you heard the sound bite from pat gelsinger.id we will see progress every quarter through the end of the decade. on the product side, there are signs of progress. particularly in ai pce chips where they will exceed their guide of 14 million units. you thing about the story of our lifetime, ai accelerators, the reality is intel is telling us this year they will make around $500 million on their a.i. accelerator. amd, which came out with its latest generation mi 300, will do $3.5 billion this year. and nvidia has a $40 billion topline market for its a.i. accelerator. the $500 million from intel shows how far they have to go to catch up in what is the most important market in the server and data center contacts right now. sonali: are they just too far behind on a.i. at the moment? ed: the difficulty is those two arms of the business. foundry and making foundry profitable is a really difficult exercise. it requires a lot of cost in the first instance. because they are not doing well on the product side, that is where they need to ma

possibly 2028 according to pat gelsinger.adding to caution about the massive turn around plan. we're still waiting to see. >> what's the difference between a foundry and a fab? >> just think like a manufacturing hub. it's unfortunate because we talk about chips all the same and gpu, cpus, accelerators, hub, manufacturing where they build the chips, much like taiwan semiconductor. >> that's what distinguishes tsmc -- >> tsmc, yes. >> tsmc from a lot of the others. they don't design their own chips. >> no. >> they make for others. >> which is why it's so important for intel to actually separate the two businesses and say, you know, we have a distinction wall between our chip design business which will not only benefit us but design chips for other company and manufacturing business -- >> which could manufacture for them and others. >> that's the case now. microsoft at the last foundry day announce that i had would be building some chips there. we think it's the in-house chips microsoft has been working and building on. intel wo

pat gelsinger just mentioned about an hour and a half ago.t will be available through original equipment manufacturer, such as dell, hpe, super micron in q2 of this year. intel promising it's going to be at a fraction of the cost compared to other competitors. i just asked intel ceo pat gelsinger about the cost on a media call that ended maybe 20 minutes ago he told me it was, quote, not a little below but a lot below nvidia's offering. they're not giving actual pricing just yet, but all of these stats are pretty compelling. but intel still has a lot of software and ecosystem work to push out nvidia, especially according to analysts when nvidia controls 80% of the ai chip market. >>> and intel, we have to point out is comparing itself to nvidia chip already on the market h100. this quarter nvidia announced h200 and blackwell chip shipping in either q4 of this year or q1 of 2025. they can't compare to the upcoming chips because they haven't come to market just yet. intel shares, though, down 15% just in the last month or so. down 12% last week

caroline: ending on an optimistic note, we thank you so much, pat gelsinger on all things ai and all things intel numbers. let's keep the focus on earnings for a moment. the forecast for snap is a good one. shares popping. up 25% let's call it. positive signs in their revamp. the new digital advertising business they have been offering, marketers like it. 18% forecast for increase in sales. this is bloomberg technology. ♪ to me, harlem is home. but home is also your body. i asked myself, why doesn't pilates exist in harlem? so i started my own studio. getting a brick and mortar in new york is not easy. chase ink has supported us from studio one to studio three. when you start small, you need some big help. and chase ink was that for me. earn up to 5% cash back on business essentials with the chase ink business cash card from chase for business. make more of what's yours. caroline: got to get back to those earnings. got to get back to the new $2 trillion entrant. shares popping higher after the surge in cloud revenue at those businesses fueled in part by booming use of artificial inte

what happened here is that pat gelsinger has done a very good job in fixing intel's manufacturing.he problem is that comes at enormous cost, and, you know, what happened in four years since they started this is the markets changed and the change was obviously a.i. and intel is not participating fully in that. and the rest of intel's market such as the traditional cpu server business just isn't growing fast enough to cover the massive costs. >> i think there are a few questions. one, will it ever grow fast enough or is the need for faster chips going to make those chips that they're making effectively obsolete and the investments that pat gelsinger is making today, do you think they ultimately actually will pay off or that somebody else is already going to leapfrog them again >> well, you know, there is still going to be growth in the traditional server market, not as much growth as there has been in the past. more of that money is flowing to a.i. and gpus and nvidia specifically what they hope now is that the other business they're putting on top of this is a foundry business, wher

