### NVIDIA's Earnings: Market Impact and Future Growth Concerns

NVIDIA's strong revenue growth faces challenges from rising costs and dependence on major clients, raising investor concerns.

### NVIDIA's Growth Challenges and Bitcoin's Potential Rise Amid Political Changes
* 💻 NVIDIA's new chips are facing a costly rush to market, with revenue increasing by **94% in the third quarter**, but profitability margins are slightly declining to **73-74%**.
* 📉 The company's reliance on major clients like Microsoft and Amazon has grown, now accounting for **50% of revenue**, raising concerns about **potential market share loss** as these companies develop their own chips.
* 🔍 Despite these challenges, demand for NVIDIA's products remains strong, with **no significant competition** currently affecting their market position.
* 📈 The stock market shows resilience with only a **2.5% sell-off** in NVIDIA shares following the recent report, indicating **investor confidence** despite minor red flags.
* 💰 Bitcoin is nearing the **$100,000 mark**, as the Trump transition team considers creating a dedicated White House crypto position, signaling a **serious approach to cryptocurrency policy**.
* 🏛 This new role could help make the U.S. a **leader in cryptocurrency**, but effective implementation will depend on **Congress and the appointments of key financial positions**.
* 📊 The upcoming changes in leadership and policy could **significantly impact the cryptocurrency market**, especially as industry lobbying intensifies **ahead of the midterm elections**.
* 🤖 Meanwhile, discussions around artificial intelligence advancements suggest that **superintelligent systems may be available sooner than expected**, with implications for various industries, including banking.

### Technology Insights: E-Commerce, AI, and Cybersecurity Developments
* 📈 PDD is struggling to keep pace with unspecified rivals due to a **lack of expertise**, while Alibaba has appointed a new executive to lead a consolidated e-commerce operation, positioning him as a **key figure after the CEO**.
* 📉 Baidu has reported its **largest revenue decline in over two years**, attributed to challenges in the Chinese economy and increased competition from newer social platforms.
* 💻 In the U.S., NVIDIA's earnings have sparked discussions among analysts, with some expressing concerns about reaching "**peak NVIDIA**," while others highlight its **significant growth and profitability** compared to rivals.
* 🔋 A senior technology analyst emphasized that NVIDIA's operating margins, projected at **75%**, signal a **strong future**, particularly as data centers evolve to require **more efficient chips** due to electricity constraints.
* 🤖 The conversation around scaling AI models is gaining traction, with insights suggesting that **larger GPU clusters could enhance training capabilities** and lead to **more sophisticated AI applications**.
* ⚡ A new player, Samanova, is emerging in the AI space, focusing on **energy-efficient computing**, claiming to offer performance at a **fraction of the power consumption** of NVIDIA's GPUs.
* 🔒 Palo Alto Networks is experiencing a shift towards platformization in cybersecurity, aiming to **integrate solutions to meet modern security challenges**, despite concerns about billings and competition.
* 📊 Snowflake is gaining momentum with a strong sales outlook, leveraging its platform to **manage unstructured data** and integrating **large language models** to **enhance user experience**, amidst a competitive landscape with rivals like Databricks.

>> FROM THE HEART OF WHERE
INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND
BEYOND. THIS IS BLOOMBERG TECHNOLOGY
AND ED LUDLOW. CAROLINE:
LIVE FROM NEW YORK THIS IS

BLOOMBERG TECHNOLOGY.
NVIDIA SAYS ITS NEW CHIPS ARE ON TRACK BUT THE RUSH TO GET
THE LINEUP OUT THE DOOR IS MORE COSTLY THAN EXPECTED.
BITCOIN RISES TO NEW HEIGHTS AS

THE TRUMP TRANSITION TEAM
WEIGHS THE CREATION OF A DEDICATED -- WHITE
HOUSE CRYPTO POST. THE CEO OF PALO ALTO NETWORKS JOINS US ON HOW AI
CAN HELP STOP THE THREAT FOR

THE FUTURE BUT FIRST WE GET
STRAIGHT TO THE WORLD OF NVIDIA AND INDEED THE POINTS DRAG ON
THE NASDAQ IS SOMEWHAT. THERE'S BEEN A VOLATILE DAY OF
TRADING AS PEOPLE TRY TO ASSESS

ULTIMATELY HOW STRONG FUTURE
GROWTH STILL LOOKS UNDER NVIDIA AND INDEED THE SUPPLY-SIDE
HEADACHES. LET'S GET STRAIGHT TO IT WITH IAN KING.
WE HAD ALL BEEN --

FRETTING ABOUT BLACKWELL.
HOW EASY IT IS TO GET INTO CUSTOMERS' HANDS.
DID JENSEN MANAGED TO CALM INVESTORS' NERVES? >> OBVIOUSLY TO AN EXTENT, WE
HAVEN'T SEEN THE MASSIVE

FALL-OFF WE HAVE SEEN MANIFEST
PREVIOUSLY WITH CONCERNS. HE TALKED ABOUT WE ARE GETTING
INTO THE MARKET AND GOING TO PROBABLY BE GETTING MORE TO
MARKET THAN WE THOUGHT WE WOULD.

