again is improving here has improved of the last couple of weeks, whether it be on the trade side of things, improving commentary on trade, or whether it be you know, just from the reiteration in terms of capex spens plans for some of these hyperscalers. Now, I will say, as far as you know what to look out for here on the geopolitical side of things, A lot is
going There are a lot of moving parts here. Over the next couple of weeks, obviously we want to hear about the US China discussions. But as far as semis are pincerned, there's a two thirty two semiconductor investigation that is ongoing right now. We expect to get more clarity in terms of what is what that's going to look like as far as tariffs are concerned here over the next two months or so. So it's waiting simo. But our view you're going to see a permanent tariff on
the semiconductor industry when that gets unveiled. Our base case right now is about a twenty five percent tariff.
What about the smartphone industry, because actually Apple has contributed to the reprieve and the S and P five hundred, it's one of your top names for hardware. But boy, we're wondering whether it's going to get individual tariffs of twenty five percent landed on it, not to mention maybe Samsung gets the same though.
Yeah, so you know, we're not looking for an individual tariff on that side of things. But our view here is they you know, they fall under the national security umbre umbrella of the two thirty two semiconductor investigation, similar to many other hardware names that are right now exempt from.
A lot of the tariffs.
But that said, if we're assuming something along the lines of a twenty five percent, you know, based tariff or two thirty two, that would imply that Apple probably has to increase the price of its iPhone seventeen this fall. Our view is probably along the lines of at least
fifty dollars or so. So again, we have to wait see to see how all this stuff really plays itself out on the geopolitical side of things, But our view is there's going to be some sort of permanent tariff that goes into effect for the hardware companies and specifically Apple, and Apple we think is best positioned to offset some of those higher tariffs because of their brand recognition and because of their pricing power.
So angelo, if an investor doesn't have the exposure they'd like in these names, should they buy at this point?
I mean, I think that's a good question. You know, we look at it right now in the sense that we're looking more for a near term, you know, digestion period. The dangerous thing with that is you just don't know what you're going to get in a day in, day out basis because of the geopolitical environment right now. So if you don't own any of these names right now, our view is you do want to buy some of these AI semi oriented names because they.
Are going to really drive the.
Earnings potential for the tech sector here over the next two to three years, specifically Nvidia and Broadcom, as well as some of the others smaller names, but Nvidia and Broadcom would kind of be two of the top names with the best visibility out there. And even if you see some of these negative headwinds will whether it be tied to the two thirty two semi conductor investigation or
something on the trade side of things. Ultimately we think this stuff works itself out and the earnings potential is so great that you know, two to three years down the road, these stocks should be significantly higher than where.
They are now.
We get those earnings for Broadcom.
On Thursday after the bell, Angelo Zino a busy week ahead cfr A Research.
We thank you.
Samsung well, it's nearing a wide ranging deal to invest in Perplexity AI and put search technology from the AI startup at the very forefront of the South Korean company's devices. It's according to people familiar, the two companies are already in talks to pre load Perplexities app and Assistant on upcoming Samsung devices who like Seth Figeman joins us for more on the story, and we knew that they struck
the still with Motorola Samsung ongoing conversation. How deeply into twine will they become?
Yeah, I think this is even more expensive than Mogo Motorola. It's about them being preloaded on devices, which matters a lot, But with Samsung, it's also integrating into its assystem, product,
into its browser, and of course just preloading on Samsung devices. Generally, if you're Google right now, I think if they're setting up a little bit straighter right now, there's a big difference between being preloaded and the default service, which is what Google has paid for for years and quite expensively. But this is a step in that direction, and given the anti trust scrutiny on Google, I would be a little bit concerned.
I mean, of course that anti trust discussion of what ultimately might be the policies they have to enact to appease the judge.
I mean that wrapped up on Friday.
Analysts are deeply concerned about what all of this means for alphabet How much does this also depend on Perplexity getting some money from Samsung.
Yeah, I think that's part of the broader tie up here. So we have previously reported that Perplexity is close to raising about five hundred million dollars like a fourteen billion dollar valuation. Samsung could be one of the larger investors in that deal, and that strikes as part of a much larger tie up between these two companies.
How does that fourteen billion dollars stack up? Because like we've become some numb to these.
Figures because it's the enormous over to open hahard.
It's one of the largest AI players out there right now, but it's still this is a really competitive environment. Not only are they going up against Google, but going up against open ai and others who are moving into real time search but being more deeply intrigated into devices than millions of people use. That is a really big leg up in that race.
