Episode summary
Instant Reaction: Intel Gives Weak Forecast, Shares Slide Afterhours | Bloomberg Daybreak: US...
Bloomberg Daybreak: US Edition
· · 13 min · Hosts: Carol Massar, Tim Stenovec · Guests: Ivan Feinseth
Summary
Intel’s weak first-quarter outlook and softer-than-expected profit guidance triggered an after-hours selloff, but Ivan Feinseth argued the bigger story is a longer-term strategic reset rather than one disappointing quarter. He said the stock had already run hard, from a low of 20 to 55, and may need to pull back, yet he still sees Intel as better positioned under CEO Lip-Bu Tan.
Feinseth tied the turnaround to multiple forces: U.S. policy support for domestic chip manufacturing, government investment, demand for AI data centers and AI PCs, and Intel’s efforts to improve its foundry business and manufacturing execution. He said the company is well positioned to benefit from “sold here is made here” momentum, and he expects Intel to compete more seriously with Taiwan Semiconductor as new process nodes such as 14A and 18A move ahead.
He also downplayed valuation concerns, saying stock multiples are secondary to future revenue, margins, cash flow and profitability. While the market focused on the quarter, Feinseth’s view was that the company is becoming a different business and could become a major semiconductor developer, designer and manufacturer over time.
Key takeaways
- Ivan Feinseth said Intel’s weak quarter is not the main issue; he sees a major strategic shift underway under CEO Lip-Bu Tan.
- Feinseth said the stock may have gotten ahead of itself after rising from 20 to 55, but he still views pullbacks as buying opportunities.
- He argued U.S. government support and domestic chip manufacturing policy are helping Intel rebuild balance-sheet confidence and focus on operations.
- Feinseth said AI data-center demand, AI PCs and foundry growth should support Intel’s next leg of revenue and cash-flow growth.
- He believes Intel could emerge as a serious competitor to Taiwan Semiconductor as its 14A and 18A programs advance.
Notable quotes
“It is a major shift in the company. It's and they have uh I think turned a major corner”
“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 Fan is uh is as planned”
“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 positioned I think perfectly to benefit from what what it was in the early innings of going to be a long game of the AIdriven growth”
“I think they are going to be one of the world's leading semiconductor developers, designers and manufacturers”
How the episode opens
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This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world. — Focusing once again on earnings and Intel certainly um on that list as we see it popping around in the aftermarket. What does that mean? We've got Intel shares down about 3.8% 8% uh as we speak and some of it has to do with a weak forecast uh supply shortages hampering sales. This is not a new story that we've heard around the chip companies particularly when it comes to AI.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- intel earnings outlook
- semiconductor manufacturing yields
- investor reaction to guidance
- after-hours stock slide
- analyst estimates vs guidance
Companies and tickers mentioned
- INTC
- Intel
- Tigress Financial Partners
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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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