WEBVTT - Ian King on Intel (Audio)

0:00:00.120 --> 0:00:04.040
<v Speaker 1>I mentioned an interesting story about how the Commerce Department

0:00:04.080 --> 0:00:08.719
<v Speaker 1>is saying biotech and AI restrictions could follow these US

0:00:08.800 --> 0:00:13.000
<v Speaker 1>curbs on on semiconductor export sales. So that's something that

0:00:13.000 --> 0:00:15.760
<v Speaker 1>we'll be looking at a little bit more closely later on.

0:00:16.360 --> 0:00:19.560
<v Speaker 1>Intel is pledging to cut costs in a big way

0:00:19.720 --> 0:00:22.639
<v Speaker 1>as it weathers a slump in PC demand. The news

0:00:22.680 --> 0:00:25.959
<v Speaker 1>comes after Intel reported that revenue for the prior quarter dropped,

0:00:26.960 --> 0:00:30.040
<v Speaker 1>joining US now as Ian King Bloomberg News, U S

0:00:30.040 --> 0:00:33.680
<v Speaker 1>Semiconductor reporters has so much going on here. The market

0:00:33.680 --> 0:00:36.360
<v Speaker 1>loves cost cutting, so it's one of the reasons why

0:00:36.840 --> 0:00:39.680
<v Speaker 1>we we see that Intel a company you can't really

0:00:39.720 --> 0:00:42.440
<v Speaker 1>ignore it as sixty billion dollars in revenue, so you

0:00:42.479 --> 0:00:44.839
<v Speaker 1>certainly can't ignore that, and the stock is up in

0:00:44.880 --> 0:00:49.800
<v Speaker 1>the after hours. Tell us what you found compelling about

0:00:49.840 --> 0:00:53.479
<v Speaker 1>the earnings from Intel? Yeah, I mean, coming into this,

0:00:53.680 --> 0:00:57.480
<v Speaker 1>the question was, well, was gasping at the CEOs prediction

0:00:57.600 --> 0:01:00.560
<v Speaker 1>that the third quarter would be the bottle and was

0:01:00.560 --> 0:01:02.560
<v Speaker 1>was that going to hold up given all everything else

0:01:02.600 --> 0:01:06.840
<v Speaker 1>we're hearing And the answer was absolutely not until was

0:01:06.880 --> 0:01:10.360
<v Speaker 1>able to rescue itself in terms of today's announcement by

0:01:10.440 --> 0:01:15.080
<v Speaker 1>saying yes, we were wrong. Things are worse than we thought,

0:01:15.520 --> 0:01:17.440
<v Speaker 1>and this is what we're going to do about it.

0:01:17.520 --> 0:01:21.319
<v Speaker 1>As you pointed out, Brian, the market loves cost cuts,

0:01:21.440 --> 0:01:25.039
<v Speaker 1>loves a sense of reality, and you know that was

0:01:25.120 --> 0:01:28.440
<v Speaker 1>definitely what was on offer from Intel today. But again

0:01:28.720 --> 0:01:32.880
<v Speaker 1>it's another semi conductive company just coming out and saying

0:01:32.920 --> 0:01:36.800
<v Speaker 1>the same thing. Really, ultimately that demand essentially has gone

0:01:36.800 --> 0:01:41.320
<v Speaker 1>off a cliff. You're absolutely right, particularly with regards to

0:01:41.360 --> 0:01:43.880
<v Speaker 1>what's going on with the computing industry. Racial I mean,

0:01:44.000 --> 0:01:46.319
<v Speaker 1>it's totally the case. I mean, you've got to remember

0:01:46.360 --> 0:01:49.600
<v Speaker 1>that this is a cast of characters, these CEOs with

0:01:49.640 --> 0:01:52.000
<v Speaker 1>a few notable exceptions, who were telling us that the

0:01:52.080 --> 0:01:54.880
<v Speaker 1>industry is on a rocket ship. Things are different this time.

0:01:55.320 --> 0:01:56.760
<v Speaker 1>Before you know it, we're going to be a one

0:01:56.760 --> 0:02:00.440
<v Speaker 1>trillion dollar industry. And look where we're headed right now.

0:02:00.800 --> 0:02:06.040
<v Speaker 1>Clearly not the case. Is this a company that seems

0:02:06.080 --> 0:02:10.440
<v Speaker 1>like yesterday's story? And do investors just believe that, you know,

0:02:10.480 --> 0:02:13.640
<v Speaker 1>they don't want to be this much exposed to personal computers,

0:02:13.680 --> 0:02:17.120
<v Speaker 1>which is kind of slipping I mean yes and no,

0:02:17.240 --> 0:02:20.000
<v Speaker 1>I mean that that you're absolutely right with personal computers.

0:02:20.000 --> 0:02:23.240
<v Speaker 1>As a big debate on the call today with Intel saying, look,

0:02:23.840 --> 0:02:25.760
<v Speaker 1>you know, some analysts are saying, look, you've given us

0:02:25.760 --> 0:02:28.960
<v Speaker 1>this rosy view the PC industry. How's that working out

0:02:29.000 --> 0:02:32.000
<v Speaker 1>for you? Umh? And are we're going back to pre

0:02:32.160 --> 0:02:36.520
<v Speaker 1>pandemic levels of this kind of tuned in sixty million units?

0:02:36.919 --> 0:02:39.200
<v Speaker 1>Um you know, sort of down sort of from where

0:02:39.200 --> 0:02:42.160
<v Speaker 1>it was a decade ago, more view the world. And

0:02:42.240 --> 0:02:44.240
<v Speaker 1>Intel was like, well, yeah, yeah, you're kind of right.

0:02:44.280 --> 0:02:46.320
<v Speaker 1>We're going back down, that's for sure, but not not

0:02:46.440 --> 0:02:49.600
<v Speaker 1>that low. So there's this ongoing tention about whether the

0:02:49.680 --> 0:02:52.520
<v Speaker 1>PC is in the rear view mirror as a growth

0:02:53.400 --> 0:02:55.919
<v Speaker 1>and you know, or not. But in stories been hey,

0:02:55.919 --> 0:02:59.000
<v Speaker 1>we're spreading everywhere and that's not really paying off yet.

0:03:00.720 --> 0:03:03.959
<v Speaker 1>Quick one, yeah, and just very very quickly. Is it though,

0:03:04.440 --> 0:03:06.360
<v Speaker 1>build up of infantry, which will be all right because

0:03:06.360 --> 0:03:08.000
<v Speaker 1>you can clear out, But is it more worrying in

0:03:08.040 --> 0:03:10.640
<v Speaker 1>the sense that it could be a contraction of the economy? Yeah,

0:03:10.680 --> 0:03:12.840
<v Speaker 1>you nailed him. I mean that's the biggest concern. I mean,

0:03:13.360 --> 0:03:16.560
<v Speaker 1>inventory build up is two quarter event a recession is

0:03:16.600 --> 0:03:19.840
<v Speaker 1>a lot longer than that. Yeah. Still, this company, like

0:03:19.880 --> 0:03:22.360
<v Speaker 1>you said, has sixty billion dollars in sales. It's a

0:03:22.400 --> 0:03:25.680
<v Speaker 1>monster anyway, Ian, thanks very much for joining us Ian

0:03:25.800 --> 0:03:29.440
<v Speaker 1>King Bloomberg new US semiconductor reporter at Bloomberg News