Bloomberg Tech – Memory Prices Hit Cisco, Apple Faces Siri Snags

Date: February 12, 2026
Hosts: Caroline Hyde (New York) & Ed Ludlow (San Francisco)

Episode Overview

This episode dives deep into pivotal developments shaking up the technology landscape—from the impact of soaring memory chip prices on Cisco, disruptions across software and wealth management, delays in Apple’s AI-powered Siri, landmark social media litigation, and ambitious expansions for AI and autonomous vehicle firms. Featuring expert commentary from analysts, portfolio managers, founders, and journalists, the episode offers essential insights into challenges and opportunities unfolding across the tech sector.

1. Memory Prices Wallop Cisco and Broader Tech Markets

[01:07–02:44] Key Segment

• Issue: Cisco faced an 11% stock drop, the sharpest since May 2022, driven not by declining demand (which remains strong) but by margin compression due to surging memory (DRAM) chip prices.
• Context: The broader NASDAQ 100 also reflected anxieties over rising hardware component costs as markets anticipate the forthcoming Consumer Price Index (CPI) print.
• Expert Insight:
  • Woo Jinho (Bloomberg Intelligence):
    • “Cisco is the leading global provider of networking equipment… but the gross margin issue, especially given the DRAM pricing, is a lot bigger than we had thought.” [02:44]
    • While Cisco has stabilized margins into Q4 through pricing strategies and supplier negotiations, the fundamental issue is escalating component costs amid AI-driven hardware demand.
    • Looking ahead, Cisco’s sizable software business could stabilize margins by 2027. “If software really starts ramping up, we could start seeing some gross margin stability in 2027.” [03:27]
  • Caroline Hyde:
    • Observes this “anxiety of memory costs” echoing throughout both consumer and corporate tech markets. [01:32]
• Market Implication: Investors are increasingly wary about how essential hardware upgrades for AI workloads could pressure tech margins.

2. Software Sector Reset: AI’s Double-Edged Sword

[04:41–10:12] Key Segment

• Guest: Tony Wong, Portfolio Manager, T. Rowe Price Science & Technology Fund

• Main Points:

  • Valuation Reset:
    • Tony Wong characterizes the recent sell-off in software stocks as a “valuation reset,” amid fears that embedded AI will dramatically reshape the field, altering what constitutes sustainable value.
    • “The market is in a sell first and ask questions later mode.” [06:00]
  • AI Agents and Moats:
    • Emphasizes the shift to “autonomous enterprise agents” that go beyond mere prompts, changing the dynamics of workflow productivity and competitive barriers.
    • “If you are just a feature, then AI agents can encode software so easily and costlessly that you can essentially be embedded in a bigger platform.” [06:00]
  • Monetization Dilemmas:
    • Competitive pricing—especially from startups—leads to price deflation and changes the margin structure away from seat-based models toward outcomes-based and agent-driven economic models.
  • Specialization Still Matters:
    • Citing input from Siemens CEO on the resilience of industrial/simulation software, Wong says “most of the economics will be made at the specialization of the niches… Domain-specific knowledge will always be very important.” [09:15]

• Notable Quote:

  • Ed Ludlow: “It started in Europe in August… all the European software stocks sold off. Earlier today we spoke to the Siemens CEO. Let’s get his take.” [08:14]
  • Siemens CEO (via Woo Jinho): “We rather see an enrichment of this software, which allows more and more customers to use it.” [08:29]

3. Apple Faces Delays With AI-Powered Siri Revamp

[11:53–14:15] Key Segment

• Reporter: Mark Gurman (Bloomberg)
• Details:
  • Apple’s AI-centric overhaul of Siri, originally announced at WWDC 2024, is delayed. Key new features, such as contextual personal queries, now slip from iOS 26.4 (expected March) to iOS 26.5 (May/June). Some features might not launch until iOS 27 in September 2026—two years after announcement!
  • Gurman:
    • “The setback for Apple here is not necessarily in phone sales… but the challenge is, where is OpenAI, where is Anthropic, where are Google going to be at the end of this year?” [12:51]
    • Apple’s collaboration with Google’s Gemini team is helping offset the tech gap, but the real question is whether Apple’s offering will impress compared to OpenAI and competitors.
  • Potential Stakes: Apple risks losing mindshare in the “AI assistant” arms race if delays persist—and rivals advance more quickly.
• Notable Quote:
  • Gurman: “Altogether it's possible that these new features are not going to launch until two years after they were initially introduced.” [12:26]

