U.S. Tech Sector: Micron's Grant and Market Reactions

Micron's $6 billion grant from the U.S. government boosts its semiconductor manufacturing efforts.

### Tech Industry Insights: Micron's Grant, Oracle's Earnings, and Geopolitical Tensions
* 📊 Micron has secured a significant **$6 billion grant** from the U.S. government to enhance its memory chip manufacturing capabilities, marking a **pivotal moment for the semiconductor industry**.
* 💻 Oracle's recent earnings report showed a **9% revenue growth**, but it fell short of market expectations, causing its shares to decline despite an impressive **80% increase this year**.
* 🌐 TSMC, a leading semiconductor manufacturer, reported a **13% revenue increase**, highlighting its crucial role in the **AI chip market**, although concerns about the **sustainability of AI demand** linger.
* 📈 The ongoing tensions between the U.S. and China are impacting companies like Micron and Nvidia, with **rising scrutiny on U.S. chipmakers** amid geopolitical conflicts.
* 🤝 Janet Mui expressed a strong preference for U.S. stocks due to their **resilience**, despite a cautious outlook on Chinese equities, which face **significant investor skepticism**.
* 📈 C3.AI's CEO, Tom Siebel, reported a **29% year-over-year revenue growth**, attributing this success to a strategic alliance with Microsoft that **significantly expands their sales force**.
* 🛡 The cybersecurity sector remains a focal point, with **increased ransomware attacks** prompting venture capital interest in **new protective technologies and solutions**.
* 📉 Finally, the market is reacting to Oracle's **underwhelming forecast** and the broader implications of **geopolitical tensions**, with the Nasdaq showing **signs of decline** as investors **reassess their positions**.

> FROM THE HEART OF WHERE
INNOVATION, MONEY, AND POWER COLLIDE, THIS IS "BLOOMBERG
TECHNOLOGY." WITH CAROLINE HYDE AND ED
LUDLOW. CAROLINE:
LIVE FROM NEW YORK, THIS IS

"BLOOMBERG TECHNOLOGY."
COMING UP, A VICTORY FOR MICRON AS THE COMPANY GETS ITS $6
BILLION GRANT FROM THE U.S. GOVERNMENT.
PLUS, WE BREAK DOWN THE TECH EARNINGS, WITH ORACLE FOLLOWING
THE MOST IN THE YEAR AFTER

POSTING LUKEWARM QUARTERLY
REVENUES. AND WE SIT DOWN WITH THE CEOs
OF OMNICOM AND INTERPUBLIC TO DISSECT THE DEAL CREATING THE
WORLD'S LARGEST ADVERTISING

COMPANY.
BUT FIRST WE CHECK IN ON THESE MARKETS.
KEY POINTS: A GAIN TO THE UPSIDE ON THE NASDAQ; IT'S UP 3.7%.
IT IS ALL ABOUT ALPHABET. WE HAD THE HEAD OF QUANTUM AI
ON THE SHOW YESTERDAY

DISCUSSING QUANTUM COMPUTING
AND THE WILLOW CHIP. THIS FEEDS INTO A VIRTUOUS
CYCLE AS TO WHETHER IT IS ABOUT QUANTUM, AI, AND CLOUD. LOOK AT
THE DRAGS TO THE DOWNSIDE.

THEY ARE ALL IN THE CHIPS
SPACE. WE ARE LOOKING AT CLOUD AND SOFTWARE WITH ORACLE, OFF
BY 7%. AN 80% RAMP-UP IN THESE SHARES
THIS YEAR. THEREFORE, IT HAD A HIGH BAR FOR
ITS EARNINGS AND THE FORECAST

Did not meet expectations.
Neither did the 9% growth in revenue. I'm looking at TSMC, also up
80% this year. We are down 1.7%, even though
they show November sales are

ramping up more than 30%.
Micron as well, off by 2.2%. Finally, they get certainty
around that $6 billion grant coming from the U.S.
government to be able to expand

memory offering and
manufacturing in the United States.
Let's talk about it with Peter Elstrom. This is a relief. It was an overhang on the stock
because we were buried under the

Trump administration would deny
it. Peter: That is exactly right.
This is a program where the Biden administration has tried
to rebuild the semiconductor industry in the United States.
The CHIPS Act is one of the

landmark programs the
administration had, and they wanted to make sure they walked
down this money because Trump personally had criticized these
agreements as so bad and the

Republicans had floated the
idea that they try to repeal this,
even though it was passed with bipartisan support.
So even though Congress is trying to finalize the details
as much as they can before this

TRANSITION IN JANUARY, Micron, the really big U.S. maker of memory chips, won this award that's going to help them build out facilities in Idaho and New York. Two very key states, and try to build up their ability to

develop more advanced memory chips, including these HBM memory chips used with AI to train AI models. CAROLINE: The manufacturing king is TSMC, and they are showing how still that focus on AI is a living, breathing thing, even though we

had perhaps been worried about the buildout and, more broadly, slowing down. PETER: TSMC sits in an unusual market.

