Speaker 1: I mentioned an interesting story about how the Commerce Department
Speaker 1: is saying biotech and AI restrictions could follow these US
Speaker 1: curbs on on semiconductor export sales. So that's something that
Speaker 1: we'll be looking at a little bit more closely later on.
Speaker 1: Intel is pledging to cut costs in a big way
Speaker 1: as it weathers a slump in PC demand. The news
Speaker 1: comes after Intel reported that revenue for the prior quarter dropped,
Speaker 1: joining US now as Ian King Bloomberg News, U S
Speaker 1: Semiconductor reporters has so much going on here. The market
Speaker 1: loves cost cutting, so it's one of the reasons why
Speaker 1: we we see that Intel a company you can't really
Speaker 1: ignore it as sixty billion dollars in revenue, so you
Speaker 1: certainly can't ignore that, and the stock is up in
Speaker 1: the after hours. Tell us what you found compelling about
Speaker 1: the earnings from Intel? Yeah, I mean, coming into this,
Speaker 1: the question was, well, was gasping at the CEOs prediction
Speaker 1: that the third quarter would be the bottle and was
Speaker 1: was that going to hold up given all everything else
Speaker 1: we're hearing And the answer was absolutely not until was
Speaker 1: able to rescue itself in terms of today's announcement by
Speaker 1: saying yes, we were wrong. Things are worse than we thought,
Speaker 1: and this is what we're going to do about it.
Speaker 1: As you pointed out, Brian, the market loves cost cuts,
Speaker 1: loves a sense of reality, and you know that was
Speaker 1: definitely what was on offer from Intel today. But again
Speaker 1: it's another semi conductive company just coming out and saying
Speaker 1: the same thing. Really, ultimately that demand essentially has gone
Speaker 1: off a cliff. You're absolutely right, particularly with regards to
Speaker 1: what's going on with the computing industry. Racial I mean,
Speaker 1: it's totally the case. I mean, you've got to remember
Speaker 1: that this is a cast of characters, these CEOs with
Speaker 1: a few notable exceptions, who were telling us that the
Speaker 1: industry is on a rocket ship. Things are different this time.
Speaker 1: Before you know it, we're going to be a one
Speaker 1: trillion dollar industry. And look where we're headed right now.
Speaker 1: Clearly not the case. Is this a company that seems
Speaker 1: like yesterday's story? And do investors just believe that, you know,
Speaker 1: they don't want to be this much exposed to personal computers,
Speaker 1: which is kind of slipping I mean yes and no,
Speaker 1: I mean that that you're absolutely right with personal computers.
Speaker 1: As a big debate on the call today with Intel saying, look,
Speaker 1: you know, some analysts are saying, look, you've given us
Speaker 1: this rosy view the PC industry. How's that working out
Speaker 1: for you? Umh? And are we're going back to pre
Speaker 1: pandemic levels of this kind of tuned in sixty million units?
Speaker 1: Um you know, sort of down sort of from where
Speaker 1: it was a decade ago, more view the world. And
Speaker 1: Intel was like, well, yeah, yeah, you're kind of right.
Speaker 1: We're going back down, that's for sure, but not not
Speaker 1: that low. So there's this ongoing tention about whether the
Speaker 1: PC is in the rear view mirror as a growth
Speaker 1: and you know, or not. But in stories been hey,
Speaker 1: we're spreading everywhere and that's not really paying off yet.
Speaker 1: Quick one, yeah, and just very very quickly. Is it though,
Speaker 1: build up of infantry, which will be all right because
Speaker 1: you can clear out, But is it more worrying in
Speaker 1: the sense that it could be a contraction of the economy? Yeah,
Speaker 1: you nailed him. I mean that's the biggest concern. I mean,
Speaker 1: inventory build up is two quarter event a recession is
Speaker 1: a lot longer than that. Yeah. Still, this company, like
Speaker 1: you said, has sixty billion dollars in sales. It's a
Speaker 1: monster anyway, Ian, thanks very much for joining us Ian
Speaker 1: King Bloomberg new US semiconductor reporter at Bloomberg News