Bloomberg Tech Event Special

**SPEAKER_2** (0:02)
Bloomberg Audio Studios, podcasts, radio, news. Bloomberg Tech is live from coast to coast, with Caroline Hyde in New York, and Ed Ludlow in San Francisco.

**Ed Ludlow** (0:22)
Welcome to a special edition of Bloomberg Tech, live from the Bloomberg Tech event in San Francisco.

**Caroline Hyde** (0:27)
And leaders, they're from tech, from business, and they are gathered here to discuss how they can navigate economic, geopolitical, uncertainty, and of course, multiply the opportunities in today's landscape.

**Ed Ludlow** (0:37)
So we're going to talk about everything, from robots to data center costs, the race to reach artificial general intelligence.

**Caroline Hyde** (0:45)
And the economic impact. But look, let's first of all talk about the markets, because, look, they're down today. Look, we're having our worst day on the NASDAQ 100 since mid-May. We've lowered it down to the lowest level since the end of May. Look, we're under some pressure. We're bouncing off of our lows.
We're up by 0.8%, but there's some anxiety in there that perhaps markets run up too far, too fast, particularly in chips.

**Ed Ludlow** (1:03)
Yeah, so this is a story about Broadcom and Broadcom's earnings. And basically, they said that in the current period, they will book $16 billion of sales in the custom silicon group. We're talking TPUs, we're talking ASICs. The street went into this with very high expectations, $17.2 billion.
That's a big drop on Broadcom, biggest drop, I think, since January of 2025 So let's talk about it because, hey, right place, right time, we're going to have a big conversation today. Bloomberg Global Tech, Executive Editor, Tom Giles, right place, right time.

**Tom Giles** (1:40)
Thanks for having me.

**Ed Ludlow** (1:41)
Yeah, thank you for being here. And later today, you will have a conversation with Broadcom CEO, Hock Tan.

**Tom Giles** (1:47)
That's right. The man of the hour, the man whose results are moving global markets and not in the in the right way.

**Ed Ludlow** (1:53)
The way he hopes, probably.

**Tom Giles** (1:55)
Sure, if you're a bull, right? The point here is, as you said, there was an expectation for revenue forecast for the current quarter at about $17.2 billion. You come in at $16 billion.
Still a pretty impressive number. Let's be fair. The demand is there. Nobody's worried about things dropping off a cliff. But if you, this stock is priced for perfection in the run up to these earnings, that company added $270 billion in market capitalization.
That is just another reminder of how much people are anticipating and expecting this demand to continue. Chips are a very cyclical industry. I was on yesterday, last night, we had Cereber's CEO. We're going to listen to him in a little bit. I asked him, basically, are we in a bubble? People are concerned about the sustainability of this rally. People are concerned about the sustainability of demand. His point is we're in the opposite of a bubble. We cannot keep up with demand, particularly in the hardware space. And I think that that is the message that Hot Tan is trying to bring across. We will definitely be asking him, did we miss something? Is there a nuance here? What do we need to know about your outlook going forward? One thing that, reading research this morning, including from Rosenblatt, my friends at Rosenblatt, we're talking about how now we have even greater visibility. He talked about how we have visibility into 2028
Much further out than just three months ago, he said, I didn't have that visibility. I have it now. And he's still sending bullish signs. So I think in the longer term, the market is gonna be encouraged by that kind of visibility further and further out.

**Caroline Hyde** (3:36)
And that's on the AI infrastructure playbook. And it's all because we're using generative AI so much more. Who are we using it through? The likes of Anthropic, the likes of OpenAI, the likes of GrokAI, if you're looking over at SpaceX. These are companies that are about to go public. And we have the Anthropic leader here speaking as well.

**Tom Giles** (3:54)
One of the co-founders, Daniela Amadei, she's the president, the brother of the CEO.
Excuse me, sister of the CEO. We're gonna be asking her about what it's like to have just gone out with your secret filing, your confidential filing. What do we have to look forward to with this IPO, one of the biggest ever?

**Ed Ludlow** (4:14)
I just wanna set the scene for the Bloomberg Tech audience that Anthropic literally filed confidentially for an IPO Monday. Am I getting that right? The world's been wild.

**Caroline Hyde** (4:22)
Yeah, I mean, time's an illusion.