We get dribs and drabs of information throughout the quarter before we get that final result. These are mostly revenue numbers that the country puts out there. What we did see from TSMC is that revenue is up 13%.

They are the bellwether for AI because they make the most advanced chips in the industry, including chips NVIDIA uses to sell to the likes of Microsoft and OpenAI and Google.

It gives us an early indication of how that demand is holding up. And of the questions overhanging the AI boom is whether companies are going to be able to figure out whether

There is a profitable way to deploy these models. Whether they can make money after investing tens of billions of dollars at this point. TSMC is getting a lot of that benefit.

The question is whether it is a long-term trend that TSMC and others are going to be able to benefit from, or whether there is tapering. That comes up. Caroline:

What is the killer application? Thanks so much. Meanwhile, let's stick with Xi Jinping saying that China has full confidence in achieving its 5% economic target this

year. He also told international economic organizations that China is going to promote the development of relations with the U.S. Just take a listen. >> I have repeatedly emphasized that human beings are a community

of shared future. We should treat each other's development as an opportunity rather than a challenge. We should see each other as partners rather than rivals. Solidarity, unity, cooperation, mutual benefit, and win-win

progress become the main theme of the times. Caroline: Of course, Micron and Nvidia are under pressure with rising tensions between the U.S. and China and what that means for some U.S. chipmakers. Let's dig into those tensions.

AND ECONOMIC GROWTH WITH JANET MUI. INTERESTINGLY, YOU HAVEN'T BEEN FULL OF POSITIVE PREDICTIONS, BUT YOU'VE SHOWN SOME INTEREST IN CHINESE NAMES AND CHINESE ECONOMIC STIMULUS THAT SEEMS TO

BE BEING PROMISED MORE FORCEFULLY. JANET: THANKS FOR HAVING ME. PROBABLY OUR STRONGEST CONVICTION IS U.S. STOCKS, PARTICULARLY BECAUSE OF U.S.

EXCEPTIONALISM. I THINK THIS IS GOING TO TRADE INTO THE NEW YEAR, AND THE FACT THAT U.S. COMPANIES ARE SO MUCH MORE COMFORTABLE... WE STILL MUCH PREFER U.S. HOWEVER, FOR CHINESE STOCKS,

SENTIMENT HAS BEEN VERY DEPRESSED. INVESTORS ARE STILL DOUBTFUL ABOUT THE SCALE AND WHETHER IT IS GOING TO WORK. IT IS NOT THAT MUCH OF A CONSENSUS TRADE. I THINK THIS TRADE IS STILL

FACING A LOT OF RESISTANCE. EVALUATIONS ARE VERY CHEAP. THERE IS A CASE TO BE MADE THAT THE FACT THAT ECONOMIC DATA IS STABILIZING... I THINK THERE IS A CASE FOR INVESTORS TO DIVERSIFY AS WELL. CAROLINE:

SMALL OVERWEIGHT IN ASIA. WHAT, THEREFORE, OF THE DAILY REPORTS WE GET ON RAMPING UP CHINA-U.S. TENSIONS? YESTERDAY IT WAS ABOUT NVIDIA BEING INVESTIGATED BY THE REGULATORS.