4. Social Media on Trial: “Addiction” vs. “Problematic Use”

[14:15–17:00] Key Segment

• Context: Instagram chief Adam Mosseri testifies in a landmark case alleging social platforms intentionally “hook” young users, driving mental health issues.
• Legal Reporter: Madeline Meckleburg (Bloomberg)
• Key Testimony:
  • Mosseri distinguishes between “clinical addiction” and “problematic use.” He denies that heavy use of Meta platforms equals “addiction” by medical standards, echoing themes from earlier Congressional testimony.
  • The trial will span eight weeks, with more senior executives from Meta and Google expected in the stand—possible implications for thousands of similar lawsuits nationwide.
• Notable Quote:
  • Meckleburg: “This case… represents thousands of other cases that have been filed. So there’s a lot of attention on the outcome here because it’s going to dictate how the rest of these cases are decided.” [16:19]

5. AI Disruption Hits Wealth Management: Meet Hazel

[18:25–24:27] Key Segment

• Context: Startup Altruist launches “Hazel,” an AI-driven tax planning tool for wealth managers. Stocks of incumbents (Charles Schwab, LPL, Raymond James) tumble as investors fear AI-driven disruption could squeeze profits or alter the industry structure.
• Guest: Jason Wang, CEO, Altruist
• Highlights:
  • Altruist frames Hazel as a tool for empowering—not replacing—advisors via unprecedented efficiency (“hundreds of hours” of work reduced to “two to three minutes”; cost cut from tens of thousands to ~$100 per month).
  • Wang: “We’re not trying to displace financial advisors or wealth managers. It’s AI to help empower them to do better work for their clients.” [19:32]
  • Hazel is “custodian-agnostic,” targeting all advisors, not just those on Altruist’s own platform.
  • Model’s Strength: Combines clean, highly detailed transaction and client data (“the ultimate system of record”) for tailored insights.
• Market Reaction:
  • “Somewhere between tens of billions and maybe 100 billion of market cap would be wiped out in a week. AI is very powerful…” — Jason Wang [18:56]
• Notable Moment:
  • Ed Ludlow asks whether legacy firms have reached out for collaboration. Wang says no, not directly, but hundreds of major wealth management companies are seeking partnerships in light of the disruption. [21:38–22:38]

6. Private Markets Surge: SoftBank, Anthropic, and the Rise of Dual-Backed AI Bets

[24:45–28:53] Key Segment

• SoftBank:
  • With an 11% OpenAI stake, the firm is shifting focus—cutting positions like T-Mobile to double down on AI, chip design (Arm, Ampere), and private equity targeted at data centers. Fourth consecutive quarter of profit signals turnaround.
  • “SoftBank is like the way to play OpenAI exposure.” — Caroline Hyde [25:42]
• Anthropic Mega-Raise:
  • The AI startup is closing a $20B+ funding round led by Peter Thiel’s Founders Fund, DE Shaw, Dragoneer, Sequoia—a rare case of VCs betting on multiple direct competitors (taboo for information leakage).
  • “Founded Fund is not alone. We’re seeing Sequoia as well in the round and the list grows.” — Natasha Mascarenas [27:58]
• Implications: Large, concentrated VC bets in multiple AI labs represent both opportunity and governance risk.

