Event. Plus, we speak to a counter as a Company Announces a brandnew range of ai powered products. But first lets check in on the markets. We have a post fed feeling of optimism in the markets it feels. We dont have an awful lot of Economic Data on the table. We have an issuance with 10 year yield with the 10 year yield holding steady. The s p 500 breaking some of the Technical Levels of where we see the average trade the last 50 days so there seems to be some risk on attitude. Not in crypto with bitcoin off. When it comes to crypto related news, we will be digging into what happened with robinhood of course. The sec looking at particularly its crypto sales. Zero and 7 despite the announcing the sec might well be looking into its business. Warren buffett pulling back on the state of apple. Really loving the iphone product but we look ahead to new products new ipads with mark gurman in a moment. I want to shine a light on some of the chip makers chipmakers. Nvidia still yet to report on may 22. We also get arm this week. Earnings season well underway. Technology, Communication Services company beating profit estimates. 90 percent of tech and Communication Services customer companies. We want to get all the statistics. It feels as though when companies have beat, have they really outperformed . Apple was a massive sigh of relief when we saw the stock rally. You can see ginas team in that function and you can see the equities there. When you look at how stocks in aggregate have been performing in excess of the broader index, it is basically it basically pales in comparison to prior quarters but because of apple on friday when you see this, now the s p 500 since earnings season has gotten in full swing with jp morgan back on april 12 and now up close to 1 . In that span, and had been clover to it had been lower close to 1 . Caroline there was so much optimism baked in. What about those that have missed . They have been punished hard. Have there been any themes as to why they have missed . Jess that is a great point because a lot of that has to do with more forwardlooking guidance, and that is why, because as we know when you think about firstquarter earnings results, that is more backward looking. When it comes to the guidance, that is where it has been disappointing. Because this is a technology program, a lot of traders and investors want to know when the costcutting efforts that help propel any Big Tech Company or anything tied to that, especially when you think back to metaat the end of meta at the end of 2022 when it started its big jobs cuts. On a 12 month aggregate basis, analysts are still marking up their projections for Technology Companies and Growth Companies but a lot of the laggards Like Health Care and utilities are starting to pick up now. Caroline maybe with the effect of ai, many waiting to see the impact on those groups. Give us a sense on where companies have been rewarding shareholders. It feels like that is a reason why apple popped, because we got a massive buyback. You triggered my memory that meta did not this time but they did the previous earnings season. Jess that is usually music to traders ears. But also when you look at capex and reinvesting, that is what investors want to see more that is what traders want to see more of. One you still think about what potential catalysts could come for apple, in early june we will have the Worldwide Developers conference but i know mark gurman is coming up soon and well talk about the big event tomorrow where we potentially can see some new ipads coming out. Caroline we will let mark loose in a moment. Brilliant to have you around. We want to get a real investors take here. Our guest is here. Apple actually one of your biggest holdings. You have been cutting that a little bit across some of your funds. Warren buffett doing the same thing. How have you interpreted a company such as apples results and the growth trajectory of a business like that . Apple is a consumer utility, and one of the things about apple is they have been slower in adopting this ai cycle. The hope is that at some point they will catch up and be a fast follower, which we strongly believe they will, but in the near term, there are other companies more immediately investing in and procuring ai type revenues that is propelling growth. Caroline ok, lets talk through some of those names. We heard from alphabet, amazon, meta. Are they building the reward in return for that investment from your perspective . Ankur absolutely. It is the number one thing we have been looking at through the earnings season, capex, how these committees are spending their capex. We expected them to have a big capex number through 2024, and they are even talking about 2025. This to us is the leading indicator of what is to come in ai because they would not be building this capex unless they saw the demand trends. I would remind you that during earnings season, both microsoft and amazon talked about how they were limited on capacity and gpus. People keep asking, where is the application . Someone is using those gpus. They are all used up already. Hundreds of millions have already been spent. Caroline of course, the benefit has to be to nvidia. Has that been the number one play for you . Have you been looking at amd and the design element . Ankur i think a lot of boats will rise the next decade and a lot of boats are rising now. Will it be a winner take all market . It will not be a winner take all market. There will be many different winners. Nvidia will be the winner take most, however. We are really excited about what nvidia is doing in terms of not only Software Development but how they are changing the network in order to make data centers more efficient. So they are reaching out beyond just chips into the Enterprise Networking and software as well. So that sets up a really great month for them