Memory Prices Hit Cisco, Apple Faces Siri Snags | Bloomberg Tech 2/12/2026

Global markets are grappling with the multifaceted impact of artificial intelligence, as memory chip price hikes challenge tech giants like Cisco, Apple faces significant delays in its much-anticipated Siri AI revamp, and innovative AI tools send shockwaves through the wealth management sector. Meanwhile, key players in autonomous vehicles and predictive AI are making strides, underscoring both the disruptive potential and vast opportunities defining the current technological landscape as of February 12, 2026.

Key Points

• Cisco is experiencing significant margin compression, estimated at 200 basis points, due to surging memory chip prices, despite strong AI-driven sales momentum.
• Apple's major AI overhaul for Siri, intended for a spring 2026 launch, has encountered testing snags, potentially delaying key features like personal context capabilities until September or even later.
• A new AI tax planning tool from startup Altruist triggered a sudden tumble in wealth management stocks, wiping out tens to hundreds of billions in market value as the industry grapples with enhanced automation.
• Waymo, Alphabet's self-driving unit, has secured $16 billion in funding and is aggressively pursuing international expansion into London and Tokyo, while advocating for a unified federal autonomous vehicle standard in the U.S.
• AI startup Simile raised $100 million to scale its predictive AI models capable of simulating and forecasting human behavior with remarkable accuracy, including predicting 8 out of 10 questions on corporate earnings calls.

AI's Dual Impact: Cost Pressures and Industry Disruption

The burgeoning demand for artificial intelligence infrastructure is creating a paradoxical market environment, simultaneously boosting sales for some while exerting significant cost pressures on others. Cisco, a global leader in corporate and data center equipment, is feeling the pinch of escalating memory chip prices. Despite robust sales momentum driven by increasing AI workloads in the last quarter, the company is facing an estimated 200 basis point erosion in its margins. Analysts suggest Cisco may consider price increases to offset these rising costs, highlighting the critical role of hardware in the AI revolution.

The ripple effect of AI's disruptive capabilities was acutely felt in the financial sector this week. Startup Altruist introduced an AI-powered tax planning tool, which, within hours, caused significant upheaval in the wealth management industry. Stocks in wealth management firms tumbled, with estimates suggesting anywhere from tens to hundreds of billions of market capitalization were wiped out.

"To be incredibly honest, I think no one could have thought that somewhere between tens of billions of maybe a hundred billion of market cap that would be wiped out in a week. AI is very powerful. The market reaction tells me there are a lot of people voting with their dollars."— Jason Wenk, CEO of Altruist

Wenk emphasized that Altruist's tool aims to empower financial advisors, not replace them, by democratizing access to sophisticated tax planning and making advice more accessible and efficient. The company leverages a modern infrastructure and clean data to provide highly personalized analysis. This development signals a broader shift as AI agents become more autonomous, capable of executing complex tasks that traditionally required extensive human labor, prompting many incumbents to explore partnerships.

The broader software market is also wrestling with valuation shifts. The question of whether a company provides an essential "platform" or merely a "feature" is becoming crucial. Features can be easily embedded or replicated within larger platforms, leading to potential price deflation and intense competition, particularly from numerous startups. This dynamic forces software companies to prioritize adoption, even if it means sacrificing immediate economic gains.

Tech Giants Navigate AI Headwinds and Strategic Expansion

Even established tech giants are encountering hurdles in the race to integrate advanced AI. Apple's highly anticipated AI revamp of Siri, initially unveiled in June 2024 and slated for a launch next month, has reportedly hit new snags during testing. Sources indicate that key capabilities, including features allowing Siri to tap into personal data and precisely control apps, could be delayed until September or even a couple of years after their initial introduction. This setback puts Apple in a challenging position, as competitors like OpenAI, Anthropic, and Google continue to advance their own AI models at a rapid pace.

Meanwhile, the social media landscape is facing increasing scrutiny over its design practices. The head of Instagram testified in a landmark legal case in Los Angeles, which likened social media platforms to "digital casinos" designed to foster addiction among young users. The trial, expected to last eight weeks, is examining whether companies like Meta and Google knowingly engineered their platforms to hook younger demographics, leading to mental health struggles. High-profile executives, including Mark Zuckerberg and YouTube's CEO, are expected to testify as the case could set a precedent for thousands of similar lawsuits.

