>> from the heart of where innovation, power, and money collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. ♪ emily: this is "number technology." coming up in the next hour, a stomach turning day for crypto investors. it coin plummeting 31% in the

morning and rallying in the afternoon. we will have all of the action. plus, a month ago she predicted bitcoin would go to $500,000. we see what cathie would is thinking now. and a md is one of the biggest tech turnaround stories of our time. the company's market value is now more than $90 billion, up from just over $2 billion at the end of 2014. we bring you might latest "studio 1.0" about the company come back. bitcoin in the last two weeks, as much as $1 trillion in market value has evaporated. in the last 24 hours, more than evan hundred deveney 5000 traders have had their accounts liquidated, equal to $8.6

billion worth of crypto. cryptocurrency exposed to shares including coinbase, marathon digital, all falling more than 6% after bitcoin touched its lowest level since january, before that big bounce back. some exchanges also reporting technical issues. it all made for a very volatile day. >> we go through soul-searching times like this. i think people have come to make their peace with volatility, albeit certainly we had quite a ride over the last 24 hours. >> nobody knows if you should drive fast or slow, so it's super dangerous, and then you have a speed limit and everyone knows what the rules are. that is what crypto needs. >> the comments from china clearly had an impact. i don't know that there was anything new there. >> it was actually a rehashing of an announcement that had also been made in 2017. it is nonmaterial in our view.

emily: was it a nonmaterial event? let's bring in joe weisenthal and ed ludlow. walk us through the biggest highs in the biggest comebacks. ed: the biggest volatility was bitcoin. a drop in excess of 30%, rebound in excess of 30%. the cult of celebrity and big-name investors coming out with every tweet and every public appearance, there seemed to be confidence coming back in two bitcoin. other cryptocurrencies that were also declining did not experience the same rebounds that bitcoin did. -- there seemed to be confidence coming back into bitcoin. we had this pretty heavy drop at the equity market open and then a drop laid on the day closely following the fed minutes. in other words, as your guests

pointed out in that sequence, a lot going on in terms of commentary. some of it elon musk, but also china, the central bank saying institutions should not allow cryptocurrencies as legitimate forms of payment. emily: right. they reiterated a comment made previously, so nothing necessarily new. if there was one reason you could pinpoint, is there one or just a lot? joe: i think a lot of people should always be skeptical when it comes to crypto of telling to neat a story. first of all, this is crypto, so we have times like this all the time. these drawdowns are really large, and this was a large one by crypto standards, but it was hardly unprecedented for even one that will stand out that much in history. you see that curve? the curve is kind of week. i think it has lost momentum.

it lost momentum in february and has been going sideways. you saw the rise of all coins -- alt coins. a lot of adrenaline junkies looking for their fix on the further reaches of the crypto spectrum. you saw so much hype over the last few days. i was transfixed by dave portnoy saying he was going to get into a coin, and he wants to get in on the ground floor. when that is the mentality, eventually, you are going to have volatility. there's people who have made real, life-changing money on dogecoin. and eventually, you are like maybe i should sell a bit, and there's days like today. and -- ed: tesla's stock under

real pressure, its lowest since november. sales in china really slow down in april, but there's clearly some attention on tesla's bitcoin hoarding. elon musk took to twitter -- the meme stock twitter online chat for holding on to a particular stock, in this case cryptocurrency. emily: i have to ask -- you called him this shoeshine kid. i would love for you to elaborate. joe: suddenly something happens on wall street, and when this

shoeshine kid is talking about it, that's the time to get out. you have the richest man in the entire world at the time sort of rat his identity in bitcoin back in february -- wrap his identity in bitcoin back in february. in wall street, every day, some new bank is offering some new product to offer bitcoin exposure. it may be in the crypto world, that is the proverbial shoeshine boy. emily: i want to continue this conversation. thanks for your input. i want to bring in capital island ventures' founding partner, a crypto data provider. what is your read on this? are we just going to be subjected to this volatility for the long term, or is this a result of some comments by elon musk and the people's bank of china coming together at once and having this sort of explosive impact? nick: the volatility seems to be

