WEBVTT - Closing Bell: Texas Instruments Rallies, Microsoft Drops, Intel Earnings

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>This is the closing bell on this stock movers report.

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<v Speaker 2>The company's making moves at the close of US trading

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<v Speaker 2>with Carol Masser, Tim Stenovack, Romain Bostik, and Katie Greifeller.

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<v Speaker 3>All Right, as we wait for Intel expected to cross

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<v Speaker 3>any moment, I'm just gonna again go back to up.

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<v Speaker 3>We've got it.

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<v Speaker 1>That's the mitail Earning's out right now. One que revenue

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<v Speaker 1>at thirteen point six billion dollars. The street was looking

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<v Speaker 1>for twelve point four That is a beat. Operating margin

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<v Speaker 1>at twelve point three percent, the street was looking for

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<v Speaker 1>three point oh eight, so that is also a beat

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<v Speaker 1>as well. Adjusted EPs twenty nine cents, the street was

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<v Speaker 1>looking for one cents. That's the beat. Here's your forecast

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<v Speaker 1>for the second quarter. The company says expect revenue in

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<v Speaker 1>the range of thirteen point eight to fourteen point eight billion.

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<v Speaker 1>The low end of that range is above the average

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<v Speaker 1>of street estimates. They were looking for about thirteen billion dollars.

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<v Speaker 1>Even data center activity in the most recent quarter also

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<v Speaker 1>coming in at about five billion dollars, that is above estimates.

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<v Speaker 1>And I just want to also just put a finer

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<v Speaker 1>note on this, Carol and Tim, when we talk about

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<v Speaker 1>this idea of where this company goes next, that foundry

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<v Speaker 1>business here, I just want to put a little bit

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<v Speaker 1>of a focus on that as well. The headline in

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<v Speaker 1>the most recent quarter of foundry revenue five point four

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<v Speaker 1>to two billion, the street was looking for four point eight.

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<v Speaker 4>Yeah, that's a big beat and hire by about sixteen

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<v Speaker 4>percent year over a year. You can see in the

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<v Speaker 4>press release the CFO saying that we remain focused on

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<v Speaker 4>maximizing our factory factory network to improve available supply and

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<v Speaker 4>meet our customer needs throughout the year. Tim, you take

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<v Speaker 4>a look at this pop after hours intel hire by

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<v Speaker 4>about ten percent. This was a company that had a

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<v Speaker 4>big bar to clear when it comes to recent expectations.

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<v Speaker 5>Yeah, I'm going back to the press release. Like you

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<v Speaker 5>were looking at Katie agentic AI. The next wave of

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<v Speaker 5>AI will bring intelligence closer to the end user, a

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<v Speaker 5>solid foundation in place. Lipputen also talking about the deliberate

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<v Speaker 5>reset on how we operate drove a six consecutive or

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<v Speaker 5>as you mentioned, I go back to the US investment

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<v Speaker 5>in this and that what that means for this company.

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<v Speaker 5>If this company would have been able to do this

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<v Speaker 5>without the US investment. Where they are in this turnaround,

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<v Speaker 5>what the exit of this investment looks like, if ever.

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<v Speaker 5>I mean, we're in a unique time period where the

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<v Speaker 5>US share the US you know, the US citizen is

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<v Speaker 5>a shareholder of this company, which which I think you

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<v Speaker 5>know has done very very well at least since the

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<v Speaker 5>US made that investment.

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<v Speaker 4>It's an interesting chapter in the history of US capitalism,

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<v Speaker 4>that's for sure.

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<v Speaker 5>Yeah, we're not even talking about Spirit Airlines. Where do

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<v Speaker 5>we go there.

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<v Speaker 3>It's also an interesting case in terms of just watching

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<v Speaker 3>the market reaction. I mean, intell is a stock that's

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<v Speaker 3>up eighty percent year to date, it's up another twelve percent.

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<v Speaker 3>Ian King out who knows this company so well out

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<v Speaker 3>with a readthrow on the earnings, he talked, looks like

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<v Speaker 3>in an interview with the CEO, Le Bhutan, and what

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<v Speaker 3>Ton said was there is huge demand. We are working

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<v Speaker 3>very hard with our team to make sure we deliver

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<v Speaker 3>that we meet the demand, but we are still short

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<v Speaker 3>because the demand keeps increasing from the customers.

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<v Speaker 2>He said.

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<v Speaker 3>Intel delivered a solid result ahead of its projections, and

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<v Speaker 3>he expects the strong demand for processors used in AI

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<v Speaker 3>systems to expand, so the company's laser focused an increasing

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<v Speaker 3>output from Intel's factories, which still cannot produce enough to

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<v Speaker 3>fill all its orders. And this is where companies have

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<v Speaker 3>gotten into trouble. The demands there, but they can't meet it.

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<v Speaker 1>Well, this has always been the concern. I mean even

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<v Speaker 1>prior Tolputam was the idea that we knew the potential

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<v Speaker 1>was there. The question is can they fill it? They

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<v Speaker 1>talk a lot about in the press release and some

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<v Speaker 1>of the headlines crossing the wire lifting the CAPEX plan

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<v Speaker 1>for twenty twenty six to even with last year, also

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<v Speaker 1>talking about how it's investing more in new machinery. It

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<v Speaker 1>also points out, though too, that it's not commenting and

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<v Speaker 1>thanks for putting up the Brady Brunch screen there, that

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<v Speaker 1>it's not commenting on deals yet with external customers here.

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<v Speaker 1>So Tim, of course you talk about some of the

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<v Speaker 1>state craft involved here and the idea that at least

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<v Speaker 1>if we're talking about a home grown sort of fab

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<v Speaker 1>business here in the US, what the capabilities can be,

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<v Speaker 1>but more importantly, can it start to actually show improve

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<v Speaker 1>on that sometime soon?

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<v Speaker 3>You up about the foundry business. Yeah, so let's go

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<v Speaker 3>back to Ian's story because.

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<v Speaker 5>I just shares her up seventeen percent.

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<v Speaker 3>Right now, all right, the Foundry Service and division, according

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<v Speaker 3>to Ian, that's the company's factory unit, generating revenue of

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<v Speaker 3>five point four billion, up sixteen percent. The unit currently

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<v Speaker 3>relies almost exclusively on Intel product divisions for orders. This

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<v Speaker 3>isn't me, this is Ian King, who knows this company

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<v Speaker 3>though it is seeking as we know outside customers. It's

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<v Speaker 3>PC chip division at revenue of seven point seven billion,

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<v Speaker 3>and the data center unit posting sales of five point

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<v Speaker 3>one billion. All of those totals topping wall.

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<v Speaker 1>I wonder if this is sort of indicative of a

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<v Speaker 1>kind of the evolution of this AI data center space.

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<v Speaker 1>And we were talking with an analysts a couple of

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<v Speaker 1>days ago about the ship from GPUs the CPU, the

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<v Speaker 1>focus from GPUs to CPUs, and the idea that this

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<v Speaker 1>kind of benefits, if you will, kind of some of

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<v Speaker 1>the older chip makers. I mean, I was kind of

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<v Speaker 1>joking at the top of the show how old and

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<v Speaker 1>boring Texas Instruments was. But you know, let's face an,

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<v Speaker 1>Intel basically the second oldest chip maker out there in

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<v Speaker 1>the US at least still standing.

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