do not take our big interview tomorrow with pat gelsinger.chang, this is bloomberg. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. haidi: good morning, welcome to daybreak austria. we are counting down to asia's major market open. shery: from new york, i'm shery ahn. haidi: top stories this hour, jay powell downplays the risk of higher prices this year. he says inflations will not get a hand. worries of rising virus cases and new

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morning off ahead, turning the page, microsoft a potential deal with discord and intel's new ceo pat gelsingerelling a turnaround story. what he needs to say and finally "squawk alley" takes to the clouds cloud players ceo joining us later this hour on the stock's meteoric rise and where it goes from here. first breaking news out of pfizer we have that, meg tirrell. >> reporter: jon, pfizer announcing a human clinical trial of a bill for covid-19 the early stages phase one clinical trial but an oral anti-viral drug targeting this virus known as a protiase implicater, successful in treating hiv and hepatitis c and the kind of drug dr. fauci talked about we need for sars-cov-2 the chief scientific officer saying in a statement here "we've designed this drug called pfo71322, first sign of infection without require's that patient's hospitalization or being in critical care it's a pill. another inhibitor given by iv. the early stages of these drugs. the hope, showing positive results, move through clinical trials and could present a new option for treating covid-19 this the early start deirdre? >>

gelsinger can do with intel. daniel loeb tweeting a third point, of course tweeting last night at 9:12 p.m., quote, i have never seen a new leader like pat gelsinger step into a new company like he has at intel and take charge with such clear vision and articulated strategy looking forward to its execution. i mean that says a lot that says a lot coming from somebody like dan loeb it matches with what you and jenny, pete, think about this company and maybe jenny is willing to wait a little longer than maybe you are thinking about, but nonetheless the optimism is shared. >> it has certainly given me much more patience i also think it was critical last night -- how great was it that satya nadella joined him? to jenny's point, all of the different mega cap companies that are now endorsing what they're doing, how they are going to go about it, i think it really does speak volumes about people's respect for the ceo presently of intel and the bold move they had to make in a very short time frame with the previous ceo, w

gross margin 67.5% -- quick reminder, pat gelsinger will be on tomorrow on cnbc 11:00.e could have said we'll stick by the guidance and be conservative yet he did not, guy. >> i'll take transitional year and going back to what we all said at the top 6 of the show for the first time in a long time we spent more time talking about intel than in '08 when we went to california to that 100-degree stage that's okay. the transition seems to be there. you can make an argument valuation above 68 to tim's point is a huge break out and i think you can see the vision for the first time in a long time. good for intel watch that 68 level. >> up now in after hour highs. >>> moving on, entering the spring, pete said there's a red-hot wellness stock to recover from the winter. giddy up, take it away, pete. >> giddy up. i'm going to give you wall green boots. i think the important part about this, you look at the c suite they're loaded with nothing but legends. very recently they got a new ceo and she's wonderful. miss brewer has done an unbelievable job already as she's just stepping in

what pat gelsinger has said, they are going to commit to deep uv.y have been a little behind on that. that's one of the reasons for the $20 billion price tag, because when you look at one of these asml, bp ub machines, each machine is pushing $150 million and the size that intel is going to propose the bill, they might need 20 of them, ok? that's like having a fleet of these 100 million plus machines in there, ok? they need to get the process is up and the volume through there, because it is through volume -- that's how you protect your processes and how you do your learning and drive your costs down, ok? tsmc is very good at that. they've spent 35 years developing that skill. intel knows how to do that with their microprocessors, but they had some troubles with advanced processes. they will have to work at it, and it will be multiple years. it's not something that we will be able to look two quarters, three quarters, or two years out and say, this is going to solve the problem. it's going to be steady progress and they are going to have to take ris

i'm deirdre bosa with jon fortt and julia boorstin intel ceo pat gelsinger joins us in just a minuteking a look at stocks this hour the nasdaq largely under performing with the chip sector all in the red except intel with flirted with an all-time high earlier but now off the levels giving the dow a small boost as new ceo pat gelsinger announces intel is back. jon? >> here he is with us, intel ceo, sounds funny to say, pat gelsinger in his first broadcast interview since taking the job pat, i have been looking forward to this for months, talking to you live on the record about intel's plans. you laid them out yesterday. quite a presentation wall street investors rightly skeptical. we see the stock doing some head fakes here two main ideas you address that i want to start off with this foundry push, intel making chips to the customers' recipe, not necessarily intel's. $100 billion total addressable market you say in four years system on a package, which may be addresses some of these process technology issues. let's start with the foundry push talk to me about costs and how you get the

and i think what gelsinger brought to the table, he brought a level of confidence. think investors were looking for an engineer at the helm and what they got was a very motivated engineer and i think that has been, that has been driving the run up on the other hand, i think amd, so much pent-up demand that, that amd has, and the expectations were so high, what amd didn't blow out its numbers, like investors thought, they took a little breather there is money changing hands between amd and intel, and that makes a lot of sense because they are the two archrivals going head to head in the pc market and also in the data center market h >> thank you for joining us. appreciate it. >> thank you. >> thanks. >>> now cleaning products. crafting machines and more a week of ipos, 12 companies on slate to go public "squawk alley" will be right back. diane retired and opened that pottery studio. how did you come up with all these backstories? i got help from a pro. my financial professional explained to me all the ways nationwide can help protect financial futures in peytonville.