an endemic feature of the asset class, frankly. when you look at it coin, it has a cap supply, so you don't have this moderation of supply and demand, so you are always going to get that volatility -- when you look at it coin, it has a capped supply -- when you look at bitcoin. people are protecting the trend out into the future, and that is reflected in the price today, and those expectations are extremely volatile and mercurial, so we do not have stable models to value the bulk of these crypto assets, so the volatility is a feature of that rapid reevaluation of future adoption trends. with elon, it has certainly been a wild ride. ostensibly, he has been on two bitcoin and of course, coming out and saying things that are very critical, so i think people

are really spooked by that, but part of the reason the market has the jitters but certainly not the sole reason. joe: a certain aspect of crypto, the volatility is here to stay, does not seem to be going away. another phenomenon seems to be as the price goes up, the industry starts creating and shielding various alt coins -- ethereum, dogecoin. how much of an effect does that have in your view of stamping rice momentum overall? nick -- stamping price momentum overall? nick: that's a very astute point. i think we see competitors the same way you can imagine nicola

stock taking some of the demand for tesla. definitely one of the ironies, but of course, bitcoin supply is perfectly inelastic, but the supply of bitcoin alternatives is not. i expect that to always be the case. in this stage of the economic cycle, there will always be entrepreneurs catering -- creating alternatives to cater to that market. i think that has always been the case in the industry, and i don't see it stopping any time soon. emily: what factors do you expect to see driving either the next rally for the next slide? we are still waiting for the biden administration to make decisions about how it will regulate cryptocurrency, and we don't know what direction they will take. nick: that's right.

i think the administrative, regulatory factors are really key here and potentially underappreciated in the market. i'm hearing from the comptroller's office on currency that they are revisiting some of the favorable rulings with regards to banks being able to come to crypto. it's possible we get a new comptroller that is much more hostile to the industry and unwinds some of these favorable moves. i think the sec has the potential to be much more activist and much more direct in its engagement. a lot crypto folks hope and expect the sec will be accommodating, but there's no guarantee that will be the case. certainly, there's as many tokens as there were in 2017, as many new issuances of some potentially questionable tokens, frankly. i expect the sec to have a view on that, so those regulatory moves might well pose headw.

at the end of the day, i think the key mega turn is the macroeconomic environment, if inflation is just transitory or if it is more sustained, if we get things like yield curve control and monetary repression here. joe: is that a clock showing the russian time zone? nic: that is a deep inside joke showing the price of bitcoin. not looking too good today. emily: you got to tell us the inside joke for those who don't get it. nic: i don't know if i had enough time -- if i have enough time. when jack dorsey went to appear before congress, he had a clock like this behind him, and a lot

of people thought it was showing russian time, but actually it was just showing the price of santosh east. emily: good to have you. coming up, we will hear from cathie wood on where she thinks the market is headed and how much higher or lower bitcoin can go. this is bloomberg. ♪

emily: when price swings lead to investor mood swings, we are talking bitcoin.

cathie wood in february predicted bitcoin would go to five hundred thousand dollars. bloomberg spoke to her earlier. cathie: i think what is happening right now is because the highly volatile part of the stock market, the innovation part of the stock market that has gone through such a correction, which has been flamed by inflation fears -- i think the correlations among volatile assets are going to one right now, including bitcoin. emily: you told dow jones it could go to $500,000. do you think that is still where it is headed? cathie: i do. we do. our crypto analysts -- we go through soul-searching times like this, and, yes, our conviction is as high. the one thing that has changed, however, is the environmental

concerns around bitcoin in particular have caused people like elon musk to pull away and say, "whoa, let me make sure i understand this." we believe even this will change because right now, the percentage of bitcoin in mind is quite substantial with renewables. we also believe and we wrote a paper in conjunction with square on this, and we are going to have a conference about it in july -- we believe that bitcoin mining integrated into the distributed grid -- and by that, i mean solar roofs, power walls in homes, utilities, merchant power producers starting to include bitcoin mining in the