AT THE SAME TIME IT WILL COST
US. >> WEIGH IN ON THE MARKETS. ULTIMATELY THIS IS A COMPANY
THAT GAVE US 94% INCREASE IN REVENUE IN THE THIRD QUARTER.
GIVE OR TAKE PLUS OR MINUS 2% BUT

THE PROFITABILITY IS WHAT'S
COMING DOWN EVER SO SLIGHTLY TOWARD 73 TO 74% MARGIN. >> THAT IS RIGHT.
I THINK THAT'S THE RIGHT WAY TO LOOK AT IT.
THEY HAVE SET SUCH HIGH

EXPECTATIONS, THEY WERE AT 75%
WHICH HAD NARROWED SLIGHTLY BUT 75% IS A SOFTWARE MARGIN.
THIS IS A SEMICONDUCTOR COMPANY. AMD IS 20 POINTS SOUTH OF THAT.
INTEL ISN'T EVEN IN THE SAME

ZIP CODE.
SO YES THEY ARE LOSING A FEW POINTS BECAUSE THEY ARE
SPENDING MORE ON ENGINEERING TO GET THOSE CHIPS OUT AND SYSTEMS
IN PLACE QUICKER BUT REALLY A VERY HIGH BAR. >> AND THEN FULL PRODUCTION
COMES, THE BACK END OF THEIR

FISCAL 2025 YEAR.
BUT I SUPPOSE THEY STILL HAVE TO ADDRESS THE ISSUE SURE THEY
ARE GETTING THEM OUT THE DOOR BUT IT IS TO THE SAME KIND OF
COMPANIES. HOW ARE THEY MANAGING TO
DIVERSIFY THEIR DEMAND BASE.

>> THAT WAS ONE OF THE THINGS WE SAW, THE AMOUNT OF REVENUE
COMING FROM THOSE BIG COMPANIES, THE MICROSOFT AND
AMAZON'S HAS ACTUALLY GONE UP FROM 45% TO 50% SO LIKE HALF OF
THE MOST IMPORTANT DIVISIONS

THEY HAVE IS DEPENDENT UPON A
FEW COMPANIES. INVESTORS ARE CONCERNED ABOUT
THAT. THESE COMPANIES ARE MAKING THEIR OWN CHIPS TRYING TO
REPLACE NVIDIA AND EVERYONE

ELSE THAT SUPPLIES THEM. >> IS THERE ANY REAL
COMPETITION HERE BECAUSE WE'VE HEARD TIME AND AGAIN THAT IS
MUCH AS AND TRIES. >> THAT DEFINITELY APPEARS TO
BE THE CASE.

ANY QUESTIONS ABOUT DEMAND OR
QUESTIONS ABOUT LOSING MARKET SHARE WERE JUST IRRELEVANT.
YOU TALK ABOUT INCREDIBLE DEMAND THAT THEY CANNOT MEET
RIGHT NOW SO THAT PART OF THE QUOTE OF THE STORY IS REALLY IN
THE FUTURE IF AT ALL.

>> THANK YOU VERY MUCH, IN THE
PRESENT WHEN IT COMES TO THE MARKET MOVE WE REALLY
APPRECIATE IT. LET'S BRING MORE CONTEXT TO THE
REST OF THE MARKET. SENIOR ANALYST AT SWISS QUOTE
AND RETURN TO YOU FOR THE

BROADER MARKET IMPLICATIONS
BECAUSE WE WERE ANTICIPATING AS A $300 BILLION MARKET CAP SWING
UP TO 8% MOVE HIGHER OR LOWER. A LACK OF VOLATILITY MUST BE A
SLIGHT SIGN OF RELIEF.

>> ACTUALLY, IT IS BECAUSE THERE
HAS BEEN A FEW RED FLAGS IN YESTERDAY'S REPORT, AS THEY WERE
JUST TALKING ABOUT, THE PRESSURE ON THE PRODUCTIVITY
LEVELS DUE TO THE MANUFACTURING

CHALLENGES FOR THE BLACKWELL
CHIP IS ONE OF THEM. THE FACT THAT BIG TECHNOLOGY
COMPANIES MAKE UP TO 50% OF NVIDIA'S REVENUE IS ANOTHER
STICKING POINT, YET THE RESULTS

HAVE BEEN STRONG AND DESPITE
THE SMALL RED FLAGS YESTERDAY FROM THE REPORT, THE IMMEDIATE SELLOFF HAS BEEN
ONLY 2.5%, AND THIS MORNING WE DO NOT SEE THE NVIDIA SHARES
BEING SOLD AT THE LEVEL WE