ceo pat gelsinger says intel is accelerating production to satisfy massive demand. >> every aspect ofan existence is dependent more and more on what we do with semiconductors. >> reporter: is a matter of national security, too. for example, if china were to ever invade taiwan and block chips made on the island, the global financial impact could be more than $1 trillion. that puts intel under tremendous pressure, especially after the biden administration award of the company $8.5 billion from the chips act to build more fabrication plans and upgrade others. why should a tax player believe that this is actually going to happen? >> if you show up in ohio today, we have thousands of construction workers today at that site. these aren't empty promises. do you want to build these factories in the united states or do you want to build a nation? >> reporter: less than 10% are made in the u.s. his goal, double that by 2030 beard speak of a covid. mike was a bit of a wake-up call for the nation. all of a sudden our car factories were stopped because we did not have a $1 chip. how did that happe

haidi: that was pat gelsinger speaking to carolyn hyde.head, the ceo of japan's venture firm. this is bloomberg. ♪ >> japan's oldest venture capital firm is tripling the value of its investment in a sign of resurgence in the ecosystem. the ceo told us they are getting the latest from potential japanese unicorns. >> there is no doubt a number of stocks taking on global challenges and social issues is increasing. >> there is defeat about how some startups want to debut early when they are small. what is a good sized to go public? >> the japanese stock market is unique and allows companies of all sizes to go public. the number with market capitalization extending -- exceeding tens or hundreds of billions of yen is exceeding. host: it would be great if you could show the target return. and how you came to the target. and whether this was a good performance or average for how -- how -- how it is, if you can explain? guest: i would like to name for a return of investment of three times or more. our performance has been lower than that. the reaso

>> it certainly is true that pat gelsinger wants to be back big. it's proving very costly.he company said the revision recorded an operating loss of $7 billion on sales of $18.9 billion. that's a wider loss than that reports in 2020. intel blamed the lack of profitment in the business on, quote, the weight of past decisions, and ceo pat gel sing err cited the slow adoption of technology calling extreme ultraviolet technology, which is used to make some of the most advanced chips in the world. gelsinger said the foundry losses could peak in 2024 and eventually break even midway between this quarter and the end of 2023. now, intel's issue is that it's been behind for so long against those asian rivals, in particular tmsc of taiwan. catching up requires huge investment in new technology as well as getting those major customers on board as well. in this area, intel has been trailing. gelsinger's vowed to boost the manufacturing prowess which right now is proving very expensive. >> arjun, what are some of intel's biggest challenges in that foundry manufacturing business right no

leading investors to believe the bottom for intel is not in just yet despite comments from ceo pat gelsingero have revenue growth to strengthen throughout the year and into 2025 thanks to a.i. and what he says is a delayed refresh cycle. gelsinger adding that growth should start later this year >> we delivered a solid q1 we met revenue we beat on eps we gave an outlook for first half to second half. a much stronger second half outlook with growth across every business forecast for the second half somewhat like the market indicates and maybe market weakness in the first half of the year we're working through that >> a dim forecast overshadowing roku warning of a higher growth warning ahead with the tough growth rate comparisons with the pricing increases. shares of roku down 3.5% >>> skechers reporting a record quarter for sales thanks to new products and surge in growth demand the sneakermaker is raising guidance of $10 billion by 2026. shares up more than 11%. for more on the quarter, catch john vandemore today at 11:00 a.m. >>> more "worldwide exchange" coming up after the break. stay with

the ceo pat gelsinger said he is confident for the second half of the year. >> the second half is goingo be better. we worked through the inventory issues from the first half we have a good idea of where we are with the second half oem partners as well we feel good with the healthy stronger second half of the year and into 2025. >>> in other tech news, snap is surging after the bell after issuing a bullish joutlook for the second quarter this on the back of $1.2 billion in first quarter sales which was up on the year our colleagues will speak to evan spiegel at 17:00 cet. don't miss that conversation. >>> and big tech is surging with earnings and revenue which topped expectations with the latter up 15% on the year. the fast of the pace of growth since early 2022 the first ever dividend along the results and increased the share buyback program by $70 million. generative a.i. would eat into google's cdominance and the company is boosting the search business >> we served billions with the generative a.i. features it enables people to ask questions in new ways and complex questions. notably

now, pat gelsinger is trying to shift that path to the more modern alternative. it will take years and be more costly. in terms of the u.s. strategic goal of grading more supply of chip manufacturing in this country, we have no choice but to include foreign companies like taiwan semi and samsung. we will see ultimately if intel is successful in bringing their manufacturing up to snuff, but right now, they are trailing edge. caroline: moving on, ultimately whether it takes risk out for the investors, does it really take the risk out of supply chain concerns going into the next 10, 20 years that we have seen that hit so hard during covid? joanne: no. i think you asked that question deliberately to get a "no" answer. there's just a global integration of manufacturing, not just in chips, but as we saw during covid, also in protective clothing and devices. we don't ever really want to undo that. we value, incredibly, and benefit incredibly from trade and having countries specialize in manufacturing the things that their comparative advantage favors. and we get cheaper

