00:00Those earnings out by Intel big beats on the top and bottom line for the most recent quarter
00:04and revenue guidance of 13.8 to 14.8 billion dollar for the current quarter that we're in
00:10well above analyst estimates but of course the street really looking for that long-term vision
00:15here and its long-term plans under Lip Bhutan. Bloomberg tech co-host Ed Ludlow had a chance
00:20to actually catch up with the CEO of Intel and he joins us here in studio too. What did he
00:24tell you?
00:25Yeah basically the CPU is everything you know so what is happening is that the demand coming from
00:30data centers in particular but it's universal all the markets they're in is way greater than their
00:36ability to supply so they are prioritizing that they are funneling supply particularly to the data
00:41center market and that accounts for a lot of the outperformance in the quarter gone and for that
00:45guide for the current fiscal quarter love listening to you guys about the stock I mean let's put it
00:50this way yeah the stocks up 18 percent in after hours $77 a share yeah that takes it $11 way
00:56past
00:57its record high from the year 2000 so if this holds this is an incredible market story before the show
01:03started I was looking at the last I kind of forgot how long ago that record high it was the
01:07the year
01:072000 Katie yeah some of us weren't even around then but it gets but it gets to the idea of
01:13of why
01:14yeah yeah well I mean and Ed this is a little bit of an impossible question but you know Tim
01:20did ask
01:21the question you think about the government taking a stake in Intel what we're talking about today these
01:26numbers that we're talking about today would that be possible because at the time I mean the language
01:31around that was very much this is a lifeline for Intel a part of the the Intel story was shoring
01:37up
01:37the balance sheet which wasn't just from the U.S. stake but they used other mechanisms particularly
01:42through private markets to do that as well right mostly this is the idea that they found themselves
01:48in the right place at the right time of a bigger story particularly you know we talk about this in
01:52abstract but in AI when you go from training models which is a very GPU intensive process to
01:58inference running the model the CPU can be more useful it comes into play that's where demand is
02:03there is something to be said about the bottom line if you look at margins really outperformed in the
02:08first quarter but lit boo and Dave's into this if I were really honest with us that that largely is
02:13just because of higher revenues and the guide into the current period these are not margins going back
02:17to the year 2000 remain remember Intel used to have margins that were 60 to 70 percent yeah we're now
02:23at
02:23the 40s and so they are still trying to get this foundry business going the data that they see shows
02:28them
02:28ahead of their own declared path on that yeah and then the U.S. manufacturing story they're all in with
02:33Elon Musk right and they see a path of that but that doesn't show up in the finance 37 percent
02:37gross margin
02:38in the most recent quarter it basically says they're going to hold that for Q2 as well but when do
02:43we start to actually hear about these customers I kind of feel like they've been very quiet about it I
02:48don't I mean are they there I mean is there a reason why they're not be more public about it
02:53I'm going to be super honest with you that headline that says Intel says not commenting on deals with external
02:57customers I said to lit boo tan lit boo tan last night Elon Musk said on his own earnings call
03:02yeah we will use Intel's 14 a process yeah could you tell me if that means he's a foundry
03:07customer or if you customer or if he is licensing that technology from you that was lit boo tan's response
03:12he is saying that it is for the customer to talk about it not for him this is lit boo
03:16tan's whole philosophy to be modest to under promise and over deliver but they aren't naming customers that has been
03:23something that's held the company back proving they have real third party foundry customers
03:27customers
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