Paul Sweeney (3:04)

The stock up 17% today, up 95% year to date and up 325% on a trailing 12 month basis. Just a rip market cap, $680 billion.

Scarlet Fu (3:15)

I'm so glad you bring that up because it has handily outperformed in video which of course has become kind of the the benchmark for chip and AI. So when it comes down to that. So is it fair to compare AMD to Nvidia or are investors kind of doing themselves a disservice by always using Nvidia as the benchmark for amd?

Kujan Sobani (3:39)

It is fair. I mean look, that is the only number two GPU provider out there. Right. So by default you are going to compare to that. But what I think people were missing for the last 2 3/4 where the only focus was toward the GPUs and not towards the CPU which is really AMD's bread and butter. This is where they have really made their name and competed against the past competitor of intel or the incumbent in that space. So we think need to focus on both those areas especially right now. And CPUs are having so resurgence in the server market.

Scarlet Fu (4:10)

Yeah. But also because of this recent surge in amd, this outperformance over Nvidia, the stock is really expensive. You look at the price earnings on a trailing basis, it's 144 time. And then on a forward earnings a 59 multiple versus Nvidia's 24 multiple which. Wow Paul, that looks really, really cheap.

Paul Sweeney (4:30)

Yeah.

Scarlet Fu (4:30)

So Kun John, in terms of valuations, you know what needs to change for AMD or can it continue trading at these lofty valuations?

Kujan Sobani (4:40)

Also remember they are just starting with their. Well they will be just starting with their server level AI GPU solutions shipping in second half. Right. So when we compare the same stage when Nvidia was in, Nvidia was also enjoying a very r premium multiple. So I think as they start ramping these products as we get into 27, 28 there would be some normalization expected.

Paul Sweeney (5:02)

Hey Kun John, also in your space today, Nvidia has bought $500 million worth of rights for shares in Corning as part of a partnership to expand artificial intelligence infrastructure. What do you make of this deal?

Kujan Sobani (5:16)

Yeah, so this is not surprising if Nvidia has actually been investing in the optical and the networking component and supply chain stack. They also made investments in Lumentum and Cohort a few months ago. And what is this is when we think about the scale up networking, this is what you connect all the GPUs together and this is where the pathway is. The more and more GPUs you can connect together so that they work as a single entity, the better ROI you get, especially when you think about low latency for inference where most of the spending is going. So what Nvidia has been doing is really investing in the supply chain stack, in the component provider stack, to make sure they have enough supply. Because as we know, that's the biggest bottleneck right now. A few months ago it was power, right now it's memory. So it could definitely come down to, you know, optical components being supply constraints. Nvidia is just making investments in the right suppliers that they think they are going to work with so that they have enough supply as they transition to CPU or optical or silicon photonics starting in 2728.

Scarlet Fu (6:18)

I mean, Nvidia has a lot of cash to throw around.

Paul Sweeney (6:20)

Yes.

Scarlet Fu (6:20)

So $500 million would be a lot for a normal company, but not for Nvidia. How long can it continue doing this? You know, kind of throwing out half a billion there, two billion there, you know, to, to companies within its ecosystem. Is there a natural limit to this?

Kujan Sobani (6:37)

There is a theoretical limit, but I don't think they're anywhere close to that. Look, they're generating so much cash which, you know, they are doing significant amount of buyback, but for a $4 trillion company, I mean, how much of a buyback can you keep doing to really move the needle? Right. So this is, we think, a better use of cash, investing sort of in their customers, investing in the ecosystems and broadening their reach across the ecosystem.

Scarlet Fu (7:01)

Stay with us. More from Bloomberg Intelligence coming up after this. If your finance team spends more time finding data than using it. If there's one entity here and one here and one here and one here. If scaling your business feels like starting over, you need the Intuit ERP. Intuit Enterprise Suite is the AI native ERP solution that's powerful, painless and proven. Learn more at intuit.com erp Everyone has been there.

