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tv   Best of Bloomberg Technology  Bloomberg  December 30, 2021 5:00pm-5:30pm EST

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>> it's 5:00 p.m. here in new york. 9:00 a.m. in schmid any. the top stories we're following. presidents joe biden and vladimir putin held a 50-minutes phone conversation as the u.s. and allies raise the alarms over a possible russian invasion over ukraine. they may invade ukraine as early as next month. russia denies that. israel will become the first
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nice offer a second covid booster dose. the first shipment of pfizer's anti-coronavirus drug arrived in israel on thursday. the veniremen says the -- is trying to expand availability for booster fans shoots on monday. throughing -- allowing 5 to 15-year-olds to receive a third dose of the booster. the c.d.c. raised a travel alert on cruise ships to. highest risk level, saying covid-19 spreads easily between people aboard in close quarters. covid cases have been reported on 94 cruise ships in u.s. waters. investors are waiting to here if tiny developer -- paid coupe
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ponce do you thursday totaling $154 million. it famed to make mates earlier this month. both payments have a 30-day grace period. let's check markets in the u.s. although it is less robust, the s&p 500 finishing down the session by .3%. for the week, off 1.12%. the dow down a quarter and the nasdaq down nearly two%. big tech selloffs responsible for most of that decline. the nasdaq index posted its biggest game -- gain. up 9.4%. almost 15%, and alley babba also contributing to the rally, really.
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australia futures are pointing to a higher open. we have new zealand on line. and the kiwi dollar also unchanged at 58.33. australia closes early. it's a half day in hong kong. this is bloomberg. ♪ >> from the heart of where innovation, money, power and collide in silicon valley and beyond. this is bloomberg technology with emily chang. ♪ emily: i'm emily chang in san francisco and this is bloomberg technology. we'll bring you some of the biggest interviews with chip makers as the chip shortage continues to disrupt the supply chain around the world. which industries are hurting the
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most and what's the outlook for 202? plus, our conversation with war man, convince amends to company is poised to take advantage of a wave of enough devices and the chip maker continues to challenge intel with major agreements with the biggest chip makers. also, her take on the metaverse. first, global supply chains to the ends of 2021 having an impact well i don't understand technology, from the car industry to retail and it could last for months or even years to come. apple's at this point evan cook talked about this, stating it continues to squeeze apple's revenue. >> for this quarter, we think that the primary cause of supply chain related shortages will be the chip shortage.
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it is affecting pretty much most of our products current live. emily: the c.e.o. of qualcomm joined us to talk about the company's latest republican -- earnings result. >> we know what in company is capable of. we win based on technology. we have an incredible engineering center culture and we see demand for technology across a number of markets and i think it's largely played out as we expected and we're very happy with the performance of the company, very happy how he 1/2 gaited the sleeve chains and more importantly, we have growth opportunities across a number of spaces. emily: how much of this is boom
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and demand for qualcomm products and how much is the splay chain? >> we talked at least two or three earnings calls ago when we said we saw the supply crisis, we took action early. we moved the source of our products. we've one of the few products if not the only, that actual movemented the source as the leading semiconductsor -- snapdragon. we've lunched multiple products result. we put capacity expansion in place. we made cheryl in our splicers and as a result we've indicated that we will be material supply improvements coming at the end of the year. that's kind of reflective for q1.