HOW HAVE YOU BEEN TRYING TO
PRICE THAT IN? JANET: I HAVE TO SAY, IT IS VERY
DIFFICULT. I DO BELIEVE THAT INSTITUTIONAL
INVESTORS HAVE SO MUCH CAPITAL, AND YOU CAN SEE THAT IN SOME OF THE

SELL-OFF IN U.K.
STOCKS, FOR EXAMPLE. IT IS DIFFICULT TO PRICE IN,
BUT I GUESS SOME OF THAT IS ALREADY REFLECTED IN MARKETS.
OUR VIEW IS THAT THE TRADE TARIFFS ARE LIKELY TO BE
TIT-FOR-TAT, A NEGOTIATION

TACTIC.
IT'S DOUBTFUL THAT THE FULL EXTENT OF THE THREAT WILL BE
FULLY IMPLEMENTED, ALTHOUGH IT IS ACKNOWLEDGED THAT SOME OF THAT
WILL BE. WE'RE KEEPING AN EYE ON THAT, BUT IT
IS NOT NECESSARILY A DETERRENT

TO THE ONGOING RALLY IN THE U.S.
EQUITY MARKET, FOR EXAMPLE. CAROLINE:
COMPANIES LIKE NVIDIA, WHICH HAS SEEN AN ENORMOUS VALUATION,
CONTINUED TO RALLY THROUGHOUT

2024. DOES THAT CONTINUE INTO
2025? CAN WE JUSTIFY THE RUN-UP WE
HAVE SEEN IN ORACLE AND THE LISTED DEPOSITORY NOTES OF TSMC?
JANET: WE ARE BULLISH ON NVIDIA.  THIS IS OBVIOUSLY A GREAT

STOCK, WITH HUGE PROFIT MARGINS, AND
THE BLACKWELL CHIP ARCHITECTURE. THIS IS A GREAT COMPANY.
OBVIOUSLY, INVESTORS HAVE IT ON A HIGH VALUATION. INVESTORS STILL LIKE STRONG
QUALITY GROWTH.

So I would feel that investors will still very much be leaning on the semiconductor sector, tech in general. I also feel investors are rotating into more software-related stocks instead

of just hardware. I think that makes sense because there is likely to be more commercialization potential and realization as AI moves forward from the infrastructure buildout to the applications. Caroline:

you will have names like Palantir coming up later. Janet Mui, great to get your expertise. Thank you. Coming up, C3.AI's focus on generative AI is driving

revenue, but at what cost? The company's CEO joins us next. Let's check back in on Alphabet, having its best day at one point since April 2024. He was what Google Quantum AI's

founder told us yesterday. >> There is steady progress coming, and our new chips we just released, Willow, will form the basis to start doing. Caroline: Let's get to another set of

earnings. C3.AI raising its sales forecast. Generative AI is helping raise sales, but analysts are cautioning. Joining us for more, CEO Tom Siebel. Your shares are down a little

BIT, BUT THEY HAVE RAMPED UP 60% IN LESS THAN A MONTH. A LOT OF OPTIMISM GOING INTO THESE NUMBERS. WHAT DROVE YOU TO RAISE THE FORECAST? TOM: IT WAS A GREAT QUARTER. THE YEAR-TO-DATE HAS BEEN GREAT.

I THINK OUR REVENUE GROWTH YEAR-OVER-YEAR LAST QUARTER WAS 29%, WHICH IS HUGE. MOST IMPORTANTLY, WE FORMED THIS MASSIVE STRATEGIC ALLIANCE WITH MICROSOFT.

ALL OF MICROSOFT'S SALESPEOPLE WILL BE SELLING C3.AI'S SOFTWARE SOLUTIONS.  C3.AI GOES FROM 100 SALESPEOPLE IN SEPTEMBER TO PERHAPS TENS OF

THOUSANDS OF SALESPEOPLE IN NOVEMBER. SO, THAT IS A VERY STRONG TAILWIND THAT BODES EXTRAORDINARILY WELL FOR C3.AI. CAROLINE: THERE IS, THOUGH, THIS WORRY ABOUT PROFITABILITY.

SAYING THAT BASICALLY YOU ARE PRIORITIZING GROWTH RATHER THAN PROFITABILITY. WHAT DO YOU SAY TO THAT? TOM: IN THE SHORT TERM WE ARE PRIORITIZING GROWTH.

I HAVE THIS HUGE ENTERPRISE SALES ENGINE IN MICROSOFT WE NEED TO ENABLE. TO INVEST IN THAT CHANNEL, TO GET THOUSANDS OF PEOPLE SELLING AND SERVICING OUR PROJECTS. NOT INVESTING IN THAT IS CRAZY. GOODNESS, WE HAVE ROUGHLY THREE

A QUARTER OF A BILLION DOLLARS
in cash in the bank. What am I going to do with that
if not invest in growth? If not invest in market share?
if not invest in the market

leadership?
I assure you, the cash flow and profitability follows. CAROLINE:
How profitable would a deal like Microsoft be?
Why dig in on that partnership?
But how much revenue do you

have to give up for that? TOM:
Actually, virtually 100% of the revenue accrues to C3.AI.
Microsoft gets the benefit of selling their infrastructure
and cloud services.

