i'm here with jon fortt and deirdre bosa chips get hit today, before talking to intel's ceo pat gelsinger. the dow is rallies after barely recouping yesterday's losses and finally netflix and bill, bill ackman announcing the holding of the company just what exactly could he push for. we will discuss, dee all of them move across the industry, and tells margins down last quarter as a company we ended up across a slew of new products the ceo noeled that the supply constraints continue to have an impact supply chain also a theme hurting lam research due to, quote, worsened supply chain conditions that stock, guys, is down 5% we're in a chip shortage environment. we can't lose sight of that fact some semis are able to hike prices does intel's results suggest that -- >> it's definitely difficult to hike prices when you don't have products leadership. that hasn't been established, pat gelsinger would say, yet there's all spending that comes with new products. they have that coming -- going on as well we're talking about chips, we should mention amd getting the xilinx approval in china they have

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. >> we'll have pat gelsinger on tomorrow morning that's important. >> i was going to mention it if youorgot it or something, yeah, that's an interview we won't want to miss pat gelsinger dome on "tech check" thanks, john. steve grasso, do you like intel in this world of growth, could fall in the value bucket. >> definitely falls in the value bucket is under performed inviedia and outperformed on a relative basis, has gone down less in the last month, three months when you look at it, on-shoring they'll be ahead of the supply chain, they're the latest ones to do that in a big way. do people want their chip versus the other chips out there. have to ask yourself that. and technically the 100-day moving average has been resistant on the stock 56.25, stock is traiting at 51, say, 52 so the up-side is limited since august last year >> tim >> well, look, i want to hear pat gelsinger and i have a lot of confidence in this man who has put the pedal to the metal in terms of capex spending it's an arms race, samsung and intel got room to cap up the capex is function of infrastructure build out, e

i'm here with jon fortt and deirdre bosa chips get hit today, before talking to intel's ceo pat gelsinger

liz: charlie, we've got to run because we've got pat gelsinger, steven my knew sin coming up on a veryig market day. and, yes, peloton is back on the leaderboard. charlie preferenced -- referenced it, we'll show you what it's doing. we've got companies' reaction to the bombshell report x. as we mentioned, former treasury secretary steven mnuchin about to join me live on his moonshot investment with cantor fitzgerald chairman and ceo howard lutnick. both up next. closing bell ringing in 37 minutes. nasdaq down 335, the dow down 388. this is all moving around, so so stay with us. ♪ ♪ limu emu and doug.♪ and it's easy to customize your insurance at libertymutual.com so you only pay for what you need. isn't that right limu? limu? limu? sorry, one sec. doug blows several different whistles. doug blows several different whistles. [a vulture squawks.] there he is. only pay for what you need. ♪liberty, liberty, liberty, liberty♪ you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delive

a little earlier, we were interviewing the ceo of intel, pat gelsinger. there has been a lot of talk during the pandemic about how you reshore, onshore -- what has been sent to asia. i'm wondering how we move things to our soil and at the same time keep in mind the cost to make those things and the ultimate cost to consumer. ms. lee: manufacturing over the past couple of decades has made sure they are manufacturing the markets they are in. there is a lot of lessons learned during covid about things that could be brought onshore. that is something that i think the sector has talked a lot about. we have all learned a lot of lessons from covid on how to operate. the announcement today out of intel is enormous, a fantastic opportunity for ohio, a fantastic opportunity to increase the amount of supply of semiconductors, which are so ubiquitous now are even more central than ever before. that investment, that type of commitment to manufacturing here in the u.s. is fantastic, and that will continue as long as we continue to have the workforce ready to fill those

, ohio saying it could grow that location into the largest location on the planet i spoke with pat gelsinger and what plan to speed chip to specifically autos that have historically used older technology take a listen. >> if you think about the car. today a premium car 4% semiconductors and by 2030, it will be about 20% semi conductor. a 5x increase and most of that expansion is in areas like autonomous driving and advanced i infotainment and 5 and 6g capabilities much of that 5x growth is actually the car becoming more modern as i've described it, the car is becoming a computer with tires. >> i also asked him how this announcement fits into intel's broader strategy and other variables like this pending $52 billion in funding for the chips app, which congress has not yet approved >> we need this capacity, period and even if it's just for the intel products, you know, we would be announcing the site today. we believe there is simply so much demand for our products but when we look at our foundry business, we're going to run away first for our products, as well as our foundry customers at the

