Wells Fargo reduced overweight on Microsoft but remains overweight, with target down to 665. Asks about importance of financial statements for Microsoft earnings.
Speaker2
Dan Ives
Microsoft's growth is underestimated - Street underestimating Azure cloud growth by 10-15% and $25B incremental growth. Cash flow underestimated by $15B. Enterprise AI revolution starts with Microsoft.
Asks about NVIDIA's Alpha platform for autonomous vehicles and whether it's scary.
Speaker2
Dan Ives
NVIDIA's autonomous platform is end-to-end, better than human driver, similar to Tesla's Robotaxi. NVIDIA will be both chip supplier and platform player.
Observed many tourists using iPhones at Monet exhibit. Asks where iPhone usage will be in 5 years.
Speaker2
Dan Ives
This will be the year of AI for Apple. With 1.5B iPhones and 2.4B iOS devices, next stage is most important - monetizing installed base through AI revolution.
Asks about AI fatigue among investors - whether AI has played out, valuations too high, numbers too big.
Speaker2
Dan Ives
Cannot come away thinking there's an AI bubble - still early days. Investors realizing next stage of AI revolution has taken hold.
Asks where smaller AI companies fit in, whether we'll see M&A and AI roll-up this year.
Speaker2
Dan Ives
Will see many acquisitions in tech, especially robotics. It's an arms race playing out with lots of consolidation. This is year 3 of an 8-10 year blowout.
Asks about key pushback from clients - whether it's valuation, taking money off the table.
Speaker2
Dan Ives
Valuation is the pushback. Tech stocks up 20% this year. As earnings season ends in January and capital comes back, that will be key to next stage.