C3 gets the benefit of selling
the C3.AI applications. But a very small portion of the
revenue is given up, and this is a dramatic accelerator.
This is the largest software

company in the world, and they
have chosen C3.AI as their preferred AI solutions provider.
Strategic partnerships do not get bigger than this. CAROLINE:
They don't, and certainly the

analysts are saying this
potentially drives material upside.
There are, though, and I hate to go back to the sum of the
parts, just worrying about

THE DIFFERENTIATION OF YOUR AI OFFERING: HOW DO YOU MAKE IT CLEAR VERSUS RIVALS? TOM: THERE IS ONE COMPANY ON EARTH THAT OFFERS OVER 100 TURNKEY ENTERPRISE AI APPLICATIONS FOR

UTILITIES, OIL AND GAS, FOREIGN INTELLIGENCE, AND PHARMACEUTICALS. ONE COMPANY ON PLANET EARTH THAT OFFERS THESE KINDS OF SOLUTIONS, AND THAT IS OUR DIFFERENTIATION. CAROLINE: AND FEDERAL STRENGTH.

YOU LISTED A LOT THERE, INCLUDING DEFENSE, AND ULTIMATELY YOU HAVE A GOVERNMENT FOCUS THAT HAS SEEN A LOT OF SALES INTO FEDERAL. WILL THAT CONTINUE? THE ISSUES ABOUT THE

ADMINISTRATION UNDER TRUMP? TOM: OUR BUSINESS IN THE DEFENSE, INTELLIGENCE, AND FEDERAL COMMUNITY HAS BEEN STRONG. I EXPECT THAT TO ACCELERATE IN THE TRUMP ADMINISTRATION, WITH PEOPLE LIKE

ELON GETTING INVOLVED. THERE IS ONE TOPIC ON THE AGENDA: AI APPLICATIONS, AI APPLICATIONS, AI APPLICATIONS.  THEY ALSO TALK ABOUT CYBERSECURITY, BUT THIS IS CLEARLY GOING TO BE A HUGE PRIORITY FOR MAKING

GOVERNMENT MORE EFFICIENT, AND IT IS THE FUTURE OF OUR DEFENSE AND INTELLIGENCE COMMUNITY. THIS BODES EXTRAORDINARILY WELL FOR COMMERCIAL SOFTWARE PROVIDERS LIKE C3.AI AND

PERHAPS LESS WELL FOR THE
TRADITIONAL BELTWAY SYSTEMS INTEGRATORS.
I THINK THE TIDE MIGHT BE GOING OUT FOR THOSE. CAROLINE: TOM SIEBEL, OPTIMISTIC ON
C3.AI, OF COURSE, THE CEO.

LET'S STICK WITH EARNINGS AND
LET'S CHECK OUT WHAT IS HAPPENING WITH ORACLE.
IT HAS BEEN ON A TEAR OF LATE, UP 80%.
THEREFORE, ITS OPTIMISM DID NOT LIVE UP TO -- WELL, THE HYPE
WAS THERE, BUT THE NUMBERS DID

NOT QUITE THAT HIGH.
WE ARE DOWN AFTER WE SAW A 9% INCREASE IN REVENUE.
THERE WAS STRONG INFRASTRUCTURE GROWTH.
ANURAG RANA BREAKS IT DOWN. IT WAS NOT ENOUGH, WAS IT?

>> THEY BEAT ON CURRENCY, SO IN
THE REPORT IT WAS SLIGHTLY BELOW, BUT THAT -- BUT AT THE
SAME TIME, AS YOU MENTIONED, EXPECTATIONS ARE GETTING
HIGH FOR SOME OF THESE NAMES.

THE BEAT HAS TO BE MATERIAL
ENOUGH. WE THINK THE DEMAND IS STILL
THERE. THE QUESTION IS WHETHER THE
SECOND-HALF GROWTH RATE IS GOING TO BE IN THE HIGH 50S OR
LOW 50S.

