The Circuit Episode 103: Earnings - MSFT, META, AAPL, INTC - The Custom ASIC Debate!
Feb 3, 2025
The latest discussions delve into tech giants' earnings, spotlighting Microsoft’s AI investments and Meta's monetization strategies. They explore Apple's market hurdles and Intel's mixed quarterly performance amid leadership uncertainties. The conversation reveals how AI is reshaping business models and highlights the shift toward custom silicon in tech companies. With a strong focus on operational efficiency and future innovations, the dialogue emphasizes the competitiveness and strategic pivots necessary for success in the evolving tech landscape.
AI Snips
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Transcript
Episode notes
AI Investment Vs. Broad Cloud Growth
- Microsoft is keeping CapEx high to support AI and cloud growth while many SMBs remain uninterested in AI.
- Non-AI cloud and general-purpose server adoption still represent meaningful, ongoing growth for Microsoft.
Meta's AI Monetization And Custom Silicon Edge
- Meta is monetizing AI effectively within ads and platform engagement, outperforming many peers on direct revenue impact.
- Owning software plus designing custom accelerators gives Meta a potential cost and product advantage for internal AI workloads.
Question Custom Accelerators For Third Parties
- Avoid assuming custom accelerators will win broadly for third-party developers due to portability and software challenges.
- Insist on workload portability and question lock-in before trusting non-GPU cloud accelerators for broad adoption.