00:00Intel is a CPU and a data center story. The CPU market is really taking off. That was the sort
00:06of overriding message from CEO Lit Bhutan when I spoke to him. And the situation is that demand growth is
00:13outpacing what is improving supply. If you remember, Intel left money on the table because they just could not meet
00:20customer orders, particularly on CPU, which is everything for them right now. So their own production and processes of their
00:27own products is improving, but they still cannot meet
00:30100% of orders. But you look at the guide for the current quarter and the sort of 59%
00:35growth in data center, largely CPU gone. They are going in the right direction. Then it became a CapEx story.
00:41So CapEx will be more than $20 billion this year. That's a surprise, right? That's a change of plan. And
00:47CapEx will be higher next year too. And what gave Intel confidence, because Lit Bhutan is cautious, is the visibility
00:53they have on demand. They have a number of LTAs with customers. They look at the product side. They look
00:58at the foundry side. They want to
00:59They look at the market. They look at the market. They look at the market. They would not invest into
01:01this. They don't deploy CapEx if they aren't sure of a return. There was this kind of very big reaction
01:06when the numbers hit and the commentary on CapEx. Things kind of pulled back a little bit. But for now,
01:12Intel is saying it's making progress. It's not fixed everything. Margins still aren't what they used to be. Foundry, there's
01:18a lot of questions, but they're headed in the right direction. This is Ed Ludlow for Bloomberg News in San
01:22Francisco.
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