Core Insights - The report from Barclays titled "AI: East vs. West" analyzes the competitive landscape of AI between the US and China, highlighting that the US currently leads due to its financial resources and early advantages, while China is rapidly catching up with its cost-effective and highly applicable AI solutions [1][4]. Market Status - The AI market is experiencing a dichotomy where the US is "on fire" with soaring valuations and performance, while China is "recovering" from previous downturns, particularly in the tech sector [3][11]. - The S&P 500's forward P/E ratio has expanded from 15.3x at the end of 2022 to 21.7x, driven largely by AI advancements [13][56]. Competitive Dynamics - The report categorizes the AI industry into three layers: Application, Model, and Compute, with distinct strategies from both countries in each layer [1][12]. - In the application layer, US AI applications have a broader global reach, while Chinese applications are predominantly domestic, with DeepSeek and Doubao leading in user numbers but lacking significant overseas penetration [10][40]. - The model layer shows that Chinese companies are adopting an open-source approach, significantly reducing costs, with DeepSeek's latest model priced at approximately 3% of GPT-5.2's cost, while US companies maintain a more closed, proprietary model strategy [3][10][49]. - In the compute layer, US tech giants are expected to spend over $500 billion in capital expenditures, significantly outpacing Chinese firms, which are constrained by access to high-end chips [3][29][38]. Investment Implications - The competition between the US and China in AI is expected to lead to more affordable and accessible AI applications for consumers, benefiting the overall market [2][4]. - Chinese AI is no longer viewed merely as a "follower" but is demonstrating unique strengths in application deployment and cost management, indicating a shift in the competitive narrative [2][4]. Future Outlook - The report suggests that while the US may maintain a short-term lead in AI capabilities, China's long-term outlook remains strong due to its innovative approaches and large domestic market [4][5]. - The ongoing competition is likely to evolve from a focus on technological superiority to one centered on practical applications that can transform everyday life and work [2][4].

>> THIS IS BLOOMBERG BUSINESSWEEK DAILY, REPORTING FROM THE MAGAZINE THAT HELPS GLOBAL LEADERS TO STAY AHEAD WITH INSIGHT ON THE PEOPLE, COMPANIES, AND TRENDS SHAPING TODAY'S COMPLEX ECONOMY. PLUS GLOBAL BUSINESS, FINANCE, AND TECH NEWS AS IT HAPPENS. BLOOMBERG BUSINESSWEEK DAILY WITH CAROL MASSAR AND TIM STENOVEC ON BLOOMBERG RADIO, TELEVISION, YOUTUBE, AND BLOOMBERG ORIGINALS.KAILEY: VERY GOOD AFTERNOON. THIS IS BLOOMBERG BUSINESSWEEK DAILY. CAROL MASSAR AND TIM STENOVEC.IT IS -- S&P 500 BRIEFLY HITTING A ...

Qualcomm reported a net income of $3bn for the first quarter of fiscal 2026 (Q1 FY26), a 6% decrease from the $3.18bn recorded in the same period of the previous year. Despite the decline in net income, the US-based semiconductor company achieved revenues of $12.3bn for the reported quarter, ending 28 December 2025. This marks a 5% increase from the $11.7bn reported in Q1 fiscal 2025. The earnings per share (EPS) for Q1 FY26 were $2.78 on a GAAP basis, slightly down from $2.83 in the previous year, whil ...

Core Insights - Jim Cramer discussed NVIDIA Corporation (NASDAQ:NVDA) in detail, highlighting its recent investment in CoreWeave and dismissing concerns about circular deals as unfounded [2] - NVIDIA's shares have increased by 48% over the past year and by 1.5% year-to-date, indicating strong market performance [2] - Analysts from Needham expressed optimism regarding the partnership with CoreWeave, suggesting it could help develop up to 5GW in capacity [2] Market Analysis - Stifel reiterated a $250 share price target and a Buy rating for NVIDIA, emphasizing potential benefits from H200 sales to China [2] - Recent media reports indicated that the Chinese government has encouraged local tech giants to prepare for purchasing NVIDIA's AI chips, although skepticism remains regarding the government's true intentions [2][3] Skepticism on China Sales - Cramer expressed skepticism about the reliability of reports claiming the Chinese government is supportive of NVIDIA's sales, citing a history of similar narratives involving companies like Bytedance, Alibaba, and Tencent [3] - He noted that while NVIDIA may be undervalued, the current market dynamics do not indicate a shortage, particularly in light of Intel's performance [3]