and makes is very bullish on nvidia. Caroline it is one of your number one holdings across some of your largest funds. I know you have been starting new funds and etfs trying to execute on the ai theme but can you talk to us about why you have not automatically considered the ai pla play . Ankur there are two companies, both of which used to be relatively slow Growth Companies but are now delivered to the ai plane. One makes cooling systems for data centers. The other, i joke that these are Ditch Diggers or pool climbers because they make the transmission for electricity. Both of these things are going to have radically changing competitive dynamics. For example, for one we do not have enough electricity. We expect to see utility capex start to rise incrementally over the next five to seven years, all of which will service the people that implement the mines. For the other, you have a changing dynamic on the cooling aspect of the data center and it ends up being the net winner. Caroline that is really interesting because we are hearing again and again that this is a worry. For example, going around the middle east in particular, worrying the key bottlenecks are energy and indeed access to gpus. That is why there has been so much reporting that he is trying to build up other chipmakers. Have you been thinking about ultimately that being the key bottleneck . Do you agree energy will be the real key here, the limiting factor . Ankur technology has been Pretty Amazing as you look forward. As we stand today, will energy be a bottleneck . It is. However, as you move forward, 2, 3, 4 years, the Energy Events are quite significant. We think the technology on cooling and electricity will keep up and not hamper the growth of the industry. For example, if you look at the performance per watt of the b100, which is nvidias newest ship, it is significantly more efficient than the older generations. As you move through time, i believe essay on a performance per watt basis, you get more efficiency than is baked into the market. Caroline where is the market getting too exuberant . Do you believe any view that the hype has made capitalization unstable . Ankur i dont think the market is exuberant right now. Everyone always asks, are we in a bubble . Are we in nai bubble in an ai bubble . It is much too early. It is revolutionary in terms of what is about to happen. I just look at the evaluations across the seven this morning. Meta currently trades at a 10 discount to the market on our 2025 earnings. Actually, it might be a 15 discount now that it has pulled back so much. That to me for a company that is going to change the way we interact as consumers with ai and how businesses interact with consumers is not an egregious multiple. You can go down the list with amazon. Amazon does not trade at that egregious a multiple to the market. You look at microsoft. Microsoft, again, if you look at, 2026 if you look at 2026 numbers. These are not set up as bubblelike valuations, and we are not terribly exuberant. Caroline well said. Ankur crawford, great to give your perspective as someone holding a lot of these names, investing income and adding to. We thank you, ankur crawford. Meanwhile, coming up, apple preparing to unveil a up of ipads with a Product Launch unveil a new group of ipads with a Product Launch. You know is the og meme stock. Down 30 last week. It was rallying hard, end of friday, 29 . There seems to be a desire to get in and out of this key name once again. We will keep an eye out for you. This is bloomberg technology. Caroline Berkshire Hathaway held a meeting over the weekend, and apple quickly became one of the biggest topics as the meeting unfolded. Laurent fit praised the company, calling the iphone of the greatest products of all time. That was after revealing he cut a steak. A 135 billion holding an apple at the end of the quarter, down from 174 billion at yearend. Meanwhile, the whole news when it comes to apple and foxconn posted the strongest Monthly Sales growth since the start of 2023, and look at the impact on shares, potentially raising expectations for a phones for iphones, for ai. Bloombergs mark gurman is with us. However you want to talk about it, always a great tell. We had been worried about its previous earnings but now it looks like from a month on month basis or a year on your monthly posting, we are getting record sales for the company. Mark if you look at the prior quarter, they raised their revenue, expectations were not so hot, and then apple revealed iphone sales for the previous quarter last week and you saw the iphone come in 5 billion down on a yearoveryear basis. But let me get to the june quarter, the current window we are in. Apple said it expects to grow low singledigit, so growing for the single digits, so growing for the first time in a while. It seems to align with that given that they assemble a vast majority of iphones via foxconn. It is also development and manufacturing of ai servers for various companies. However, i dont believe the ai servers that foxconn is building are connected to apples ai announcement coming in june. For all intents and purposes, the ai from apple be on device at least from the getgo and probably using thirdparty infrastructure, not something they are creating on their own, but one day i expect apple to move to its own. Caroline interesting. Therefore, talk to us about the longterm commitment to apple and a slight pullback from its third biggest shareholder Berkshire Hathaway saying we are to be back but they seem to we are trimming back but they seem to believe in apple. Mark Warren Buffett in his typical process for which stocks he buys, apple is right in his alley. You will not see apple grow tenfold or to some significant degree at this point, but you know that it is more likely than not you will get solid returns off of this company. You will not lose your money. Certainly better than putting your money in a bond market or mutual fund in most cases. It is a very safe pick, apple i think for many quarters to come despite the fact that it will not be a high flyer or anything like that. Caroline 110 billion Share Buyback among many people feel that is the tell buyback, many people feel that is the tell. We are all caring about the products and unveilings and unveilings, and we will get some. Mark that is right, tomorrow, tuesday, 7 00 a. M. Pacific time is the let loose Product Launch. A few things coming. One is a revamped version of the ipad pro, the first update since the current model was launched in 2018. We will see a new ipad air. Why is that important . You are getting a bigger ipad air, something closer to a macbook air. This will be the first time apple is offering a 12. 