Financial Performance - Arista Networks achieved its first 3 billion dollar revenue quarter [3] - The stock has surged approximately 50% since February [2] - Arista posted a revenue beat along with a 13 cent earnings beat on an 89 cent basis [1] - Purchase commitments for components have tripled over the past year [16] Market Trends & Industry Dynamics - Arista Networks is experiencing strong stock momentum driven by explosive artificial intelligence demand and data center exposure [1] - The company faces a 2-year industry-wide supply chain crunch, specifically regarding memory, optics, silicon substrate wafers, and chip components [16][18] - Memory lead times range from 6 to 12 months, prompting multi-year supplier agreements to secure the supply chain [17][18] Investment Opportunities & Potential Risks - Arista Networks diversifies its ecosystem by connecting not only with Nvidia GPUs, but also with Google TPUs, AMD MI series, and a broad range of market accelerators [7][8] - Power, space, and compute capacity constraints are driving growth for both mega-watt data center builders and smaller distributed neo-clouds [12]

Market Dynamics & Financial Performance - S&P 500 attempted to push for a fifth straight day of gains, notching its first record high in 10 weeks [1][4] - Multi-strategy hedge funds maintained diversification across strategies, geographies, and directionality, with assets exceeding 5 trillion dollars [13] - Broad hedge fund industry returns showed overall declines last month, with Millennium down about 2% and Verition down 1% to 2% [8][9] Corporate Earnings & Media Business - Walt Disney reported a 64% jump in profit for its entertainment division, with the company on track to spend 24 billion dollars on content this year [26][27] - Expedia reported quarterly revenue of 4.32 billion dollars, with full-year revenue guidance raised to a range of 16.05 billion dollars to 16.22 billion dollars [119][121] - SanDisk reported fiscal fourth-quarter revenue of 8.97 billion dollars, up 5% sequentially, alongside an additional 14 billion dollar share buyback authorization bringing total authorization to 15.5 billion dollars [136][140] Semiconductor & Technology Supply Chain - Western Digital reported net revenue of 3.7 billion dollars and an adjusted earnings per share of 3.56 dollars, with first-quarter revenue expected between 4 billion dollars and 4.2 billion dollars [130][131] - Quantum computing companies like PsiQuantum are building utility-scale systems with operational sites in Australia and Illinois targeted for 2027 [64][65][66] Biopharmaceutical & Healthcare Sector - Eli Lilly raised its full-year revenue forecast and beat sales estimates, driven by strong performance from Mounjaro and its obesity treatment Zepbound [79][80]

Market Trends and Earnings Performance - S&P 500 achieved its seventh consecutive quarter of double-digit earnings growth, serving as the primary fundamental driver for the broader market [2] - Analysts project the S&P 500 index to potentially reach 8,000 to 8,250 driven by strong corporate earnings and robust spending [1][22][28] - S&P 500 experienced a surge of 5% over a 4-day trading period, marking one of the largest rallies since COVID and approaching a 52-week high [24] - The market has shown strong internal breadth, with 73% of S&P 500 companies trading above their 200-day moving average [17] - The Russell index achieved a 22% year-to-date performance [20] - S&P market-cap-weighted index outperformed the S&P equal-weight index by 4% over several days [5] Sector Dynamics and Investment Risks - Financial sector demonstrates robust momentum, with nearly 90% of financial companies trading above their 200-day moving average [20] - Semiconductor stocks experienced a significant market correction with a drawdown of around 30%, followed by one of the fastest market bounces on record [18][19][24] - Alphabet (Google) shares declined around 3.5% amid executive leadership restructuring at DeepMind and departures of key personnel [11][13][15]

Hardware Strategy - Anthropic is building a custom silicon team through job listings to co-design hardware and models for faster and more efficient Claude execution [1] - Anthropic scouted Samsung as a potential manufacturing partner for custom chips [1] Industry Dynamics - Anthropic currently holds compute deals with Amazon Web Services (AWS), Google, Nvidia, and Advanced Micro Devices (AMD), though demand continues to outrun supply [2] - OpenAI introduced the Broadcom-built Jalapeño inference chip in June, while Google and Meta have long operated their own silicon [2]