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the **China Internet** industry, focusing on the promotional campaigns by major internet companies during the **2026 Chinese New Year (CNY)** holidays, which occur from **February 15-23, 2026** [1][1]. Core Companies and Their Campaigns Tencent - Tencent announced a **Rmb1 billion** cash red-envelope campaign on **January 25, 2026**, to promote the adoption of its **Yuanbao** app, allowing users to win up to **Rmb10,000** by trying new AI features [2][2]. - The campaign is expected to enhance user engagement and drive traffic to its AI products [1][1]. Baidu - Baidu launched a **Rmb500 million** red-envelope campaign on the same day, integrating its **Ernie Assistant** into the promotional activities [3][3]. - The campaign includes various interactive activities within the Baidu app, encouraging user participation and reward claiming [3][3]. Bytedance - Bytedance's **Volcengine** was announced as the exclusive AI cloud partner for the **2026 CNY Gala**, utilizing its technology for program production and online interactions [4][4]. - The **Doubao** smart assistant will feature interactive elements during the event [4][4]. Alibaba - Alibaba has not yet detailed its CNY promotional campaign but is expected to promote its **Qwen** app, which was the exclusive title sponsor for Bilibili's **2026 New Year's Eve Gala** [6][6]. - Qwen is integrated into Alibaba's ecosystem and is anticipated to play a significant role in upcoming promotions [6][6]. User Metrics and Market Position - **Doubao** leads the market with **227 million** monthly active users (MAUs) as of December 2025, followed by **DeepSeek** (136 million), **Yuanbao** (41 million), **Qwen** (26 million), and **Wenxin** (5 million) [7][7]. - Year-over-year growth rates show Doubao at **+201%**, Yuanbao at **+47%**, and Qwen at **+1,830%** [7][7]. - Daily active users (DAUs) for Doubao reached **70 million**, with significant engagement metrics across the platforms [7][7]. Investment Insights - The report suggests a preference order for AI plays: **Tencent > Alibaba > Baidu**, based on recent share price performance [1][1]. - The competitive landscape among AI chatbots is expected to intensify as companies vie for user traffic and future monetization opportunities [1][1]. Risks and Challenges - Key risks for Alibaba include execution failures in its retail strategy, investment spending pressures, and potential regulatory challenges [15][17]. - For Baidu, risks include slower recovery in its search business, competition in advertising, and economic slowdowns affecting ad budgets [22][22]. - Tencent faces risks from revenue slowdowns in core gaming and advertising sectors, as well as regulatory changes [24][24]. Valuation Insights - Target prices are set at **HK$195.0** for Alibaba H-shares and **US$186** for Baidu shares, based on various financial metrics and market comparisons [14][16][18][19][23]. - Tencent's target price is set at **HK$783**, reflecting a sum-of-the-parts valuation approach [23][23]. This summary encapsulates the key points from the conference call, highlighting the competitive dynamics, promotional strategies, user engagement metrics, and associated risks within the China Internet industry.

>> AFTER 20 YEARS OF FINANCIAL PRESSURE, WERE BACK TO LIVE MARKETS. >> THE MARKET IS PROBABLY GOING TO TAKE OFF AGAIN. >> WE SEE A LOT OF UPSIDE IN U.S. VOLATILITY MARKETS. >> THE U.S. BOND MARKET IS STILL THE PLACE TO REACT. >> THIS IS "BLOOMBERG BR WITH SURVEILLANCE, WITH JONATHAN FERRO, ANNMARIE HORDERN. SON PATRICK: GOOD MORNING. -- JONATHAN: GOOD MORNING."BLOOMBERG SURVEILLANCE" BEGINS RIGHT NOW. INTERVENTION RISKS AND GOAL. SMASHING THROUGH $5,000, BUILDING ON A RECORD-BREAKING RALLY, GOAL ON A SIX-DA ...

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Data Center Equipment in China - **Key Companies**: Kstar and Megmeet Core Insights 1. **Accelerating Shipment Growth**: Both Kstar and Megmeet expect significant growth in AIDC power equipment shipments starting from 2026, driven by an increase in AIDC capital expenditures [2][3] 2. **Market Share Gains**: There is potential for both companies to gain market share from US hyperscalers due to slow capacity expansion among global power equipment manufacturers and the introduction of new power technologies [2] 3. **Next-Generation Technology**: The ramp-up of 800VDC technology is anticipated to begin by the end of 2026, with commercialization of SST expected around 2028 [2] Company-Specific Insights Kstar 1. **US Orders Growth**: Kstar is experiencing positive progress in US-related UPS orders, which are expected to contribute to earnings in 2026 [3] 2. **Product Demand**: The company anticipates a strong demand for UPS systems, particularly the 600kW models, while also expecting to increase shipments of products over 1MW starting in 2026 [3] 3. **New Customer Acquisition**: Kstar plans to expand its customer base domestically, targeting companies like Bytedance, Kuaishou, and JD [3] 4. **HVDC Prototype**: A HVDC prototype is expected to be delivered in February 2026, with validation and delivery commencing in the second half of 2026 [3] 5. **BESS Shipment Recovery**: Kstar expects a recovery in BESS shipments and margins into 2026, driven by demand in Europe and Southeast Asia [3] Megmeet 1. **Strong Order Backlog**: Megmeet has a solid order book, which supports its optimistic outlook for overseas shipment growth and market share gains starting in 2026 [4] 2. **Supplier Selection Involvement**: US CSPs are increasingly involved in the supplier selection process for AIDC power equipment, which could benefit Megmeet [4] 3. **Cost Management**: Management expects R&D and SG&A expenses as a percentage of revenue to decrease as the AIDC power equipment business scales, leading to a recovery in net margins [4] 4. **800VDC Product Showcase**: Megmeet showcased its 800VDC product at the 2025 OCP, with plans to send a prototype for trial testing in mid-2026 [4] Risks and Considerations 1. **Downside Risks**: Major risks for the data center equipment sector include slower-than-expected growth in AI data center capacity, slower penetration of high-power density products, and challenges in gaining market share in the overseas AIDC equipment supply chain [6]

