Amazon Cutting 16,000 Jobs, ASML Reports Record Bookings | Bloomberg Tech 1/28/2026

Bloomberg Technology - Transcript Summary

Key Concepts:

• Amazon Job Cuts: Amazon is cutting 16,000 corporate jobs to streamline operations and increase ownership.
• ASML & Semiconductor Equipment: ASML reported record bookings fueled by AI demand but is also cutting 1,700 roles. Concerns exist about potential slowdown in growth beyond 2026.
• AI Investment & SoftBank: SoftBank is considering a $30 billion investment in OpenAI, reflecting continued bullishness on AI.
• Texas Instruments & Economic Indicators: Texas Instruments’ strong forecast signals a potential recovery in the broader economy, particularly in industrial and automotive sectors.
• Microsoft & AI Capacity: Investors are focused on Microsoft’s ability to scale AI infrastructure, particularly Azure, to meet OpenAI’s demand.
• Tesla & Meta Earnings: Upcoming earnings reports from Tesla and Meta are being closely watched, with focus on AI investments and future growth potential.
• Waabi & Autonomous Vehicles: Waabi, an autonomous vehicle startup, secured funding and is expanding into the robotaxi market with a partnership with Uber.

1. Market Overview & Amazon’s Restructuring

The S&P 500 briefly surpassed 5,000 points, driven by AI momentum, but nervousness surrounding the Federal Reserve meeting and geopolitical tensions (Iran) are present. Amazon is cutting 16,000 corporate roles, primarily in middle management, to streamline operations. The stock is down 0.7% in the session. This is part of a larger trend of efficiency improvements, not solely driven by AI considerations. Total corporate cuts now reach 30,000, a significant number in Amazon’s history. Amazon’s statement regarding future cuts was described as “corporate gobbledygook” – reassuring but non-committal.

2. ASML’s Performance & AI Demand

ASML, a Dutch semiconductor equipment maker, reported record bookings driven by AI demand, but its stock is down 2.5% following the earnings call. The company plans to cut 1,700 roles to streamline the organization. CEO Christophe Fouquet stated customers believe AI demand is sustainable and are aggressively building capacity. Pierre Ferragu (New Street Research) noted that ASML is concerned about 2026 being a peak year for spending, as equipment orders are lagging appliance growth. He believes the market is cautious, despite Nvidia’s (Jensen Huang) more optimistic outlook. Ferragu suggests the current growth is an inflection point, but will eventually slow. He emphasized that 2026 is a big spending year, and the market is questioning if it’s time to prepare for a slowdown.

3. AI Investment Landscape & SoftBank’s OpenAI Bet

SoftBank is in talks to invest up to $30 billion more into OpenAI, adding to its existing substantial investment. This signals continued confidence in the AI space. Lynn Doan reported that OpenAI is also in discussions with Middle Eastern investors. The total fundraising target is estimated between $750 billion and $850 billion, with a potential valuation in the same range. SoftBank’s recent sale of Nvidia shares was framed as a move to raise capital for further AI investments.

4. Texas Instruments as an Economic Indicator

Texas Instruments’ surprisingly robust first-quarter forecast is being viewed as a positive signal for the broader economy. The company’s earnings indicate customers have worked through inventory and are returning to orders for analog and industrial chips. This suggests a potential bottoming out of the industrial cycle. Ian King (Bloomberg) highlighted that TI’s broad customer base (tens of thousands) makes it a reliable bellwether for economic trends. While AI is a growing part of TI’s business, industrial and automotive remain the core drivers.

5. Microsoft, Azure, and AI Capacity

Investors are closely watching Microsoft’s earnings, particularly regarding the impact of OpenAI on Azure, its cloud computing platform. Wolfe Research analysts believe OpenAI revenue will contribute incrementally to Azure, potentially providing upside. The key concern is Microsoft’s capacity to meet the relentless demand from OpenAI. Alex Zukin highlighted the importance of data center expansion (Wisconsin, Atlanta) and partnerships (Neo-Cloud) to unlock additional capacity (estimated at $20 billion). The shift from Copilot to a more integrated “coworker” AI experience is a key focus.

6. Autonomous Vehicle Developments – Waabi & Uber

Autonomous vehicle startup Waabi secured a Series C funding round with a milestone-based investment from Uber ($250 million). Waabi’s CEO, Raquel Urtasun, emphasized the company’s unique ability to develop technology for both robotaxis and trucks. The partnership with Uber signals a move into the robotaxi market. Urtasun noted the U.S. is ahead of Canada in terms of regulatory framework for autonomous vehicles. Waabi is attracting top talent due to the opportunity to work on cutting-edge physical AI.

7. Tesla & Meta Earnings Preview

Tesla’s earnings are being approached with mixed signals. While price targets are rising, concerns remain about sales (down 15-16%) and overall earnings potential. Investors are particularly focused on updates regarding Tesla’s vision system and the rollout of the Cybertruck and robotaxi subscription service. Meta’s earnings are also under scrutiny, with investors focused on capital expenditure plans (potentially exceeding $111 billion) and the return on investment in AI. The ability to demonstrate that AI is improving ad performance will be crucial.

8. Trade Tensions & US-South Korea Relations

Trade tensions between the U.S. and South Korea are rising, particularly regarding investments in the U.S. by South Korean chipmakers. The U.S. is threatening to increase tariffs (up to 25%) if South Korea doesn’t meet its investment commitments ($350 billion).

Notable Quotes:

• Christophe Fouquet (ASML CEO): “We see our customers start to believe that our demand is a sustainable, and therefore they are moved into building capacity, and they are moving very aggressively.”
• Pierre Ferragu (New Street Research): “ASML is basically concerned that 2026 is going to be a great year.”
• Spencer Soper (Bloomberg): “30,000 is a big amount, but also if you read her statement very carefully, it's really corporate gobbledygook trying to strengthen that tone between reassuring employees but also not making any promises.”
• Raquel Urtasun (Waabi CEO): “What makes us unique is the fact that we have next-generation technology and a physical platform that for the first time in the industry will be able to drive both factors, robotaxis as well as trucks.”

Data & Statistics:

• S&P 500: Briefly surpassed 7,000 points.
• Amazon Job Cuts: 16,000 additional corporate roles, bringing total cuts to 30,000.
• ASML Bookings: Record bookings fueled by AI demand.
• Texas Instruments Forecast: Surprising robust forecast for the first quarter.
• SoftBank Potential Investment: Up to $30 billion in OpenAI.
• Microsoft Capital Expenditure: Potential expenditure exceeding $111 billion.
• Waabi Funding: $250 million Series C with milestone-based investment from Uber.

Conclusion:

The technology sector is currently navigating a complex landscape of AI-driven growth, economic uncertainty, and geopolitical tensions. While AI remains a dominant theme, investors are increasingly focused on profitability, scalability, and the ability of companies to translate AI investments into tangible revenue. Earnings reports from key players like Amazon, ASML, Microsoft, Tesla, and Meta will be crucial in shaping market sentiment and determining the future trajectory of the industry. The interplay between technological innovation, macroeconomic factors, and regulatory developments will continue to define the tech landscape in the coming months.