Instant Reaction: Intel Gives Weak Forecast, Shares Slide Afterhours
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What weak forecast did Intel provide for the upcoming quarter?
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Focusing once again on earnings and Intel certainly on that list as we see it bopping around in the aftermarket. What does that mean? We've got Intel shares down about 3.8% as we speak. And some of it has to do with a weak forecast, supply shortages, hampering sales. This is not a new story that we've heard around the chip companies. particularly when it comes to AI. The demand is there. They can't meet the demand, which is kind of a good positive story that the demand is still there, but it's not great when you can't meet that, and you're just trying to kind of connect the dots there.
How are manufacturing problems affecting Intel's performance?
Yeah, I want to bring in Ivan Feinseth, Research Director and Chief Investment Officer at Tiger's Financial Partners. The firm has more than $500 million invested under management. Uh, Ivan has a buy rating on the company's stock. Ivan does, does just very like your immediate knee jerk reaction to this. Does your, does your rating? Well, I know you can't answer that question, but your knee jerk reaction, I'm not going to ask you your knee jerk reaction to the numbers here. You're shaking your head.
It's not this quarter. It's not a quarterly story. It is a major shift in the company. And they have, I think, turned a major corner. But the stock has also run up significantly from a low of $20. It hit $55. So I think it may have gotten a little bit ahead of itself and it may pull back. But I think everything that's going on under the new CEO, Lip Patan, is... is as planned. I mean, they are well positioned to benefit from AI data center demand, AI computer demand, their partnership with Intel, money from the US government. So they are plenty flush to invest in all of their key growth initiatives.
So fundamentally, what's changed, Ivan, when it comes to this company? You obviously sound really upbeat. Is it just a case of having the backdrop because, you know, of the United States government? Is that what's done it? You know, kind of.
Well, it's everything.
Okay.
First of all, it's President Trump's push on what's sold here, is made here, investing in U.S. semiconductor manufacturing capacity here, expanding the Intel foundry business, as well as the growth of data centers, the growth of AI-enabled PCs. So they are positioned, I think, perfectly to benefit from what was in the early innings of what was going to be a long game of the AI-driven growth in both the tech sector and the U.S. and the global economy.
So, okay, I just want to – this is a different company than it was six months ago as a result of the U.S. investment. And I'm wondering what that position – what that type of – what that investment does for Liputan's position. Like, you know, when you're the CEO of a company and you come out with a report, you're obviously – You got to worry about the board. You got to worry about shareholders. Now he's got to worry about a phone call from President Trump because the president likes to talk about how well the stock has done since the U.S. made that investment. What is that?
What is Ivan Feinseth's immediate reaction to Intel's earnings report?
How does that change the dynamic?
It doesn't. But it's really funny that President Trump wanted to go from deporting the guy to giving the guy money.
Hey, that's the power of a conversation, right?
But it also shows how quickly things can change, certainly from the White House perspective.
Well, it highlights Trump's perspective on driving the U.S. manufacturing infrastructure. U.S. leadership in all key areas and semiconductors is a very important area, especially that Intel makes semiconductors for the defense industry.
Interesting. Okay. So does it make the defense business stronger?
Absolutely. Hey, there's no better partner. One, a number one partner. I don't, well, it could be a tie US government and Nvidia. Okay.
So let me, let me, let me ask this question a different way than Ivan. And that's about where Intel would be right now. If the US government had not made that investment, would this be a completely different picture?
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Chapters
5 chapters
1
What weak forecast did Intel provide for the upcoming quarter?
0:02–0:51
2
How are manufacturing problems affecting Intel's performance?
0:51–3:36
3
What is Ivan Feinseth's immediate reaction to Intel's earnings report?
3:36–5:38
4
What major shifts are occurring within Intel under its new CEO?
5:38–9:20
5
How is the U.S. government influencing Intel's growth strategy?
9:20–10:22
Speakers
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