ed: we are speaking with the intel ceo, pat gelsinger. have been down to santa clara and was seeing the reality of intel, it strikes me as being more multifaceted than nvidia in the high-end performance gpu. part of that is the packaging. part of that is the differentiation of foundry. it seems to be happening in the context of data center, cpu. i wonder if you could explain to our audience what you think is happening in that market, specifically on the cpu side. pat: cpu, last year, there was more energy on the gpu for this high-end trading system. as we come into this year, we think there is going to be more balance between the cpu and the accelerator marketplace. clearly, we are going to be participating more in the accelerator, that the strength has been the core data center. coming out of the world economic forum in davos -- we probably met with 50 customers. the enthusiasm they have and the traditional strength that intel has in the enterprise -- we are in year 20 of the cloud, and 60% of computing is in the cloud. at 80% of the dat

that was short what the sect st street was expecting pat gelsinger spoke out last night on "last call. >> it is leading the channels and oems to be conservative in the outlook. i say that q4 to q1 vary is the case that said, we look at it and our market share looks healthy we don't see unique inventory issues outside of the areas we talked about we think the q1 guide is where the market is right now with the outlook. we see our products are well positioned and competitiveness is good and market share is solid. we believe we will improve on the metrics as we go through the year >>> investors preparing to close out a week of continued fresh records with one key economic report december pce figures are due out before the opening bell. the favorite inflation gauge is expected to show a gain of 3%. a drop from the november reading. let's bring in robert teeter at silvercrest asset management >> thank you, frank. >> how do you see the pce report today? five days before the next fed decision and the odds of the cut in march something the market is counting on which has been fluctuating. it w

pat gelsinger will join bloomberg technology's at 11:20 new york time. let's get an overview of the market with chris murphy, cohead of derivative strategy at susquehanna, you look at the broader index of the s&p 500 ended is lower, but you think about what we got from tesla and intel, and it seems like there is a resilience that is sticking by. chris: hey, katie. a lot of resilience, and some of the economic numbers we have got in the last couple of days point towards a soft landing. one thing to keep in mind during earnings season and what we are seeing in general is low correlation among s&p components. you have a situation where stocks are moving on their own specific earnings merits, news, things like that. you end up moving the components in different directions, but the underlying s&p ends up not moving that much. we have had five straight all-time highs, but it has been very incremental moves higher. that is the backdrop we are looking at with the s&p. katie: we started the week with amy lou silverman from r&b, and she says if you think about the

we will hear from the ceo pat gelsinger.aking a look at how oil is coming online, monday is the start of trading, we see brent crude, wti coming online at the same time. we are seeing prices jumping modestly, just over 1% for each of those contracts. still the move really is a reflection of those events over the weekend. we had three u.s. troops killed by what is believed to be iran backed militants. traders are recalculating their red sea risks of tobacco that because we had the response from the u.s. so far, saying they are bound to retaliate. vowing to uphold all of those responsible to account for the time and on the manner of our choosing. those were the words of president joe biden in a statement. but that is the market reaction we are seeing today. brent crude and wti, both moving to the upside. let's change on, we have u.s. contracts coming online for futures and it's a big week ahead. we have the fed rate decision on wednesday. a focus is when we can expect the start of rate cuts, xavier becerra to be signaled to th

pat gelsinger has been speaking to our economics editor faisal islam at the world economic forum in davosaid the current disruption to red sea shipping is another reason they were right to invest billions building factories in the us and europe — rather than relying on asia. it's going to be a turbulent world, right? and obviously ukraine is still active, the israel situation, maybe broader implications in the middle east, obviously us—china tensions. you know, it's a turbulent world in that regard. i think most view the economy probably a little bit slower to start with, some acceleration as we go through the year. and our strategy is very much around building resilient supply chains so that we're better prepared to handle some of the turbulence that we think is at least currently consistently seen year after year. just when we think things are calming down, it's not entirely calm yet, so we need resilient supply chains to keep the economies of the world moving forward and being less impacted by events in a single place in the world. even high—tech companies like yourselves do have some

pat gelsinger has been speaking to our economics editor faisal islam at the world economic forum in davosshipping is another reason they were right to invest billions building factories in the us and europe, rather than relying on asia. it is going to be a turbulent world. 0bviously ukraine is still active, the israel situation, there may be broader implications in the middle east, obviously us attention, it is a turbulent world in that regard. i think most view the economy probably a little bit slow to start with, probably some acceleration as we go through the year and our strategy is very much around building resilient supply chain so that we are better prepared to handle some of the turbulence that we think is at least currently consistently seen year after year, just missing engzell coming down it is not entirely calm yet, so we need resilient supply chain to keep the economies of the world moving forward and being less impacted by events in a single place in the world.— place in the world. even high-tech _ place in the world. even high-tech companies i place in the world. even l hig