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Paul Sweeney (8:05)

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Bloomberg Intelligence Host (9:19)

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Scarlet Fu (9:34)

All right, Disney had a blowout quarter. The results were certainly impressive because the stock is up right now about 7%. It's given back some of its advance because it was up quite a bit more before. Geetha Ranganathan is our Bloomberg Intelligence Analyst on US Media. And Geetha, was there anything here that didn't deliver?

Geetha Ranganathan (9:56)

Not really, Scarlet. I think people were really coming into this quarter. Everybody was really fearing whether they would lower guidance. They did the exact opposite. Raised guidance for EPS growth 16%. Consensus was expecting about 11%. And really, I mean the biggest source of fear for this talk has been the theme parks business. Just kind of given the backdrop of rising oil prices as well as macroeconomic factors, geopolitical tensions. But again, management basically saying that theme park demand remains extremely strong and you have the added benefits of a lot of new cruise ships coming on. So we're going to see an acceleration in that segment through the second half of fiscal 2026.

Paul Sweeney (10:36)

Geetha, another key driver for this company and this stock has been their streaming business. Talk to us about the profitability. It's finally turned profitable. And talk to us about the profitability now and maybe what are some targets.

Geetha Ranganathan (10:47)

So the profitability they actually for the quarter that they just reported, Paul, a fiscal second quarter, they reported an 88% increase in. Prof. Definitely a fantastic turnaround from just a few years ago when they were reporting something like $4 billion in losses. So this year we're going to look at about $2.6 billion in profit. That translates to a 10% operating margin. And really what investors are focused on for the next few years at least is that while theme parks is definitely the majority of earnings for Disney, 60% of earnings this year, the biggest earnings growth story is really going to come from the streaming business. So we're kind of looking for ways that how management can basically improve that margin right now, you know, from 10% this year to 20, 25, 30%. And they have different levers in place, the most important one really being price increases as well as bundling because we've seen them really, you know, achieve a lot when it comes to reducing churn with their bundle and they plan to do more.

Scarlet Fu (11:53)

Keith, I wanted to also get your take on the big headline that we got in the past hour. Ted Turner, who of course founded CNN, passing away at the age of 87. Paul has talked a lot about how he is kind of the, you know, walking and no longer walking, but the embodiment of the 21st century, 20th century media mogul. Tell us a little bit about how you see him influencing and affecting the media industry that you now cover in 2026.

Geetha Ranganathan (12:19)

Yeah, huge news. I mean, obviously a legend and the pioneer for cable, the whole cable network business itself. And of course, 24 hour news with CNN. We've kind of come full circle. Scarlet, if you just kind of look at it from a business perspective, I mean, obviously Ted Turner, you know, at the height of his career in the 1980s and 1990s, you know, established the whole Turner Network business, sold that business to Time Warner, seen that property kind of change hands over the years so many times with the sale to ATT and then a sale to Discovery and finally this year potentially a sale to Paramount, Skydance, so really kind of shaping the media ecosystem in so many different ways. And Paramount, Skydance as it kind of closes this year on this Warner Brothers discovery transaction, along with of course, those Turner Networks. It will, I think, really reshape the media ecosystem in so many ways that Ted Turner obviously set up, so I can't understate his role in definitely shaping the whole media narrative today.

Paul Sweeney (13:30)

Stay with us. More from Bloomberg Intelligence coming up after this.

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Paul Sweeney (14:13)

for the show comes from Public. Public is an investing platform that offers access to stocks, options, bonds and crypto. And they've also integrated AI with tools that can assist investors in building customized portfolios. One of these tools is called Generated Assets. It allows you to turn your ideas into investable indexes. So let's say you're interested in something specific like biotech companies with high R and D spend, small cap stocks with improving operating margins, or the S&P 500 minus high debt companies. Chances are there isn't an ETF that fits your exact criteria. But on Public you just type in a prompt and their AI screens thousands of stocks and builds a one of a kind index. You can even backtest it against the S&P 500. Then you can invest in a few clicks, go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market ad paid for by Public Holdings Brokerage Services by Public Investing member FINRA SIPC Advisory Services by Public Advisors SEC Registered Advisor crypto services by ZeroHash sample prompts are for illustrative purposes only, not investment advice. All investing involves risk of loss. See complete disclosures@public.com disclosures small businesses are