we may be only a few weeks into 2022, but investors seem to be reacting positively to ceo pat gelsinger'sns for the company this year. you can read about it in this week's "fully charged" newsletter on the bloomberg terminal or subscribe. this is bloomberg. ♪ emily: a teenage security researcher claims he hacked into more than 25 teslas in 13 countries. in a series of tweets, david colombo says a flaw in a piece of third-party software allowed him to unlock doors and windows, start the car without keys, and disable their security system. tesla has not responded publicly to these claims, but like many tech companies, it does have a bug bounty program where people can report security flaws and received money. lucid's chairman spoke to bloomberg. >> they are working closely with the ministry of investment. they have obviously worked with ford motors and the industry has been cooperating with us. we announced our intent. we worked very hard on what percentage will be owned directly by us, but 2025 is our timeframe. >> would you say it is gaining a bit more momentum? is that part of the reason

one. >> let's quickly divert to pat gelsinger.e was a guest on "squawk box" this morning, with the plan to spend building factors in ohio to make chips. take a listen. >> we did a nationwide search for our next mega fab location we looked at 30 to 40 sites around the nation, a lot of many factors, you know, big, it's going to be growth to eight fabs over time, so large location, energy, water, talent. you know, all of the midwest schools, and this is manufacturing. you know, we wanted a place that had a history, a passion for manufacturing and scale. >> there it is that's why it's ohio. >> but there's no infrastructure there. you need infrastructure to be in that business. remember, also, he said there's 3,000 jobs when i went to the israeli fab on saturday, sabbath in israel, there was no one there ireland was very upset how few people worked at the irish fab after they got it built. i think pat's playing for positive press he's been pretty good for that he does have plenty of capital, he might be able to do it, but this foundry

manus: intel ceo pat gelsinger speaking to the bloomberg year ahead conference. ceo has told us reduction is on the recovery track but the chip situation remains uncertain. he spoke exclusively to bloomberg. >> the ship shortage situation is still uncertain -- chip shortage situation still uncertain. -- is still uncertain. -- has a robust business continuity plan and we are -- our plans to ensure continued improvement. day by day, we are in discussions having to make sure to make our plan to be achieved. this is something of what i can tell you. we do have that strong battery technology that we want to -- for the future which is the battery we have announced. this makes more opportunity to move bigger sizes of vehicle with the leads coming in china, u.s. and japan. we would like to make sure that we are ready for that. >> you mentioned china. i am wondering where these -- whether these ev's you mentioned can turn the tide of falling sales in the country and how do you address that? >> china is our most important -- is an important market. we have to make sure tha

moving on to chips, i cut up with pat gelsinger along with guy johnson one day after the company reportedto results and i asked about concerns tied to how much intel is spending, including a potential hub for a new factory in ohio. how guaranteed is the return? take a listen. >> we feel that the overall industry is expected to double and most of that is leading edge technology and intel is only one of three companies on the planet able to build at that scale and we feel very strong that the demand signals in the long-termer going to make great investments and there was a time when we underinvested incapacity around supply limitations. what i wouldn't do to have more of that capacity today. taken together, this is exactly the plan we have laid out read we are going to aggress -- invest aggressively in the capital buildout and last week's investments around silicon heartland? my gosh, the president, the governor. i will just tell you, even though it was in ohio, everyone of the midwest states was so excited about us bringing this new capacity into the heartland of america. silicon valley, s

pat gelsinger and intel, the back-and-forth they had over this issue. forced to apologize about the comments. but still did not take a stand on china. why can't companies take a stand on china? >> part of it is the chinese communist party is putting pressure, saying if you want to invest, if you want chinese workers, your products sold or produced here, you have to toe the party line. while in the short term, it may be in the economic interest of american companies ceos, or the nba to walk back these comments, the u.s. has been so productive and so successful as a nation and technology, in the silicon valley, because we have the political and economic freedoms we do, and we are in a global competition with china. the less we pushback and the more we allow their view to dominate, the less likely we are to see the domination and success that has made america so amazing and the 200 plus years we have been around. emily: what do you think of this happening against the backdrops of the olympics about to start in beijing, the u.s. doing this blue medic boycot