BUT STILL, THAT IS A PRETTY
IMPRESSIVE NUMBER, ALL SAID AND DONE. CAROLINE:
THAT IS A 52 PERCENT INCREASE IN CLOUD INFRASTRUCTURE SALES.
WHAT ABOUT THE REST OF THE

BUSINESS?
HOW IS CLOUD CONTINUING TO PERFORM FOR THEM?
HOW ARE SOFTWARE SALES GOING? ANURAG:
BEFORE THE CLOUD INFRASTRUCTURE PUSH, THIS COMPANY WAS
GROWING IN THE 4%, 5%, 6% RANGE.

— 4%, 5%, 6% RANGE.
GENERALLY IN LINE WITH SALESFORCE.
BUT THAT SPACE HAS BEEN UNDER PRESSURE OVER THE LAST 12
MONTHS. THE REAL AREA OF GROWTH IS
CLOUD INFRASTRUCTURE,

BECAUSE OF AI WORKLOADS.
THAT IS WHERE THE BULK OF THE INTEREST LIES AT THIS POINT.
CAROLINE: ANY MENTION AROUND TIKTOK?
THEY ARE A KEY CLIENT. ANURAG:

THAT WAS NOT REALLY DISCUSSED
ON THE CALL, BUT WE THINK IF THERE IS AN IMPACT NEXT YEAR,
FIRST OF ALL, THAT WILL NOT BE IMMEDIATE.
IT WILL TAKE SOME TIME.

BECAUSE OF THE BACKLOG THEY
HAVE, THEY SHOULD BE ABLE TO OFFSET THAT RISK WITH A QUARTER
OR TWO, BUT OVERALL, WE THINK THE BACKLOG IS THERE.
CAROLINE: THEY MENTIONED CLIENTS, MET IN
PARTICULAR, AND INCREASING FOCUS

ON THAT AREA.
ANY OTHER CLIENTS THEY HAVE MANAGED TO ACQUIRE?
IT IS A KEY OFFERING NOW IN CLOUD, WHEREAS WE HAD DOUBTED
IT PREVIOUSLY. ANURAG: I WOULD SAY ALMOST ALL MAJOR
CLIENTS, WHETHER THAT

IS META OR ANY OTHER VENDOR GOING TO TRY TO TAP INTO ALL CLOUD PROVIDERS, UNLESS THEY HAVE SOME ADVERSARIAL RELATIONSHIP? JUST BECAUSE THERE ISN'T MUCH CAPACITY OUT THERE. IN ORACLE'S CASE, IT'S GETTING

WORK FOR MICROSOFT RIGHT NOW BECAUSE MICROSOFT IS FULFILLING THE WORKLOADS COMING FROM OPENAI. IT IS PLEASING TO ORACLE TO GET SOME OF THAT WORK. SO THE ENTIRE SPACE IS GOING UP. IT ISN'T JUST ONE OR TWO

VENDORS. CAROLINE: ANURAG RANA ON ALL THINGS ORACLE. WE THANK YOU. COMING UP, YOU WILL BE GOING OUT TO BLOOMBERG'S ONE, POWER, AND MANY EVENT FOR CONVERSATIONS

ON AI AND FINTECH. MEANWHILE, CHECK IN ON SOME SURPRISING RALLIES THAT MAY HAVE GONE UNNOTICED. TODAY, APPLE IS UP 0.4%, BUT IF YOU CHECK IT OVER NOVEMBER, THE

STOCK IS UP 9%, DESPITE SLOW REVENUE GROWTH, DESPITE TARIFF RISKS. INVESTORS ARE OPTIMISTIC ABOUT ITS ABILITY TO NAVIGATE THAT, AND OF COURSE, THE APPLE

INTELLIGENCE OFFERING. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: TIME NOW FOR TALKING TECH. FIRST UP, A DOORDASH-FUNDED STUDY FOUND THAT MOST OF ITS GIG

WORKERS PREFERRED TO REMAIN
INDEPENDENT CONTRACTORS. THIS IS AFTER THE COMPANY BEGAN
OFFERING PAYMENTS INSTEAD OF BENEFITS.
PLUS, TAKE TOP -- TIKTOK SHOP COMES TO EUROPE.
THE ROLLOUT REFLECTS TIKTOK'S

PUSH TO SEEK OUT ALTERNATIVE
MARKETS IN THE FACE OF POTENTIAL U.S. SHUTDOWN. TALABAT LOST GROUND AFTER AN
IPO IN DUBAI. THIS ADDS TO A SLEW OF
DISAPPOINTING ISSUES IN THE