And people who loved Perplexity in many ways it is one of the first that offered you where the information was coming from but they've had their own copyright issues.
As well, Right, that's true.
I think Perplexity's main thing that was that they have great design. You know, it's not so much that they built a better model than Opennie are Google, but they figure out how to package it in a really compelling way. That seems to be drawing fans not just from consumers but from the hardware companies.
How soon could this all be announced?
As soon as this year for devices?
Maybe into next year?
Okay, we'll keep an eye out for the unfolding events.
Seth Nigaman, We appreciate it. Welcome back to BlueBag Technology and Karen Hydeer New York. A quick check on these markets, because boy May was Estella month for the NASTAG.
Today we bounce off of our lows, but the anxiety remains. What about the pulling back from.
China and the US in terms of those tentative agreements made in Switzerland, The progress seems to be on the line. Many are worrying about that at the moment. Dig into some of the names. I want to shine light on
one Chinese EV player. Of course, we've got to keep an iron byd It's depository receipts doing better than they did trade in Hong Kong at least, but under pressure is indeed, the Chinese government tries to hint at byd that you're competing too hard in our country, you're racing to the border in bottom in terms of price, or to boost your numbers.
Will they pull back a little bit from that?
But Tesla of by three percent, this is the numbers are woeful for sales in May. In France they're done sixty seven percent, just seven hundred and twenty.
One cars in the whole of France.
All of this comes though, as Elon Musk officially departs the White House after running those over there, at least as many would say he was running it where Bush Securities, managing direct to Dan I is writing this weekend that this is quote music to the ears of Tesla shareholders. With a crucial few months ahead, Dan Eyes joins us now, and boy, those French numbers really show what the crucial few months mean.
Can Elon steer this the other way?
Okay?
I mean, obviously the leader's back, right, I mean, Musk is Tesla Tesla's Musk. But I believe it's really about autonomous and I think as we go into Austin in June, you go into the robotics future, that's going to be keep part of the value of Tesla's how we get to a two.
Trillion dollar valuation. But and you'll quit Europe.
You look at us Juku at China and I think Musk is going to start to turn that around.
And I think that's where investors are starting to factor in you.
And I'm gonna say, what's happened next month or two, But a rebound second half of the year.
Okay, so stomach for the near term. These probably remaining poor numbers. The new refreshed model. Why isn't cutting it? It seems it is more the political backlash. But you say, ultimately the technology is going to outweigh a brand issue that they've had.
Yeah, I mean, look me, and you've talked about it before. I believe ninety percent of the future value is autonomous and robotics. BI look in terms of margins delivery growth, that's obviously very important to near turn numbers, but I do believe streets factoring, and you start to see a rebound second half of the year, you ever recommitted mass.
Queerly and I think when you look to the future, I.
Mean this long with Nvidio, I believe the most disruptive technology companies in the world. And then who's driving the software piece of course it's pound tier.
But why is Tesla clearly going to be such a leadership in autonomous when Weimo is already busy doing it And there is a different difference in the technology here with Weimo going all in on lidar and a very different tactic coming from elon Musk and Tesla.
Yeah, look, Willim will clearly head start. I think Wimo they're going to be at the.
Kids table relatively Cassela in the com years because of the scale and scope.
Waymos in four cities, two hundred thirty thousand hour cars.
Like in other words, when I work out over the coming years, I think you, look, this is going to be dominated by Tesla in terms of cyber cabs.
It all starts.
Obviously in the next few weeks in Austin, but no one will match the global scale and scope of Musk and Tesla.
So what milestones in Austin, for example, do they need to meet? Ed Ludlow with that great reporting out last week that June twelfth is going to be the date we're anticipating for it to already make actionable what they've been trialing on the roads thus far. What do they need to meet, how do they need to show off in the technology to work?
Look the interventions, right, I mean, just showing that this is something that is ready for prime time, because this is just the beginning of ultimately going to be fifteen to twenty twenty five cities over the next year. And I think this is just really kind of way in the ground from technology perspective, showing where a Tesla is going to get to them when I believe, look, Weimo is going to be successful and that's going to be a key sort of player. But in terms of the
global vision, who's really going to dominate? I believe it's Tesla and autonomous.
And is it a cybercab that dominates?
Is it the fact that the Tesla's are already out on the road and they become the autonomous vehicles they are the ones that we don't use ourselves but lend out to the ecosystem.
Well, yeah, I mean it's first of all, it's data driven. I mean, by next sure you have ten.
