Joanne Feeney

And now they've been trying to fix that since Pat Gelsinger was put in charge and now with Lipton.

And clearly we're seeing that it's more challenging than perhaps investors recognize.

Investors really got ahead of the story.

They saw the U.S.

government come in and take a stake, and they felt like that put a floor on the stock price to some degree.

But Intel is in a situation with two things coming out on that report.

One, their gross margins.

They beat a little bit, but they beat it 37.9%.

I mean, Intel should have gross margins above 60%.

Given that they're one of two suppliers in the PC business.

That's a very good clarification, Ed.

Very good point.

Should in terms of market structure.

But now, you know, they're trying to play in the AI markets and they're well behind and now NVIDIA is the leader.

So, you know, look at NVIDIA's margins.

Clearly ripe for competition to come in there.

But with their outlook showing that they've sold out of their server CPUs, they're going to have a weak quarter this quarter.

The yields are lower than they would like.

And people look at that gross margin, and they see it as a really important signal of how much progress they're making in a complex manufacturing process.

And clearly, they're not making as much progress as investors would like and as the company would like.