7. Waymo’s Expansion: Regulatory Roadblocks and Scale

[28:53–34:42] Key Segment

• Guest: Kid Americana, Co-CEO, Waymo
• Focus:
  • Ambitions: Waymo is eyeing broader U.S. (including New York State but not NYC proper) and international rollouts, with London and Tokyo as target cities—London set to become the largest citywide launch to date.
  • Federal vs. State Rules: Advocates for a unified U.S. regulatory framework for AVs, arguing that “we cannot lead globally if it’s a framework governed by multiple jurisdictions.”
    • “We think it’s really important that there is a federal AV standard… the burden should be on companies to demonstrate why you believe your technology is safe enough.” — Kid Americana [30:22]
  • London Experience: UK regulators have been “extremely forward leaning,” focused on safety and not complacent about the transport status quo.
  • Public Demand: “In cities where our technology can't be deployed, we are seeing organic campaigns spring up saying, I want Waymo in my town.” [31:48]
• Notable Quotes:
  • “We’re in more than 30 of the 60 London boroughs—you know, like 60% of the city is already covered. That’s way beyond what, for example, Tesla’s doing in Austin.” — Ed Ludlow [33:33]

8. AI Disrupts Logistics: Algorithm and the “Next Shoe To Drop”

[34:42–35:29] Key Segment

• Disruption: U.S.-traded Algorithm claims its AI-powered “semi cab” platform cuts empty freight miles by 70%—triggering sharp declines in logistics stocks (C.H. Robinson down 21%, DN Transport Index down 5%).
• Implication: Suggests logistics and transport are in the crosshairs for the next wave of AI-led disruption.

9. Human Behavior Modeling: Similarly’s Breakthrough

[35:29–40:05] Key Segment

• Guest: June Park, CEO, Similarly (AI startup)
• Concept:
  • Similarly creates predictive simulations of human behavior for corporate clients (CVS, Gallup, Fortune 10/500 firms) via AI agents trained on unique, highly personal interview data.
  • “We actually can create an AI interviewer that can go talk to people one on one… and actually get life stories and their preferences… with their consent.” — June Park [37:14]
• Use Cases:
  • Simulated focus groups, store layout optimization, digital polling panels, and even predicting 80% of questions that will be asked on earnings calls.
  • “We can predict, with 80% certainty, what analysts are going to ask CEO/CFOs on earnings calls.” — June Park [39:00]
• Rapid Progress: Despite being only 7 months in, Park credits fusion of top-tier Stanford research with elite product teams from Figma and other startups.

10. Closing Markets and Latest News (Skip Ads/Outros)

• Crypto: Grab’s CFO touts growth and profitability; Coinbase faces downturn as crypto trading volume falls due to weaker retail activity and less volatility.
• AI Model Updates: Google’s Gemini 3 release touts improved science and research capabilities; Alphabet stock spikes.
• Insight: Coinbase’s diversification efforts (stablecoins, prediction markets) have minimal short-term effects on revenue amidst the current crypto rout.

Memorable Quotes & Moments

• Woo Jinho:
  • “The gross margin issue… is a lot bigger than we had thought.” [02:44]
• Tony Wong:
  • “It’s more important that you are the platform and not just a feature.” [06:00]
• Mark Gurman:
  • “It’s possible that these new features are not going to launch until two years after they were initially introduced.” [12:26]
• Madeline Meckleburg:
  • “This case…dictate[s] how the rest of these cases are decided.” [16:19]
• Jason Wang (Altruist):
  • “It’s not AI taking those jobs away. It’s AI to help empower them to do better work for their clients.” [19:32]
• Kid Americana (Waymo):
  • “We’ve been advocating for a safety case-based approach because the technologies are different.” [30:22]
• June Park (Similarly):
  • “We can predict, with 80% certainty, what analysts are going to ask on earnings calls.” [39:00]

Timestamps for Key Segments

• Cisco/memory prices: 01:07–04:41
• Software sell-off & AI transformation: 04:41–10:12
• Apple Siri delays: 11:53–14:15
• Social media litigation: 14:15–17:00
• Wealth management/AI disruption: 18:25–24:27
• SoftBank, VC, Anthropic: 24:45–28:53
• Waymo expansion/interview: 28:53–34:42
• AI in logistics: 34:42–35:29
• Similarly (human behavior modeling): 35:29–40:05
• Crypto/markets wrap: 43:06–end

Conclusion

This episode captures the volatility and excitement that surround technology’s major sectors in 2026—from hard-hit hardware margins, software’s existential questions in the age of AI, and consumer tech delays, to the explosive possibilities (and risks) posed by AI in wealth management, logistics, and behavioral prediction. Investors, innovators, and regulators alike face both immense promise and daunting complexity as AI’s second wave crests across the tech landscape.