Dell Soars Most in Two Years on Outlook Fueled by AI Servers

Summary

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Bloomberg Intelligence Podcast Summary

Episode: Dell Soars Most in Two Years on Outlook Fueled by AI Servers
Date: May 29, 2026
Hosts: Scarlett Fu, John Tucker, Bloomberg Intelligence team
Main Guests/Analysts: Woo Jinho, Mandeep Singh, Alex Simonova, George Ferguson, Matt Henriksen

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Overview

This episode dives into market-moving developments in tech and health, centering on Dell’s explosive growth powered by AI servers, the wider scramble in AI infrastructure, dramatic private company valuations, and adjacent trends from space tech to diabetes wearables. The Bloomberg Intelligence team unpacks what’s behind Dell’s outlook, the feverish capital racing into AI startups, the ongoing space race's lofty valuations, and how wearables in diabetes care could be revolutionized by AI.

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Dell’s Soaring AI Server Business: Fundamental Shift in Hardware (01:43–05:51)

Key Points

• Dell Raises Guidance on AI Servers:
  Dell increased its AI server revenue projection from $50 billion to $60 billion for 2026, with an overall outlook up by $25–27 billion. Notably, $10 billion of this increase comes from AI servers, but traditional servers and PCs are also outperforming expectations.

• Early AI Server Adoption:
  Large deals from neo-cloud providers and "sovereigns" (government cloud entities) are driving early growth; Dell is arguably at the front of this demand cycle, still in its early phases.

• Input Costs and Margins:
  While Dell faces escalated component and memory chip costs, it manages to pass these costs to customers—especially on high-demand server products—boosting gross margins. However, operating margins for servers remain lean.

• PC Prices Rising:
  Traditional server and PC prices are set to increase (e.g., comparable PC models expected to be up 20% year-on-year in H2 2026) due to higher input costs.

• AI Servers as a Driver for Higher Multiples:
  AI demand may "eventually mature", but as corporations broadly adopt AI, even traditional servers could see a renaissance, with increased demand and higher average selling prices.

Notable Quotes

• "They raised their server guidance by about 20% from $50 billion for this year to $60 billion... But everything else—traditional servers, PCs—that's doing a lot better than expected. And that's the piece that some people are missing here."
  — Woo Jinho, Senior Hardware Analyst (02:06)

• "We're seeing these neo-clouds as well as some of these sovereigns place multibillion dollar AI server deals... we're only at the beginning phases of adoption."
  — Woo Jinho (02:49)

• "[Dell's] gross margins are actually going up... They’re passing through a lot of the input costs to customers on the server side because it is high in demand."
  — Woo Jinho (04:01)

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AI Frenzy: Infrastructure, Valuations & Competitive Advantage (08:03–13:39)

Key Points

• Anthropic’s Meteoric Growth and Valuation:
  Anthropic’s annualized revenue run rate (ARR) shot from $9B to $47B in just five months, helping justify a private valuation of $965B. The market is rewarding AI narratives with outsized capital infusions.

• Public vs. Private Debate in AI Startups:
  Anthropic’s remaining private is highlighted, but massive capital needs imply an IPO is inevitable. The race is on between Anthropic and OpenAI for who claims the AI IPO spotlight and thus, investor enthusiasm.

• Competitive Edge = Compute Power:
  Access to GPUs and bespoke data centers is considered the new competitive moat. SpaceX, for example, is monetizing excess compute by renting out its data centers to AI firms for billions in revenue.

• Financing AI’s Infrastructure Arms Race:
  The cost to scale is so significant that private equity (PE) giants like Apollo and Blackstone are now financing chip and server purchases for upstart “cloud” players who lack the balance sheets of hyperscalers.

Notable Quotes

• "In a span of five months, [Anthropic’s] revenue ARR has grown 500%. So I think that says it all in terms of what's justifying this enthusiasm now."
  — Alex Simonova (08:31)

• "Market is rewarding AI narratives... Any company that has an AI story is getting beat up and obviously you have to show it in the numbers, in the guidance, in the acceleration."
  — Alex Simonova (08:59)

• "Access to computing power—'computers equals revenue'—and I think right now that is the case."
  — Alex Simonova, paraphrasing Jensen Huang (11:16)

• "[New cloud providers] don’t have the balance sheet to buy these expensive chips or servers... That’s where the PE guys like Apollo, Blackstone, they come in and they're helping finance those deals..."
  — Alex Simonova (12:58)

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The SpaceX & Blue Origin Space Race — Valuations and Ambition (16:26–22:15)

Key Points

• Blue Origin Setbacks, SpaceX Lead:
  Blue Origin suffered recent rocket testing failures, underlining the complexity of reaching SpaceX’s scale.