it is confident about the demand and the management of supply chain issues pat gelsinger expects thes to linger into next year off 2.75%. gelsinger will be on cnbc at 11:00 a.m. >>> and shareses of seagate are up after predicting a wider margin ahead. predicting the highest revenue quarter on strong demand from cloud data customers. >>> and finally, check out what is happening with teradyne shares down 15% sinking after first quarter guidance fell short of projections. that after fourth quarter results from testing and automation markets it manufacturing testing equipment for samsung and intel and texas instruments and ibm among others. >>> let's get a check of the other top headlines with frances rivera in new york with the latest good morning, frances. >> good morning. president biden is wading into the battle of the supreme court. the source confirming to nbc news that justice stephen breyer is scheduled to appear at the white house with the president the 83-year-old justice is expected to formally announce his retirement from the bench. as for who could take his seat ketanji brow

bloomberg's john micklethwait is speaking to intel's ceo pat gelsinger.n your bloomberg terminal. fantastic event. what have we got coming up? we are going to talk more about what is happening in the european markets. stoxx 600 fading. the german 10 year briefly earlier in the session went positive. we are flat. we are just below that line right now. less than half a basis point away. that move continues. we will continue to watch what is happening there. u.k. inflation absolutely surging. the bank of england governor giving testimony down in whitehall right now. liz martins, hsbc senior economist, joining us next. this is bloomberg. ♪ and there you have it. woah. wireless on the most reliable network nationwide. wow. big deal. we get unlimited for just 30 bucks. sweet, but mine has 5g included. relax people. my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one-upping itself. take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch

pat gelsinger did a great job earlier on cnbc when he talked about the different parts of what's goingata center chips and that was down 20%, so there are areas of growth, but it's still frustrating and i will say this. intel, believe it or not was leading this year. the smh by quite a bit of a percentage move. it's gotten closer and it's still ahead of the smh in terms of the move. it's held in there okay. that doesn't make me very happy that i'm having to use that as the expression, but better than the smh itself so from that perspective, it's done okay, but it is frustrating, scott i have been looking at this for a long, long time and whether or not they continue to hold on for right now, i am. it's on a little bit of thin ice right now for me >>. >> sech, you recently bought it, what made you talk about intel to think it's on thin ice? >> it's actually more than frustrating. we like the semiconductor space right now. demand is outshipping supply and they're in nearly every part of it the stock is so cheap, and 10.6 times, 8% dividend grower and 8% free cash yield. i mean, we like t

pat gelsinger telling a different story how quickly he thinks intel can close the performance gap.oducts out this year at cse he would argue are on par with amd we will see how the benchmarks around power and power consumption play out also they have graphics chip they're launching, brand new business, plus the foundry stuff this analyst is skeptical of, gelsinger tells me is happening on schedule. so it will be really interesting in that. it is like betting against "the fellowship of the ring." at some point maybe we get to two towers, return of the king, and you have to shift the odds, even though it makes sense to bet on soren >> that's what i was going to ask, danielle. as the stock has done so poorly, is it starting to get interesting to you >> you know, i think it is interesting here outperform is a bit of a stretch, but looking at the charts we're starting to see upwards price action they've beat earnings the last eight quarterness a row and they historically trade higher in that time frame preearnings. however, i would argue a lot of that move has already been had they hist

shery: that was the intel ceo pat gelsinger speaking to bloomberg's romaine bostick, caroline hyde andr riggs. let's get to vonnie quinn with the headlines. vonnie: chinese officials have ordered all 2 million residents of beijing's district to be screened for covid after workers at a cold storage plant there tested positive. it shows early signs of spreading to other provinces, adding pressure on authorities to contain the outbreak less than two weeks before the winter olympics. home, reported the highest daily number of covid cases in the year, 140 infections on sunday, with three quarters of them linked to an outbreak in a high-rise housing estate. the jump is unnerving authorities, who have not reported any local transmissions for more than seven months, until late december. the city is currently under a limited lockdown. italian media mogul silvio berlusconi has abandoned his head for presidency. 's decision strengthens the prospect that prime minister mario draghi could be reelected. berlusconi said in a statement that italy needs unity to combat covid, and he wants to avoid his

