Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: This is the closing bell on this stock movers report.
Speaker 2: The company's making moves at the close of US trading
Speaker 2: with Carol Masser, Tim Stenovack, Romain Bostik, and Katie Greifeller.
Speaker 3: All Right, as we wait for Intel expected to cross
Speaker 3: any moment, I'm just gonna again go back to up.
Speaker 3: We've got it.
Speaker 1: That's the mitail Earning's out right now. One que revenue
Speaker 1: at thirteen point six billion dollars. The street was looking
Speaker 1: for twelve point four That is a beat. Operating margin
Speaker 1: at twelve point three percent, the street was looking for
Speaker 1: three point oh eight, so that is also a beat
Speaker 1: as well. Adjusted EPs twenty nine cents, the street was
Speaker 1: looking for one cents. That's the beat. Here's your forecast
Speaker 1: for the second quarter. The company says expect revenue in
Speaker 1: the range of thirteen point eight to fourteen point eight billion.
Speaker 1: The low end of that range is above the average
Speaker 1: of street estimates. They were looking for about thirteen billion dollars.
Speaker 1: Even data center activity in the most recent quarter also
Speaker 1: coming in at about five billion dollars, that is above estimates.
Speaker 1: And I just want to also just put a finer
Speaker 1: note on this, Carol and Tim, when we talk about
Speaker 1: this idea of where this company goes next, that foundry
Speaker 1: business here, I just want to put a little bit
Speaker 1: of a focus on that as well. The headline in
Speaker 1: the most recent quarter of foundry revenue five point four
Speaker 1: to two billion, the street was looking for four point eight.
Speaker 4: Yeah, that's a big beat and hire by about sixteen
Speaker 4: percent year over a year. You can see in the
Speaker 4: press release the CFO saying that we remain focused on
Speaker 4: maximizing our factory factory network to improve available supply and
Speaker 4: meet our customer needs throughout the year. Tim, you take
Speaker 4: a look at this pop after hours intel hire by
Speaker 4: about ten percent. This was a company that had a
Speaker 4: big bar to clear when it comes to recent expectations.
Speaker 5: Yeah, I'm going back to the press release. Like you
Speaker 5: were looking at Katie agentic AI. The next wave of
Speaker 5: AI will bring intelligence closer to the end user, a
Speaker 5: solid foundation in place. Lipputen also talking about the deliberate
Speaker 5: reset on how we operate drove a six consecutive or
Speaker 5: as you mentioned, I go back to the US investment
Speaker 5: in this and that what that means for this company.
Speaker 5: If this company would have been able to do this
Speaker 5: without the US investment. Where they are in this turnaround,
Speaker 5: what the exit of this investment looks like, if ever.
Speaker 5: I mean, we're in a unique time period where the
Speaker 5: US share the US you know, the US citizen is
Speaker 5: a shareholder of this company, which which I think you
Speaker 5: know has done very very well at least since the
Speaker 5: US made that investment.
Speaker 4: It's an interesting chapter in the history of US capitalism,
Speaker 4: that's for sure.
Speaker 5: Yeah, we're not even talking about Spirit Airlines. Where do
Speaker 5: we go there.
Speaker 3: It's also an interesting case in terms of just watching
Speaker 3: the market reaction. I mean, intell is a stock that's
Speaker 3: up eighty percent year to date, it's up another twelve percent.
Speaker 3: Ian King out who knows this company so well out
Speaker 3: with a readthrow on the earnings, he talked, looks like
Speaker 3: in an interview with the CEO, Le Bhutan, and what
Speaker 3: Ton said was there is huge demand. We are working
Speaker 3: very hard with our team to make sure we deliver
Speaker 3: that we meet the demand, but we are still short
Speaker 3: because the demand keeps increasing from the customers.
Speaker 2: He said.
Speaker 3: Intel delivered a solid result ahead of its projections, and
Speaker 3: he expects the strong demand for processors used in AI
Speaker 3: systems to expand, so the company's laser focused an increasing
Speaker 3: output from Intel's factories, which still cannot produce enough to
Speaker 3: fill all its orders. And this is where companies have
Speaker 3: gotten into trouble. The demands there, but they can't meet it.
Speaker 1: Well, this has always been the concern. I mean even
Speaker 1: prior Tolputam was the idea that we knew the potential
Speaker 1: was there. The question is can they fill it? They
Speaker 1: talk a lot about in the press release and some
Speaker 1: of the headlines crossing the wire lifting the CAPEX plan
Speaker 1: for twenty twenty six to even with last year, also
Speaker 1: talking about how it's investing more in new machinery. It
Speaker 1: also points out, though too, that it's not commenting and
Speaker 1: thanks for putting up the Brady Brunch screen there, that
Speaker 1: it's not commenting on deals yet with external customers here.
Speaker 1: So Tim, of course you talk about some of the
Speaker 1: state craft involved here and the idea that at least
Speaker 1: if we're talking about a home grown sort of fab
Speaker 1: business here in the US, what the capabilities can be,
Speaker 1: but more importantly, can it start to actually show improve
Speaker 1: on that sometime soon?
Speaker 3: You up about the foundry business. Yeah, so let's go
Speaker 3: back to Ian's story because.
Speaker 5: I just shares her up seventeen percent.
Speaker 3: Right now, all right, the Foundry Service and division, according
Speaker 3: to Ian, that's the company's factory unit, generating revenue of
Speaker 3: five point four billion, up sixteen percent. The unit currently
Speaker 3: relies almost exclusively on Intel product divisions for orders. This
Speaker 3: isn't me, this is Ian King, who knows this company
Speaker 3: though it is seeking as we know outside customers. It's
Speaker 3: PC chip division at revenue of seven point seven billion,
Speaker 3: and the data center unit posting sales of five point
Speaker 3: one billion. All of those totals topping wall.
Speaker 1: I wonder if this is sort of indicative of a
Speaker 1: kind of the evolution of this AI data center space.
Speaker 1: And we were talking with an analysts a couple of
Speaker 1: days ago about the ship from GPUs the CPU, the
Speaker 1: focus from GPUs to CPUs, and the idea that this
Speaker 1: kind of benefits, if you will, kind of some of
Speaker 1: the older chip makers. I mean, I was kind of
Speaker 1: joking at the top of the show how old and
Speaker 1: boring Texas Instruments was. But you know, let's face an,
Speaker 1: Intel basically the second oldest chip maker out there in
Speaker 1: the US at least still standing.
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