MIDDLE EAST. DESPITE THE U.S.
AND ALLIES' SANCTIONS FOLLOWING RUSSIA'S INVASION OF UKRAINE,
MOSCOW HAS CONTINUED ITS ABILITY TO PROCURE AMERICAN
TECH, INCLUDING CHIPS FROM

INTEL.
BLOOMBERG IS REPORTING THAT IT HAS DISCOVERED THAT THE SUPPLY
CHAIN PATH RUSSIA HAS BEEN ABLE TO SECURE, UNBEKNOWNST TO THE
COMPANIES MAKING THEM, HAS BEEN

PRETTY EASY.
FOR MORE, ALBERTO NUÑEZ JOINS US.
JUST HOW EASY IS IT TO ORDER THESE SORTS OF PIECES OF
EQUIPMENT FROM RUSSIA RIGHT NOW? >> IT IS RELATIVELY SIMPLE IF
YOU THINK ABOUT THE FACT THAT

IT HAS BEEN A FEW YEARS NOW THAT THE
WAR HAS BEEN ONGOING IN UKRAINE. THERE ARE WEBSITES WITHIN
RUSSIA WHERE COMPANIES WORKING TO PRODUCE MISSILES AND OTHER WEAPONS CAN SEE THE CATALOGS OF
COMPANIES LIKE TEXAS

INSTRUMENTS ON THEIR OWN WEBSITES. STOCKS AVAILABLE, PRICES, AND DETAILS LIKE THAT. AND THEY ARE ABLE TO PLACE ORDER REQUESTS, AND THE GOODS ARE ORDERED BY INTERMEDIARIES. THEY GET SENT TO THIRD

COUNTRIES, OTHER COUNTRIES, AND FROM THERE THEY GET TO RUSSIA. OVERALL, THAT IS PRETTY CYNICAL, GIVEN THE FACT THAT THE WAR HAS GONE ON FOR SOME YEARS NOW. CAROLINE: THE U.S.

HAS BEEN WARNING THE SUPPLIERS TO CRACK DOWN ON THIS. SHANNON THOMPSON, THE ASSISTANT COUNSEL FOR TEXAS INSTRUMENTS SAID, "TI STRONGLY OPPOSES THE USE OF OUR CHIPS IN RUSSIAN

MILITARY EQUIPMENT.
HOW ARE THEY ABLE TO STOP THIS? ALBERTO: THAT IS A VERY GOOD QUESTION. IT IS PROBABLY A QUESTION FOR THE COMPANY MORE THAN FOR ME. I THINK COMPANIES ARE TRYING TO STOP THESE PRACTICES FROM

HAPPENING. AND WHEN ISSUES ARE FLAGGED, THEY DO INTERVENE. THERE WAS, HOWEVER, FOR EXAMPLE, EARLIER THIS YEAR, A SENATE REPORT THAT CAME OUT THAT SUGGESTED COMPANIES ARE NOT DOING ENOUGH.

SO, THEY ARE DOING CERTAIN PRACTICES THAT WOULD ALLOW THEM TO PROBABLY BETTER DETECT THESE ACTIONS BEFORE THEY HAPPEN. SO, LOTS OF ACTIONS HAPPEN LATER ON IN THE SALES PROCESS

RATHER THAN EARLY ON TRYING TO
IDENTIFY BAD ACTORS AND THINGS LIKE THAT. CAROLINE:
ELBOW ROOM, THE DEAL. THANK YOU FOR TALKING US THROUGH IT. WE SPEAK EXCLUSIVELY WITH THE
CEOs.

CAROLINE:
WELCOME BACK TO "BLOOMBERG TECHNOLOGY."
WE WANT TO WELCOME OUR TV AND RADIO AUDIENCES WORLDWIDE TO
"BLOOMBERG TECHNOLOGY." Omnicom HAS ANNOUNCED THEY WILL BE
BUYING -- THEY WILL BE

BUYING INTERPUBLIC GROUP. HERE TO DISCUSS IN AN EXCLUSIVE
INTERVIEW, JOHN WREN AND PHILIPPE KRAKOWSKY.
GENTLEMEN, WELCOME. I'VE SAID HERE ON THE
TECHNOLOGY SHOW, THINKING ABOUT

THE TECHNOLOGICAL DISRUPTION
THAT HAS HAPPENED TO ADVERTISING.
IS THIS IN RESPONSE TO THAT? IS THIS TO TAKE ON Alphabet AND
GAIN MORE GLOBAL REVENUE? JOHN:
TECHNOLOGY DOES PLAY A ROLE IN