• SpaceX’s Audacious Valuation:
  SpaceX lowered its IPO valuation target to $1.8 trillion (still astronomical). Unlike traditional companies, much of its potential valuation is attributed to grand visions—such as data centers in space and global connectivity—as much as current revenue.

• Investor Psychology:
  Belief in Elon Musk’s vision is identified as a critical investment factor—much as with Tesla—since traditional valuation models struggle to account for companies redefining market boundaries.

Notable Quotes

• "SpaceX has been... very successful. Launching 160, close to 170 rockets last year. And it looks like they've got a really big lead on their nearest competitors."
  — George Ferguson (17:03)

• "...Again, I think you've got to buy into the dream of long term, much cheaper lift, data centers in space, connectivity of your phone into satellites. You've got to buy into that dream."
  — George Ferguson (18:34)

• "You have to totally believe in Elon Musk and his dreams in order to get involved in this."
  — George Ferguson (21:41)

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Wearable Diabetes Technology: AI, Innovation, and Big Tech Ambitions (25:44–29:07)

Key Points

• Next-Gen Wearables Outlook:
  Continuous glucose monitors (CGMs — dominated by Dexcom and Abbott) and newer insulin pumps (Beta Bionics, Insulet, etc.) predicted to enjoy double-digit growth due to product innovation, new approvals, and better reimbursement.

• Barriers to Broader Adoption:
  The key hurdle is reimbursement—convincing CMS and insurers to cover use of CGMs in the (larger) type 2 diabetes market. Upcoming clinical data from Dexcom could be pivotal.

• Role of AI in Glucose Management:
  AI and big data are increasingly central: Algorithms analyze millions of data points to proactively adjust glucose trends and optimize insulin dosing, improving safety and outcomes.

• Big Tech Eyeing Non-Invasive Monitoring:
  Rumors swirl about Apple and others entering the market, but true non-invasive monitoring remains a ways off; private companies are starting with smaller-needle alternatives.

Notable Quotes

• "[For CGMs] the key hurdle to get over is reimbursement that CMS and the insurers will pay for that. Dexcom has their [clinical data] coming out next week..."
  — Matt Henriksen (26:43)

• "AI and big data... help them be more accurate with the insulin delivery."
  — Matt Henriksen (27:49)

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Timestamps for Key Segments

| Segment | Start Time | |---------------------------------------------|------------| | Dell AI Server Story & Investment Outlook | 01:43 | | Anthropic, AI Infrastructures, Valuations | 08:03 | | SpaceX vs. Blue Origin, Space IPOs | 16:26 | | Diabetes Tech: Wearables & AI | 25:44 |

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Memorable Moments

• Dell’s Demand Surprise:
  "Dell's not absorbing [cost increases] as much as we think. Gross margins are actually going up..." (04:01, Woo Jinho)

• AI Startups' Breakneck Pace:
  "Anthropic started off the year at a $9 billion run rate... now at $47 billion. In five months, their revenue has grown 500%." (08:31, Alex Simonova)

• Investor Psychology:
  "Elon Musk is a big dreamer. ...You’ve got to buy into that and colonizing Mars and all these things." (20:35, George Ferguson)

• AI in Health Tech:
  "AI and big data... help [pumps] be more accurate with the insulin delivery." (27:49, Matt Henriksen)

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Takeaways

• AI Hardware Gold Rush: Companies with credible AI server stories are being rewarded with surging valuations, but the market may be overheating.
• Dell’s Expansion Isn’t Only AI: Traditional hardware lines are thriving as well—investors may be missing the broader resurgence.
• Compute Power as Advantage: In the AI era, controlling server and chip infrastructure is a primary differentiator.
• SpaceX Valuations Require Conviction: Buying in means betting on the realization of Musk’s vision, not just current cash flows.
• Life Science Wearables Are Next for AI: Major medtech players—and Big Tech aspirants—battle for the future of diabetes monitoring, with AI set to raise accuracy, adoption, and outcomes.

