Episode summary
Instant Reaction: Intel's Revenue Shatters Wall Street Estimates | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 20 min · Hosts: Carol Massar, Tim Stenovec · Guests: Mandeep Singh, Ed Ludlow
Summary
Intel’s stronger-than-expected revenue forecast drove the discussion, with the company projecting third-quarter sales of $15.8 billion to $16.8 billion, well above Wall Street’s $15.1 billion estimate. The reaction centered on a simple message: data center demand, especially for CPUs, is finally giving Intel a real turnaround story after years of underperformance.
The analyst said the quarter was helped by demand that is still “rock bottom” in expectations terms, but he questioned whether Intel can sustain the growth because competitors such as Nvidia, AMD and Google are all pushing into CPU-related and broader systems offerings. He argued Intel remains more of a standalone chip supplier, while rivals are selling integrated systems that bundle CPUs with accelerators and networking.
The host and analyst also focused on whether Intel can convert demand into supply. Ed Ludlow said Intel’s improving production is still not meeting all orders, and that management plans to lift capital spending to about $20 billion this year from a previous $18 billion guide. The main investor question, the analyst said, is whether Intel can show enough backlog and customer visibility to prove the rebound is durable.
Key takeaways
- The analyst said Intel’s data center CPU demand is real, but he questioned whether it can remain sustainable once comparisons get harder.
- Ed Ludlow said Intel is still leaving money on the table because supply is not fully keeping up with customer orders.
- The analyst argued Intel is not yet competing with Nvidia on systems, only on standalone CPUs and traditional data center refresh cycles.
- Ed Ludlow said Intel now expects about $20 billion of capex this year, up from a prior $18 billion guide.
- The analyst said investors need a backlog figure or more customer visibility to judge whether Intel’s turnaround has legs.
Notable quotes
“Intel delivered a surprisingly strong revenue forecast for the current period, indicating that a surge in data center spending is helping fuel the chipmakers turnaround”
“The only thing I'm not very sure about is how it translates into sustainable demand because everyone else is also making CPUs”
“They are improving their own supply, but they're not yet there yet. You know, it's it's a process”
“To me really it's about sustainability of growth here once the numbers get normalized because we are coming off a really low base here”
How the episode opens
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Start your day with Bloomberg Daybreak, the podcast with a global view on the stories that matter. I'm Nathan Hager. — And I'm Karen Moscow. Join us each morning for curated stories on current events, politics, business, and foreign relations. — Plus, one conversation on the day's biggest developments, all in just 15 minutes.
Subscribe to Bloomberg Daybreak for a precise, thoughtful take on the stories that matter. Listen to Bloomberg Daybreak each morning on Apple, Spotify, or anywhere you listen. — Bloomberg Audio Studios, podcasts, radio, news. — This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world. Here's how in King Ian King uh who's been covering this company and this sector for many years put it. Intel delivered a surprisingly strong revenue forecast for the current period, indicating that a surge in data center spending is helping fuel the chipmakers turnaround.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- intel revenue outlook
- data center spending
- chip sector earnings
- wall street estimates
- long-awaited turnaround
Companies and tickers mentioned
- INTC
- Intel
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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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