In the autonomous vehicle sector, Waymo, Alphabet's self-driving division, is preparing for an aggressive global expansion. The company recently secured $16 billion in funding from its parent company and outside investors, signaling strong confidence in its future. Waymo is laser-focused on scaling its operations, with plans for two major international launches in London and Tokyo, alongside expanding its presence across the United States.

"We are just laser-focused on execution. Building Waymo to be financially responsible, operationally excellent, and then make sure we maintain the safety culture, like, that's what we're really focused on."— Waymo Co-CEO (Name not provided in transcript, but attributed to the role)

Waymo is also a strong advocate for a unified federal autonomous vehicle standard in the U.S., arguing that a fragmented, state-by-state regulatory approach slows down technological adoption. The company highlighted challenges in markets like New York City, where regulations currently prevent the removal of human safety operators from vehicles. Despite regulatory hurdles, Waymo is progressing in London, where initial testing covers more than 30 of the 60 boroughs, hinting at potentially its largest citywide deployment to date.

Investment Trends and Emerging AI Applications

Strategic investments continue to shape the AI landscape. SoftBank has demonstrated its commitment to AI by posting its fourth consecutive quarterly profit, significantly boosted by its expanding stake in OpenAI, now valued at up to $30 billion and representing an 11% share. SoftBank's strategy includes divesting from other holdings to deepen investments in AI-centric companies, including chip design firms and data centers.

The competitive yet collaborative nature of AI development is further underscored by Anthropic's impressive funding efforts. The AI startup is reportedly close to finalizing a funding round exceeding $20 billion, co-led by prominent investors including Peter Thiel's fund and Sequoia, alongside early OpenAI investors. This trend of venture capitalists backing seemingly competing AGI (Artificial General Intelligence) companies raises questions about information leakage and strategic portfolio diversification.

A novel application of AI is emerging from startup Simile, which recently raised $100 million to scale its predictive AI models for human behavior. Simile's technology, developed by academics from Stanford, creates generative AI agents that leverage unstructured interview data from millions of real people to simulate and forecast human actions and preferences in a generalized context. The company has rapidly secured commercial deals, working with Fortune 10 companies, retailers like CVS for simulated focus groups and store layout designs, and even polling organizations.

"Today our customers use our technology to do concept testing. So for example, CVS has partnered for the past five months. They’ve created hundreds of thousands of agents that represent their real questions so they can actually do simulated focus groups, to understand better their pain points and use cases, but also to do store layout designs and so forth."— Simile CEO (Name not provided in transcript)

Remarkably, Simile's models have demonstrated the ability to predict 8 out of 10 questions asked during corporate earnings calls, offering a glimpse into the future of market analysis and strategic planning. Concurrently, Alphabet's stock saw a rise following an update to its Gemini 3 model, touting it as a "deep-thinking reasonable model" designed to solve complex research challenges.

Sector-Specific Challenges: Delivery and Crypto

Beyond the direct impacts of AI, other sectors are navigating their own unique market dynamics. Asian delivery firm Grab reported mixed full-year results, missing analysts' expectations on its forecast. Weaker consumer sentiment is weighing on the company, although it achieved significant milestones including 50 million monthly users, $500 million in adjusted EBITDA, and its first full-year net profit. Grab projects a robust 20% revenue growth from 2025 to 2028, driven by its diverse offerings, with grocery delivery growing 1.7 times faster than its food business, and financial services, particularly its loan portfolio, expected to double from over $1 billion.

The cryptocurrency market, meanwhile, continues its turbulent trajectory. As Coinbase prepares to release its earnings, expectations are tempered by a deepening crypto rout, with Bitcoin's value plunging 45% from its peak. This sustained downturn typically leads to retail traders staying on the sidelines, directly impacting exchanges that rely heavily on transaction fees. While volatility can sometimes drive trading, prolonged lower activity between high-volatility spikes has a detrimental effect, as evidenced by Robinhood's 30% drop in fourth-quarter crypto revenue. Coinbase's diversification efforts, including prediction markets and equity trading, are still nascent and not yet significant revenue drivers, though its stablecoin revenue stream provides some stability.

The current market environment underscores a period of profound transformation, where technological innovation, particularly in AI, is rapidly reshaping industries, creating new market leaders, and challenging established incumbents. As companies adapt to these shifts, the ability to strategically invest, innovate, and navigate evolving regulatory and competitive landscapes will be paramount for sustained success in the coming years.