ecosystem -- why would they do that? they would do it because renewables are intermittent power sources, right? weather -- is it sunny or not? wind -- is it windy or not? bitcoin mining could take off if there's excess energy from solar being loaded into power walls. it could be offloaded into bitcoin mining, and the whole ecosystem, therefore, becomes much more economic. if this happens, we believe that the adoption of solar is going to accelerate dramatically because there's another profit center associated with it -- bitcoin mining. carol: what happens in the meantime? do you think we go much lower from here? cathie: you never know how low is low when a market gets emotional. a lot of traders see bitcoin dropping below the 200-day moving average, so traders, once

that happens, they just dump. some just dump and run. i think we are in a capitulation phase. we were looking at of the indicators this morning. they are all suggesting that we are in the capitulation phase, which is a really great time to buy, no matter what the asset is. the capitulation phase is buy. it's on sale. am i saying $35,000 is the low? there are a lot of speculators in bitcoin. if they are running for the hills just because bitcoin has broken through a moving average that is important to them, it could continue, but all of our indicators are saying this is capitulation right now. carol: do you have a low point on your model for bitcoin? cathie: no, these metrics are more a measure -- are we in a

truly capitulation days, and it is very detailed, being used as on chain analysis. this is the only asset where you can see exactly who is doing what, when, why, and how, and all of those metrics are saying this is a capitulation. this is as bad as it got during the coronavirus crisis. emily: arc investment management ceo cathie wood with our own carol massar. apple entering the week with a high-stakes antitrust trial and executives are taking the stand. as we take a break, we take a look at amc shares -- anz shares . when their new ceo took over, they have rocketed up to hundred percent, making a remarkable tech story.

everything from her leadership style to competition in the semiconductor industry and how she is working to correct the global industry shortage. that is at the bottom of the hour. this is bloomberg. ♪

emily: the ongoing historic antitrust trial between apple and epic games, where epic is accusing apple of holding a monopoly when it comes to the app store. we are all expecting -- we're all waiting for tim cook, who is expected to testify on friday. our mark gurman has been following the trial every step of the way and will schiller on the stand yesterday.

what have apple's top executives accomplished this week? mark: phil schiller did an excellent job with the questioning. he pretty much had a retort for everything epic through at him, and the most notable thing yesterday was epic changed its strategy a little bit. they were not going after the app store specifically. they were basically filling in the judge on all the other antitrust issues that have been facing apple over the years. they brought of the trial of the early 2010's where apple was found to be price-fixing with publishers and amazon and had to pay a nearly $500 million fine and have a government issued monitor on the payroll for nearly two years or so. they also brought of the fact that i message -- imessage is in part ios only to lock people into the iphone.

they are basically setting up today with the precursor, putting in the judge's mind that apple does a lot of things that hurt consumers. emily: meantime, apple's top software executive taking the stand today, dropping a bomb about security when it comes to the iphone. he said that android has a well-known malware problem and he said allowing apps from other stores would create a very bad situation for customers and a huge decrease in safety. talk to us about what he said. mark: he essentially did something very rare for apple -- he took the mac and threw it under the bus. he said security is basically on par with android and the ability to install apps from third-party

source, which creates problems for the mac with potential viruses. basically, the iphone and ipad would have the same issues as android. he's basically daring the judge to hurt the security of apple users. they are trying to put the judge in a position to be scared of issuing a ruling that would hurt iphone users. imagine being that judge. emily: we are all waiting for tim cook to testify. that is expected to happen on today. i know you have been covering this every step of the way. up next, my sit down with a md ceo lisa suit -- amd ceo lisa su on "studio 1.0."

♪

look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds.