Scarlet Fu (15:26)

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Bloomberg Intelligence Host (16:27)

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

Paul Sweeney (16:42)

All right, let's get back to it here. Elon Musk, Space X is proposing to spend $55 billion to begin construction on a new semiconductor production facility. And guess where Texas dubbed Terrafabs. Let's check in with George Ferguson, senior aerospace, defense and airlines analyst for Bloomberg Intelligence. I think we need to also, I think he's going to be the space analyst as well, because Aerodefense, your portfolio is expanding, George. Exactly. George, talk to us about Space X. What do you, what do you think they're doing here as they get ready to maybe go public?

George Ferguson (17:13)

Yeah. So we do cover space first. Yes.

Paul Sweeney (17:15)

There you go.

George Ferguson (17:17)

Aerospace.

Mandeep Singh (17:18)

Thank you.

George Ferguson (17:20)

Sorry. And I mean, I think he's concerned about his supply chains, Right. He sees a heavy need for semiconductors. I mean, you know, part of sort of putting Space X and XI and Starlink together is all about putting data centers in space, which requires a lot of computing power, which requires chips, you know, you know, covering him from afar before getting SpaceX, you know, as it's preparing to go through his IPO. One of the things I've sort of heard and seen is just that Elon Musk likes to control his supply chain. And I think he also likes clearly to drive down costs inside his supply chain. He's done it with Tesla from some of the, some of the analysis I've seen. And I think this is that same playbook, right? He wants to, he wants to own a supply chain. He knows semiconductor is a big issue. He knows he's going to need a lot of them. And so he wants to get in it and build it himself. And I think would be a great thing. I think I could see a lot of other industries in the US that would like a us a more robust US Semiconductor supply chain, including defense. So he may also find other opportunities for, for these chips he's making, but supply chain control, I think a concern about getting enough.

Scarlet Fu (18:42)

Okay. Elon Musk, he is known for thinking big, really big. Is it realistic of him for him to be able to create a semiconductor plant that can really move the needle, take on stalwarts like tsmc?

George Ferguson (18:58)

You know, look, I, there's a lot of people that have bet against him and I think sort of the, the roadside is littered with them, right. And so I'd be very careful. I'm typically a doubter. It comes from, I think, my early days in credit. I'm still working through it in therapy. But the, the issue is here, right? Look, we've, we've watched them even in Space X right away we have a company now that's launching 150, 60 rockets a year, reusing bottom portions of those, those rockets and driving down the cost to access space. And I think if we talked about this two decades ago, we'd say never going to happen. Right? And he is by far the leader in space launch. Now again, every other day he's launching something even new. Glenn couldn't get it all right in the last launch and they're trying to catch up with their billions of dollars. So I would say it's big. He always goes big. But I have a hard time betting against him anymore. He's done so many things big. I think, I think he's got a real good opportunity. Opportunity.

Paul Sweeney (20:05)

George, what do we know about the timing of this potential ipo? You know, it's been reported for a while, but I'm just haven't seen much yet.

George Ferguson (20:13)

Neither of we, we keep hearing June ish, you know, Summer ish. And so the noise I think has gotten a little fainter recently as you know, Paul, to sort of watch markets and see how they're performing. But I think they, I think that, you know, to me, if the markets are performing, the timing looks right. To put a lot more cash again inside this Space X venture and you know, go for this, you know, data centers in space and more investment in Xi Xi again with this new Glenn failure the other day, the FAA is looking at, you know, what happened in the new Glenn shot his distance on his competitors looks even better. I would think that would help going into an ipo.

Scarlet Fu (21:02)

Stay with us. More from Bloomberg Intelligence coming up after this.

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Paul Sweeney (21:39)

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Mandeep Singh (22:04)

Yep.

