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This is Daniel Ives of Wedbush. First of all, rocking it out of Las Vegas with Aston Martin. For those of you in radio, he's got the real jacket on, like the kind that Lance Alonzo wear and all that. What in Formula 1 with all the excitement, Apple taking over the broadcast, Cadillac coming in next year. When you're in the pit like you were, what's the thing that you don't know when you watch on TV?
I think, I mean, my experience with the F1, I think the thing that people don't realize, not just how loud it is, but especially like when you're in there and you actually have like the headphones on and you hear them talking to the drivers, just the complexity. I mean, that's the thing. It's like it's really amazing.
I did, but I will tell you at Indy 500, I came close to almost changing your entire...
Okay, 10 eyes. Investors can own it, Tom. Liberty Media, you can own Formula 1. FK is the ticker. Liberty Media, you could own it as a public investor. Why is Apple doing that? Explain. Just go tangential. Paul's dying to get to Nvidia and, you know, the Google thing and all that. Why is Apple doing Apple TV? It's called Dad TV because no one watches it. They got some product out. They've had some successes, but why waste their time on that?
Yeah, I would. I mean, to me, it's really it's all about where they're ultimately going to take this. I mean, in the future, and we'll see as Apple ultimately goes down the path with Gemini and in terms of the AI future, they need to have as wide of a content lens as possible. And I think when you look at Apple TV, it's all part of, look, the quality speaks for itself. Quan's been the issue, but for them it's just they're going to continue to have irons in the fire. That's what they're going to do.
The TV show Severance, it's a sci-fi thing. She's home all alone. Everybody around her is like a droid. She's watching surveillance. It was great. Why don't you get to Nvidia right now, Paul?
So, Dan, the AI story here took a little bit of a turn over the last couple of days here. Meta placing a big chip order with Google, further calling into question the position or the dominant position of Nvidia. Give us your thoughts about that whole thing.
I mean, look, Google TPU, if you and especially with Broadcom and TSMC, is the builder that's been around for over a decade, right? So it's not that it's new per se. I think the issue comes down to demand and supply for Nvidia chips are 12 to 1. So the reality is demand to supply of Nvidia chips 12 to 1.
So look, when you look at Meta, like they're not going to be able to get everything they need from Nvidia. So they got to look outside. When you look what Google has, I'd say it's really it's by three to four years behind where Nvidia is. But again, on some certain instances, it could be good enough. And look, that's where we're going. I mean, the reality is when it comes to AMD, when it comes to big tech, eventually you're going to see Apple, you're going to see Meta, you're going to see Microsoft, they'll build their own chips as well. But there is one chip in the world fueling the AI revolution. That's Nvidia.
So that's kind of how I thought about yesterday. I was kind of surprised to see the sell-off in Nvidia because my thought was all I hear from guys like you and technology folks coming in here is that the demand for AI is just, I'm not going to say insatiable, but boy, it's outstripping supply for sure, and you got to get what you can get when you can get it.
Look, just spending three weeks in Asia, I mean, we've seen demand accelerate 30% in the last six months for AI. So it comes down to like it's easy to call say AI is a bubble in the spreadsheet on 25th floor of New York City office building, but when you actually see what's happening there, look, only 3% enterprise in the US have gone down the AI path, none in Europe, Asia ex-China, none. And now you're seeing sovereigns in Middle East, and for the first time in 30 years, US is ahead of China when it comes to tech.
You're a pinata on Wall Street. People love to go after you on Twitter. It's the close, it's the act and all that. Underneath it, we know, folks, not only Dan Ives but Wedbush, there's some prodigious tech chips like going to Asia, like actually walking in a factory. Find out what's going on. Here's the reality for our listeners, our viewers worldwide. April 3, a leading newspaper just reporting the news. Apple shares fell more than 9% in response to the president's plan for steep tariffs on products made abroad, led a sharp selloff in tech stocks, which is loaded with technology. OMG, April 3rd sank nearly 6%. Apple is up 65%, printing 280 yesterday. How do our listeners and viewers digest the news and the day-to-day panic and yet stay on board this historic American path?
Look, and we've talked about so much on this show over the years, right? I mean, the reality is that there's no bigger consumer install base in the world than Apple. 2.4 billion iOS devices, 1.5 billion iPhones, and it comes down besides just the cash generating machine, everything that we see in services. When you look at the AI revolution, okay, they've watched it from the stands so far, but now they're about to get into the field and actually do it and monetize the install base. The consumer AI revolution comes through Apple, and I think that's something that we're going to see with Google partnership and others. And Tom, I just continue to view it as like $75 to $100 per share incremental will be added to Apple for AI. And that's my view. Like they've David, and also look at this iPhone 17. It's been a surprise upgrade cycle that no one expected.
With Gemini, is Apple under less pressure to do something? This whole do something, do something.
I'd say more pressure, but they couldn't do it till Google ultimately won the DOJ suit. Once they won the DOJ suit, that's where the candlelight dinner between Sundar and Cook start. And I think that ultimately is now where that's tracking to what can be a deal that couldn't have been until they won that deal. And I think that's where they're going to go. They're not buying Perplexity. They're going with Google. They're going to go down bet heavily on them.
Dan is with Wedbush with us here on a Wednesday before Thanksgiving as you get ready to travel. The horde comes over to the house. We say good morning all the different ways you listen to us. Thank you for discovering Bloomberg's Surveillance in 2025. We'll be here Friday. Paul Sweeney, your people, it was a big argument, was it? I mean, your people went back and forth on this, but we'll be here Friday after Thanksgiving. Paul, Dan, talk to us about Meta a little bit. I think that's one of the ones the market's unsure of as it relates to the AI play there. Stock's down about 20% from its recent high. So, some concerns there. How do you position that?
I think, I mean, it's a table pounder buy because the reason that stock's off is because Zuck right now, wartime CEO, focused on increasing capex over the next year in this arms race, and you're seeing obviously pressure in terms of earnings and cash flow, but that's what you want to see them do. You were talking about monetizing the AI revolution over the coming years, the 3 billion, you know, users that they basically have when it comes to their consumer ecosystem. And that's the smart move. I think right now investors, it's very easy kneejerk with the AI bubble, all the worries. The reality is that there's two more years at least left in this tech bull market. You're in year three of an 8 to 10 year build. It's truly a fourth industrial revolution. I think Meta is going to be proved that this is the right move what they're doing.
In the zeitgeist this weekend is the partition that yes we appear to be using AI for search stuff, and Paul Sweeney the other day goes, should I go with Ocean Spray cranberry or something homemade, you know, that kind of stuff, or like task-driven AI. When do you perceive America makes the shift to a more sophisticated use of AI?
Yeah, it's great. But today it's enterprise. I mean, the reality is the consumer AI revolution hasn't started. ChatGPT, and we see that, but it's all enterprise. I mean, the spending we're talking about called next two to three trillion is just enterprise. When it talks about consumer, it's our autonomous humanoid robotics. It's the future of the consumer.