pat gelsinger is trying to transform this company at the cutting edge of manufacturing as a contractanufacturing and also supplying its own chips competitively. that's really what we are looking for but that's thursday night. we think this will be the first revenue of profit growth in about two years. that will be good for them and that something we will focus on friday. katie: before we let you go, when it comes to netflix, maybe we can finally move past the ai discussion? does that logic hold for intel and other chipmakers? ed: what you always want to see is evidence that ai is materially driving sales. one reason microsoft has outperformed as there is a high degree of confidence that it will be more profitable because it's selling this value added software. for nvidia, they are growing and a massive way from ai but what about the other names? it doesn't show up yet in the intel financials, the ai boost. they dangled some customer names but we need real names and some real numbers around how that adjusted growth is going forward. katie: great to see you and you can catch ed ludlow

up first is intel, ceo pat gelsinger on where the company stands in its turn around with the stock upe past year. listen in. w. part of the optimism in the stock for intel has been we're getting the process technology back you know, we said five nodes, four years, this audacious plan to get back to leadership. as it's coming to life, people who might have been skeptics are saying, wow, they're making it happen and i think with that it's sort of like the products get better. >> malcolm, first off. welcome. glad to have you with us what do you think of intel >> yeah, tyler i'm actually surprised he didn't manage to get ai ere where into every single sound bite you might clip because that is the slogan that's going to bring investors who had turned away from this name frankly in the last few years sim my because they weren't a part of the ai conversation, i do think their approach to try to incorporate artificial intelligence just about everything that we as consumers touch will bear some fruit for them this year and going into the future. >> well, to that point, then, malcolm, up next,

don't miss john ford on cnbc interview with pat gelsinger.rt of that conversation 7:00 eastern time. >>> apple making some key changes to its overseas app store. details and what it could mean for the future of apple services growth just tee break. closing bell is coming right back >>> apple announcing some major changes to its app store and other services for consumers in europe. steve is here with the details. what is this all about? >> this is some huge changes and anticipated changes coming from apple. this is all in compliance with what is called the digital market the dma for short. that's going into full effect on march 7th in europe and these changes apple is making is basically opening up the iphone for a lot of different things. that includes allowing alternative app stores not operated by apple and it also means a lowering of fees in its own app store and across the board in general, that 30% fee that we keep talking about, that goes down to 17%. a lot of businesses will also end up paying 10% for smaller apps. there is a lot of ac

the ceo pat gelsinger says the firm has $2 billion in orders on the books in chips and expects betterales later this year >>> we're getting an early indication on how that result will read across to intel's u.s. peers with amd and nvidia all down in pre-market trade you can see them on the screen qualcomm is down 2%. similar moves from micron and amd looking as the biggest loser in pre-market which is lower by 3%. >>> i want to take you to the story looking at apple and the eu we see concrete changes. the world's most valuable company is set to launch a sweeping overhaul amid pressure from the eu lawmakers. apple announced it will introduce changes to the iphone in the eu in a bid to comply with the digital market act. it will allow you to bypass the phone and use other systems. the changes are due to come into effect in march and may negatively effect the user experience and threaten the make the system less secure >>> when it comes to br brightspring, it has the initial public offering below the initial range at $13 a piece instead of the targeted $15 to $18 range. raising $633 mill

gelsinger, we're not really buying your turn-around a plan.hammered, it's down 10%. stuart: that's a drop and a half. bring us up to speed on tesla. they were down 12 yesterday, i see a very small bounceback. lauren: yeah, he's that's by far the worst performer of the mag 7. they're recalling 200,000 vehicles in the u.s. from last year with, a rearview software malfunction. it's not the reason, it wouldn't hurt the stock necessarily, but it's not good news, and they need it. but cathie wood certainly bought the dip, she bought $32.5 million of tesla stock yesterday e when it was down 12%. i wouldn't call this a comeback, but at least it's up today and not down. stuart: that is aggressive dip buying, isn't it? 32 million shares. stuart further i think -- lauren: i think a lot of people buy tesla for elon musk. stuart: there were some companies that reported before the bell this morning including american edges press if. lauren lauren we're going out to eat bigtime. restaurant spending for 2023 reached $100 billion for the first time according t

. >>> intel is where we begin today, and ceo pat gelsinger is messaging things will improve over the course of the year. >> we don't see any unique inventory issues outside of the non-core areas we have talked about. so we think where the market is right now in terms of its outlook, and we see our products are well positioned, our competitiveness is good, our market share is solid, and we believe we'll be improving in all of those metrics as we go through the year >> for the full interview, tune into "closing bell" at 4:00 p.m. eastern today. now, the stock we should note is down nearly 30% since he became ceo of intel despite that, our next guest says she still believes in the turn around story, which she says isn't near its end yet. she remains bullish on the stock long-term. let's bring in kim forest. welcome back good to have you with us the issue here is not the company's past performance, their earnings beat, revenues were higher than expectations. it's all about first quarter guidance here, and that's why the stock is getting taken to the wood shed today. correct? >> sure. and