Million vehicles, you know, in terms of teslas that have been sold data driven, and but I do believe cybercabs when you think about the autonomous piece, that's going to be so important.
But then also it's about FSD.
I mean FSD penetration could go from fifteen percent to fifty percent. Think about the margin, the software, the uplift that that's going to lead to test and that's why I believe they are going into their biggest chapter of growth.
And that's why also it's just.
So important that must laser focus on Tesla on those days in Trump White House hour rearview mirror.
And you think he will be laser focused on Tesla because he's also saying I've got to be laser focused on X. He's also remaining very committed and focused on SpaceX as well, and not to mention the XAI getting woven into X at the moment.
Look, it's all part of it, obviously, the broader mask ecosystem, but the hearts and lungs, the golden goose continues to be Tesla, and I think must recognize is now is the time, especially given autonomous and robiotics without actually with optimists.
Tell us the two trillion dollar valuation and how you actually got there.
From a number's perspective.
Look when I look at when I look at autonomous and you start to model out what could maybe twenty percent of vehicles being autonomous, you're essentially looking three four hours of earnings eventually is going to be thirteen to fifteen hours earnings. So the whole math of the Tesla valuation is going to drastically change.
And that's all about, like I believe, from an AI.
Perspective, one of probably the most undervalued pure players in the market is Tesla.
Now, of course Nvidia, poun Teer.
You know how the hyperscalers, Microsoft and others continue to front and center.
But you know, Tesla more and more is going to prove that when you especially in.
The physical AI play in terms of our time as robotics, they're gonna be front and center.
At the moment, it's a one trillion dollar market capitalization, How quickly does this two trillion become a reality?
I think next twelve to eighteen months, and I look and I think.
That's going to double in that amount of time.
That's our view, and I think it could be conservative relative to as is all plays out, because I think again again, Musk and Tesla underestimated. Next week you're buying you know called you know, wait next week and when this actually the vision starts, it's going.
To kick off. I think it's the golden age at Tesla.
You are the highest price target five hundred, few bone securities below you four seventy, but the price targets go all all the way down to just I mean JP Morgan on one hundred and fifteen. So from what is it that others aren't getting here? Is it just the scale of the ambition, is it the execution? What is it when you're sitting around the table with other analysts and they're like no, Dan, and you're like no.
Yes, well yeah, I mean to that point.
I mean if you go back over the last five, seven, eight years and the Neva underestimated tassa musk every time, right, So I mean many thought that the chance of them actually coming out with an EV was unrealistic, the chance of them scaling to over a million vehicles, so we're just again again. I think they continue to view this as an automobile company. It's a disruptive technology player, one of the best in the world along with Nvidian.
Of course, Pound.
Tier Therefore we're looking forward to the global story here.
Does this have to be executed in the US?
What about over in China at the moment where we're just seeing the level of price competition and indeed the commitment that we're starting see from BYD also into autonomous.
Look, China is a key market.
I mean, you're over forty percent of deliveries that come out of trying to keep up from a supply perspective.
But it's also why too, It's it's.
Important more and more must that he distanced himself in terms of from Trump White House. Now start to play that ten percent politician ninety percent CEO.
You know what we see from Apple China is.
Key and I think we're going to continue to see now rebound China and Autonomous Test is going to be a major player in that market along with BYD and others.
And then let's talk robotics, because I'm hearing more and more about how robotics is going to be the next area of key growth. How quickly does the optimist become the two trellion dollar driver.
And remember we're not even really factoring that in so it speaks to our view like when you look at optimists and as that plays out, robotics potential could even be.
Bigger than autonomous And.
I think when it comes to physical AI, it's Tesla and a Video that are leading that. And I think is that all this is going to get in the next twelve, eighteen, twenty four months.
It's the reality, right.
The scale and scope is something that tests has a huge advantage of. And that's why I think optimist is something that again I think investors Wall Street massively underestimating, but they will be proven wrong.
I think as this all plays out, how much.
Is supply chain going to be a bottleneck kit because we keep talking time and time again about the rare earth control that China has. I mean, the fact that Tesla is so present in China from a supply side perspective, is that a winning formula?
Oh?
With that, I mean used now that I think that's the key, right, Like having such a big presence, and of course Musk has very good relationship in Beijing, you know, in terms of their footprint, that is very important.
It gives them a huge advantage.
And also I think it speaks to the timing, especially in this US China negotiations to further and further must distance themselves from Trump in the White House. I think is important, especially when it plays to what's happened China.
I'm going to end on Apple because you were just talking about other companies that have been owning the space Palanteer of course being one that you keep mentioning within software.