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This summary captures the episode’s energy, key details, and speaker insights—offering a clear guide for anyone who needs the essential takeaways without listening to the entire program.

Transcript

[Scarlett Fu]

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[IBM Representative]

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[Bloomberg Intelligence Host]

Bloomberg Audio Studios Podcasts Radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am 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.

[Scarlett Fu]

All right, let's talk about something that's moving in the opposite direction and that would be shares of Dell, once Dell Computer and of course now it's just Dell Inc. Because it's sells so much more than just pieces. Woo Jinho is our senior hardware and networking analyst. And Woojin, the story for Dell, the story for investors who want to buy Dell is all about its AI servers. And on that front, things are looking pretty good.

[Woo Jinho]

Hey Scarlett. Yeah. Look, things are looking Fantastic for the AI servers. They raised their server guidance by about 20% from $50 billion for this year to $60 billion. Evenly distributed by the way. But you know, there's a broader piece of the story as well. If we look at the guidance, they raised their guidance by about 25 to 27 billion dollars. 10 billion of the increase was AI servers. But everything else it, you know, traditional servers, PCs, that's doing a lot better than expected. And that's, I think that's the piece that some people are missing here.

[Bloomberg Intelligence Analyst]

Jindel now sees a $60 billion AI server opportunity. How sustainable is that level of growth look?

[Woo Jinho]

Well, the way I have it modeled right now, you know, prior to results it was 50 billion and then growing another 25 billion off of that. I mean 25% off of that 50 billion. So what's happening is that we're seeing these NEO clouds as well as some of these sovereigns place multibillion dollar AI server deals. And, and if you think about it, we're only at the beginning phases of adoption of AI servers. And as more of these NEO clouds and sovereigns start adding capacity, Dell is probably on the front of the line providing those that equipment.

[Scarlett Fu]

Dell is a hardware maker, which means like other hardware makers, it has to grapple with higher costs for higher input costs, including memory chips. How is the company dealing with that so far? Has it had to in any way eat, eat anything in terms of margin?

[Woo Jinho]

Hey Scarlet, I think when we spoke yesterday I asked if you bought your PC yet.

[Scarlett Fu]

No, I haven't. I guess I'm too late now.

[Woo Jinho]

Well look, all right, so, so let's go down, down the line. Dell's not absorbing it as much as we think.

[Scarlett Fu]

Right.

[Woo Jinho]

Gross margins are actually going up as a matter of fact and they're passing through a lot of the, the, the input cost to customers on the server side that's being passed through because it is high in demand, but margins are low, operating margins are low in that business. So that's fine there. But what's happening in the first half of this year, traditional servers, you know, we're hearing, you know, server deals, server costs that are up 200 to 300% because of the higher input costs and PCs, you know, second half of this year, you know, a comparable PC is going to be up 20% on a year, on year basis in the second half.

[Bloomberg Intelligence Analyst]

So is a demand offsetting weakness in other parts of the PC market or is it actually creating new revenue streams?

[Woo Jinho]

You know, that's a really good question and that's something I think part of the story here in terms of rerating the multiple. If we think about like AI demand in itself, like AI server demand in itself, you know, that eventually is going to mature. But one of the things that, that it may happen over the next couple of years is that as corporates are adopting AI, we are going to see a bigger demand in traditional servers going forward with higher ASP is by the way, and that is going to not only reinvigorate companies like Dell, but like HP as well as Lenovo going forward.

[Scarlett Fu]

But we haven't seen that, that tailwind yet for the HP's, HP and Lenovo's yet, have we?

[Woo Jinho]

Well, Lenovo, we started to see a pickup, but I don't know if that's more front end, you know, you know front end loaded purchases because of the component costs. But that's an emerging story that might come out over the next couple of years.

[Scarlett Fu]

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[Bloomberg Intelligence Host]

You're listening to the Bloomberg Intelligence podcast. Catch us live weekdays at 10am 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.

