The Bloomberg Tech segment highlights ASML’s strong bookings driven by AI demand despite geopolitical challenges, alongside Apple’s strategic manufacturing diversification and incremental product updates. It also covers advancements in quantum computing with D-Wave, the booming AI chip market led by NVIDIA, and cautious enterprise AI adoption exemplified by Salesforce’s efforts to demonstrate practical business value.
The Bloomberg Tech segment opens with a focus on ASML, the European maker of extreme ultraviolet (EUV) lithography machines crucial for advanced chip manufacturing. Despite geopolitical tensions and restrictions on direct sales to China, ASML reports strong bookings, particularly from major Asian chipmakers like Samsung and TSMC. The company has secured sufficient rare earth materials to mitigate supply concerns, and analysts remain bullish, projecting a price target above 1000 euros. However, while AI-driven demand is growing, it has yet to fully translate into firm orders, with lead times for EUV tools extending up to 12 months, indicating that significant growth is expected beyond 2026.
Apple has updated its iPad Pro and Vision Pro headset with in-house chips, continuing its trend of reducing reliance on external suppliers. The product refreshes are relatively minor, mostly involving internal processor upgrades rather than design overhauls. Notably, Apple is diversifying its manufacturing footprint by increasing production in Vietnam alongside China, reflecting a strategic balance between investment in China and supply chain diversification. This approach aims to mitigate geopolitical risks while maintaining strong manufacturing capabilities ahead of the holiday season.
The discussion then shifts to quantum computing, highlighting D-Wave’s deployment of its Advantage2 quantum computer in Italy as part of a broader European initiative. D-Wave’s annealing quantum computer boasts over 4,400 qubits, significantly more than gate-model competitors, and has demonstrated the ability to solve complex material science problems far faster than classical supercomputers. The company is generating real revenue through sales to research institutions and commercial applications, such as optimizing police vehicle deployment in the UK, signaling growing practical adoption of quantum technology.
The AI compute demand narrative continues with a look at major players like NVIDIA and AMD. NVIDIA is seen as the dominant market leader with a potential market capitalization approaching $8 trillion, driven by expanding AI chip demand beyond traditional hyperscalers. Despite some skepticism about the sustainability of this growth, most analysts and portfolio managers remain optimistic. Large-scale data center projects, including Microsoft’s deal with NSCALE and investments in energy-efficient facilities, underscore the massive infrastructure buildout supporting AI workloads, though concerns about geopolitical risks and rare earth supply chains persist.
Finally, the segment covers enterprise AI adoption challenges, focusing on Salesforce’s Dreamforce conference and its AI platform, Agentforce. While Salesforce emphasizes significant cost savings and ongoing innovation, adoption among customers remains cautious, with many companies still in early experimentation phases. Experts highlight the need for vendors to guide customers through incremental AI integration and to demonstrate tangible business value rather than just technological potential. This cautious optimism reflects broader market dynamics where AI’s transformative promise is clear, but widespread productivity gains and organizational changes are still unfolding.