THIS. BOTH PHILIPPE AND I HAVE
FOCUSED ON THAT IN OUR CONVERSATIONS OVER THE COURSE
OF THE LAST YEAR. WHEN YOU CUT THROUGH QUITE A
BIT OF WHAT WE WERE DISCUSSING,

IF YOU LOOK AT OUR INDUSTRY
FIVE YEARS AGO, 10 YEARS AGO, THE BARRIER TO ENTRY WAS VERY
LOW. YOU JUST HAD TO BE A BRILLIANT
PERSON, RIGHT? CAROLINE:

JUST A BIT OF BILLIONS. JOHN: WITH A GREAT IDEA. NOW, IN ORDER TO PROPERLY SERVICE CLIENTS IN THIS NEW ERA, IT IS KEY TO HAVE THOSE VERY BRIGHT, VERY TALENTED PEOPLE. IT IS INCUMBENT UPON US TO ENABLE THEM WITH THE BEST TECH AND

DATA WE POSSIBLY CAN, FOR THEM TO GARNER INFORMATION AT SCALE SO THEY CAN REACT TO THE ENVIRONMENT AS NEEDED. AND WE HAVE EACH BEEN ON THAT JOURNEY, AS ALL OF OUR COMPETITORS HAVE AS WELL. FROM AN OMNICOM POINT OF VIEW,

WE HAVE MADE GREAT STRIDES WITH THE CREATION OF OMNI, AND FLYWHEEL. THAT PROGRESSES, AND TODAY WE ARE CREATING TOOLS FOR OUR PEOPLE. PHILIPPE, COME ON THE OTHER

SIDE, CAN TALK TO IT AS WELL BECAUSE HE IS AT A VERY STRONG ADVANTAGE. PHILIPPE: TECHNOLOGY IS PLAYING A MUCH MORE IMPORTANT ROLE IN OUR SECTOR, AND THAT IS BECAUSE, FOR

Micron's Chip Win, Omnicom and Interpublic Merge | Bloomberg Technology

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Bloomberg Technology

NASDAQ up 3.7%, driven by Alphabet's advancements in quantum computing and AI.

Oracle's stock down 7% despite 80% year-to-date ramp-up, failing to meet earnings expectations.

TSMC down 1.7% despite November sales ramping up over 30%.

Micron down 2.2%, but receives confirmation of a $6 billion US government grant.

The grant is a relief for Micron, removing uncertainty about funding for US expansion.

Geopolitical Tensions and their Impact on Chipmakers

Biden administration's efforts to rebuild the US semiconductor industry via the CHIPS Act.

Concerns about potential Republican repeal of the CHIPS Act despite bipartisan support.

Micron's grant will fund facility expansion in Idaho and New York, focusing on advanced memory chips for AI.

TSMC's continued focus on AI despite concerns about buildout slowdowns.

TSMC's revenue up 13%, indicating strong AI demand.

Micron and Nvidia face pressure from rising US-China tensions.

Investment Strategies Amidst Geopolitical Uncertainty

Strong conviction in US stocks due to US exceptionalism.

Depressed sentiment towards Chinese stocks due to doubts about economic stimulus effectiveness.

Difficulty in pricing in the impact of rising China-US tensions on investments.

Bullish outlook on Nvidia due to high profit margins and strong growth.

Shift in investor preference towards software-related stocks over hardware.

C3.AI raises sales forecast driven by generative AI.

Strong year-to-date performance with 29% revenue growth last quarter.

Strategic alliance with Microsoft significantly expands sales reach.

Prioritizing growth over profitability in the short term to capitalize on the Microsoft partnership.

Differentiation through a wide range of turnkey enterprise AI applications.

Oracle's stock down despite 9% revenue increase, failing to meet high expectations.

Strong cloud infrastructure growth driven by AI workloads.

Cloud infrastructure is the main growth area, contrasting with slower growth in other sectors.

Oracle is gaining work from Microsoft due to the latter's fulfillment of OpenAI workloads.

The merger is partly a response to technological disruption in advertising.

Focus on providing employees with the best technology and data to serve clients effectively.

Leveraging data and AI to enhance personalization and client engagement.

Cost savings through optimizing legacy infrastructure and investing in future technologies.

Addressing concerns about competition from tech giants like ByteDance and Amazon.