Episode summary
Earnings Special: Intel Plunges on PC Sales Slump & Amazon Slips | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 14 min · Hosts: Carol Massar, Tim Stenovec · Guests: Kunjan Sobhani, Anurag Rana
Summary
Intel’s late-trading plunge followed a revenue forecast that missed analysts’ estimates, with the analyst saying the quarter showed how weak PC demand and data-center supply constraints are colliding. He argued that Intel’s push to prioritize data-center products is the right long-term strategy, but the company is still taking a margin hit because newer nodes are expensive and the PC business, which carries better margins, is soft. He said investors want clearer evidence that gross margins have found a floor and that the foundry business is generating meaningful revenue.
Amazon also sold off after its latest report showed heavier capital spending than expected and the slowest growth in core e-commerce in three years. The analyst said AWS growth at 39% met expectations rather than beating them, which likely disappointed the market, even as he described the company’s 40% growth targets for 2027 and 2028 as strong. He argued that the capex is justified by AWS’s economics and future services, but rising interest rates, tighter funding conditions, and political pushback against data-center expansion could make the payoff harder to realize.
Both calls framed the day’s selloff as a test of patience: Intel needs proof that its turnaround is taking hold, while Amazon needs investors to look past near-term cash flow pressure and focus on long-term cloud growth.
Key takeaways
- The analyst said Intel’s revenue miss came from weak PC demand and data-center supply constraints, and that the mix is hurting margins.
- The analyst said Intel’s gross margin needs to find a floor before investors can regain confidence in the turnaround.
- The analyst said Intel’s foundry progress matters, but investors still need “significant material revenues” from that business.
- The analyst said Amazon’s AWS growth at 39% met expectations rather than beating them, which likely drove the stock lower.
- The analyst said Amazon’s planned capex is supported by strong AWS economics, but higher rates and data-center delays could pressure the payoff.
- The analyst said AWS sales above 40% in 2027 and 2028 would still be “very very strong numbers.”
Notable quotes
“we all knew that the PC market is not looking that strong, but the results that came in are again surprising”
“the data center which was a beef is looking strong but they cannot get enough supply there to sell more in the into the data center”
“We think that's again coming from Intel trying to get more supply and push more on the data center side which is where the future is”
“I think in the case of Amazon, they just went ahead and met the expectations at 39%”
“I think that's those are very very strong numbers uh given where we are in the cycle”
How the episode opens
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From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- intel earnings
- pc sales slump
- amazon capex
- e-commerce growth
- semiconductor demand
Companies and tickers mentioned
- INTC
- AMZN
- Intel
- Amazon
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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