Intel, Wedbush, Gelsinger discussed on CNBC's Fast Money


Welcome back to fast. We've got earnings alert. Until the shares of the chipmaker moving lower back results a conference call is underway. Let's get straight to josh. Lipton it with the details. Josh so melissa remember heading into this report until was up about ten percent this year but it was also down about twenty percent from that fifty two week back in april as you mentioned in the after hours giving up some more ground years for their poor beats on the bottom and the top you saw gross margins clock in at fifty nine point two percent. I did catch up with that. Bryce over wedbush. He says the report is a mixed bag. In his opinion it was a good cue to report. He says but gross margin guidance there q. Three and q four is disappointing and matt is going to be some debate about that. Bulls are going to say management is just being too conservative here but bears. He says they're going to counter. The pc cycle could be turning co pat. Gelsinger is on the call right. Now he says intel's uniquely positioned to capitalize when the early innings. He says if sustained growth across this industry and intel is going to deliver the kind of leadership products that customers look for every category. Seven nanometer is progressing very well. He's referring there to the latest and greatest chips as for segments. He saw we. We see sustained straighten. Pc market data center strong as well. But that's strong. Demanding says is pressuring supply chain. Shortages will continue. He says it could take one to two years before industry can completely meet demand back to you all right. Josh thanks. josh lipton intel shares. There at the after session lows practically down by three percent or so a guy down you. How do you interpret that guidance. I mean the the back. Half i guess is in the eye of the beholder i look at it and say they beat this quarter basically by twenty one cents and they guided hire full year by twenty cents on the streets saying wait a second. You look like you're guiding higher. But you're not really it's not it's not nearly as commensurate as it should be given what they're seeing this quarter. I would say data center a lot better operating margins north of thirty one and a half percent a lot better. There's a lot to like here not on least of which is evaluation. But there's really no growth. That are people getting excited about. I don't think you're gonna get hurt at fifty four dollars. This is the level that it broke out from if you recall back in january. But they're better places to be and we've said that for a while i mean i think. Amd and earnings next week sets up a lot better than intel right here at fifty four and a half. I mean data center be consensus by a little bit more than half a billion dollars. So that was that was quite a beat. Their tim But in terms of the guy. I mean is it too early to cast judgment on pat. Gal galster the new ceo. No i i think we know what pat gelsinger can do. He's been there before he's all about innovation he's already said i'm gonna spend twenty to twenty two billion dollars next year. We know that they're going hard at work. This global foundries steel no comment. But i think he's going to be aggressive In maybe moving things faster than people expect. I think the issue is. You can't turn this business around after three or four years of under investing in it overnight so The pop that came from this gelsinger takes over. A man's certainly been in the dna in the fiber of the company known for innovation. Comes back on board. It's gonna take some time. The foundries seven nanometer updates are great. But it's you know what i heard out of. This tape was really more. The company talking more about dynamics in and addressable market and what's going on overall for the industry to get back to some of the supply chain dynamics that he wants to so. I don't love the outlook. Because i don't think you could have expected a lot here. I think the stock is very cheap. And that's what you're excited about right for more reaction to intel's earnings. Let's bring in. Jared weisfeld tech sector specialists at jeffrey's jerry. Great to have you with us would have been too much to expect. Raised back half of the year guidance. By more than what they already beat given pat. Gallagher's been on the job for a matter of months. I think that's a great point and it's exactly what guy was talking about. If you sort of look at the full your ratings. They raised by about twenty cents but it's very misleading under the service. Because if you actually look for q three to four percent tax rate so it's actually a very low quality underneath the surface because they're benefiting from a very low tax rate which is artificially boosting your. Eps number you know that's something that ibm investors can remember all too well but i think the bigger problem here and why shares are down is. It's all about the second half per smart trajectory where the implied q. fortress margins really down or. They're missing the street by about two hundred basis points so we're starting to your at fifty nine percent and exiting the year closer to fifty three percent. Investors are all already worried about increments competition from. Amd this is only gonna feed into that narrative pretty significant way. So what does that mean. What a what do you glean from this quarter in terms of what this means for competitors you do you see that intel it remains weak and competitors are still eating their lunch. Unfortunately it's just more questions than answers because the narrative is going to be. How do we should we think about pricing. Amd has an incredibly competitive product especially on the.

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