♪ >> the race to design the most powerful computer processors is one of the most intense sports in the tech industry. when lisa su took over amd in 2014, she not only became the first ceo of a major semi conductor company, she also kicked off one of the biggest transformations in industry history turning a lagging maker of chips into a juggernaut known for the superior performance of its products. shares are up more than 2000%

under her tenure. amd chips are now embedded in everything from xbox to playstation. and macintosh to massive data center machinery. semiconductors, the brains or the guts of all of our devices never got that much glory until the start of the covid-19 pandemic when demand for chips shot up so much so fast that it triggered an unprecedented global shortage. joining me now to talk about when the chip shortage will end, how she turned the company around and what is next for amd on this edition of bloomberg studio 1.0. emily: you called 2020 an inflection point for amd given the robust demand for everything from pcs to consoles to data centers and laptops. if 20/20 was an inflection point, what was 2021?

lisa: that's a great question. if you look at the pace of technology, we have been developing these technologies for five years. we made these decisions on this is where computer -- computing is going and 2020 was a phenomenal year. it was an inflection point for our business. as we come to 2021, it is a megacycle for computing. if you had asked me a couple of years ago would we have this kind of demand whether you're talking about pcs or gaming products or the data center, i would have been surprised. it is a megacycle for computers, and on top of that we have extremely strong product portfolio and so on. it is a megacycle, that's what arbuckle 2021.

-- megacycle. emily: amd chips are at the heart of many products. what are the products that you have targeted to meet the new demand? lisa: our focus is high-performance computing. when you think about computing and processors, they are the brains of all of the things that we use on a daily basis. for our products, it is around high-performance pcs. when you're thinking about your next-generation notebook and all of the productivity you want, i hope you are thinking about amd. it's the next generation game consoles. i think microsoft and sony with xbox, playstation have just put out phenomenal products that are extremely exciting and we are proud to be a part of that. then, it's about your data center and what is

behind-the-scenes. all the digital transformation that companies are doing, the fact that we all pivoted to work from home and running large-scale businesses from our study. that requires incredible computing horsepower on the backend. those are the types of products that we are in. emily: how far in advance you plan your products? how do you know you will have with the world once when you are ready? lisa: that's the most difficult and the most fun thing. we have to think three to five years in advance and these are the thing things that are the most important and it's about providing more performance in smaller form factors. it's about having very extended battery life. it's about providing new experiences. it's about enabling businesses to do something they couldn't do before and we do plan years in advance.

we can turn on a dime. we have been very actively working with our customers, working with our partners on what their top priorities are and that turning on a dime has proven to be a very useful capability. emily: meantime, the chip shortage, i have been talking to a lot of ceos and it seems like it has been a disaster. you have demand outstripping supply by more than 30%. what are you seeing? lisa: i don't think i would use the word disaster. it is a cycle. semiconductors, i have been in this industry for 25 years. semiconductors to go through cycles. the cycles where there are some times supply is greater than demand and there sometimes when demand is much greater than supply. this particular cycle is special

because what we are seeing is the incredible demand for all things that require chips is having all markets wanting more supply. yes, it is a lot to manage, but i have to tell you this industry is also really good at managing these things. it does take a while for the supply and demand imbalance to balance itself out. we are very much working together as an industry. i am amazed at what people are able to do when they put their minds to it. emily: once the shortage ends, is there going to be too much supply? will supply outpaced demand? lisa: as cycles go, you do go through ups and downs. it's also the strength of the product portfolio, the markets that we are addressing. at amd, we have chosen markets

we think are very resilient. everyone is going to need more computing. whether it's this year, 2022, 2023. we think computing is one of those trends that you're going to need more of. we have been investing in those types of areas. my view of the world is that it is important to have the right products, to be in the right markets, then executing well along the way. emily: amd is one of several companies that is sent a letter to president biden asking him to include more funding for chip manufacturing and research in the united states. adding that it is competition with china, taiwan at stake. what do you think the u.s. needs to do? lisa: the u.s. is the leader in semi conductors. we want to stay the leader. many of the countries around the world are investing in the same. there is also a discussion about

manufacturing. ensuring that there is a good balance of manufacturing across the globe as well. all of those raise the level of importance of semi conductors. it is great that the administration is choosing this industry is one of the priorities to ensure that the u.s. maintains its leadership in semiconductors. emily: amd chose taiwan semi conductor to make its chips. is there something about taiwan? what is the reason for the prolific industry there and producing so much top chip talent? is there something about the island that makes it so fruitful? lisa: we are very happy with our partnership with taiwan semiconductor. they are the best in the industry. when we think about taking our design capability, which we think is the top of the industry and combining it with their manufacturing expertise that is