[Bloomberg Intelligence Analyst]

So the arms race is in full swing. Anthropic has reportedly raised capitalists at a staggering $965 billion valuation, surpassing open Air. With us to discuss this we have Mandeep Singh. He is global head of technology research for Bloomberg Intelligence. Mandeep, does this feel like a rational build out of AI Infrastructure or are things getting a little bit excessive with all these milestone numbers we're hearing about every.

[Scarlett Fu]

I love how you just went right for it.

[Alex Simonova]

I mean, look, Anthropic started off the year at a $9 billion run rate. They put out a press release yesterday that they are at a $47 billion run rate. In a span of five months, their revenue ERR has grown 500%. So I think that says it all in terms of what's justifying this enthusiasm now, are all of them long term winners? I would bet no. But right now, market is rewarding AI narratives and you know, we saw that with Dell last night. Any company that has an AI story is getting beat up and obviously you have to show it in the numbers, in the guidance, in the acceleration. But you know, the CapEx numbers are going up because of this 5x increase in anthropic CRR. And so right now there is a frenzy in terms of building the AI infrastructure because there is clear monetization that Anthropopsis is showing in their revenue numbers.

[Scarlett Fu]

Okay, let's be clear. Anthropic is private and this fundraising round keeps them private. But everyone's anticipating that at some point they will go public. Do they need to go public? Because they've held on this long and they haven't had to go public. Do they want to go public?

[Alex Simonova]

I think so. Their investors clearly the ones who finance this $65 billion round and the earlier ones, you know, when you talk about a company close to a trillion dollar market cap in the private market, I mean, I go back to Uber's, you know, ipo. Uber wasn't as big as Anthropic and Open Air, but you know, they obviously had a lot of growth behind them when they went public, the company wasn't profitable and you know, there was a lot of concern about the cash burn. I feel something similar may happen here. Even though these companies are growing very fast and clearly, you know, they are part of this big technology shift that is underway. But at some point I think people will start to focus on their profitability and that's where, you know, this business model being so capital intensive, unlike the software companies that you know, we've seen in the past, I think the concern around profitability will surface. But for now everyone is focused on the top line growth and you know, the ARR increases that we are seeing with all of them really, because coding agent as a use case is huge and it is a big addressable market and everyone wants to cater to that

[Bloomberg Intelligence Analyst]

is having access to Computing power becoming the biggest competitive advantage when it comes to building out AI.

[Alex Simonova]

Well, that's what Jensen Huang says. Computers, revenue. I'm paraphrasing him. And I think right now that is the case. Look at what SpaceX is doing with X AI data centers. They were training their own model. Now with their S1 filing, they're saying they will be renting that compute to guess who Anthropic. And they will generate 15 billion revenue per year out of just renting the computer because they build the data centers that no one else has. They have the compute, and even though they are behind when it comes to training their own models, but they can rent it out the compute in the meantime and generate $15 billion in revenue out of that.

[Scarlett Fu]

Alex mentioned it earlier that anthropic raising at a $965 billion valuation makes it bigger than Open AI. It feels like this is OpenAI's race to lose at this point.

[Alex Simonova]

I mean, clearly, I think they are under a lot of pressure. And in terms of who files for, you know, going public first, my guess is OpenAI would want to do it first because they want to own the narrative as opposed to, you know, anthropic going first and everyone realizing, you know, obviously Anthropic is growing faster than OpenAI right now. And if they take all the liquidity away, then OpenAI coming in later will struggle, you know, in terms of just making sure that they have investors excited about investing in OpenAI.

[Bloomberg Intelligence Analyst]

And Mandeep, one more question for you. Apollo is reportedly helping finance AI chip purchases. What does that tell us about how capital intensive this race has become?

[Alex Simonova]

Well, so for all the new clouds, whether it's core weave, nebulous, outside of the hyperscalers, whoever is is renting the GPUs, they don't have the balance sheet to buy these expensive chips or servers. And so in those type of instances, that's where the PE guys like Apollo, Blackstone, they come in and they're helping finance those deals because there are a lot of new clouds that are growing very fast. And for them to sustain this kind of growth rate, they have to keep building the infrastructure, keep getting the chips, and these are getting financed by the likes of.