WOULD EXPECT THEM WITH SUCH A
DISAPPOINTMENT OVER THE SMALL DISAPPOINTMENT FROM INVESTORS.
WE WOULD THINK ANY MISSTEP WOULD BE A BIG SELLOFF, YET WE
JUST SEE THAT THE MARKETS ARE QUITE

RESILIENT. >> WE GOT A BIT USED TO HIM
MANAGING TO SMASH EXPECTATIONS THAT HE HAD SET AND THAT OF THE
MARKET. HE ONLY BEAT THEM SLIGHTLY WHEN
IT COMES TO THEIR OWN INTERNAL

GUIDANCE.
THE REST OF THE MARKET THOUGH HAD BEEN ANTICIPATING MAYBE A
QUESTION AROUND VALUATION. DO YOU MAKE OF THE FACT THAT WE
ARE STILL UP 200% OVER THE COURSE OF THIS YEAR.
IT'S AN EXTRAORDINARY RUN-UP

FOR ONE PARTICULAR COMPANY, CAN
IT BE SUSTAINED? >> IT IS ABSOLUTELY AN EXTERNAL
RUN-UP AND NOW WE ARE QUESTIONING THE VALUATION
LEVELS, ESPECIALLY IF THE DEMAND STARTED TO SLOW.
THIS IS NOT THE CASE RIGHT NOW

BUT AT SOME POINT WE EXPECT THE
DEMAND FROM THE BIG TECHNOLOGY COMPANIES WILL START SLOWING
AND BECAUSE THIS IS A BIG CHUNK OF THE COMPANY'S REVENUE, THAT
WILL BE A HEADACHE.

RIGHT NOW THE COMPETITION IS
NOT A PROBLEM BECAUSE NVIDIA HAS THE MOST EXPENSIVE BUT THE
MOST PREMIUM CHIPS. AND THE BIG TECHNOLOGY
COMPANIES ARE LOOKING FOR THOSE. IF THE DEMAND WAS TO SLOW FOR
TECHNOLOGY COMPANIES THAT

NVIDIA WOULD HAVE TO FIND OTHER
CUSTOMERS AND THEY MAY NOT BE LOOKING FOR THE PREMIER
SOLUTIONS, THEY MAY JUST BE LOOKING FOR THE SOLUTIONS TO
MANAGE THEIR DAY-TO-DAY BUSINESSES AND INCREASE COSTS.
THEY WOULD ALSO OPT FOR MAY

COST-EFFICIENT OR SLIGHTLY MORE
AFFORDABLE CHIP SOLUTIONS THAN NVIDIA OFFERS, AND I THINK THAT
WILL BE A MAJOR ISSUE. CAROLINE: WE WILL BE TALKING THAT LATER
IN THE PROGRAM.

WHEN WE THINK ABOUT THE CONTEXT
OF NVIDIA. 20% OF THE RUN-UP IN THE S&P
500 IS THANKS TO THIS ONE PARTICULAR NAME.
25% EARNINGS-PER-SHARE INCREASE. A POUTY RISK IS NVIDIA AND HOW
DOES ONE PROTECT THEMSELVES

FROM THAT. IPEK: THE AI RALLY AND NVIDIA HAS
BEEN A MAJOR PILLAR OF THE MARKET IN THE U.S. WE HAVE SEEN.
ANY LACK OF APPETITE FROM NVIDIA FROM NOW ON WILL HAVE A
NEGATIVE IMPACT ON THE MARKET SENTIMENT.

WE HAVE SEEN AI TOWARDS OTHER SECTORS. BUT IT'S WORTH NOTING THAT THIS
COMPANY HAS SO MUCH UPSIDE PRESSURE TO THE S&P 500, SO ANY
KIND OF LOSS OF MOMENTUM HERE WILL OBVIOUSLY BE QUITE
NEGATIVE FOR THE S&P 500 ESPECIALLY KNOWING THE S&P 500
TODAY IS TRADING AT ALL-TIME HIGH LEVELS. >> SO WHEN YOU ARE SAT
ULTIMATELY IN EUROPE THINKING

ABOUT A GLOBAL PERSPECTIVE,
SHOULD PEOPLE BE BROADENING OUT WHEN IT COMES TO MAGNIFICENT
SEVEN LET ALONE JUST NVIDIA OR U.S. THAT'S THE TECHNOLOGY. >> WHEN IT COMES TO TECHNOLOGY
A REALLY BELIEVE THE U.S.

