Daybreak Weekend: Nvidia Earnings, UK Labour Market, APEC Summit

SPEAKER_1 (0:02)

Bloomberg Audio Studios, Podcasts, Radio, News.

Nathan Hager (0:10)

This is Bloomberg Daybreak Weekend, our global look at the top stories in the coming week from our Daybreak anchors all around the world. Straight ahead on the program, we look to earnings from chip giant Nvidia. I'm Nathan Hager in Washington.

Tiwa Adebayo (0:23)

I'm Tia Adabayo in London, where we're asking what's next for the UK's uncertain labor market.

Doug Krizner (0:29)

I'm Doug Krizner looking ahead at the many issues facing the Asia Pacific as China host this year's APEC Summit.

SPEAKER_1 (0:38)

That's all straight ahead on Bloomberg Daybreak Weekend, on Bloomberg 1130 New York, Bloomberg 99.1 Washington DC, Bloomberg 929 Boston, DAB Digital Radio London, Sirius XM 121, and around the world on bloombergradio.com and the Bloomberg Business App.

Nathan Hager (1:02)

Good day to you, I'm Nathan Hager. We begin today's program with Nvidia. It has been a brutal week for the AI chip giant. The company's market value fell below $4 trillion this week for the first time since 2025

That's after Nvidia's board ousted CEO Jensen Wong, leaving him with no role in the company going forward. And now Nvidia set to report its first earnings of the post-Jensen era after markets closed this Tuesday. For more, we're joined by Bloomberg Intelligence Global Head of Tech Research, Mandeep Singh. Mandeep, it was so hard to imagine just a few days ago that we would be even talking about a post-Jensen era for Nvidia. Now, what are investors needing to see as we think ahead now to the fundamentals?

Mandeep Singh (1:45)

Yeah, I mean, and look, this stock is almost trading at single digit, price to earnings multiple. So clearly a lot of the uncertainty and bad news is being reflected in the stock. But I think now with the appointment of Colette as the interim CEO, you still want to know who is the most likely candidate that they are going to pick. And the reason for that is Jensen was good at not just the product side or the deal making side, but he was pretty much doing everything in terms of Nvidia strategy and the ecosystem that they had created. So really they need somebody who can fill his shoes in terms of all the different aspects that are very important for a company like Nvidia and I think it will come down to execution from this point on in terms of how fast that recovery could be or they may end up seeding some share to the likes of Broadcom and AMD given all the uncertainty.

Nathan Hager (2:59)

So how soon do investors need to see that execution going forward? How much pressure is there now on Carolyn Crest to deliver even in an interim role?

Mandeep Singh (3:12)

Well, I think the good thing about this space is that the companies that commit to their orders are not going to go back in terms of what they are expecting in terms of buying from Nvidia. So the next couple of quarters are pretty much logged in. It's more beyond first half of 2027 is when I think you will start to see an impact on the numbers and growth rates. And that's where you want to pick the right candidate. So I don't think they want to rush in terms of announcing that CEO choice.

And Collette is very capable in terms of handling the next couple of quarters and meeting expectations, but it will come down to finding the right person. And the sooner you do that, I think the better it will be in terms of kind of handling this uncertainty that you see around Nvidia right now.

Nathan Hager (4:16)

Well, let's pick your brain a little bit. I mean, of the candidates that we've heard about, I mean, we heard President Trump in the last week float the idea of Apple's former CEO Tim Cook taking on the Jensen role. Is there someone of the caliber of Jensen Wong that you see that could step in and play the similar kind of broad-based role that he's done in the past?

Mandeep Singh (4:41)

Yeah. Well, that's the million-dollar question, right? The reason why Tim Cook, I think, was mentioned is because of how good he has been with supply chain since the passing of Steve Jobs. You need somebody who is very adept at supply chains here. The relationship that Jensen had with CSMC needs to be carried forward, as well as all the deal-making he did with the new cloud ecosystem.

Look, Nvidia has a very high exposure to hyperscalers. Almost 50 percent of their revenue still comes from the five major hyperscalers, so who are all developing their own accelerator chips. Google is the furthest along, so you just want somebody who is very good at that. So my pick would be either someone from a company like Google. They could be a good choice given how well TPUs has done as a standalone business for them, or it could be somebody, we have heard names, the likes of AMD CEO or Arm CEO, but I wouldn't be surprised if it's someone internal out of the 60 reports that Nvidia has had. So a lot of different options, but you need broad capabilities in terms of not just focusing on one aspect, but somebody who can do all these things simultaneously. And that's why it's such a hard job to fill.