Episode summary
Instant Reaction: Intel Gives Weak Forecast, Shares Slide Afterhours | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Carol Massar, Tim Stenovec · Guests: Ivan Feinseth
Summary
Intel’s weak first-quarter guide rattled investors, with shares falling in aftermarket trading after the company pointed to manufacturing issues and a forecast below Wall Street expectations. The host framed it as a familiar chip-sector problem: demand remains strong, but supply and yields are holding sales back. Intel said production problems are still limiting how much it can ship, even as it tries to rebuild its competitive position.
Ivan Feinseth took a longer-term view, arguing that the quarter is not the main story. He said Intel has made a “major shift” under the new CEO and is now positioned to benefit from AI data center demand, AI PCs, US government support, and a renewed push into domestic semiconductor manufacturing. He also said the stock has already run up too far from its low and could pull back.
Feinseth argued that Intel’s foundry ambitions, new process nodes like 14A and 18A, and partnerships with companies like Nvidia and Apple could make the company a major contender again. He said the US investment helps ease balance-sheet concerns and gives Intel room to focus on execution and expansion.
Key takeaways
- Intel’s first-quarter revenue and EPS guide missed expectations, and the stock fell about 4% to 5% in extended trading.
- Ivan Feinseth said Intel is not a quarterly story and sees a longer-term turnaround under the new CEO.
- Feinseth argued that AI data center demand, AI PCs, and US manufacturing incentives are all tailwinds for Intel.
- He said the US government investment reduces balance-sheet concerns and lets management focus on execution.
- Feinseth said Intel’s foundry business could become a major competitor to Taiwan Semiconductor if customer wins and ramp-up continue.
Notable quotes
“It's not this quarter. It's not a quarterly story. It is a major shift in the company”
“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 Plutan is uh is as planned”
“I think this has helped I think this removes concerns balance sheet concerns it remove and allows the company in the CEO to focus on business”
“Demand for all semiconductors is outstripping supply. There's in fact concerns of memory shortage and and uh processor shortage”
“I think their foundry business will ramp up significantly and um as their new processors come to market revenue and cash flow and profitability will ramp up also ramp up significantly”
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.
Focusing once again on earnings and Intel certainly um on that list as we see it boopping 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. 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 you know trying to kind of connect the dots there.
Yeah. I want to bring in Ivan Feinsteth, research director and chief investment officer at Tigers Financial Partners. The firm has more than $500 million 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 I Well, I know you can't answer that question, but your knee-jerk reaction, I'm not even going to ask it. 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. It's and they have uh 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 Plutan is uh is as planned.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- intel forecast
- semiconductor manufacturing yields
- afterhours share drop
- earnings per share outlook
- investor reaction
Companies and tickers mentioned
- INTC
- Intel
- Tigress Financial 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
-
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 -
Election 'Blue Wave' & Your Wallet; Navigating AI-Driven Market Volatility | 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.