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Scarlet Fu (22:38)

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Bloomberg Intelligence Host (23:38)

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

Scarlet Fu (23:53)

Let's come back to Earth and talk a little bit about companies that have things that drive on the roads, on the ground Here, and that is Uber, Uber coming out with results. Investors really like them because the stock is up almost 9% on the day. Mandeep Singh is our global tech research head here at Bloomberg Intelligence. He covers tech companies including Uber. Mandeep, what does the Uber results show you about how its core business, which is, you know, rideshare versus its ambitions for driverless, driverless rides looking. What does that tell you about its prospects?

Mandeep Singh (24:28)

Yeah, I mean, look, this is a company that still has the scale when it comes to ride sharing, food delivery, you know, 3.5 billion rides. And when you compare to the school scale of rides for Waymo, for example, even though it's growing really fast, and in the case of Uber as well, they talked about AV rides growing tenfold. So. But these are just 15 million run rate compared to 3.5 billion rides in the quarter. So at the same time I just feel with Uber there are some headwinds in the sense like they have to scale AV rides where their take rates go down. They have to start buying fleet for AVs now through their investments in Nuro Lucid. So this was an asset light marketplace business. It feels like where it's going with Uber is also they will have to ramp up their investments. And so from that perspective, I definitely feel that they will run into some issues when it comes to their margins and take rates going forward. Forward with the pivot to AVs, which clearly is the fast growing part, albeit it's very small.

Paul Sweeney (25:44)

How is that, how is this ride sharing market? How do investors think it's going to evolve here? I mean, I took my first Waymo ride, you know, a couple of months ago in Santa Clara, California. Is that a substitute for Uber slash Lyft ride? How, how do you think about the future?

Mandeep Singh (26:02)

Yeah, I mean if, if you have to go from point A to point B. And look, with Uber, almost 35% of their rides come from top 10 cities. And these are metropolitan cities. So Waymo is operating in the same cities. And look, in some cases they are partnering with Uber, but in a lot of the other cities they're not partnering with Uber. So suddenly your market share will be going down because people are using and these AVs have a higher utilization. So I think Uber definitely has the advantage of scale and the fact that, you know, they operate at a much bigger, you know, level than any of the other smaller providers, especially Lyft. But I do think over the medium term the AVs will start hurting their margins and.

Scarlet Fu (26:56)

Interesting.

Paul Sweeney (26:56)

I don't know, I mean I get in the back of an Uber with somebody I don't know, never met before. What's this difference between a human and some technology?

Scarlet Fu (27:03)

The human will still let you out of the car if you want to get out. What if the Waymo is locked and you can't get out? Or what if there's a blackout like there was in San Francisco and the car just stops in the middle of the intersection, which is what happened in San Francisco.

Mandeep Singh (27:15)

But I mean there are fear. Remote telehealth?

Scarlet Fu (27:18)

No, no, I'm just reporting what happened.

Mandeep Singh (27:20)

But there are remote tele operators to your point. It's even though there is no driver in the car, there is somebody watching, if remotely. So if there is a problem in the car, it can be just like

Scarlet Fu (27:34)

when I have a doordash problem and I try to text someone, you know, there's a person there who ostensibly should answer but never does. Yeah, Mandeep, let me ask you about Lyft, because you mentioned the fact that this is the smaller arrival. We know Lyft is starting to expand internationally. I mean, can it ever be anything but a distant to.

Mandeep Singh (27:51)

No, I think that's where it will remain a distant too, no matter what they do in terms of geographic expansion or in other new categories like food delivery and grocery delivery, because it all adds up and that seems to be the playbook. So Uber had the right idea in terms of amassing scale through, you know, international expansion and different categories. So Lyft is probably three, four years late in terms of emulating that. But look, I think the big technology change is with AI and with autonomous rides. And if Waymo is successful, the pace at which they're adding supply, and it sounds like people prefer to have that sort of ride and they feel safe, then it will have a bearing on the business model of these companies. And you can already see that with Uber they are investing, you know, $1.5 billion in Lucid to get a V fleet. So suddenly, you know, you're not an asset light model anymore.

Bloomberg Intelligence Host (28:55)

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