Intel stock up over 6% on earnings beat, outlook


Chip maker Intel spiking after hours let's get to John Ford at headquarters with all the details hey John we'll so well just listening to the call. CEO Bob Swanson I wonder bring you the latest there of course just to get the first details out of the way it was a beat on the top and bottom from Intel far and away they also raised their full year guidance by one point five billion dollars co Bob Swan on the call though right now talking about supply which has been a crucial issue for Intel they haven't had enough of it it's and frustrating for PC makers and others who have wanted to get more from Intel he did just say that they do expect increased output For q four that supply will be up double digits also single digits in two thousand twenty but still that is not enough and you said that they are letting their customers down right now with supply constraints and they've been unable to build out inventory now we have heard before that he's putting a little bit more color Intel's growth story I think it's more of the Bob Swan Manifesto on Intel's growth post krizelj talking about ai and the needs old custom built chips for ai pointing out that IDC says that in a couple years seventy five percent of enterprise applications are going to incorporate and so therefore when Intel can tune it's chips to artificial intelligence that makes them more valuable to customers that perhaps counters some of the apply issues and process technology issues that Intel has had allows them to have an argument that technology beyond just process could give them an advantage that will bolster gross margins perhaps Muslim all right John Thanks John Ford back at headquarters by the way we're going to hear from Intel CEO Bob Swan Tomorrow Morning at eleven am eastern time on Squawk Alley in the meantime on what your trade here well it's interesting that that was pretty bullish guidance right that was interesting to me that they would feel comfortable being that bullish really didn't need to because there's a lot of potential uncertainty out there in the next quarter so they must feel very very good and then the data center that was that was really really impressive so I think it's probably better to own here higher than it was this morning lower margin data center businesses I think still nicely the fact that Intel had been the last couple of quarters for Intel the outlook was not very good and and in fact there they threw a lot of cold water on the sector and a lot of people thought it was their their business which wasn't in some of the high growth businesses of the chip chain but but you have to be excited by by how these guys have essentially not only reaffirmed that they act you're seeing growth that maybe they have to kick up demand because the kickoff supply because demand is actually Barron expected but they talked about China and the impact and they haven't really seen a major impact I don't know if that means you should beaked fearful of the eventual but it's a relief for a company that I think people were certainly priced to the downside on this number data set beaten revenues by ten percent I mean that's a pretty big not Tim's point about margins that are all sudden makes operating margins close to thirty six percent which is significantly better than a suit was looking for twenty billion dollars eight percent so the market cap that's not insignificant that's one more thing and valuation to Cairns Point might be arguments probably cheaper now than it was a couple of hours into other chipmakers tell you very different store and now we have Intel and then you add that with your Taiwan semiconductor teradyne the positive ones so what's the message of the chips interview yet you're getting different stories right so I think it all really depends on what the end market is if you are in growing end markets you're going to do well so in videos a good example of one that we like and Marcus would be autonomous vehicles right you've got a data center gaming that's a great play we also so we bailed on they with their symantec acquisition thirty percent of their revenues are now going to be coming from software. I'll be quick takeaways if you've hooked your wagon alza group they've they've outperformed massively anything intact they've certainly massive massively up form the SNP Taiwan semi which is a essentially white labeled manufacturer for the industry is trading at all all time highs I think Taiwanese your biggest take on what's going on in his very impressive

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