Bloomberg Intelligence Podcast — Episode Summary

Episode Title: Dell Hikes Estimates for Next Four Years on Strong AI Demand
Hosts: Scarlet Fu & Paul Sweeney
Guest Analysts: Ed Ludlow (BTECH co-anchor), Nathan Naidu (Tech Research Analyst), Ken Shea (Senior Consumer Products Analyst), Anurag Rana (Tech Analyst)

Date: October 7, 2025

Episode Overview

This episode of Bloomberg Intelligence dives deep into recent developments across several major equities and sectors, with a particular spotlight on Dell’s optimistic long-term guidance now buoyed by soaring AI demand. The hosts explore Dell’s strategic reset, the broader implications for legacy tech players, and provide sharp analysis on AppLovin’s regulatory hurdles, Constellation Brands adapting to changing beverage trends, and IBM’s partnership with Anthropic.

The episode delivers market intelligence, in-depth company research, and contextualizes key business drivers for investors and professionals.

Segment 1: Dell’s Upgraded Outlook — AI at the Core

Key Segment: 01:47 – 06:33

Dell’s Strategic Shift

• Long-term Vision: Dell has offered more than just quarterly guidance — it’s a bold multi-year outlook, effectively “a reset on Dell’s position in the market.” (Ed Ludlow, 02:17)

• AI Server Play: Dell is increasingly recognized as a key beneficiary of AI’s demand for datacenter infrastructure, assembling servers crucial for the booming AI sector.

  “If you build a data center... Dell is likely to play a part. You don't just put all the chips in a pile on the floor.”
  — Ed Ludlow (02:25)

• Investor Sentiment: Dell’s stock is up 2.5% on the day and has climbed 30% YTD, approaching a 52-week high (03:31). The market is rewarding Dell for its AI positioning.

Financial Highlights

• Raised Projections: Dell’s forecast through 2030 nearly doubles previous targets:

  • Top-line growth: From 5% to 7-9%

  • Adjusted EPS growth: About 15%
    (Ed Ludlow, 03:56)

    “Through 2030, they've basically almost doubled their forecast... and a big part of that story is just more people doing business with them.”
    — Ed Ludlow (04:52)

• AI Demand Reality: Dell’s CEO Jeff Clark admitted,

  “We were all wrong about how big we thought the market was two years ago. And it's nothing but bigger.” (Scarlet Fu quoting Jeff Clark, 05:13)

• Current Performance:

  • AI server business bookings: $5.6B in the quarter
  • Shipments: $8.2B
  • Backlog: $12B
    (Ed Ludlow, 05:35)

Competitive Context

• Dell is positioned as the "indispensable assembler" rather than a core AI innovator like Nvidia, but the company’s ability to ride the rising tide of AI investment, particularly the trend toward "on premises" infrastructure for enterprises, is winning favor.

Segment 2: AppLovin Stock Sails Amid Regulatory Scrutiny

Key Segment: 09:03 – 12:35

Company Profile & Issues

• AppLovin assists app developers to monetize by selling ad space within apps; charges fees for this mediation (Nathan Naidu, 09:26).

• SEC Probe: The SEC is allegedly investigating AppLovin’s data collection practices and potential inflation of app installation metrics. This comes on the heels of short seller allegations and an ongoing class-action lawsuit (B, 09:26-10:54).

  “The bigger risk that we’re watching... is definitely that potential class action lawsuit.”
  — Nathan Naidu (11:38)

• Financial Cushion: Despite the negative headlines, AppLovin’s free cash flow is robust ($2B/year), making even a substantial fine manageable (11:04).

Market Reaction

• Stock Dynamics: The stock is rebounding after a steep drop, as uncertainty rather than confirmed regulatory action is the focus (11:04).

  “Typically the biggest risk... is a penalty. If we look at SEC’s published report... the heaviest fine was $100 million. Meanwhile, AppLovin at the moment is pumping out $2 billion in free cash flow every year.”
  — Nathan Naidu (11:26)

Segment 3: Constellation Brands Faces Shifting Consumer Tastes

Key Segment: 14:57 – 20:59

Industry Headwinds

• Sales Pressure: Constellation Brands (maker of Corona, Modelo, etc.) suffers from tariff impacts, legal crackdowns affecting Hispanic consumers, and “structural” declines in beer consumption.
• Price Sensitivity: Premium pricing (twice the cost of standard beer) hurts during consumer pullbacks (Ken Shea, 15:29).

Macro Trends

• Changing Tastes: Growth in alternatives (RTD cocktails, low-calorie beers, non-alcoholic options), moderation trends especially among Gen Z, and “cannabis substitution” are key concerns (16:45-17:43).

  “Of consumers that do partake in cannabis, now more than half have substituted for alcohol at least once a week... That’s a trend that just keeps moving.”
  — Ken Shea (19:47)

• Strategic Response:

  • Rolling out Corona Non-Alcoholic and Modelo Oro.
  • Portfolio adjustments towards more flavorful beers and new categories.

Financial Health

• Dividends & Buybacks: The company maintains strong operating margins (“best in class”) and expects rising free cash flow, supporting continued shareholder returns (Ken Shea, 20:59).

Segment 4: IBM Partners with Anthropic — The AI Transformation

Key Segment: 24:39 – 28:13

Strategic Partnership

• IBM-Anthropic Deal: IBM will integrate Anthropic’s Claude models into select IBM software, part of a broader strategy to offer enterprise customers leading AI capabilities (Anurag Rana, 24:39).

  “IBM has done a very good job of being open and partnering with other vendors. The acquisition of Red Hat was the first such example... Now it’s more of a software company.”
  — Anurag Rana (24:39)

• Why Anthropic?

  • Anthropic’s Claude has an “enterprise focus,” targeting corporate applications, different from OpenAI’s consumer-facing ChatGPT (25:43).
  • The deal leverages IBM’s vast consulting business to push Anthropic’s models into complex, regulated sectors (26:47).

IBM’s Turnaround Validation

• IBM’s pivot to open source and multi-cloud through its Red Hat acquisition is credited for its stock revival (27:14).

  “The acquisition of Red Hat completely changed it... Their software business has been doing so well comparatively to the rest of the world and I think that’s where you see the market validation that this is the right strategy for them.”
  — Anurag Rana (27:22)

Notable Quotes & Moments

• Dell’s Positioning in AI Buildout:

  “It’s taken a while for investors to give Dell credit... The profit picture for the server business is really going to improve.”
  — Ed Ludlow (02:38)

• Consumer Beer Preferences:

  “Consumers just want different tastes... like Truly and White Claws... That’s where a lot of consumers are going.”
  — Ken Shea (16:59)

• IBM’s Evolution:

  “Prior to Red Hat, it was a very closed company. The biggest difference... was it allowed Red Hat to work with companies based on Amazon Web Services or Microsoft. That really made a difference.”
  — Anurag Rana (27:22)

Key Timestamps by Topic

| Topic | Timestamp | |-------------------------|------------| | Dell AI Guidance | 01:47–06:33| | AppLovin SEC Update | 09:03–12:35| | Constellation Brands | 14:57–20:59| | IBM-Anthropic Partnership|24:39–28:13|

Conclusion

This episode underscores the growing centrality of AI in shaping legacy tech and stock trajectories, alongside candid assessments of regulatory and macro risks facing diverse sectors. Dell’s bullish AI forecast, AppLovin’s legal headwinds, beverage industry pivots, and IBM’s embrace of AI partnerships all reflect how incumbent leaders are adapting to technological and consumer change.

Anyone following these companies or interested in the business impacts of AI and changing consumption trends will find this episode rich with actionable insight and expert perspectives.