Bloomberg播客：Snowflake财报超预期

What we heard from them was that they expect to buy time for an open eye to become at their most important customers, you know, eclipsing, um, Google. Um, and, you know, that's significant. So it kind of shows you that that's kind of substance behind the plans and capital raising that these companies, uh, are undertaking. Um, but, you know, see that that kind of midterm weight as, uh, it's really contingent on the momentum, um, continuing.

Um, and, uh, you know, I think what we're seeing in the opportunity for Broadcom is very much that the these big hyperscalers don't want to be purely reliant on Nvidia for their technology. They're looking to diversify. Uh and Broadcom is going to be an incredibly important part partner for them in that technology diversification. Yeah. Hock tan the CEO saying we have six customers and four of them are just simply going to be huge.

So these hyperscalers, when they kind of spread out their needs across different suppliers, how broadly how widely can they spread that out? I mean, they don't want eight suppliers for their chips today. They want to limit it to, you know, a handful. Yeah, I think there's a balance. I don't see that there also is a complete risk factor. I'll see. You know, Google as well as being a hyperscale competitor. There is also, um, uh, a technology competitor to you.

So there's a balance to be had. You know, I think maybe kind of, um, 2 or 3, uh, key suppliers is probably going to be sufficient for most of them. But you want those 2 or 3 suppliers to be genuinely, you know, kind of independent, uh, and, and robust. You know, obviously we had a lot of supply constraints, um, in the recent past. And, you know, that they continue to kind of impact the growth of the industry. Um, so I wouldn't be surprised in the short term if there's even some kind of broader diversification beyond the 2 or 3 know.

I think there'll be a core 2 or 3, uh, but they'll be looking at, uh, innovative technologies around the edges, um, just to kind of make sure that they've got as much, uh, supply coming through as they can get their hands on. Matthew has this, I guess, uh, AI theme continues to ripple through the technology space writ large. One of the potential losers was called out. And, you know, like a year and a half ago, certain software companies that might be displaced by, I mean one of them that doesn't appear to be at all a snowflake.

They report some really, really good earnings. And they talked about using AI assisted coding tool. That's been a big hit for that. I mean, so there's an example, I guess, of a software company adapting AI to making their products even better. When did you make it to snowflake earnings? Yeah, I mean, if I'm honest, um, I'm surprised, uh, quite how much the shares have reacted to the results because obviously there's a, um, a beat on the earnings that they reported.

And I upgrade to the guidance, um, for, for the full year. Uh, it's not that big if I'm, if I'm honest. But I guess it's kind of what you see. What you kind of mentioned here is that, you know, I think there's been a lot of scrutiny around software companies and their ability to adapt, uh, to the AI opportunity rather than being replaced by it. And I think what we've seen today, uh, in the snowflake numbers is that, uh, execution against EI and adopting it and integration into their software is going incredibly well.

And so I think probably what you're seeing in the share process. Data is not just so much about the, um, the next 2 or 3 quarters or of you the next 12, 18 months. It's the, um, the view that. Yeah, you know, they, they that grasping this opportunity is going to create a kind of long term, uh, opportunity for them that's not fully appreciated in the numbers yet. Yeah. It feels like a little bit of a relief for Ali trading today.

Up 20%, up 60% over the year to date. But it's almost like even it's similar thing happened to Microsoft. And they reported their last quarter. People said oh these guys can grow and adapt and using and all like you know. So I think that's case by case. You put up the numbers and boom. Also depends on the mood of the market at any given point. You know, there's been a lot to be worried about. And that kind of cast a pall over everything.

Um, you got to consider all the macro factors, too. Uh, before we let you go, Matthew, just a quick, uh, comment from you on Nvidia acquiring this AI platform hugging face. Um, Nvidia getting into software, is that a good idea? Yeah, yeah I think yeah, I think it is. You know obviously Nvidia is playing this role of kind of key cheerleader if you like, for the whole AI industry. Um, they're looking to use their financial and technological, um, clout to kind of really make sure that the, uh, the industry continues to develop in every direction.

I think the kind of critical thing here, and it's been a lot of talk about open source, um, and that you're hugging face is kind of really the home for open source AI software. And, you know, I think Nvidia kind of looks to the kind of mid to long term and thinks, well, you know, if we don't play a role in making sure that the open source community remains strong and vibrant and grows, and we're going to be left with an industry that's dominated by a very small number of very large, very powerful, closed source businesses.

You know, the likes of OpenAI, the likes of, um, anthropic, uh, and that's not good for the industry as a whole. Uh, and b probably wouldn't be good for Nvidia because it would create a lot of concentration, uh, of their customers, as we were talking about earlier with Broadcom, you are potentially diversifying away from into video technology that potentially limits the the Nvidia opportunity. So I think it makes a lot of sense for the industry as a whole.

Uh, definitely makes a lot of sense for in video in terms of protecting the midterm opportunity for them.