But what about the future of.
Apple right now from a supply chain perspective, from a geopolitical perspective, because it seems as though, well Tim Cook needs to be a little bit more politician right now too.
Yeah, I think there's no better CEO in the world that can navigate it.
He's not gone very well so far, I see.
I would disagree to the point that he's been able to navigate to India, which is an actually huge.
Part of the pokem. We puts him in a lot there and negotiating position.
And also like, look, the chances of iPhones coming to the US, we continue to us unrealistic. In last you want have thirty five hundred our iPhone and Cook's another one, Like there's an understanding.
Okay, they might have been laid to the game, but.
The consumer AI revolution comes to Cooper Tino.
You'll start to see that next Week WWDC.
I view that as a very important event that starts this next chapter.
Dan, I've of webush some of the biggest price targets out there, for Tesla and for Apple.
It's always great to have you on the show. Thank you very much.
Coming up, tech has become a major economic driver for New York's economy, and a new campaign is.
Celebrating just that.
We'll have more on the industry's impact and what's expected from New York Tech Week as a bluembag Technology.
Time Now for Talking Tech.
First up Byron Allen, while he's hired Molist to find buyers for twenty eight local TV stations his company owns now this comes as an effort to reduce debt is coming on while taking advantage of potential deregulation in the broadcast business. In a statement, Alan said, we have received numerous inquiries. We are going to use this opportunity to take a serious look at the office. Plus, Meta is
bending on automation for the future of ads. The social media company aims to enable brands to fully create in target ads using AI by the end of next year. Now that's calling to the Wall Street Journal, citing sources meant as ad platform already offers some AI tools that can generate variations of existing apps and a bridge AI.
A startup that uses artificial intelligence to transcribe medical conversations, is raising three hundred million dollars in a new funding round led by Andrews and Horowitz so All, according to sources who say that the round values of Pittsburgh based company are five point three billion including the investments. But now let's bring it to New York. New York Tech
Week kicks off to day the city. It's meant the fashion and finance and it's seen a tech boom though over the past decade, the sector actually made forty one percent of the city's net job growth since twenty nineteen. Judy Samuels is presidentcy of Tech NYC is a nonprofit. You promote the sector in the city, and you have got a rather coore new campaign we do.
We're so excited about it.
We're launching today with support from New York City and in partnership with Red Antler, a campaign called Obviously New York And it's really just a moment to celebrate the amazing growth of the tech industry here to really highlight all the things that we think are just so going so well in New York.
Right now, give us the obvious statistics, give us the obvious statements of thought that make New York number two tech sector in the world.
I mean, listen, I have so many, but just some that i'd highlight. I think that really underscore what makes New York so amazing. New York is the number one destination for college graduates.
The tech sector here.
In New York you talked about the forty one percent figure is responsible for creates ten times the amount of new jobs in our local economy than ten times.
More than other industries.
I find out that's right since the pandemic, since in the past five years. But that speaks to the growth, that speaks to the j curve that we're on here that.
I think is so important.
You know, it's a seven hundred billion dollar industry, twenty five thousand startups.
It's just booming here.
And it's because, of course, you know, the New York City is home to every industry, and increasingly technology is just powering every other industry. And the thing that we think is happening here that is unique to New York is that as the technology, especially in this moment where AI is just booming. You know, all the your entire intros about all these companies just growing AI building AI.
As the new technology evolves, what happens uniquely here in New York is companies figure out how to use it, who's going to pay for it, what it's going to actually do in practice.
And that is the New York story.
So give us some pin ups when you think all the icons of the New York's stought up scene. I think cognition AI in many ways from the underlying really leaps some vounds driving forward the technology when it comes to coding.
But where else do we seeing success stories in the.
AI space in particular?
Of course, we've got Runway, which is just an amazing New York story because it marries the creativity that is inherent to so much that happens in New York City and the AI side.
And it's beyond AI.
Of course, you've got Ramp, which is probably the fastest growing startup in New York. That's in the fintech space. We have a ton happening in digital health companies like Maven and Row. I mean, the list goes on and on. But again I would underscore that all of those companies are for the most part, building in uniquely New York industries.
I love that you keep trying to do this tongue twister again and again, and you're like nailing it.
I have a little bit of practice. I have a little bit of practice.
But what about why the campaign around it, why this moment a need to celebrate?
I think that Listen, there's a couple of things happening here, and well, first of all, I just think people love to have fun, people love.
To celebrate, and right now, New York.