Financial Performance and Revenue Projections - Cloud services leasing and compute capacity rental are generating the bulk of revenue, with the cloud business estimated to end December running at a 40 plus billion dollar run rate [1][2] - Additional cloud services revenue of 6.7% billion was contracted in the first few weeks of the third quarter over a six-month period starting in October [3] - Total annualized revenue run rate (ARR) is projected to reach 100 billion by the end of the year, driven by the cloud business and cursor contributions [4][5] - Combined revenue streams including cloud (40 billion), AI/Grok X/advertising (1.5 billion), and cursor are projected to reach a 60 billion run rate by December, with remaining businesses contributing 35 to 40 billion to achieve the 100 billion ARR [5][6] - Consensus modeling on Bloomberg for 2030 full-year revenue stands at 351 billion, while Elon Musk anticipates hitting 1 trillion by 2030 (with a non-zero chance in 2029) [9][11] Industry Trends and Technological Developments - SpaceX cloud business momentum is primarily driven by leasing compute capacity to third parties like Google and Anthropic [1] - SpaceX business segments consist of space, AI, and connectivity, with leasing compute capacity identified as the biggest contributor to the 100 billion ARR [4][5] - SpaceX decided to go exclusively with Nvidia and Vera Rubin architecture, planning to start launching that orbital data center design next year [7] - Scaling orbital data centers to a gigawatt level presents major challenges in increasing volume and reducing the cost of solar technology and radiators [8][9] - Starship operational cadence is tracking towards 15 to 20 flights next year, supporting the deployment of approximately 1,000 B3 satellites at 50 to 60 satellites per launch [12][13]

And right now we are two minutes away from the end of the trading day. Romaine Bostick taking you through to that closing bell. It's a global simulcast.Carol Massar and Tim Stenbeck, they join us now. Welcome to our audiences across all of our Bloomberg platforms, television and radio. Our partnership with YouTube.Uh, a little bit of a sentiment shift here on the day Carol Massar coming off the record highs yesterday. We are modestly lower for most of the major indices that we should just flag for our viewe ...

Wall Street and gold print fresh records in broad risk rallyThe Dow touched an all-time high of 54,744 on Wednesday before settling up around 0.9%, with the S&P 500 and Russell 2000 also tagging fresh intraday records before fading. Gold surged 3.75% to $4,308, extending its own historic run.The Nasdaq was the outlier, down 0.5% as Google slid 4% and Amazon dropped 2%, while Nvidia jumped more than 4%. bitcoin:native trades near $64,600, up about 1% on the day. ...

But AMD, like you said, down about 7% even after a record quarter. Revenue jumped 50% driven by data center business that doubled from a year ago and now makes up nearly 60% of the company. And yet shares are down because after more than doubling this year, a beat just wasn't enough for this crowd.So why are we seeing the sell-off. The guide topped Wall Street, but not the whisper numbers, which are increasingly more important. Growth is somewhat slowing.Capital spending came in nearly three times what anal ...

RT Aaron Burnett (@aaronburnett)we just published a deep dive reaction to the SpaceX earnings from yesterday. Specifically comparing results against street expectations and our mach33 internal model.you can see the full analysis here.https://t.co/u1j7nptiphA couple core things stand out on the financial side.First, wall street expectations beat across the board. I believe the cope is that consensus made it too easy for them to beat, but the fact remains.Second, our model, which is widely considered among th ...

>> "BLOOMBERG TECH" IS LIVE FROM THE HEART OF SILICON VALLEY WITH ED LUDLOW IN SAN FRANCISCO. ED: THIS IS "BLOOMBERG TECH," SPACEX'S FIRST EARNINGS REVEALED MASSIVE AI SPENDING AND AMBITIOUS STARLINK EXPANSION. 100 BILLION DOLLARS ANNUAL REVENUE RUN RATE BY YEAR-END.WE SPEAK WITH THE UBER CEO WHO JOINS US TO DISCUSS THE COMPANY'S EARNINGS AND ITS ROBOTAXI AMBITIONS AND MORE ROBOTAXI TALK AS WE ARE JOINED BY THE CEO OF ZOOX. SPACEX FIRST EVER QUARTERLY EARNINGS. THE STOCK IS DOWN.IT STARTED TRADING JUNE 12 B ...