Podcast Summary: Bloomberg Tech — “AMD Forecast Fails to Impress Investors”
Date: February 4, 2026
Hosts: Caroline Hyde (New York), Ed Ludlow (San Francisco)
Podcast: Bloomberg Tech — The only daily news program focused exclusively on technology, innovation, and the future of business
Overview
This episode delves into a tumultuous day for technology markets, triggered by AMD’s disappointing sales forecast, ongoing tech stock sell-offs amid AI disruption fears, and strategic moves from major industry players like Nvidia and OpenAI. The hosts feature reactions from analysts, discuss antitrust concerns over a potential Netflix-Warner Brothers merger, and examine the immediate pressures and future opportunities facing hardware and software companies. Key interviews provide fresh insights into innovation in AI chips, supply chains, and cloud computing.
Key Topics & Segments
1. AMD’s Poor Sales Outlook & Aftermath
[00:37–03:46, 10:46–11:30]
- AMD’s stock plunges 15%, the largest drop since October 2018, after its quarterly sales forecast underwhelms investors.
- Ed Ludlow: “AMD is ugly right now. The stock down 15%. It is on track for its biggest drop since October of 2018.”
- Analyst Conjuren Sobhani (Bloomberg Intelligence) breaks down the results:
- Modest guidance beat, but only thanks to China revenues.
- China sales pressured profit margins, and the much-anticipated next GPU ramp won’t happen until the second half of the year.
- Conjuren Sobhani [01:59]: "Fundamentally there was nothing wrong in this report...the beat magnitude was really modest and that didn't hit at par with the lofty expectations."
- Delays with AMD’s 450 Series GPU have added to market anxiety, but no new downside appeared in this quarter.
- Analyst reaction: Market's disappointment comes more from “overhyped enthusiasm” and investors “moving past” AMD’s recent positive tone.
- Sobhani [02:33]: “It’s about now waiting for the next GPU inflection point...most of their customers are really waiting to pick up that server level Helios Rack solution."
- Sequential revenue decline raises macro, not just company-specific, concerns.
2. M&A & Funding in the Chip and AI Sector
[03:18–03:46]
- Texas Instruments acquires Silicon Labs for $7.5B—a rare big deal intended to strengthen TI’s wireless connectivity and analog portfolio.
- Financially accretive, no impact expected on TI’s free cash flow or dividends.
- Cerebras (AI chipmaker) raises $1B at $23B valuation—sparking speculation about future IPO possibilities.
3. Tech Market Sell-Off: AI Disruption & Software Contagion
[04:13–07:14, 22:19–27:57]
- Anthropic releases a new AI automation tool, accelerating a software sector rout with $2 trillion wiped off the Goldman Sachs software index since its highs.
- Caroline Hyde: "Fears around Anthropic...continue to ripple through the markets."
- Markets see global sell-off across tech stocks; hardware names are hit as well. Microsoft, despite recent jitters, shows some rebound.
- Carmen Reinecke (Bloomberg): “It's a little bit like a washout...many stocks in the index are in oversold territory." [04:39]
- Private debt markets are also affected, raising concerns about broader contagion.
- Investor sentiment fluctuates between anxiety and speculation about potential buying opportunities.
- Near-term focus: Alphabet (Google) and Amazon earnings, especially their cloud numbers.
4. Uber’s Mixed Results & Robotaxi Future
[08:02–10:19]
- Uber delivers underwhelming profit guidance and appoints Krishnamurti, a pro-autonomous vehicle executive, as CFO.
- New product initiatives (shuttle, premium airport rides) are still ramping up.
- Underlying US demand is healthy, with growth expected to accelerate as insurance costs subside.
- Natalie Long (Bloomberg): “The fundamentals...especially in the US...is very healthy. They think growth will accelerate..." [08:45]
- Uber will double-down on robotaxi narratives, aiming to reassure investors about competing with Tesla and partnering with Waymo.
5. Antitrust Spotlight: Netflix–Warner Bros. Merger
[12:06–19:01]
- Ted Sarandos (Netflix) testifies before lawmakers about Netflix’s plan to acquire Warner Bros.' streaming and studio assets.
- 80% of Netflix subscribers also pay for HBO Max—merger pitched as expanding consumer value.
- Jessica Legion (Competitive Enterprise Institute) explains:
- Most of the deal is vertical, with potential for cost savings.
- Actual regulatory power rests with the DOJ, not Congress.
- The outcome hinges on how regulators define the “market” (broadly including YouTube/TV or only direct streaming competitors).
- Jessica Legion [13:51]: “It's very difficult to exclude YouTube...because that's how people use it...it means a broader definition of the market."
- International antitrust challenges will differ; EU focuses more on competitor impact than consumer benefits.
6. Nvidia’s Massive Bet on OpenAI
[19:01–21:50, 26:52–27:57]
- Nvidia is close to investing $20B in OpenAI—part of a larger anticipated $100B round.