best in the industry, that is how you get the best products. we are happy with that. the key is investing in that long-term nature and ensuring that you have the right capabilities for this industry. it does take many double-digit billions to keep pushing the leading edge. emily: here in the u.s., you have many trillion dollar companies apple, amazon, google wringing their chip designs in house. -- bringing their chip designs in-house. where does that leave amd? does that feel like a competitive threat? lisa: i look at it slightly differently. the importance of competing -- computing and all products is going up and up. there will always be some specialization and some of the

companies you mentioned certainly amazon and apple are very strong companies. they will do some specialization of their chips. that being the case, we just started with 2021 we are in up mega cycle of computing. our role is to push the envelope on computing and continue to raise the performance into the capabilities for all applications. emily: then there is intel and nvidia with a pool of resources. the new ceo is coming out strong saying that intel is back. when the competition has a lot of money and somewhat sad momentum. how do you view that competition? lisa: it has always been very competitive. i don't remember a time in this industry when it hasn't been competitive. what i will say is that i am really pleased with what we have been able to accomplish. it's fun to be able to say that

we have really driven the direction of computing in the industry. if i look at some of the things we have done over the last five years, we have really changed what people expect from high-performance. i would say it is a competitive world and we are going to be very competitive in the process. emily: nvidia is in the process of buying arm. do we see more consolidation in the industry or have we hit a tipping point? lisa: for the highest and leading edge of technology, scale is important. when you have more engineering capability, a larger supply chain, a bigger impact on your customers innovation scale is important. we are very excited right now that we are in the process of acquiring xilinx.

it is number one in the fpga get. -- market. as we think of bringing that together with amd's technology, we will be able to offer more capability and more overall system design for our customers. i do think consolidation is one of the trends in the industry. emily: does that mean amd will continue to look for deals? lisa: we are on track to do our acquisition by the end of this year. we are always looking at how do we bring the best technologies together under the amd umbrella. emily: did you ever think you would be a ceo let alone a ceo of one of the biggest chip companies in the world? lisa: being the ceo of a semi conductor company and the ceo of amd is a dream job. ♪

emily: you are an engineer by training and an immigrant. toss more about your up -- tell us more about your upbringing. lisa: i was born in taiwan and my parents emigrated to the u.s.. my dad was going to graduate school here so i grew up in new york. pretty normal. normal new york upbringing. my parents wanted me to focus on hard stuff, so math and science is where i spent a lot of time. i would say i drifted into engineering as something that was real and you could touch it and feel it and do something with it. that was how i grew up. emily: i want to talk about how the drifting happened. i understand your father was a

statistician. your mom ran her own business. you played around with your brothers toys i believe at a young age. how did you get there? lisa: i was really curious as a kid. my brother had a remote control car and it stopped working. i wanted to know why. i opened it up and said this wire is loose. it was really amazing. it was amazing to see that you could make something work and understand how you could put these things together. i went to the bronx high school of science which was very science focused. i learned about computers in high school. those are some of the steps. emily: you worked your way through the engineering and technical departments of many companies.

did you ever think you were going to be a ceo let alone a ceo of one of the biggest chip companies in the world? lisa: i wouldn't say that i thought about that. the way i thought about things was always i wanted to make a larger impact. i spent a lot of years at ibm and it was the first time that i built products that you could go by -- purchase at best buy. i thought that was pretty interesting. with each opportunity, i got to run larger and larger teams. i would say being a ceo of a semi conductor company and being ceo of amd really is a dream job. it's something that you don't quite say that's what you want to be when you grow up, when you grow up, it's a nice thing to be. emily: it was so interesting

going back to look at the history of amd because you started at the company when analysts were worried that the company was going to run out of money after several straight years of losing money, i believe shares at the end of 2015 were trading at two dollars. now they are trading at 30 times that. what brought you to take on that challenge back and 2014? >> r-star from the notion that what we do is very hard. there are very few companies in the world that can do it. the opportunity to lead amd and at the time, you're right people were saying can they bring -- will they be able to get this together? i knew it in my heart. i have seen it over and over. if you have the right strategy and right people and the right focus and execution, you will be able to do something amazing. emily: what do you think is responsible strategically for amd's comeback? lisa: we made of -- a couple of