IS STILL IN A VERY DOMINANT
POSITION SO YOU WOULDN'T BE GOING TO EUROPE FOR A
TECHNOLOGY SOLUTION. IT'S ONE PLACE WE ACTUALLY LIKE
AND THAT IS JAPAN ESPECIALLY

GIVEN THE GOVERNMENT THERE WILL
GIVE US MORE SUPPORT TO THEIR TECHNOLOGY INDUSTRY SO IN TERMS
OF GEOGRAPHICAL DIVERSIFICATION, JAPAN COULD BE
A SOLUTION. THERE IS CHINA AS WELL THAT WE
HAD BEEN LOOKING AT BUT WE ARE

STILL NOT POSITIVE BECAUSE THE
CHIP WAR HAS MOVED ON THE PROGRESS OF TECHNOLOGY
ADVANCEMENTS, SO WE ARE NOT REALLY LOOKING AT CHINA. SO ONE
PLACE THAT INVESTORS COULD BE LOOKING AT WOULD BE JAPAN, BUT
OTHER THAN THAT, THE U.S.

IS STILL IN A DOMINANT POSITION.
SO IF YOU WANT TO INVEST IN TECH, THE FIRST PLACE YOU WOULD
LIKE TO GO IS THE U.S. BECAUSE THIS IS WHERE YOU HAVE
MASSIVE UPSIDE POTENTIAL.

>> THE CLIENTS CALLING YOU ARE
THEY SAYING THEY WANT TO ADD TO NVIDIA, FOR EXAMPLE, AS A NAME AT
THESE LEVELS, OR DO THEY KEEP THEIR EXPOSURE WHERE IT IS? >> TO BE PERFECTLY HONEST, I
DON'T HAVE CLIENTS THAT WOULD

LIKE TO SELL NVIDIA, BUT AT
THESE LEVELS PEOPLE ARE MORE SKEPTICAL ABOUT ENTERING INTO
THE SHARES. WHAT I HEAR IS AN ENTRY-LEVEL
SEEING A PRICE PULLBACK FROM THE ACTUAL LEVEL.
PEOPLE WILL STILL BE BUYING

NVIDIA SHARES FROM THIS POINT
ON, BUT THEY ARE STILL AT THIS VALUATION AND POINT IN TIME
LOOKING FOR GOOD ENTRY-LEVEL SPREAD -- ENTRY LEVELS.
CAROLINE: ARE THERE SMALLER CHIP RIVALS
YOU THOUGHT WOULD BE A BETTER

ENTRY POINT? IPEK: AMD DOES NOT OFFER THE SAME
MARGINS, BUT THEY ARE GOOD. IT'S SHARE PRICE HAS COME DOWN
QUITE SIGNIFICANTLY TO OFFER AN INTERESTING ENTRY POINT AT THE
CURRENT LEVELS.

IT'S ALSO TO BE SAID THEY ARE
ABOUT TO LAUNCH TWO POWERFUL CHIPS.
ONE FOR THE END OF THIS YEAR AND ONE FOR NEXT YEAR.
IT'S INTERESTING IS THEY MAY NOT BE AS POWERFUL AND PREMIUM
AS NVIDIA CHIPS BUT THEY ARE

CLEARLY GOING TO BE MORE
COST-EFFICIENT AND THERE ARE MANY SECTORS AND COMPANIES OUT
THERE THAT WILL BE LOOKING FOR MORE COST-EFFICIENT AND
AFFORDABLE SOLUTIONS. THEY COULD END UP FULFILLING
THAT GAP.

>> CURRENTLY TRADING AT 41
TIMES EARNINGS. THANK YOU SO MUCH FOR YOUR TIME.
SENIOR ANALYST, COMING UP BITCOIN NEARING $100,000 AS THE
TRUMP TEAM IS LOOKING TOWARDS

CREATING A NEW CRYPTO ROLE.
MORE ON THAT NEXT, THIS IS BLOOMBERG TECHNOLOGY. >> BITCOIN'S MASSIVE RUN SEEING
THE ASSET MOVING TOWARD $100,000.
THIS IS THE TRUMP TEAM IS SET

TO BE CREATING ITS FIRST-EVER
CRYPTO ROLE THAT WOULD OVERSEE THE CRYPTOCURRENCY POLICYMAKING.
KAILEY LEINZ JOINS US NOW SO WHAT IS BEING WEIGHED RIGHT NOW.
KAILEY:

A LOT OF IT IS STILL UP IN THE
AIR. THIS WOULD BE THE FIRST CRYPTO
SPECIFIC ROLE IN THE WHITE HOUSE AND IN MANY WAYS SIGNAL
DONALD TRUMP WAS SERIOUS ABOUT THE CRYPTO RELATED PROMISES ON
THE CAMPAIGN TRAIL WHICH

INCLUDED MAKING THE U.S.
THE BITCOIN CAPITAL OF THE WORLD, FIGHTING FIRING CURRENT
CHAIR AND SAID HE WANTED TO MAKE THE FIRST-EVER CRYPTO
PRESIDENTIAL ADVISORY COUNCIL