[Scarlett Fu]

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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

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[Scarlett Fu]

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[Bloomberg Intelligence Host]

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

[John Tucker]

and hi everybody, I'm John Tucker. This is Bloomberg Intelligence along with Alex Simonova. We have lots of space news Alex.

[Bloomberg Intelligence Analyst]

A lot going on. We have SpaceX cutting its IPO valuation goal to $1.8 trillion, still an exorbitant number. And of course, Blue Origins rocket exploding, that was big news overnight.

[John Tucker]

Yeah, and when we talk space, we go to the guy who puts space in aerospace. George Ferguson joining us right now. Let's, let's start off with the explosion, George. Man, you talk about kaboom. What, what happened with this thing? Do we know?

[George Ferguson]

Yeah, I mean, apparently they're testing out one of the rocket engines and they had a very extreme failure. And so look, I think it, you know, we saw that Blue Origin had a similar problem back in April when it was trying to lift some ASTM satellites into orbit. One of the rockets didn't fire correctly and didn't get those satellites into the right orbit level. And so I think we're three deep. We are getting ready for the fourth Blue Origin launch. Clearly, Blue Origin has some work to do on the new Glenn rocket. I think it reminds us that this isn't as easy as it looks. SpaceX has been relatively successful in the launch business, actually more than relatively very successful. Launching 160, close to 170 rockets last year. And it looks like they've got a really big lead on their nearest competitors.

[John Tucker]

Can these guys ever compete with SpaceX?

[George Ferguson]

Look, I think that it's a function of money, right? I think that money to, to, you know, into R and D can close the gap over time, but I think it'll take a considerable amount of time. Bezos definitely has plenty of money, but it's going to take a considerable amount of time.

[Bloomberg Intelligence Analyst]

And then, George, speaking of SpaceX, I want to talk to you about this news about them lowering their valuation target. $1.8 trillion, still a massive number. How do investors even begin to value a company like SpaceX?

[George Ferguson]

Yeah, I mean, gee, well, they took a little bit, they took the cherry off the top of the Sunday there, I think. I, I feel like they're trying to set themselves up for success in the ipo. You know, at Bloomberg Intelligence, we've looked at some of the parts on the business. And so if you take Rocket Lab as the major space launch sort of competitor, public competitor, they're valued 90 times revenue. Now, SpaceX's space business comes in a little bit light on revenue because they don't book revenue for internal work. When we back that out, we give them 11 or 12 billion dollars in revenue from internal launch, they probably have a little bit over a billion dollars worth of value based on Rocket Labs valuation. Right. I'm not saying that's the Right price. I don't know what the right price is for a rocket launching business because this is a relatively new endeavor to be done, I think, you know, to be financed in public markets. And then when my colleagues out in the tech side of Bloomberg Intelligence and in the satellite communication side of Intelligence, when they look at those businesses, they see another billion dollars and it gets like 600 billion for the satellite constellation and 400 billion for the AI business. So look, I feel like there are comps out there that could probably get, that could lead the way to the valuation of something around 2 trillion. Like maybe they lowered the number a little bit to make sure that they overperform. And again, I think you've got to buy into the dream of long term, much cheaper lift data centers in space, you know, connectivity of your phone into, into satellites. You've got to buy into that dream. And I think you got to go a distance before you're going to turn it into a valuation that looks anything like what we typically have in markets for sort of normal companies.

[John Tucker]

Now be honest with me. You read the filing. How weird is it?

[George Ferguson]

He's a dreamer. Elon Musk is a big dreamer. I guess it's great that some of us do this, right? I didn't wake up one day and decided I want to build my own spaceport. I mean, I wanted to, but I didn't think I'd get anywhere on it and I didn't. So I think he's a big dreamer again. You got to buy into that and colonizing Mars and all these things. I think you got to sift and sort a bit through some of that stuff and look at what, what they have now and what's at hand now. And look, I don't, I don't put, put past having data centers in space one day. It seems like it's a natural place. It seems like if you, if you start working on that technology, it's something you can get done. And again, you got a rocket company here that launched 160, 170 rockets last year, far and away larger than any other company launching in the, in the marketplace. He's come a long way.

[Bloomberg Intelligence Analyst]

And George, very quickly, is Elon Musk being a dreamer part of the appeal for investors when it comes to SpaceX? Because when you look at a company, company like Tesla, it's not like investors are investing in it based on traditional valuation metrics.