shortages -- jay powell, policelease listen -- t shortages could be done by jensen huang i'm sorry, pat gelsingerat's an inhibiting for intel, but not nvidia >> yeah, all that may be the case i'm still not quite sure of the idea of mark zuckerberg being involved in any way with the education of any children. >> that's untrue that's untrue. >> okay. >> that is untrue personally >> personally what he 'been involved in educating your children? >> no, no, i talked to him. >> i know you do you educate him. i didn't say that was a bad thing. >> no, i think trying to get him to emphasize -- >> just the whole idea of classes -- >> will you stop it works >> you think it's going to end well >> the man is not some sort of each incarnate heally not the grim reaper, not the appointment of samarra >> he's a very powerful human being. >> he's a guy. he's got good ideas. he's a guy with a metaverse. >> just a man and his metaverse. >> 2022 could be the year where teaching -- i'm liking at carl, because you're too skeptical. >> you're on the hunt for case studies when it comes to metaverse. >> absolutely. it is a

pat gelsinger said last margin stay comfortably above 52. some might of hoped for more than that.still don't have the color here on product launches like the sapphire rapid searver hip what happens with the graphic chip and more color around capex in particular. if you're an investor you want to see the turnaround plan is on schedule to some degree. like to see the products aren't slipping further explanation for these gross margin numbers, still within the range of what intel projected. so we'll see what we get on the call, but perhaps as with microsoft last night, learning don't take the first move as necessarily the only move. >> and jon, thanks so much for that josh brown, what's your take on the broader estimated chip space at the moment and the pullback we see i mean, less of a pullback, of course in a cheaper stock like intel and some of the other names but what's your take >> i think within 70 is the place to be still, in the capital equipment side like, even on a day like today where most of the nasdaq gave up its gains, look what's in the top 50 of s&p 500 performers tod

ceo pat gelsinger was on tech check, with an optimistic tone >> we're following what we call smart capital need to build shelves and then we'll decide how we populate them for our products or for foundry customers, but overall, that build-out of the manufacturing capacity, the semi-conductor industry is going to double over the course of the decade and we're going to be positioned to capitalize on that. >> watching intel, investors aren't having it lam research, steph, tear adine is down 24%. are these individual stories or something broader to worry about with chips >> well, i think lam research certainly is supply chain issues and thankfully, i sold the position last week i'm not 200% in two years time, so you have to take profits along the way. i think that one is going to be just fine. in fact, the supply chains for lam probably extend the cycle. you could make the argument. taradine is a mess, and intel is a value trap gross margins have to come down, and the reason the stock is down so much is because they lowered guidance for 1q in terms of gross margins because they're spending so

i want to thank pat gelsinger and intel for making this man u -- historic effort at manufacturing in america. since day one president biden has recognized that if we want to compete globally we have to invest. he prioritized the revitalization of our manufacturing economy and gave those of us on his team a crystal-clear clear mission to get jobs back from overseas to america. thanks to the president leadership our economy added almost six point 5 million jobs last year, the most in any year in u.s. history and our unemployment rate dropped nearly 70%. semiconductors produced in america will allow us to shore up our supply chain, bring down costs, keep manufacturing facilities up and running and create american jobs. if we really want to end the trip shortage and ensure global competitiveness there is more to do. today our semiconductor supply chain is far too good -- dependent on countries halfway around the world. instability in another country has the potential to shut down an auto facility and harm american families in places like ohio. the semiconductor industry was created in th

we saw earlier this week, we had intel on talking with us the ceo pat gelsinger about the new plant they're building in ohio, and that will be great, but they won't be up until about 2025. >> then you start to think, do you want to start to subsidize this industry in a meaningful waying and are we doing it at the right time nobody knows it may be that demand isn't the same situation three years from now. >> but i think this is an issue of security. at some point we do want to have these chips manufactured here in the united states. and if you can innocent faiz that, i think that's probably an important thing to go ahead and do it didn't make sense to build it here otherwise, and we saw the problems that's gotten us into there are chips in everything now. i think automobiles are one of the real shortages, medical supplies is having serious arias. those are two areas the commerce department is look at. >> expect to pay higher prices it's going to cost more to do here. >> higher prices and not to mention the potential shutdown if you have less than five days' supply, you have shutdowns, which