SO IN SOME WAYS IT SHOULD NOT
BE TOO SURPRISING HE IS LOOKING AT A ROLE LIKE THIS BUT IT'S
NOT ABUNDANTLY CLEAR WHAT FORM THIS WOULD TAKE IF THIS IS
GOING TO BE IN ACTION THE WHITE

HOUSE STAFF POSITION OR SOMEONE
WHO IS MORE OF A CRYPTO CZAR, IF YOU WILL. I WAS SPEAKING TO
A SOURCE ON THIS WHO SAID THIS IS ALL VERY UP IN THE AIR. THEY
ARE SERIOUSLY LOOKING AT THIS

BUT IT'S NOT CLEAR WHAT KIND OF
POWER WOULD COME WITH THIS ROLE, IF THEY WILL HAVE STAFF
REPORTING INTO THEM, FOR EXAMPLE, IF THEY WILL JUST BE
ADVISING OR IF THIS WILL BE ABOUT LIAISING AND COORDINATING.
ALL THE DIFFERENT PARTS OF

GOVERNMENT THAT ARE INVOLVED IN
OVERSEEING CRYPTO. SO BETWEEN THE WHITE HOUSE AND CONGRESS
YOU WOULD WRITE DIGITAL ASSET LEGISLATION, OR THE WHITE HOUSE AND OTHER AGENCIES THAT HAVE
JURISDICTION LIKE THE CFTC.

I WOULD POINT YOU TO THE TWEET
FROM KRISTIN SMITH, THE CEO OF THE BLOCKCHAIN ASSOCIATION WHO
POSTED SAYING THE CRYPTO CZAR IDEA IS A GREAT IDEA, BUT
ULTIMATELY THEY CAN ONLY

ACTUALLY DO THINGS IF THERE IS
A STRONG SECRETARY OF THE TREASURY AND SEC CHAIR TO GO
ALONG WITH THAT AND WE HAVE NOT GOTTEN PICKS FOR EITHER OF
THOSE ROLES FROM THE

PRESIDENT-ELECT YET. >> A LOT OF THIS IS SIGNALING.
BUT JUST REMIND US ON THE CAMPAIGN TRAIL SOME OF THE
PROMISES TO MAKE THE U.S. THE CRYPTO CAPITAL OF THE
PLANET, TO MAKE MINING EVER

MORE FOCUSED IN THE UNITED
STATES, TO HAVE A RESERVE OF BITCOIN.
IS THAT NECESSARY TO HAVE CONGRESS MAKE MOVES OR CAN THIS
BE DONE FROM AN EXECUTIVE ORDER FROM A LEAD POSITION.

>> SOME OF IT CAN IN THAT THE
PROMISE -- THE PRESIDENT CAN MAKE APPOINTMENTS, PUTTING IN
PLACE MORE CRYPTO-FRIENDLY CHAIR WHO WOULD
BE MORE LENIENT WITH THE INDUSTRY PERHAPS THAN WE HAVE
SEEN IN THE BIDEN

ADMINISTRATION BUT A LOT OF
THIS WILL COME DOWN TO CONGRESS AND IT WAS NOT JUST PART OF
DONALD TRUMP'S CAMPAIGN PLATFORM AT THE REPUBLICAN FLAT
-- PLATFORM AT THE CONVENTION IN MILWAUKEE THAT THEY WANT TO
END WHAT DEMOCRAT -- WHAT THEY

CALL DEMOCRATS ON DEBT --
UN-AMERICAN CRACKDOWN ON THE INDUSTRY.
CONGRESS WILL BE REALLY IMPORTANT AS THEY HAVE THE
LAWMAKING POWER IN TERMS OF DELINEATING JURISDICTION
BETWEEN THESE AGENCIES THAT

HAVE BEEN KIND OF JOCKEYING FOR
CONTROL AND THE CHAIRMANSHIP OF THE HOUSE FINANCIAL SERVICES
COMMITTEE IS SOMETHING WE SHOULD PAY ATTENTION TO.
THE 119TH CONGRESS COMES IN.