thank you. >>> later on squawk alley, pat gelsinger. about intel on the show he's going to join on squawk alley. we'll take a quick break and be right back wealth is breaking ground on your biggest project yet. worth is giving the people who build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow. worth is watching your employees grow with it. principal. for all it's worth. some say this is my greatest challenge ever. but i've seen centuries of this. with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;) all the things, all around you where you learn, work, and fly we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier an

as the new ceo pat gelsinger made first public remarks.l be on "squawk alley." steph, what's your take on how the stock has acted under the new ceo? >> i get it. he's obviously very dynamic. he's got execution on his side he's got a fabulous reputation the stock is up on the news, right. but i'm not involved here's the story, most people thought two quarters ago when swann delivered that disappointing quarter, the old ceo, everyone thought they were going to start outsourcing all of their manufacturing to tfmc, now, they're not going to do that so that's one thing that's positive i think the $20 billion is substantial. it's going to take two or three years for them to build that out. in the meantime, they've given amvb three-year leader and by the way, they're focusing on it right now. intel is behind. there's no question about it that's why the stock is up in the last year. that being said, they're doing the right thing. again, this is another turnaround story which is legitimate. it's just going to take time how do i play this i play thi

intel ceo pat gelsinger has unveiled plans for a manufacturing investment design that could cost $20illion. a couple of new foundries will come out of that. emily chang spoke a few moments ago with the ceo. pat: because i'm committed to the best products in every category we participate in, the best cost structure, and the most resilient supply chain. we see the ability to leverage the industry, but also become a major supplier of foundry to the industry. this is a winning formula and the world is demanding more semi conductors than ever before. we were getting more digital and then covid happened and it accelerated, so we need to step into this in a big way. i think our strategy is uniquely positioned to be able to execute on. >> investors love to hear you say intel have fixed all its problems. we are talking about production deadlines that were missed over years. what makes you so sure that you have diagnosed and solved the manufacturing problems? pat: we are moving to a yearly cadence of process innovations following that. we are on track to not only fix the issue, but be at parit

i get that gelsinger had to make an impression out of the gate to make a plan.y not think so, jon but the street thought so. the $20 billion plan to make chips for others is a plot >> on the other hand, if you're betting against intel, you might as well bet against the future of the u.s. economy. all of this talk about fabs being weak is incredibly shortsighted like steph curry stopping shooting the three after a rough streak this is the semiconductor design and manufacturing both together. what's changed in this cloud and ai era is that customers aren't going to take off the shelf chips from a dominant provider pat gelsinger gets that and betting on that for a new era. that means letting customers order off the menu customize and it means building two fabs there were two choices, incremental and doom intel to death by a thousand cuts or on the future and the best talents to light the way all the other companies that don't make their own chips, that's the point they're going to run on them and get them made somewhere. might as well be with intel in the u.s. >> t

gelsinger's ability to fix intel's manufacturing either internally or via outsourcing.e you share their confidence. >> no, look, pat gelsinger is terrific and it is great he came over from vmware, it takes a long time to turn around a ship, i think that part of it is spreading the gospel but look, we haven't lost anybody, everybody loves us and we'll be taking share but what i didn't like about this, this was a strawman piece of research, the blue sky upside scenario of $5 earnings per share it is going to melt away wait a second. i've been the most bullish guy on amd in the world. i never once believed in the blue sky scenario five bucks if you want to create a strawman, david, and then say hey, listen, it's not going to happen, well, that's what happened there, that piece, that piece david, that guy has been wrong about amd for a long time. let's make him wronger, or more wrong. >> or wronger. i always liked that. it's probably more wrong. >> i think it's an incorrect - >> probably sweet. >> what about the idea that they both can benefit is that a possibility in your

shery: pat gelsinger is speaking to emily chang.get more of intel at's -- intel's plans as well. midazolam any joins us now. what do you make of intel's move? >> thanks for having me. it makes absolute sense if you think about the current state of leading semiconductor main effect drink, a majority of the chips are made in taiwan. taiwan is a location that is been -- the country is going through its water shortage. there are also political issues, especially with china, and all of these factors raise significant risk to the viability of taiwan remaining the only location for manufacturing of semiconductors in that context, it makes a lot of sense for intel to become an enabler for manufacturing in the u.s. as you can imagine, this is a bipartisan issue. the u.s. government is providing funding, and on top of that, the demand of, especially with glad infrastructure, it does require a more diverse source of semiconductors. you look at all of these factors. shery: how long would it take for this move to actually change the shape of the