., but they are scared >> pat gelsinger is coming on and saying a.i.the future of the trip industry. >> the ceos need to do something. >> they need to know something >>> when we come back, we will talk to another ceo. we will talk a.i., too peter orszag with the he can pec expectation from the fed and everything he is hearing on the ground in davos, switzerland >>> and we have an exclusive interview with secretary of state antony blinken at 10:00 a.m. a cinrit ck >> announcer: executive edge is sponsored by at&t business next level moments need the next level network. ncredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪) the first time you made a sale online with godaddy was also the

intel's pat gelsinger, does he rule the world? and chevron's mike worth.ith ken rogoff, wire oil prices not responding to this geopolitical turmoil? how do people respond to that? you give a stimulus and try to predict the market outcome. jonathan: i was speaking to a pension fund manager at we were talking about doing business in america and we try to bring up the topic of u.s. politics. he talked about the ease of doing business in some states versus others. i said name them. reluctant to do so, he mentioned texas. mike worth, talk to him about doing business in california. lisa: i believe they are not refining and pulling back from certain california activities. there is a question of can states take the helm given the national uncertainty. jonathan: we will start this hour with this conversation on iowa. the front runner for the republican is running away with that very early on. libby cantrill joins us. head of public policy at pimco. great to get your perspective on all of this. let's start with results overnight. where do we go from here? libby: har

i mean the second best performer in the dow was intel up 90% and hats off to pat gelsinger.some big changes an i think pcs are going to have a big year. done well in enterprising and high performance computing. my hats off to a guy that cleaned things up, critical of him at times, but i had the shift and i really have to say that there are people who wrote off intel and it's difficult to write off a great american company be and he's making a comeback. >> i think it's real because i think the pcs will have a big year because of ai. i don't want to be part of the ai bandwagon that's just beginning, but i do think when we can speak to our pc and do a large language model it's going to be intel that's involved. anp is the leader. >> you spent time talking chips. micron a name we talked about a lot. >> yeah. >> we had -- >> did a great job, and he correctly said there would be a turn and got a turn. he's not promotional. he's just a very good guy. these guys, what can i tell you, they're terrific at what they do, and they're american manufactures. we put the kibosh on big asml m

what i think is so interesting is you've got pat gelsinger with a giant position in mobileye, and 88%ctually down to 85 cents. people are sensing this pc refresh that's coming from microsoft, and some people are -- it's starting to dawn on people, wait a second, if i need -- if there's a button that they're going to put on, i'm going to have to buy that pc. i think that hp ink being up only two cents is ridiculous, given the fact that they're -- if you called enrico right now, that's the principal beneficiary. sells at eight times earnings. interesting. >> dell is not that far from all-time highs. >> dell's got a lot, complex -- really complex, terrific set of order books that includes much more enterprise, and i really, really love dell. look, i'm a big fan of michael, i think he's fantastic >> we've paid a lot of attention to transports. xpo gets an upgrade today at wells. >> it's been the winner. it's been the winner. old dominion has been okay too. >> and i think citi too makes fedex a top pick for the year. >> fedex, we have to recognize, just missed. let's give it a little breat

its ceo, pat if gelsinger, has executed very well on it goal to achieve process and manufacturing leadership. and that is allowing intel which should achieve its goal of five processes in four years next year, and it -- and with that they're able to introduce products that are much more competitive. and so they're establishing themselves in a much stronger product position with a much healthier end market where the industry has already seen the covid, post-covid inventory excesses correction in the pc market. liz: well, let me -- i want to jump in here because they have been doing big moves in the a.i. chip world, but the market per we steves that they are somehow -- perceives that they are somehow behind in this race. intel in the last month just put out some chips that actually, as i understand it, for pcs speed up a.i. calculations, they're entering that part of the data center business although, you know, nvidia's arguably the bigger gorilla in that one. are they behind, or is that just a misperception? >> no, they are behind. they have been behind and continue to be behind in the a.i. a

at these levels in march of 2017 can you tell from that one yeah ceo pat gelsinger spoke to jon fortt last night he blamed the weak guidance on several subsidiaries, but the core business is strong. >> we had a good year and important year for the company we bring that momentum into q1 on the low end of seasonality has a wide range in the core businesses, the products are healthy and the market share is strong there's not any particular news there. we just see a little bit of more conservatism in the market as we come into the year >> i like to look at maybe a five-year or ten-year amd. amd is worth 50% more. i never thought that would happen market cap worth 50% more than intel. $300 billion gelsinger said his strategy is to build two world class companies. the product group as well as the foundry business that can't be right. did you see it >> i did >> 4,000%. i don't think that's right there's some fluke. >>> visa shares are falling this morning after earnings and revenue beat expectations. the company warned of a slight dip in payment volumes in early january. the cfo flblaming th

not everything is seamless i really do think if we look back since pat galelsinger has been there, one might have been not quite perfect. >> i don't have in front of me the performance of the stock since mr. gelsinger came back, but maybe we can -- >> do you remember >> it's not good >> i know it's not >> josh, it's like flat. >> we can work it up in the control room perhaps if they have time. if not, i get it >> let's compare it to the sector >> hang on we can do both >> compare intel to the second to your point, february 21st the foundry day may be an opportunity to get out, if you would, they may announce a new customer i don't know this but there's an opportunity to see it regain comparing to the sector intel outperformed the smh in the stock the last three months leading into the earnings report smh is a whole other story it may be in overbought territory part that have category when you divide the compute versus noncommute and intel was sort of in between both and now we see the negative reaction to this weakness in data center revenue, loss of market share to amd. >> kristina, y