9 inch ipad at the mid tier price point, right at that mid tier product line. So that is a big deal as apple looks to make its ipads like the macs. And you will see the ecosystem with two new key accessories, a new keyboard, a higher inversion that makes the ipad pro look like a laptop on use, something more durable and convenient. The second thing is a pro version of the apple pencil. That is a really popular accessory that are artists and creatives artists and creatives like to use. You can erase the logo on the apple home page which means the pencil might finally get an eraser on the back like a classic number two pencil. The other thing is feedback. When you use the pencil, it will vibrate back on your finger so you know what you are doing based on tactile feedback. That will be a nifty update as well. Overall for ipad fans, especially those who have been waiting many, many months or even years for a revamped version of the ipad pro, tomorrow will be an exciting launch for them. Caroline love to play the mark gurman bingo of all the things you just told us and all the things tomorrow when they play out in life. Meanwhile, coming up, new bidders come to the forefront to save a french company. We will have all the details. This is bloomberg technology. What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. Caroline time now for talking tech. First up, a chinese selfdriving firm filed confidentially for an ipo in the United States and it may happen as early as this year. The company was founded in 2016 by a team of ai engineers from Microsoft Research asia. Plus, the Biden Administration is Opening Applications to 285 million in federal funding to set up an Institute Focused on Digital Twin Technology for the chip industry to leverage ai to help reduce development and manufacturing costs. Jack dorsey has left the board of blue sky, which he helped fund and popularize a year ago after the sale of twitter. He wants companies to open internet protocols. In fact, he said x is such a freedom technology. Lets turn our attention to the French Technology company atos. It has received four proposals to restore the group to financial health, including one it already rejected. The firm is seeking to reach a deal by the end of the month to inject fresh funds after clients have begun to hold off business. The latest bidders to throw their hats into the ring are a czech billionaire. Remind us, this is a company thought of incredibly integrally in the tech space and the country wants to make sure it survives. Yeah, it has been a darling of the french text seen and a major bluechip Index Company in france. It appears to have a market capitalization of 15 Million Dollars now to 15 billion now down to 200 million 15 billion now down to 200 million. Many key customers around the world. The i. T. For the Olympic Games for example upcoming in france this summer but also for the French Defense industry. It also has computers. The french government seeing the trouble of the Company Finally decided to make a bid on that part of the company. Caroline talk us through the rivals, some of the key players. You mentioned a couple of billionaires throwing their hats in the ring. Benoit so one of the bids is from the bondholders of the company. They want to be center stage here. They want to bp in deciding they want to be key in deciding who will be the winner. This could be one who has been known to buy sort of unloved assets, assets that need restructuring. He started in energy. He has been to retail. In france, he made a bid to buy a retailer. He is teaming up with a credit fund again to make a bid for atos. And then there is a french entrepreneur. He has a much smaller i. T. Company called one point. He is teaming with butler industries, an investor in france, to buy the company and a plan he is calling one atos. So it is sort of down to a race between these two. Caroline we will see how the race continues. We thank you so much for the update on the french company. Coming up, the sec warning robert had markets robinhood markets. Meanwhile, a tussle over sales. Paramount, an offer came from apollo and sony. This is bloomberg. I dont want you to move. Im gonna miss you so much. You realize well have internet waiting for us at the new place, right . Oh, we know. We just like making a scene. Transferring your services has never been easier. Get connected on the day of your move with the xfinity app. Can i sleep over at your new place . Can katie sleep over tonight . Sure, honey this generation is so dramatic move with xfinity. Caroline welcome back. A little bit of optimism on the day. A hired tune after we see a quieting. A rampup coming from the Federal Reserve after teamer comments from chair powell. We are seeing the msci on the high side. Bitcoin not finding love. Currently down by. 5 . Lets look at what else is moving in the world of curb though. More broadly, we have seen the chips sector doing well on the day. Getting back into these ship names. Apple on the downside. Warren buffett c