My next guest is one of the key experts who testified before Congress recommending a sale or ban of Tik Tok nearly two years ago. Let's bring back Ivan Sarini, the CEO of cyber security company Faroo. Ivan, it's great to see you.It's been a little while. Um, what's your reaction to the deal. >> Yes, thank you for having me.First of all, it's great and amazing news for all of the Tik Toks users that the app it will be uh still in business and everyone will be enjoying it moving forward. So uh and one of the ...

Is this sustainable, this extent that companies are staying private for longer and will the wall of money still come in. I think what we've seen is a structural change in how companies capitalize themselves. This is driven by some very enduring factors, such as regulation.Sarbanes-Oxley made it more difficult to be public, and aspects of the JOBS Act made it easier to stay private. But I think there's also been a cultural change amongst companies. I think founders today realize that you can build a better, ...

Summary of Key Points from the Conference Call on China Internet and AI Development Industry Overview - The focus of the discussion is on the **China Internet** sector, particularly the impact of **AI-enabled services** on established platforms and competition dynamics among major players like **Tencent**, **Alibaba**, and **Bytedance** [1][8][11]. Core Insights and Arguments - **AI Competition**: Leading Chinese developers are expected to be fast followers in AI model development, leveraging unique domain data and entrenched user intent to shape competition [1][8]. - **User Engagement Trends**: AI chatbots, including **Doubao**, have shown engagement patterns similar to search engines rather than being disruptive top-funnel entrants. Doubao has reached **70 million DAUs** and **227 million MAUs**, indicating significant user traction [3][31]. - **Super App Strategy**: Companies are striving to become super apps, with **WeChat** as a global template. **Alibaba** is pivoting towards a transaction-based ecosystem around its **Qwen** app, while **Bytedance** is enhancing its offerings with music and payment features [4][51]. - **Monetization Success**: **Tencent** has seen success in AI monetization within gaming and advertising, but faces sentiment challenges due to perceived delays in chatbot development [6][9]. - **Investment Implications**: The report remains bullish on the ability of Chinese Internet companies to capture market share domestically and internationally, with a focus on the evolution of super-app ecosystems [8][9]. Important Developments - **Alibaba's Qwen App**: Recent upgrades to the Qwen app aim to enhance user transactions across various services, which could drive user engagement. However, the immediate market reaction was cautious following the announcement [5][21]. - **AI Chatbot Engagement**: Current usage of AI chatbots is limited, averaging **10-12 minutes** over **5-7 sessions** daily, which is more akin to search engine usage than a new traffic source [2][33]. - **Competitive Landscape**: The competition among AI chatbots has not significantly expanded the overall market but has redistributed engagement among existing platforms. Smaller players may struggle as larger platforms dominate [83][84]. Additional Insights - **Hardware Developments**: Companies like **Alibaba** and **Bytedance** are exploring new hardware, such as smart glasses and AI-enabled smartphones, to enhance user interaction with their ecosystems [53][54]. - **Geopolitical Risks**: Ongoing geopolitical tensions and legislative changes in the US may impact access to technology and resources for Chinese companies, but there is optimism about domestic semiconductor advancements [15][16]. - **Long-term Outlook**: The report suggests that while AI chatbots have not yet disrupted the market significantly, their evolution and integration into broader ecosystems will be crucial to watch in the coming years [34][80]. Valuation and Market Performance - **Valuation Metrics**: The report includes a valuation summary for major players, indicating **Tencent** and **Alibaba** as outperformers with significant growth potential in core earnings [7][10]. - **Market Sentiment**: Despite positive fundamentals, market sentiment remains cautious, particularly regarding **Tencent's** perceived lag in AI chatbot development [9][72]. This summary encapsulates the key points discussed in the conference call, highlighting the competitive dynamics, user engagement trends, and strategic moves within the China Internet sector as it navigates the evolving landscape of AI technology.