PATRICK MCHENRY IS GOING TO BE
LEAVING THE HOUSE AND THERE IS KIND OF A THREE WAY BATTLE
BETWEEN BILL -- CONGRESSMAN ANDY BARR OF KENTUCKY, BILL HUIZENGA OF
MICHIGAN AND FRENCH HILL OF

ARKANSAS WHO LEADS THE
SUBCOMMITTEE ON DIGITAL ASSETS SO WHOEVER'S CHAIRING THE ARMED
SERVICES COMMITTEE WILL HAVE A LOT OF THAT COULD ULTIMATELY
WORK ITS WAY THROUGH CONGRESS

AND THAT WILL BE A LOT OF THE
INDUSTRY'S LOBBYING TIME IS SPENT SPECIFICALLY ON. >> AND INDUSTRY LOBBIED GOING
INTO THESE ELECTIONS AND IT WORKED.
MONEY PUT INTO BACKING CRYPTO

FRIENDLY CONGRESSPEOPLE IS
IMPORTANT. >> ABSOLUTELY.
YOU LOOK AT THOSE WHICH DEPLOY TENS OF MILLIONS OF DOLLARS IN
SOME OF THOSE KEY CONGRESSIONAL RACES INCLUDING A SUCCESSFUL
OUSTING OF THE CURRENT CHAIR OF

THE SENATE BANKING CHAIR. HE WAS OUSTED NOT JUST BY ANY
CANDIDATE BUT A CRYPTO ENTREPRENEUR IN BERNIE MORENO.
THE INCOMING SENATE DESIGNATE OR SENATE ELECT.
THAT IS GOING TO BE INTERESTING

TO WATCH AS I MENTIONED THE
HOUSE FINANCIAL SERVICES COMMITTEE, THE SENATE WILL BE
WHERE A LOT OF THE UPHILL CLIMB HAS BEEN WHEN IT COMES TO
ADVANCING THE CRYPTO INDUSTRY

AND TIM SCOTT WILL BE TAKING
OVER AS THE SENATE BANKING CHAIR.
I WOULD POINT OUT THE RANKING MEMBER COULD BE ELIZABETH
WARREN WHO FACES A CRYPTO OPPONENT OF HER OWN BUT WINNING
HER REELECTION RACE THAT SHE

MAY HAVE A LITTLE BIT OF A ROLE
IN EFFORT TO PULL BACK SOME OF THE EFFORTS TO ADVANCE THE
INDUSTRY'S INTEREST BUT THE CRYPTO MONEY ACTIVE IN THIS
ELECTION CYCLE HAS NO SIGN IT'S

GOING ANYWHERE NOW THE BASE
PROVEN THEY CAN MAKE A DIFFERENCE IN OUTCOMES HERE.
WE WILL WATCH TO SEE HOW THIS PACK AND OTHER INTEREST GROUPS
AND OTHER INDIVIDUALS CONTRIBUTE INTO IT, HOW ACTIVE
THEY WILL BE IN THE MIDTERMS

AND ULTIMATELY IN THE NEXT
CYCLE IN 2028. >> WE THANK YOU.
LET'S TALK ABOUT ARTIFICIAL SUPER INTELLIGENCE.
PERHAPS IT IS NOT FAR OFF. THE SOFTBANK CEO PREDICTED IT
WOULD BECOME A REALITY BY 2035.

THE FORMER GOOGLE CEO ERIC
SCHMIDT WHO IS OUT WITH A NEW BOOK SAYS IT MIGHT BE COMING
SOONER THAN WE THINK. TAKE A LISTEN. >> IT'S PROBABLE WE CAN BUILD
SYSTEMS THAT ARE THE TECHNICAL

TERM IS SUPER INTELLIGENT.
YOU'VE A SIMPLE -- A SINGLE SYSTEM THAT IS AT THE 90TH
PERCENTILE OF PHYSICS, MATH, CHEMISTRY AND ARTS, AND SO FAR
NO HUMAN CAN DO THAT.

IT LOOKS LIKE THE SYSTEMS WILL
NOT ONLY BE AVAILABLE NEXT FIVE YEARS AS WE ALREADY HAVE
EXAMPLES OF PASSING THESE TESTS ALREADY, BUT ALSO THEY WILL
BE BROADLY AVAILABLE FOR ALL OF SOCIETY. CAROLINE:

HAPPENING TODAY IN NEW YORK, THE
EVIDENT AI SYMPOSIUM WHERE SOME OF THE MOST SENIOR LEADERS OF
THE WORLD'S BANKING AND ARTIFICIAL INTELLIGENCE AREAS
CAME TOGETHER DISCUSSING THE

REALITY OF AI ADOPTION BASED ON
THE LATEST DATA FROM THE AI INDEX.
A GLOBAL STANDARD BENCHMARK FOR AI MATURITY IN BANKING.
I SAT DOWN WITH TERESA AND ASKED IF THE EFFICIENCIES FROM
AI ARE THE NUMBER ONE RETURN ON

INVESTMENT. TAKE A LISTEN. >> THE QUESTION IS WHAT IS THE
RETURN. AND THE ANSWER IS VERY DIFFICULT TO QUANTIFY. I THINK AT THIS STAGE OF THE
GAME IT'S A LITTLE BIT OF