Is just ascendant when it comes to tech, and we wanted to kind of put a stamp on that. We wanted to call it out. We wanted people here to feel excited. And then we want to go on the road and remind people just how great the New York tech ecosystem is.
Because here's the thing.
When you meet young people, people of all ages, but especially young people, they always want to live in New York, and we need to remind them that you can come here and build a really dynamic tech career doing that.
But when I think of the resurgence in San Francisco, basically generative aice rebral valley, we've covered it time and time again. Do we need to be either or is it mutually beneficially seeing companies building talent systems in both places?
I think, listen, I think you want to see tech building and growing the economy all over the country. I think that's incredibly important. I like the way we do it here in New York. That speaks to me, That's why I'm here doing this job here. But I think to your point, we want this to happen on both coasts. We want this to happen in the middle of the
country as well. I think that's really important. And you know, we talked about a lot of homegrown New York tech companies, but open ai is also growing like crazy here and in really iconic New York building downtown. They're taking more and more space. So it's going to take all of these pieces, all of this.
Input you want, like the quintessential public private partnership, because you as a normal profit in the middle of bringing leaders within some of the iconic New York tech sector into help give advice to the public sector.
And it goes both ways.
What is it that the public sector is doing that helps trikes a really good question.
So in this instance, The city is putting a significant amount of money. It's I think four million dollars in total behind help to bolster the AI ecosystem. Part of that is helping support our campaign, but that's just a small part.
They're doing a lot more.
They have an AI Nexus program that the city is putting its money where its mouth is, and we think that's really important. The state is also doing it's fair share. We've got a great program here called Empire AI where we're really empowering academic institutions, giving them access to just the amazing quantity of compute that's incredibly hard for anyone
outside of the private sector to get. So the state the city, especially in this instance, are really doubling down to ensure that New York is a place where people want to come to build and grow tech companies, but also where.
People want to live.
I'm excited to see the statistics coming out for twenty twenty five AI job posting surging twenty five thousand in twenty twenty four New York. J. D. Samuels THEDEO President
of Tech NYC. Go enjoy tech Week. Meanwhile, let's talk about China because Tom Cruise is Film is back On top of that Mission Impossible, The Final Reckoning posted the biggest opening for a US film in the country this year and twenty five point two million dollars during its opening weekend, defining trade geopolitical tensions between Washington and Beijing.
IPO activity.
In the tech space, it is heating up digital bunking startup Chime crypto firms Circle both targeting strong offerings. Anthony Hughes is there to break it all down, and the way in which we see that there's strength is Circle being able to sell more shares at a higher price point.
It seems yes, Circle seems to be going very well. The IPO is pricing in the middle of this week, so it actually launched last week. Since that happened, Bitcoin did come off a bit, but there is certainly a lot more enthusiasm towards cryptocurrency, of course, particularly in the
last month or so. We also saw coinbase come into the the S and P five hundred last month, so that has contributed to a lot of enthusiasm for that company in particular, which is which is behind stable coins, and it's a business that some people wondering where it fits into the scheme of things, whether it's more of like a payments company, and maybe it might deserve a bit of a discount to a company like Coinbase, which has become sort of the premiere sort of stock in
the crypto space, one of the premier stocks anyway.
Well, what's interesting is that Chime being very much sort of a retail focused offering in the fintech space, is it going to tap into retail demand. Is the institutional demand that makes that also a success story when it finally comes to the market.
Well, I think Chime has a really interesting retail story because it's obviously appealed very much. It's got eight million customers, and it sells a debit card and a credit card, and it's been very popular with a certain sort of demographic,
a younger demographic. It actually reminds me a little bit of the Robin Hood ipo from years ago, from a few years back, where you know, there's this idea that perhaps you have attracted a lot of customers, and maybe it might not necessarily be easy to attract millions and millions more really quickly like you have in the past. But you know, when you have these younger customers, you can grow with them and add on products and stuff like that, so that'll be one of the real sort
of selling points I guess with the chaime IPO. But the company does come at a significant down round or lower evaluation than it was able to attract in twenty twenty one, when we had very high valuations for all sorts of tech companies, including fintech and this company, but also software companies and the like. So we are in a very different environment from twenty twenty one and we have to take that into account.
Hinge Health had that as well.
Of course, I need to disclose that my husband does indeed work over at coinbase as well. Anthony Hughes, thank you very much indeed for joining us. Now that does it for this edition of Bloombag Technology. Do not forget to check out our podcast. Find it on the terminal as well as online on Apple, Spotify, and iHeart This is a blombag Technology