we have been looking to intel ceo pat gelsinger about the $20 billion plan to create a new business.ted to the best products in every category that we have participated, the best cost structure, and the most resilient supply chain, and we see this ability to leverage the industry, but also becoming a major supplier. this is a winning formula, and the world is demanding more semi conductors than ever before. we were getting more digital, and then cobit happened. so we need to step into this, and our strategy is uniquely positioned for intel, to be able to invested on. -- to invest on. alix: we're talking about production deadlines that were missed over years. what makes you so sure that you have diagnosed and solved manufacturing problem? pat: we are moving to a yearly cadence of process innovations following that. we are on track to not only fix the issue but be a parity, parity plus, and then we believe sustained leadership into the future. so the path that we are on, looked at the data extensively over the last month or so, and came to the conclusion that the team got it figured ou

our technology reporter leo kelion asked intel ceo pat gelsinger what was behind the expansion.hen covid kicked us into a dramatically different gear. the world needs more semiconductors and we're one of the few companies that have leading—edge technologies to be able to step into that void and to keep it for our own products simply is not the right thing for the planet, for the industry, and for a globally distributed supply chain. can you just spell out exactly what the benefit is of having intel build new plants in the us and europe, as you promised? yeah, i've spoken with a couple of the eu commissioners and they say, "i need supply chain on my soil." right? we need to have a balance of capabilities. we also need to have secure supply chains for defence uses, as well, where they know the sources of intellectual property and the full execution and in an auditable fashion for those higher—security use cases. so it really is a statement of world balance, world supply, world supply chain. and for that, having 80% of all supply in asia simply isn't a palatable manner for the worl

. >>> a quick programming note as we head to break new intel ceo pat gelsinger joining "squawk alley" first tv interview since taking over the job last month. you don't want to miss that. "squawk on the street" will be right back - welcome to three brothers bakery. - we have cinnamon, apricot, and raspberry. - we have a location that has experienced four floods, a fire, a hurricane, and obviously now we're in the pandemic. this is during hurricane harvey. the water was like a river. - when you talk about nasdaq, people don't think about insurance or catastrophe risk but that's a product they offer. we have 12 companies that build these models. for example, we have fathom. they are experts in building flood catastrophe models and we get it through our nasdaq platform. so insurers would be able to provide the right guidance to janice and people like her project forwards the risk and actually use that to advise the policy holder where they buy their house or where they buy their next commercial property. - now we have this predictive flood modeling that we can go to and find out if it's

gelsinger's parade. >> that's not fair >> 67 to 61.rific what he wants to do but at the same time, remember the days when someone would say the stock ran up and someone would have something good and it would keep going up, which is a new kind of money management, or maybe it was the skinny team stimi people, skinny, and remember people would sell the news and remember stocks -- >> it feels like it was just yesterday, you know what why, because it was just yesterday. and gamestop's up. >> oh, my gosh >> up 5% >> there you go. >> that's kind of a -- >> you know that's zinder note every man dead or alive must do its part it's got to do its part. the people were dead, they have to do their part to keep gamestop up and ryan where was ryan >> i don't know where ryan is. eating ice cream. >> was he saved? >> saving private ryan is that what you're going with. >> and yesterday was a bridge too far. >> military movies >> george sherman. no, this is like, it's fear now, david. it's richard iii >> i wonder if gamestop, that was a good point by th

certain companies to accelerate out of this period i asked that in the context just having had pat gelsingerday talking about a $20 billion fab debt which is making a lot of people scratch their heads. is that the bet that companies should be making, risky, perhaps, but leaning in to what they view as their core identity and core competency? >> absolutely. one thing we've seen, so-called moore's law, never a law, actually impact ended relative to desktops and servers. the result has been building massive amounts of very large energy-efficient, climbed-good server farm for doing ai to continue the digitization, the progress and those things will require, for example, special chips, special fabs you know, part of the kind of the ai technology race for building the new politicians in t -- applications in the future, specialized chips ways to do it and you can see line of sight to that transformation. whether it ranges from medical and precision medicine and everything else to education, to entertainment. the ai transformation across industries is going to be, and is going to require, a massive

i think she has a two-year edge on intel i think the last ten points have been pat gelsinger's charm offensive, which was very charming, by the way, really good, but i don't think he has the horses to change the direction and make it so intel is suddenly the favored horse. so i think advanced micro bounces back i think lisa sue has done a remarkable job, she is not sitting still. what i loved about her, she didn't come out and defend herself, which she didn't have to because her roadmap, which is mostly italian cities, says to me, don't you worry about a thing. obviously today hope is not counter trend when it goes to amd. i think a lot of stocks going up are counter trend, but i think advanced micro has been beaten down enough and i think the time is to buy, not to sell. >> okay. let me touch on that ipo that has now opened, by the way, we talked about it earlier. the ceo was interviewed on the network. of course, sara, opened for business today began trading at 39. 33 was the price on it, if we can show it. do we have it, gang? there it is. it is up 20%, so it is a nice pop for the