EFFICIENCY FOR A LOT OF PEOPLE
EVERY DAY, NOT SOMETHING YOU CAN HANG A NUMBER ON.
SO I THINK THE NEXT GENERATION OF WHERE WE SEE THIS HEADING IS
RATHER THAN USING IT TO HELP WRITE YOUR EMAIL OR SUMMARIZE A
DOCUMENT, IS WHEN WE START TO

PUT THE TECHNOLOGY INTO
KNOWLEDGE BASES. WHEN WE START TO LOOK AT THE
WORKFLOW OF A PARTICULAR PERSON OR GROUP AND LINK TOGETHER THE STEPS IN THAT WORKFLOW SO YOU
BASICALLY GO FROM FIVE MINUTES OF

EFFICIENCY TO THE FIVE HOURS OF
EFFICIENCY. THAT IS GOING TO TAKE SOME TIME
TO ACTUALLY GET THERE BUT I THINK THAT IS WHERE WE SEE THE
PROBLEM. SO THERE ARE NEAR-TERM BENEFITS
BUT I THINK THE MOST COMPELLING

IS PUTTING THE TECHNOLOGY IN
PEOPLE'S HANDS AND LETTING THEM START TO EXPERIMENT AND
UNDERSTAND HOW IT WORKS AND BE USED. >> CHIEF DATA ANALYTICS OFFICER
RIGHT THERE. COMING UP IT IS OFFICIAL.
THE DOJ DOES WANT GOOGLE TO

DIVEST ITS CHROME WEB BROWSER.
ALL DETAILS NEXT, THIS IS BLOOMBERG TECHNOLOGY. CAROLINE:
THE JUSTICE DEPARTMENT AND A GROUP OF STATES SUGGEST GOOGLE
WILL HAVE TO DIVEST ITS CHROME

WEB BROWSER IN ORDER TO
ADDRESS ANTI-TRUST -- ANTITRUST CONCERNS. FOR MORE, IT WAS YOUR REPORTING
THAT ULTIMATELY HAS BEEN CONFIRMED.
JUST TAKE US THROUGH HOW

REALISTIC STILL THIS DIVESTMENT
WOULD BE. >> WE WILL SEE IN EARLY SPRING.
THE JUSTICE DEPARTMENT HAS SAID THEY WANT GOOGLE TO SELL OFF
CHROME. THE TOP TWO OTHER MICROSOFT AND

APPLE, WHO HAD THE CASH, SO THE
NEXT CANDIDATE LIKE OPENAI OR SOME OF THE OTHER AI STARTUPS. THAT WOULD REALLY LOVE TO
CUSTOMERS ON THE AI SEARCH OF GOALS. OTHER THINGS THE JUSTICE
DEPARTMENT PUT IN THERE IS THEY

WANT GOOGLE TO HAVE TO LICENSE
A LOT OF ITS DATA. THAT'S PROBABLY A MORE
REALISTIC THING THAT WOULD HAVE TO HAPPEN AND DEFINITELY GIVE
ABUSE THROUGHOUT -- THAT WOULD NOT HAVE TO SCRAPE THE WEB
THEMSELVES. CAROLINE:

ALPHABET, ONE OF THE KEY TODAY,
INVESTORS WORRIED ABOUT THIS. ALPHABET WORRIED ABOUT IT ONCE
AGAIN TRYING TO SAY THIS IS A RADICAL TURN OF EVENTS. HOW COMPLEX IS IT TO SEE THE
SELLOFF OF SUCH BUSINESSES.

AND HOW MUCH DO THEY HAVE TO
WAIT FOR THE LEGAL MANEUVERING? A COUPLE MONTHS TO RESPOND. >> THEY HAVE UNTIL NEXT MONTH
TO RESPOND. THE TRUMP ADMINISTRATION IN MARCH GETS TO
HAVE ANOTHER REPLY.

WANTS TO CHANGE THE PROPOSAL.
WE PROBABLY WON'T HAVE A DECISION FROM THE COURT.
PROMISING HE WILL RULE BY AUGUST OF 2025. GOOGLE SET
-- GOOGLE SAYS IT WILL APPEAL.

AT THE EARLIEST WE ARE LOOKING
AT DOING THIS IN 2026. BUT I THINK CHROME DEFTLY
RECOGNIZING CHROME IS CRUCIAL TO GOOGLE'S BUSINESS.
AN AVENUE IN WHICH A LOT OF

PEOPLE ACCESS ITS SEARCH ENGINE
BUT ALSO HOW GOOGLE AFFECTS A LOT OF DATA. AS A USER LOGS IN, IT KEEPS A
LOT OF INFORMATION ABOUT THE BROWSER HISTORY WHERE PEOPLE
ARE GOING ONLINE AND WHAT THEY'RE LOOKING AT.
USING THAT DATA, IT HELPS ITSELF