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supply, it's yes, we expect it, we see improvement. it's a lot more planed with demand. it's too short. we would ship more if we had more supply and as we enter 2022, we'll see the end of the supply imbalance demand is going to beat supply for the rest of the champions year. emily: at that point you're saying there's going to be an end of the supply and balance just for equal and if so, how much does this drag on for other industries? others are saying this could go on for years. would you agree? >> that is correct. i have seen reports that companies probably will still be seeing shortages of supplys in 2023. that's not the case for us. you can find still pockets of areas that are still going to
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have more demand than supply but large lip we'll see a lot more balance between supply and demand. emily: you mentioned andrade and high-end phones being in demand. would you say in china, for example, that andrade is growing faster than i.o.s.? >> what we see right now is an opportunity for qualcomm to grow much faster than the market. a mobile market, which is a mature market, still grows single digit but we saw an opportunity for premium and hyph qualcomm and we seep incredible high demand from companies and that is driving a lot of the growth and driving growth faster than the market it. there are factor. i think the samsung -- the flip,
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higher speed to 5g and consumer right now are becoming even more dependent on smart phones. they want higher paint. that is driving the growth in q1, which is traditionally that very high quarter when we sell mold emphasis to one of out -- our cuppers. most of the growth in the quarter is coming in the an droid. emily: we tear care about phones but everybody seems to be daring a lot about the metaverse right now. do you think it will be as big as mark zuckerberg seems to think it will be and what will qualcomm's role be in it? >> that's a great question. well investedo a decade in fund then technologies to enable
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virtuality. we've been talking about xr for a long time and the way i see it is the success of oculus, especially with quest. that success drove facebook to think about even changing the company name and believing in the metaverse. we're the company enabling those advices but even if you have different versions of what the medaverse is going to look like across the different systems. what you're seeing over all those advices is quamme come. there have -- there shall over 50 device and is all of those have qualcomm snap dragon x.r. yes, the could be as big as phones, to answer your question. glad connection of physical and digital space will be a reality.
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i have don't necessarily believe that you're going to spend your life on digital space but is it's going to be a daily thing of our normal lives to connect to those paces pleasure laces. i would encourage all of us to carry glasses as well. we're very excited about it. >> qualcomm's -- coming you have. coming up, when does seay she think the shortage will evidence and the melta verse it will begin? ♪ emily: teaming up with
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facebook parent meta off a solid third quarter earnings report. here's my conversation with a. and d.c.e.o. lewisa s. -- suh. >> we talked about new products in terms of our new c.p.u. andg.p.u. products as well as the fact that 10 of the largest are using meta epic.
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i'm just going to say a little bit about our long-term focus on the data center and really wanting to make sure we are working and partnering with the most important companies in the world. emily: as you say, you are working with so many hyperscalers, not just meta but microsoft and amazon and gugliotta the. give us a picture of what it's taken to win over these big customers and cuts into markets share of your competitors? >> yeah, so this happened -- our focus over the last four, five years has been to build up the capabilities in the data center. we see the data center if -- as one of the most exciting, if not the most exciting markets in semiconductors. there's a match need for high-performance computing and each one of these large hyperscalers are doing such unique and innovative things. so partnering with the best
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means you learn how to make your road map even growing stronger going forward. emily: a lot of people still don't know what the melta verse -- meta verse is. and just how big an opportunity do you think it is and the way you see a.m.d.'s role in it. >> if we talk about high-performance computer, there's a flyinga cycle around needing computing in so many different applications. collaborative, research, or analyzing match amounts of data and yes, the melt verse is -- metaverse is the next thing on top of it. i think it's one of those areas that in people are talking about in terms of how do you really
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bring together very intellectual and mixed reality together with all of the collaboration we're doing now. i think we have new examines expectations of what hype is like post pan deckic. it's an opportunity where you need high-performance c.p.u.'s and processors and g.p.u.'s and in learning and visualization and bringing all that together. we really do look agent the end to end use cases and working with our partners on making that happen. we view tremendous opportunity in hype-performance computing going forward. emily: i'm curious why we've seeing um broading -- broaden out considering it's been that focus that has served a.m.d. so well. >> we're excited about the service center overall, emily and if you look at all of the
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expansion, it's really an area of special growth and you see manier in many and machine specialization. know question our data center as much as processors have done exceptry well but the fact is there are these large-use cases around high-performance computing and a.i. and those need g.p.u.'s and we can put them together in a very first quarter way in the system. we announced today that we're broadening our offerings to include a cloud focus processor line. and, again, this is just an expansion of computing allowing and enabling us to one, invest more and two, try to tailor and partner with what we think our customers and partners will need going forward. >> how do you see your next
