Dan Ives Previews Nvidia Earnings | Bloomberg Talks

0:02 Bloomberg Audio Studios podcasts radio news. >> Joining us now, Sir Dana Ives joins us here with Yorkville and and I let's start with this cuz Tom Sakunda, founder of Bloomberg, cornered me one day in a food court, you know, over the Cheeits. And he said, "Hey, stupid. Get perplexity." It changed my life. Dan Ies, what is perplexity? Yeah, look, when you think about from a model perspective, I think Perplexi is one of the best out there, especially for someone like Kee, you know, when it comes down to like heavy analytics, a lot of sort of numbers, I think perplexity is probably one of the best out there. And that's why when you look what Nvidia is potentially doing, it would make actually a lot of sense relative to where we see this AI revolution.

0:50 >> In what way would Perplexity help Nvidia? Well, for them, look, they're essentially taking stakes across the whole ecosystem, whether it's infrastructure on the model side, and it's a way given anthropic and open AI that have really had a duopoly to some extent in terms of AI, this would enable them to diversify because Nvidia and Jensen's talked about it even from an open-source or other models, the cheaper the models get, the more pervasive that gets. It's better for AI spend because the cheaper that gets it's be you're going to have more and more demand.

1:26 >> So we are going to hear from Nvidia after the close Wednesday. What should the market be listening for? >> No one has a better perch around demand than the godfather of AI gent. I think it's really about when you look they'll talk they'll probably talk about that price increase that you know report over the weekend from a memory perspective driven but I think it's really about what they were seeing from customers in terms of acceleration we think overall AI demand we've seen acceleration 20% the last few months >> and there's one chip in the world fueling the AI revolution so I think that this is a huge piece of the puzzle when you're think about demand And especially after what we saw from an earning season that was extremely strong especially from the hypers scalers.

2:12 >> You're right Dan that the biggest tugofwar in the tech space is around AI sovereignty. What do you mean by that? >> What that means is and it's becoming more and more of a of a of a debate really a hot button issue is that the data I'm not going to give that data if I'm a company >> to the model player to an open AI to an anthropic. I can maybe use them but there's going to be a sort of cordon off where I want control as a company over that data and that's something where Nvidia Palunteer there's a big focus especially from Carton Palanteer on sovereign AI data because the view is that eventually if if you have my data then ultimately competitive wise could I marginalize your model. So I think it speaks to what's starting to happen is as you're hearing more maturity now in the AI space where enterprises are focused more on who has access to their data and should they have more control.

3:12 >> Dan I with us folks for a quick tech brief here. we'll talk Canada here in a moment. Good morning across America on SiriusXM channel 120. Good morning across all of Canada as well. The House is fired up about Apple announcements after I believe Labor Day. What will we see from Apple and what's it mean for their free cash flow and stock price? >> I think for Apple and I think investors now are starting more and more to recognize we've talked about a lot on the show is that the consumer AI revolution that highway they're a toll collector on that and that's going to continue to go through them. I think it's really it's about not just the AI strategy, but now as you get to the to the latest iPhone that they release, what that's going to do to ultimate demand because it lays out the foundation for everything we're talking about in AI is about enterprise comes down to consumer. What are devices going to look like? Where is most that going to go through? Apple has when you think about 1.5 billion iPhones. So that's why there's such a focus to see as they come out with their latest iPhone. Not necessarily that there's going to be so many changes from a hardware perspective, but Tom, it's really also related more the AI strategy that they finally actually have one now with with Gemini.

4:33 >> So software earlier in the year, we saw a sell off in software that I don't think I've seen. >> I can't remember. I mean, it just software you just own it because the recurring revenue, the high margins, the free cash flow. What is the software call on the street these days? Are we trying to pick winners and losers? I mean, Microsoft was down 25% year to date at one point this year, but now it's rallied back to flat. What's the software call?

4:56 >> Well, Paul, I first I I always thought that that was a fictional thesis that Anthropic was going to eat software companies lunch that these models were essentially, you know, almost going to be destructed. I think what's starting to happen now more and more is the use cases get deployed. Software is playing a bigger bigger role. That's what's happened with Microsoft. You've seen in Palunteer and you've seen with Service Now and a bunch of others. I think it it's idiosyncratic to the point that there will be software companies disintermediated >> and you look at companies maybe the view back against you know when you look at names like Adobe is a good example that's a good example of one where it's like okay Adobe into it how they how is their business model going to adjust >> but it's a much different narrative today than it was 6 months ago >> nobody cares Alexis here wants to know who are you wearing today >> I love This What's What's on your shirt?

5:52 Are these penguins? No, wait. >> So, these are penguin. Yeah, >> they are penguins. Well, they look like parrots. >> No, these are p the parrots. >> Okay. >> And then here, this is a duck hat. >> You're very bird today. Who in God's name shirt are you wearing? Somebody emails in. They go, "Is Dan wearing Poochie?" >> No, this is actually It's a company out of Bali. Kenny Matthews. Kenny K. No, Kenny Flowers. >> Kenny Flowers.

6:17 >> Yeah, I can see it on your show. >> Yeah, Kenny Flowers. They're out of Bali. people worldwide want to know. Dan Ives, thank you so much. Greatly appreciate it. with all of his work as well here and looking for that Apple launch here in a bit. Yorkville and eyes this