let's start the shawn donnan out and bring in bloomberg intelligence senior intelligence analyst mandeep singh and anurag rana. there is going to be a lot of focus on the highest-rated member of the s&p, microsoft. what are the expectations going into the earnings report? >> just talking about microsoft, we are looking at an acceleration in revenue growth rate, cloud growth rate. i think it is going to be a fun quarter for microsoft because not only do they have to like about how much contribution from ai was there, but also they have to give guidance that is going to be much faster than what the street is. expectations are very high for microsoft. we do expect overall revenue growth to improve this year. having said that, this is one of the quarters where i have seen expectations high for the company. romaine: expectations are coming in high, and i'm curious, mandeep, when we talk about microsoft's peers, particularly alphabet, obviously not the same business, but do you think we're going to get help in this market from alphabet this week? mandeep: the big number for alphabet is there cloud b

here with more context is mandeep singh. look at the biden administration's move, how wide of a crackdown does this signal? mandeep: so far, last year, the focus was on machines for the advanced notes. this is more for the the wii machines. the focus shifted to the shipping to china. huawei showcased a ship from the local foundry. all those ships were manufactured using the asml machine. i feel like there is a signal. the focus would be not just on advanced notes but also other things as well as helping china's manufacturing capacity when it comes to semiconductors. guy: if asml does not sell to china, does this easily go somewhere else? does this cause a problem for asml? mandeep: look at the numbers from last year. even though they dominate the space, there are other types of machines they ship. the backbone is indicative of that demand. they could ship to other places trying to set up fabs for other chip manufacturing, whether it is advanced notes or other trailing notes. i do think the revenue impact will be muted because

mandeep singh joins us now. it has been a struggle for about the ev's.heard the news from hurts, we heard from ford if you does ago -- a few days ago. to visit a struggle from intel or is it different? mandeep: it is all about expectations. what netflix did was a case of low expectations and then pulling the levers. in the case of tesla, i would argue expectations have come down but clearly a lot is pinned on hope around ai and what they can do around robotaxis. they have not given any concrete today to points on how they plan to monetize that business except to charge around $12,000 you have to pay. that is also a low install base of consumers, the tesla users who have updated to that. that is where topline growth continues to be higher than the other oems. the evaluation depends on the software. lisa: elon musk came out with a tweet saying tesla is an ai company with a car operation pinned on. how much is that going to be borne out in earnings? if they disappoint with car deliveries they can still do well if they explain how they are an artificial inte

mandeep singh, bloomberg's senior technology editor.grade or anything. looking at futures now indicating a higher open in about an hour and a half. how am i going to find a doctor when i'm hallucinating? what do you think, fever monster? what about zocdoc? zocdoc? dr. castell has a great bedside manner. so many options. but dr. xichun will take your sketchy insurance. xi-chun! xi-chun, xi-chun, xi-chun! thanks, bro! you've got more options than you know. book now. get over here kids. you've got more options time for today's lesson. wow. -whoa. what are those? these are humans. they rely on something called the internet to survive. huh, powers out. [ gasp ] are they gonna to die? worse, they are gonna get bored. [ gasp ] wait look! they figured out a way to keep the internet on. yeah! -nature finds a way. [ grunt ] stay connected when the power goes out, with storm ready wifi from xfinity. and see migration in theaters now. >> as the consumer demand stayed strong, you would start to see more normal cadence two things. >> with thanks earn

here to help break it down is mandeep singh of bloomberg intelligence preview made the point sentimentound alphabet is so bad right now even though shares are close to their all-time highs. what gives? >> clearly everyone thinks search will get impacted by what we've seen with large language models. there's a good reason why search can be more expensive to run. think of the cost to run these models and what impact that could have on a company like alphabet that does 10 billion searches a day. 3 trillion searches in a year. they have a scale and if they have to change the model around doing search differently then it is a big trip but i still take -- think they have caught up in terms of developing a large language model. the release of gemini was a big deal. they have other pockets within alphabet that should be a strong quarter for them. cloud saw deceleration last time around. if they're able to deploy gemini well that should get into the cloud numbers. katie: you think about one of the storylines of last year that microsoft's headstart in ai investments would help chip away from goo

jonathan: mandeep singh joins us. clays on apple this morning? mandeep: last year but we saw among the big tech, there were companies that had clear exposure to generative ai, namely microsoft and amazon and google. google has both ads and cloud. apple was the one company where everyone kept doubting their product refresh cycle and rightfully so. still now you do not get the conviction that the model can run on a phone. right now, models are running on data centers. we are running through a massive refresh cycle and cloud companies are the major beneficiaries of that. we still don't know when that will happen but it will happen. it is a matter of time. the technology, the copilot will run on your phones, and right now there is no alternative device except for your apple ecosystem whether your phones or your pcs. jonathan: do you suspect the winters of 2023 will be the ultimate winners? any reason to believe that is not the case? mandeep: yes are so early in the cycle and these are multiyear trends and we know from the

mandeep singh joins us around the table. let's go through these numbers together. terrible. strongest revenue growth of microsoft since 2022. cloud services sales gaining. is this the bar being too high? mandeep: they told us 6% revenue from generative ai workloads. that was 3% last quarter so what that means is 2 billion to 4 billion in a quarter. if you try to model where those gpu's are going and that to inferencing. training those right now. microsoft has a stack where they are actually deploying this and this is inferencing revenue. falling short of expectations, that did drive upside in that productivity segment. this is a reflection. the trend will continue. >> how helpful is this? >> it did not translate into revenue because people are still trying to figure out how to integrate it in the workflow. this can help you do longform searches. it is still new but where they are finding traction is companies looking to use their own data within enterprise and building agents, that's what they mean by inferencing. the openai microsoft stack is resonating in the mar