it's taken a nose dive since pat gelsinger took over as ceo, down roughly 48% since his rein in 2021n under performing the broader chip sector consensus is, i don't want to hate on this company, but investors want to root for intel in their turnaround plan but team to want to do it from the sideline and not risk a lot of capital doing so. >> yeah. it's been painful. i mean what's it going to take then to turn this thing around in a significant way >> well, already the disappointing thing gross margins dropped. it's at 43% and we need improvement there. the average selling prices are going to increase, gross margins increase by 200 basis points the foundry business lost $7 billion last year. this is supposed to be how they turn around and start manufacturing chips for other companies around the globe that business posted a loss of $2.5 billion in q1 and that loss is only going to get worse in q2 i think it's a matter of really the gowdy 3, the ai chip, and improving gross margins within the second half. there's so much riding on the second half of this year. >> yeah. again, there it i

they have all this money coming from the government, but the turn-around under ceo pat gelsinger, it's would add, again, it shows the a failure of government industrial policy. when you have government in the mix, they usually make the wrong decision because it becomes political, not based on market action, but based on political push here and there. meanwhile, microsoft-backed rubric had its ipo yesterday, and it was a pretty good first day, to say the least. lauren: okay. i'd never heard of this company. a cybersecurity start-up, so it makes no money. shares priced at 32, that was higher than expected -- david: backed by with microsoft. lauren: closed 5937. this -- 37. this company, because it's in the sweet spot, it's got microsoft's backing, it's got cybersecurity, it's got a great ceo, it is convincing wall street that ig ignore that it's not making money now, it's on a path to profitability. i want to tell you about the ceo. his name is bipul sin isha, he is the definition of the american dream. he came from a poor village in india, he worked as a brees tax he now -- barista, he

pat gelsinger saying the gave a soft demand forecast for q2.is firm still thinks things will pick up in the second half of the year. so you believe him you believe intel? >> well, look, this has been a roller coaster ride. last year we were on an island recommending this. saw it go to 50 and now back down we overstayed our welcome, but i think that people try to complicate this story. it's so pc driven it's not even funny. it's over half the revenue, and pc has petered out we think they pick out in the back half. intel is a funny beast when they're beating numbers they sound like geniuses and then when things don't happen it's a pile-on this is probably an overreaction a lot of thaeir peers are rallying right now you want to think about buying, gross margins potentially troughed, when gross margins start to get better, the stock follows. >> you overstayed your welcome so it's back to where you were before what happened to pcs when the stock was at its height to now did you just get -- did you get that call wrong? i'm just trying to understand d

it's a step toward ceo pat gelsinger's plan to continue making its own processoring but to serve as aanufacturer. intel says it expects the foundry's losses to peak this year and eventually break even midway between this quarter and the end of 2030. >>> meantime shares of paramount global, they're rising on new reports that the company is moving closer to a sale. paramount is considering exclusive talks with sundance, the media entertainment company, david ellison. they're seeking to sell all instead of parts of the company. stock is down 20% this your and more than 40% o every the past 12 months. there have been discussions about apollo commenting about buying the studio separately, but that does not appear to be on the table at least right now, becky. >> thanks, andrew. >>> when we come back, tesla shares taking a hit yesterday after disappointing first quarter delivery numbers. we've got the details right after the break. >>> and in the next hour, we'll get reaction from ark invest cathie wood. "squawk box" will be right back. >> announcer: this cnbc program is sponsored by baird.

nicer than pat gelsinger. >> meantime, more stories today, just the pile-on continues about their sharesla's share in china. now below 7 as the chinese are stepping on the gas. >> well, the chinese, we know that -- i remember when bill ford said it's the greatest -- it's the existential threat to us. david, you know that -- i know you know that phil lebeau's excellent piece in chile basically showed you the world. >> i thought that was eye-opening for many people, just because as phil has pointed out many times -- not just evs. they're competing on i.c.e. vehicles as well at price points that are far lower. so, yes, in these off markets. in the united states, you're not going to be able to buy a chinese ev. and by the way, our treasury secretary, on her way over there very soon to discuss that. perhaps that will be part of the discussion janet yellen has with her counterparts in china. >> and sara will be there as well. i don't know if she's going to be in the negotiations. it's possible. >> translating. >> sara may be leading negotiations. but the question, of course, as they continue

. >>> my interview with pat d gelsinger. now let's break down