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design for data chips cutting into market share for folks like intel and users of arm technology that are also trying to break? >> the key in this market frankly is execution. strong execution generation after generation. our current generation, the processors are fantastic. we just found our third earnings and we doubled our service processors as well as our data processor scale. that deals you about the momentum we have. it builds on the capabilities we have with milan. we added features and what that should mean to our customers is
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they can dock marine. it's all about total coast cost of ownership and how many can they do in the foot prints? worst we're going to use five -- technology. we're excited about it. emily: with all of these new products, you seem to be planning far enough better a.m.d. can you get if supply to moment these ambitions? >> no question we are planning far bigger a.m.d. if we look to the our trajectory, the last two years has been treacherous growth. we just guided 2021 to 65% year on growth when we first started, in january, we were it was 27%. so we've added a lot of strong demands for a.m.d. processors right now. we're working very closely with
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all of our supply chain workers. and we feel very good about the trajectory of what we see going into 2022 and beyond and these are all long-term papes so it's really about how do we plan, no. judge for this choir on that worry but for 202, 202 and beyond. emily: the song and supply issue seems to be a continuing crisis for everyone else and i'm curious how long you think we'll see the ripple effect of this? is it something you think will reverberate across industries for years, potentially? >> i get asked that question a lot. i'll tell you that i think the environment is such that there's a throttle of capacity and a lot of investment that's being put online so that's positive. like i said, we saw more growth
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and more capability game the end of 30301 than than earlier in the year. we'll continue to see improvements as we two into the second half of 2022 and i feel confident that the semiconductor business will get ink rementally better going forward. emily: what are going to be the defining trends that will go through a.m.d. in the next world. >> it's a very exciting world in in high performance computer world. if we look at the narcotic just maybe 18 years ago we michael sized it at 0 billion or so. we now see that market size or opportunities yum cards -- upwards of 100 million
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capability. and from an a.m.d. standpoint, i think our product fort folio suspect best it's ever been and it's only going going to get better. we have a whole absolute of product we're coming out in the fall and we'll continue to talk about it. hour goals is to make sure we're the best friends. we've going to continue to work hard at as muching all the demand out there but i think we're very optimistic about 2022. emily: coming up, the chip shortage didn't deter global found relation from going public this year. a k with a c.e.o. is next. this is bloomberg. ♪
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emily: despite global supply chain yous is and a massive chip shortage. kentucky o. tom caulfield talked about the company's future and his outlook for when chip supply will finally be able to moment demand. >> over the next two years, 2021 and 2022, we're going to be
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deploying $6.5 become in exam deployment to enhance our exalt. part of that, what we raised today will go to part of the funding for that expansion. emily: is that expansion going to come soon enough to help solve this crisis? >> we started this expansion at the end of 2020. we were spending about 4 billion in singapore, a billion in the u.s. and a billion nashville in dresden, germany so each quarter we were creating more capacity and being able to close that gap in some of the demand. emily: i'm wondering what the rationale is for a low-float i.p.o. are you going to be capping capital markets again at all in any fashion? >> this is not a stock for like a day trader. this is stock for long-term
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investors. this is a methoddal way of letting some of the stock out into public markets to fund our growth. >> how much will that company, will that investment still be talked around with your growth story, how much will be be able to independently pass on? >> i think you're asking how much will they have after the end of the day today after the trading? sorry, i didn't catch that question. >> indeed, however will you be working alongside -- previous live privately head now an independent producer. >> for one, we're going to be funding our own growth going forward. they will own about 80% of the company after today and continue to be a big shareholder. continue to bring in vijayic and
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like-minded investors but our free-cash throw generation, after this burst of investment we're making right now. we'll germ rate cash to both grow our business and free cash throw. >> we were speaking with the professor of harvard yesterday who focuses on supply chains and he said one of the problems was everybody wanted to invest in this new technology but there is still some demand for the oldser technology. how are you thinking about investing in both of those and also maintaining that edge and growth >> i think there -- two segments. what we call single-digits mamometer. which is about g.p.u.'s, c.p.u.'s, all data center and
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the computer and then the pervasive employment of semiconductors. $74 billion and we're putting $52 billion in that pervasive deployment of semiconductor. i would argue that g.a.f. has the most advantagessed technology when it comes to power management or power efficiency we need connectivity and power efficiently and we are the leading edge previewedder. >> the stock was down today. a massive i.p.o. is there something you don't think investors or getting? >> not at all.
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we have a consistent field and we'll continue to be rewarded for that. >> coming up next, a one-on-one with lisa su in a special edition of bloomberg technology 1.0. you don't want to miss it. this is bloomberg. ♪
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presidents joe biden and vladimir putin held a phone conversation. the president raised the alarm over a possible russian invasion of ukraine. the u.s. has told allies that russia may invade ukraine as early as next month. russia denies that, but is also demanding security guarantees from the west. israel become the first nation to offer a second covid


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