Episode summary
Intel Returns to Profitability in Third Quarter | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu · Guests: Kunjan Sobhani, Craig Trudell, Jennifer Bartashus
Summary
Intel’s third-quarter results were presented as an early sign of a turnaround after months of stock strength driven more by outside support than by operations. Bloomberg Intelligence’s Kunjan Sobhani said the rally tied to the U.S. government, Nvidia and SoftBank deals did not fix near-term fundamentals, but the company did show improving demand for AIPC and server CPUs, along with structural changes aimed at better gross profit and tighter opex. He argued Intel still faces a long execution path, intense competition and continued margin pressure next year, even as leadership changes and culture shifts under Lip-Bu Tan start to show proof points.
The autos discussion focused on Ford and GM using strong truck and SUV demand to offset tariff pressure and a disappointing EV backdrop. Craig Trudell said Ford’s big profit beat reflected high-margin models like the Bronco, Expedition and F-Series, while GM announced hundreds of job cuts just days after raising guidance. He also said both companies are still working through policy-related costs and are positioning themselves around tariffs, especially with competition from Stellantis in large pickups.
Target’s announced corporate job cuts were framed as a leaner operating move rather than a customer-facing change. Jennifer Bartashus said the reduction of about 1,800 roles signals a push to streamline the organization after pandemic-era bloat, while holiday demand will hinge on inventory, product mix, customer experience and consumers’ continued search for value.
Key takeaways
- Kunjan Sobhani said Intel’s stock rally was driven by the U.S. government, Nvidia and SoftBank deals, not by a fundamental recovery.
- Sobhani said Intel’s improving AIPC and server CPU demand, plus new foundry cost structure at Intel 18A in Arizona, are early turnaround signals.
- Craig Trudell said Ford’s profit beat came from high-margin SUVs and pickups, not EV momentum.
- Trudell said GM’s hundreds of layoffs show cost pressure remains even after a stronger earnings outlook.
- Jennifer Bartashus said Target’s 1,800-role reduction reflects a move to streamline and speed up decision-making, not cut store labor.
- Bartashus said holiday retail demand will still be shaped by tariff pressure, but retailers are trying to avoid broad price increases if possible.
Notable quotes
“the results yesterday sort of seemed a start of a turnaround for us fundamentally”
“they have really missed out on the AI accelerator and the really AI in the data center ramp which which all of their peers like Nvidia, AMD are enjoying”
“about 1,800 in total from a thousand existing and 800 postings that haven't been filled”
How the episode opens
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Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. Uh getting back to earnings, uh Intel, our good friends out there in Southern California and out in the valley, they reported some pretty darn good numbers and the stocks rallying and I was just looking at Intel as a stock.
And I guess when the government invests in you and Nvidia invests in you, that's a pretty good uh uh sign of support. The stock is up about 710 of 1% today, but it's up 92% year to date. Kungjan Sobani uh he follows Intel.
He's a senior analyst. He covers the semis for Bloomberg Intelligence. He's based out there in our San Francisco office.
Have you been to our San Francisco office? I have. Beautiful.
It is awesome. Pier 6, I think, or Pier 3, I can't remember which one it is, but it's awesome out there. Right out into the bay.
It's very cool. Um, Kunjan, talk to us about Intel here. What's happening with their business?
Yeah, I mean, look, the the results yesterday sort of seemed a start of a turnaround for us fundamentally. Uh, the stock rally you mentioned over the last few months has not been driven by any fundamental improvements. It was all purely driven by the deals that the three deals the US government, Nvidia and the Soft Bank deal which all together brought in somewhere between 16 to18 billion to them.
Uh that brings in long-term secular tailwinds or not secular but strategic tailwinds but doesn't do anything to improve the near-term fundamental businesses and address the challenges.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- intel earnings
- auto earnings
- gm job cuts
- ford sales
- target job cuts
Companies and tickers mentioned
- INTC
- F
- GM
- TGT
- Intel
- Ford
- General Motors
- Target
Watch the episode
Watch “Intel Returns to Profitability in Third Quarter | Bloomberg Intelligence” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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