ADVERTISED -- HELP SELL
ADVERTISING. CAROLINE: APPRECIATE THE UPDATE, THANK
YOU. IT IS TIME FOR TALKING TECH. FIRST UP WE ARE TALKING ABOUT PDD DUE TO TENSE -- IF I -- THE
TEAM IS STRUGGLING TO CATCH UP

WITH UNSPECIFIED RIVALS BECAUSE
OF LACK OF EXPERTISE. ALIBABA APPOINTED A NEW
EXECUTIVE TO OVERSEE ITS ENTIRE E-COMMERCE OPERATION.
LEADING A NEW DEPARTMENT THAT

CONSOLIDATES ALIBABA SHOPPING
ASSETS, MAKING HIM THE MOST POWERFUL PERSON IN THE COMPANY AFTER THE
CEO. BAIDU REPORTED ITS BIGGEST REVENUE DROP IN MORE THAN TWO
YEARS AFTER CHINA'S ECONOMIC --

THE EARNINGS SPOT HAS FALLEN
BEHIND IN CHINA USAGE PAID WHILE ITS CORE BUSINESS IS
LOSING GROUND TO NEWER SOCIAL PLATFORMS. COMING UP WE ARE
GOING BACK TO THE U.S.

EARNINGS STORY. NVIDIA, THE IMPACT ON THE CHIPS
SECTOR. OFF BY 1.2% FOR THE WORLD'S
MOST VALUABLE PUBLICLY TRADED COMPANY.
THIS IS BLOOMBERG TECHNOLOGY.

CAROLINE:
WELCOME BACK TO BLOOMBERG TECHNOLOGY.
LET'S GET BACK TO NVIDIA'S EARNINGS.
HERE'S A REACTION FROM SOME OF OUR GUESTS ON BLOOMBERG
TELEVISION.

>> I HAVE A FEELING WE HAVE
REACHED PEAK NVIDIA. >> I DO THINK THAT A LOT OF
INVESTORS ARE EXPECTING A LITTLE BIT TOO MUCH. >> THERE IS A LITTLE BIT OF
THIS FATIGUE BUT MAKE NO

MISTAKE, THIS IS A REMARKABLE
GOOD QUARTER. >> WHEN THEY ARE PUTTING UP IN
TERMS OF OVERALL GROWTH, IT'S EXACTLY WHAT THE BULLS WANT. >> NEVER UNDERESTIMATE WALL
STREET'S ABILITY TO MISS THE

BIGGER PICTURE.
THIS COMPANY HAS DOUBLED THE OPERATING MARGIN OF ANY OTHER
MAG SEVEN OUTSIDE OF MICROSOFT, TO NITPICK NVIDIA ON THOSE
MARGINS IS TRULY MISSING THE

BIG PICTURE. >> PORTFOLIO MANAGER AND SENIOR
TECHNOLOGY ANALYST JOINS US NOW. DANIEL, WE ARE QUIBBLING ON A
MARGIN OF 75%, SO MUCH MORE PROFITABLE THAN RIVALS.

Nvidia’s Magic Fades | Bloomberg Technology

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

Bloomberg Technology

Nvidia's new chips are on track, but production is more costly than anticipated.

Jensen Huang calmed investor nerves, announcing increased market penetration.

Despite a slight decrease in profitability (73-74% margin), revenue increased by 94%.

The margin decrease is due to increased engineering spending to accelerate chip production.

A significant portion of Nvidia's revenue comes from a few large companies (Microsoft, Amazon).

Concerns about demand or market share loss are deemed irrelevant due to high demand.

Trump Administration's Potential Crypto Role

Bitcoin nears $100,000 as the Trump team considers creating a dedicated cryptocurrency post.

This would be the first crypto-specific role in the White House.

The exact form and power of this role are unclear.

The success of this role depends on the appointments of the Secretary of the Treasury and SEC Chair.

Trump's campaign promises included making the U.S. the Bitcoin capital of the world.

Artificial Superintelligence and its Implications

Eric Schmidt predicts the creation of superintelligent systems within the next five years.

A symposium discusses the reality of AI adoption in banking based on data from the AI Index.

The return on investment from AI is difficult to quantify at this stage.

The most compelling use of AI is integrating it into knowledge bases and workflows.

The DOJ wants Google to divest its Chrome web browser to address antitrust concerns.

The DOJ also wants Google to license its data.

Alphabet is worried about the potential selloff of Chrome.

Chrome is crucial to Google's business, providing access to its search engine and data.

Further Discussion on Nvidia and the Chip Sector

Experts discuss Nvidia's earnings, with some suggesting a peak may have been reached.

The margin discussion is deemed largely irrelevant; scaling and data center advancements are highlighted.

Confidence in scaling laws is based on the use of larger clusters of GPUs.

Focus shifts to increased compute spending on inference and autonomous AI within enterprises.

Nvidia's potential to become a $10 trillion market cap company is discussed.