Episode summary
Instant Reaction: Intel Gives Encouraging Forecast After PC Market Rebounds | Bloomberg Intelligence
Bloomberg Intelligence
· · 8 min · Hosts: Carol Massar, Tim Stenovec · Guests: Jay Goldberg
Summary
Intel’s latest report was read as a constructive step after a rough stretch, with the company pointing to a rebound in PC demand and better-than-feared third-quarter execution. Jay Goldberg said the quarter looked helped by new products ramping on Intel’s 18A manufacturing process, plus some support from TSMC, and he said the gross margin outlook for next quarter appeared better than expected.
The central tension, though, is that the improving near-term numbers do not resolve Intel’s bigger strategic problem: what to do with its fabs and Intel Foundry. Goldberg said the company remains on the fence because pulling back from advanced manufacturing could boost margins quickly, but would likely be bad for Intel over the long run. He also said the company’s biggest challenge is internal culture, not just outside competition.
The discussion also turned to the US government’s investment in Intel. Goldberg argued that state backing could push other large US chip customers to consider Intel Foundry, but he was not fully comfortable with the idea of government stakes as industrial policy. He said the market should focus on whether Intel can secure external foundry customers and sustain the turnaround.
Key takeaways
- Jay Goldberg called Intel’s latest report “an encouraging step forward,” driven by new products ramping on 18A and help from TSMC.
- He said the next-quarter gross margin outlook looks better than expected, which matters both financially and as a sign on manufacturing progress.
- Goldberg said the key unresolved issue is Intel Foundry: stopping advanced manufacturing could lift earnings near term but hurt the company long term.
- He argued Intel’s biggest challenge is internal culture, and said the company must act like an upstart rather than a dominant incumbent.
- Goldberg said US government ownership may encourage other US chip companies to work with Intel Foundry, but he is uneasy with government stakes in companies.
Notable quotes
“I think it's it's a encouraging step forward for the company”
“I'm most encouraged by sort of the gross margin outlook for next quarter”
“I think it is going to encourage other US chip companies to consider working with Intel Foundry, right”
“Intel's biggest challenge is not external competitors or customers. It's their biggest challenge is internal and fixing their culture”
How the episode opens
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.
We're watching a lot of different companies, but I want to home in on one, and that would be Intel. Share surging in the after hours. Just building the momentum to the upside there.
Yeah, 7% to the upside right now in the after hours. Little bit at the beginning trepidation I think from shareholders, but I don't know it could have to do also with some corrected numbers that were coming back and forth over the terminal uh for the the results the most recent results as you mentioned shares what up 90% going into the print this year. Well, yeah, we know like there was the US taking that position in Intel specifically an equity position and it is now the third largest investor in Intel.
So that certainly has given it uh a a jolt if you will uh this year. But again, I think what's interesting is the company CFO speaking in an interview. You can check out our Ian King's right through on this, but Intel saying the third quarter was stronger than it thought across the board.
Um so yeah, server demand was a surprise positive. It feels like there's a lot of things that feel like the changes, the moves uh by Lip Boutan, the CEO, maybe some of it starting to pay off. Well, I want to see what Jay Goldberg has to say about all this.
He's semiconductors and an electronics senior analyst at Seapport Research Partners. He joins us from San Francisco. Uh Jay, good to have you.
You cover a lot of these companies, including Intel. You got a neutral rating on Intel.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- intel forecast
- pc demand rebound
- semiconductor stocks
- revenue guidance
- analyst estimates
Companies and tickers mentioned
- INTC
- Intel
- Seaport Research Partners
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Intelligence
-
Anthropic’s IPO Is Said to Be About Six Times Oversubscribed | Bloomberg Intelligence -
Instant Reaction: Nvidia CEO Jensen Huang Ousted by Nvidia Board | Bloomberg Intelligence -
Nvidia’s Huang Ousted by Board in Move That Roils AI Economy | Bloomberg Intelligence -
CoreWeave Shares Soar After AI Computing Firm Eases Debt Fears | Bloomberg Intelligence -
Anthropic Targets $1.4 Trillion Valuation in Blockbuster IPO | Bloomberg Intelligence -
Nvidia Probe Into CEO Affair Raises Thorny Questions for AI | Bloomberg Intelligence
Bloomberg Intelligence, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