[George Ferguson]

Yeah, I think you have to totally believe in Elon Musk and, and his dreams in order to get involved in this. And I'm going to point out when you even when you look at Tesla, right? When's the last time we had a new car company in the us we haven't had it for decades. The same three car companies been sort of div the market up and shrinking as foreign competition comes in for decades. And this man created a brand new car company. So yes, you got to believe in that.

[John Tucker]

And when does this thing price again? This June. It's next week, right?

[George Ferguson]

Yeah, I think it is next week.

[Scarlett Fu]

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

[Public.com Representative]

Support 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

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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 not investment advice. All investing involves risk of loss. See complete [e-mail] disclosures being a small

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[Bloomberg Intelligence Host]

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

[Scarlett Fu]

Let's turn our focus now to diabetes technology. Our team here at Bloomberg Intelligence has come out with a 2026 outlook on wearable monitors and pumps and how they are set for double digit growth through the end of the decade. Matt Henriksen, I'm pleased to say is here with us in New York as well. So Matt, which companies would stand to benefit from this double digit growth then?

[Matt Henriksen]

Yeah, I think there's two segments to think about. There's first the continuous glucose monitors and that's the sensor you wear on your arm and that measures your glucose levels. That is Dexcom and Abbott have that duopoly. Then there's the insulin pump market, which is what the devices actually that deliver insulin to the patient once they figure out what their glucose levels is. And that is the Insulate, that's the Beta Bionics Minimed Tandem diabetes. So that's a more crowded market, but those are kind of the major four players there.

[Bloomberg Intelligence Analyst]

You mentioned in your report that product approvals, clinical trials and reimbursement changes will disrupt the supplement market. Can you talk to us a little bit more about that?

[Matt Henriksen]

Absolutely. And so you know, from the product side, it's just a continuous level of innovation that goes on from one generation to the next. Just think about your iPhone. You know, the iPhone 16, iPhone 17. Both Dexcom and Abbott are creating new versions of their CGMs. Same with the insulin pump markets. And then the reimbursement is actually the biggest one because when we did our analysis for the 2030 market outlook, it's the adoption into the type 2 diabetic patients and they're a less sicker cohort of the overall diabetic patient group. And one of the key hurdles to get over is reimbursement that CMS and the insurers will pay for that. Dexcom and Abbott are creating are working on clinical data to prove the benefit of CGMs for those patients. Once that data gets published, Dexcom has theirs coming out next week at the ADA Diabetes conference in New Orleans. That should help CMS or convince CMS to be able to start reimbursing or paying those patients for those CGMs. Have a pain out of pocket.

[Scarlett Fu]

Is this a market that gets disrupted by AI? Does I help it or hurt it?

[Woo Jinho]

It's.

[Matt Henriksen]

It helps. So these companies are creating their own algorithms to be able to, for the CGM side, be able to detect the glucose and try to be proactive in where the glucose trends are going. Insulin pumps, the same thing. They're trying to figure out the exact amount of insulin to deliver because if you deliver too much insulin, that's almost as more dangerous than not delivering enough insulin. So it's trying to find that perfect balance. AI and big data kind of as you look through millions and millions of kind of glucose levels, helps them be able to be more accurate with the insulin delivery.

[Bloomberg Intelligence Analyst]

It's been rumored for many years now that the Apple Watch will eventually gain a non invasive blood sugar monitor. Where are big tech play? Big tech companies playing a role here?

[Matt Henriksen]

Yeah, and that's been going on for years. What we're seeing currently is it's still very, very far before a sensor from outside the skin can actually measure glucose levels. What you're starting to see more and more actually is there's some privately held companies. One is called Biolink and they're getting approval for a sensor that has a smaller needle. And so you're starting to see that type of technology first. I guess it gets there at some point down the road, but as of right now, it's still kind of more of a work in progress.

[Bloomberg Intelligence Host]

This is the Bloomberg Intelligence podcast available on Apple, Spotify and anywhere else you get. Your podcasts listen live each weekday 10am to noon Eastern on Bloomberg.com, the iHeartRadio app, TuneIn, and the Bloomberg Business app. You can also watch us live Every weekday on YouTube and always on the Bloomberg terminal.

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