- Shreen Ghafari (Bloomberg): “The key part is the $20 billion potential investment in OpenAI's current funding round is almost done.” [19:50]
- Future rounds and commitments remain contingent on milestones and are still being negotiated.
- Strategic investors like Nvidia play a growing role in mega-rounds for AI labs.
- The investment’s magnitude is less important than the strategic relationship, influencing Nvidia's position in next-generation model training architectures.
7. How AI ‘Eats’ Software and Hardware: Market Winners & Losers
[22:19–27:57]
- Anthropic’s tool amplifies AI-fueled disruption fears, hurting both software and hardware valuations.
- Some software names (Adobe, Microsoft, SAP) show resilience or rebound on fundamentals.
- Michael McDermott: “There's a narrative out there that AI is going to eat up software...as long-term investors we say there's a range of outcomes...it could be complementary.” [23:00]
- Entrenched platform businesses like Microsoft (Azure, Office) and SAP are better insulated due to workflow integration.
- McDermott also notes Azure’s growth “miss” was due to capacity constraints from disciplined capex, not lack of demand.
- “What you want to see is companies getting more entrenched and invest in those companies.” [27:14]
8. Startup Innovation: Augur and Positron AI
Augur: Next-Gen Supply Chain OS
[28:19–34:15]
- Dave Clark (ex-Amazon) launches Augur: an agentic, contextual supply chain operating system, now deployed at Meta Reality Labs and Fanatics.
- Focuses on integrating data context across the entire supply chain for both private and governmental use.
- Clark: “Large language models are fantastic, but they're limited by the context you provide them. What was missing...was the contextual infrastructure to make supply chains work as a unit." [33:34]
Positron AI: Memory-Focused Inference Chips
[34:15–39:41]
- Mitesh Agrawal: Positron raises $230M, targets AI inference with chips boasting up to 2.3TB of on-chip memory—significantly more than Nvidia’s top offerings.
- First customers in high-frequency trading (Jump Trading).
- Focus on large language models, video & code generation—applications bottlenecked by memory and latency.
- Agrawal: “In the world of inference, you're going to see...each silicon architecture will have its own niche..." [36:09]
- On exit: Main goal is volume—“maximum enough chips in the world"—not necessarily acquisition or IPO.
9. The Next Tech Earnings Cycle
[39:41–41:55]
- Alphabet (Google), Amazon, Qualcomm, and ARM: Market bracing for their results, with special attention on:
- Cloud revenue (after Microsoft’s stumble).
- AI integration and capex.
- ARM’s strength as Nvidia touts new ARM-based CPUs.
- Smartphone, memory markets, and macro demand signals.
Notable Quotes & Moments
- Ed Ludlow [00:56]: “AMD is ugly right now...on track for its biggest drop since October of 2018.”
- Conjuren Sobhani [01:59]: “The beat magnitude was really modest...didn't hit at par with lofty expectations.”
- Carmen Reinecke [04:39]: “We know that software has been beaten down...spreading into the hardware stocks we're seeing.”
- Jessica Legion [13:51]: “It's very difficult to exclude YouTube...because that's how people use it.”
- Michael McDermott [23:00]: “AI is going to eat up software...as long-term investors we say there's a range of outcomes..."
- Dave Clark [33:34]: “Large language models are fantastic, but they're limited by the context you provide them..."
- Mitesh Agrawal [36:09]: “Each silicon architecture will have its own niche in terms of what application they really drive through fundamentally more efficiently.”
Timestamps of Key Segments
- 00:37–03:46: AMD Sell Off & Analyst Reaction
- 03:18–03:46: Texas Instruments–Silicon Labs Deal, Cerebras Funding
- 04:13–07:14: Software Sell-Off, Market Contagion
- 08:02–10:19: Uber’s Earnings & Robotaxi Push
- 12:06–19:01: Netflix–Warner Bros. Antitrust Hearing
- 19:01–21:50: Nvidia’s Investment in OpenAI
- 22:19–27:57: AI’s Impact on Software, Microsoft and Nvidia’s Position
- 28:19–34:15: Augur’s Supply Chain Innovation
- 34:15–39:41: Positron AI’s Inference Chips
- 39:41–41:55: Upcoming Big Tech Earnings Preview
Tone & Language
- Insightful and data-driven, with notable candor about market fears, investor sentiment, and the rapid evolution of the tech industry.
- Uses direct quotes from executives and analysts to capture market mood and expert insights.
For Listeners Who Missed the Episode
This episode provides a clear, timely snapshot of turmoil and transformation in technology markets. It explains why AMD’s weak forecast and Anthropic’s AI tool triggered enormous volatility, walks through the strategic moves of industry leaders, and gives listeners a window into both nervous market psychology and the underlying technological shifts driving it all. Interviews with analysts, executives, and startup founders fill in the bigger picture from Wall Street to deep tech.