very good decisions. our strategy was to focus on something we were good at. that means not to focus on something we were good at. then, we focused on the foundation. i know it sounds simple, but it does take five years to really build foundation step-by-step of how you build products and making sure that we are really pushing the leading edge. on top of that, we built great relationships with our customers. we started with the notion of what problem are you trying to solve and we worked on that together. we put a great team, right strategy, strong execution and my mantra is we do what were saber going to do. -- we do what we say we are going to do. emily: now that wall street is happy, does that mean that you can relax a little or does that create even more pressure to be

excellent? lisa: without a doubt, it does not get easier.

emily: now that wall street is happy, does that mean you can relax a little or does that create even more pressure to be excellent? lisa: without a doubt, it does not get easier. [laughter] i say it doesn't get easier because we are in a very competitive market. i think we have big ambitions about what we want to be able to do. it's always about what's next on the horizon. what does get a little bit easier is just a track record. i would say three or four years ago when i said something was going to happen, people were

like really? now, people sort of understand. emily: amd also has an award for a 5% board to recognize excellence when an employee makes a product or delivers 5% better. how do you balance the incremental with the five-year plan? >> it is called the next 5%. the way i think about it is we are very ambitious in what we want to do over the next five years. i encourage people to learn from every interaction. that's what the next 5% is all about. what have we learned? what can we do better the next time? how do we up our game? the world is a very competitive place and we want to make sure we are always upping our game. emily: there's no question we are at a age of reckoning for

women and you are so unique in this sea of white men in this industry. what is your advice to people out there who look at you and think how did she achieve what seems to be impossible is to mark? lisa: it is a time when we want to recognize great people and have them good opportunities. what was really important for me in my career was that i was given opportunities and frankly, i learned through each one of those opportunities. what i would say for women is who are aspiring to do big things, the ambitious in what you think about. i have a saying that a mentor once told me about running toward problems. take on the big hard task. even if you don't have to do it, you're going to learn a tremendous amount in the process and you went to surprise

yourself about how much you can do. what we have to do as the rest of the ecosystem is provide those opportunities and provide people an opportunity to learn and make a few mistakes along the way but really develop as they go through their careers. emily: do you think mentorship is important in your own next chapter of your career? lisa: i do. i am a product of people who helped me along the way. i really recognize that. i was given opportunities that other people didn't have. i feel like i can do the same. in particular, for women in engineering, that is a particular passion of mine because frank would come up there are not enough. -- frank lee, there are not enough. if i can provide a little bit of confidence and help to some of

the top engineering talent of the future, that is something that i should do and i love doing. emily: the chip industry has been defined for so long by this idea that you can double the amount of computing crammed onto a single chip every couple of years. are we at the point where moore's law could be ending? can chips get smaller than they are? >> i do believe that moore's law is significantly changing. that's the way we should say it. it's changing because the traditional ways that we have shrunk chips and put more transistors on a chip, those things are getting harder. you're reaching physical limits. there are other things that we are doing to keep that productivity increased. one of the things that we pioneered was the idea of giblets. that means we can break up a big

chip into little chips and we can package them together and put them on top of each other and do all kinds of things that really brings more capability into the technology well. moore's law is changing. what that means is other things like packaging and using different techniques will be more important. one of the things that i truly believe is that the innovation is not going to stop at all. there are so many ideas for how you keep the productivity increases going on that will continue to drive real capability, just in a different way. emily: what about what is next for you? how long do you see yourself running amd? lisa: i'm having so much fun that there's no better place to be. if you thinking about really having the opportunity to

interact with so many smart people in this type of ecosystem and chips are fun now. everybody is talking about chips. this is a great place to be. emily: lisa su, ceo of amd. thank you so much for joining us. ♪

(announcer) back pain hurts. you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're stretching your lower back on there. there is no better feeling.

(announcer) do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me. it works, 100%. (announcer) find out more at aerotrainer.com. that's aerotrainer.com. ♪ >> good morning and welcome to "daybreak: australia." bitcoins