Satya Nadella – Microsoft’s AGI Plan & Quantum Breakthrough

Bullish:

• $HYPERSCALERS - Hyperscalers are expected to benefit significantly from the increasing demand for AI compute power, as intelligence is closely tied to computational capacity.

  • “I think the the at least in my current thing is there are two places where I can say with some confidence. One is the hyperscalers will do well. Right? Because the fundamental thing is if you sort of go back to even how Sam and others describe it, I mean, like, if, you know, intelligence is log of compute Mhmm. Whoever can do lots of compute Right. Is a big winner.”

    Satya·5:06
• $MSFT - Microsoft's Azure cloud platform is well-positioned to benefit from the AI compute trend, with potential for increased consumption and revenue opportunities similar to the cloud adoption pattern.

  • “So our hyperscale business, Azure business, I think that's like other hyperscalers, I think that's a big thing.”

    Satya·5:06

  • “We used to think, Oh, my God. We've sold all the servers in the client server era, except once we sort of started putting, servers in the cloud. Suddenly people started consuming more, because they could buy it cheaper and buy, it was elastic, and they could buy it as a meter versus a license.”

    Satya·49:23
• $AIINFRA - AI infrastructure beyond GPUs, including storage and compute, is crucial for scaling AI workloads, presenting growth opportunities in the broader AI ecosystem.

  • “And the other interesting thing is if you look at underneath even any AI workload, like take chat GPT. It's not like everybody's excited about what's happening on the GPU side. It's great. But it's like the ratio, like, in fact, I think of my fleet even as a ratio of the AI accelerator to storage to compute. And at scale, you got to grow it.”

    Satya·5:06
• $GAMING - AI-generated gaming content shows promise, with Microsoft planning to use AI models to generate and enhance a catalog of games, indicating growth potential in the AI-gaming intersection.

  • “And so they were, able to work with one of our game studios, and this is the other publication in Nature. And the cool thing is what I'm excited about is bringing and so we're gonna have a catalog of games, soon that we will start sort of using these models, or we're gonna train these models to generate, and then start playing them.”

    Satya·44:30
• $QUANTUM - Significant breakthroughs in quantum computing, including fabrication and physics advancements, suggest a promising future for the technology, with potential for accelerated development once initial quantum computers are operational.

  • “We've obviously been working on this for thirty years. I'm glad we now have, the fabrication, the physics breakthrough and the fabrication breakthrough. I mean, this is, I mean, I wish we had a quantum computer because, by the way, the first thing the quantum computer will allow us to do is build quantum computers because it's going to be so much easier to simulate, atom by atom construction of these new quantum gates, essentially.”

    Satya·35:49

Bearish:

• $SAAS - Traditional SaaS applications may face challenges as AI advancements lead to fundamental changes in business logic, potentially shifting towards an 'agentic tier'.

  • “I do think the SaaS applications that exist today, right, these CRUD applications, are gonna fundamentally be changed because the business logic will go more into this agentic tier.”

    Satya·1:02:31