Intel Struggles to Meet Demand, CEO Says After Earnings
Speakers
Ed Ludlow
— Co-Host, Bloomberg Technology
Summary
Ed Ludlow reports on Intel's latest earnings and supply challenges. Demand remains robust, especially for data center CPUs, but internal wafer supply and yield issues are causing execution problems and a below-Street current-quarter forecast. Intel's foundry 14A process still lacks a named customer with volume commitments, and the stock fell 5% after hours. The segment also touches on broader US interest in a national chip manufacturing champion.
- Intel sees strong demand, particularly for data center CPUs, despite market focus on Nvidia GPUs.
- Internal wafer supply and yield issues are causing execution problems and a lackluster current-quarter forecast.
- Intel's current-quarter guidance midpoint came in below Street expectations.
- Intel stock fell 5% in after-hours trading.
- Intel's foundry 14A process is not yet real because no customer has made named volume commitments.
- Management will not ramp foundries until a named customer commits; multiple customers are engaged on engineering and IP.
- A named foundry customer would be a positive catalyst for Intel.
- The segment also mentions US policy interest in a national champion for onshoring chip manufacturing.
Ideas
Intel demand strong but supply execution weak
Intel's foundry business is still waiting for a named customer with volume commitments for the 14A process. Management is disciplined and will not ramp the relevant foundries until a customer is real, though Intel is engaged with multiple customers on engineering and IP sharing. Until a customer is named, the foundry opportunity is not real, and a named volume customer would be a positive catalyst that moves the stock.
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