微软据报将提升自研AI芯片产量

There was that risk of disruption for some of its product from the eye. But there was another risk. But there was another narrative that when you look at the three hyperscale cloud providers, Google, Amazon and Microsoft, Google's ship has just taken off. I mean, their TPUs are all the rage in the market, and and Amazon's actually come out with their own print that, you know, they're making tens of billions of dollars with their own chip years as well.

So what happens is when you are looking at this fight of everybody expanding into AI data centers, they do need chips. They are all running to Nvidia. But two of the three providers talked about having their own chips. Now, Microsoft was not in that game at that point. They have their own chip, but it's not widely embraced. But today's report, when it talks about that, they're going to go out and and increase the production of their own chips, which means customers may be ready to use those.

And if that's the case, their cost of spending into that capital expenditure, you know, boom will start to go down in a sense down on a relative basis or per token basis. So it's a very good news for them in the long run. Well, Microsoft might be having a very good day, but Apple is having a pretty rotten day. What's going on with them? Apparently it has something to do with hardware not coming out the way that they're hoping.

Uh, no, I don't. I mean, I think that's a different to somebody downgrade. That's a different story. But when you look at Apple and let's go back to that time period, when when Paul talked about when Microsoft was down, uh, you know, 25% or so for the year or, you know, at that time what was happening was everybody was worried about ROI on eye trade. This is before earnings season. You know, you saw Google. You said everybody was worried about them.

But at the same time everybody loved Apple because they were not spending that much money. But after the results what's what's happened is people are relatively more comfortable going back to the eye trade or going after the risky assets. And given Apple's valuation where it was at that point, it was well, in the 30s. We are seeing some sell off on that and people buying more of, you know, the eye trade. So I think there's a little bit of factor shifting there.

Uh, not so much about one product or the other. Do your clients, your investors, big tech companies. Did they like free cash flow? Another episode if they don't get free cash flow. So two different things once that are looking at this massive CapEx going in, they're seeing what is the benefit of that for these companies. So if Microsoft was able to show, you know, SQL shown improvement in Azure sales growth, Amazon was able to show that Google was able to show that.

So I think they're getting a little more comfortable that these companies know what they're doing when they're spending, you know, hundreds of billions of dollars at that time. The second group is somebody who doesn't want to be a part of this trade and say, you know what? I like Apple. I have 100 plus billion dollars and free cash flow over there. They're buying back that stock. iPhone is doing well. It's gaining share in China.

So there are I mean you could say there are a couple of buckets of people who are looking at this trade from different lenses. What about in the the hardware sector. Apparently there's a big a smartwatch line up that's getting ready to be released. Obviously there's the folding phone everyone has been waiting for. How is that Apple looking in the in the hardware sector? So when you look at the watch itself, it doesn't move the needle.

For Apple, it's an accessory that goes with the phone along with it. I mean, you're not going to just buy a watch without being in the Apple ecosystem. That's a very unlikely thing. But one of the things Mark Gurman talked about it, when you look at some of the other variables you look at, you know, the ordering, which is just an a phenomenal product right now for a lot of people to track their sleep. You're looking at products that are coming out in the market without a screen.

Um, Garmin just launched one. I mean, I've ordered it, but it's on backlog for me. Um, when you look at a few, these are all bands that you could use to track a lot of these, you know, sleeping and, you know, just your normal vitals without the need of a screen oriented product. And that's what I think you're going to see down the road. But that, to be honest with you, does not move the needle. The foldable does because Apple's been behind.

They don't have a foldable phone right now and iPhone accounts for over 50% of Apple sales. So if they're able to come out with a foldable device, I think it's going to create a lot of buzz next year, especially in emerging markets where if people are not worried about the price of it, which Mark Gurman thinks it's going to be around $2,500, I think that's going to be a very, very cool factor that we'll see within the next one month.