Latest Intel-Nvidia news does not change much, says Cantor Fitzgerald's C.J. Muse

Kelly Evans (Anchor) 00:00.350

for more on this story and the chips trade in the new year let's bring in matt bryson from wedbush and cantor fitzgerald CJ bush wake welcome to both of you great to have you here CJ i'll begin with you you know you see this news this morning it seems like it's been a little bit

Kelly Evans (Anchor) 00:14.910

more full steam ahead for nvidia lately even intel benefiting been on a lot of you know lists into next year for stocks you want to own now comes this news and do you think the people who are interested in jumping into the intel trade should take a pause here

C.J. Muse (Senior Managing Director) 00:27.950

well kelly thanks first for having me you know i think that we've all been expecting nvidia and and others and and actually probably more likely apple as kind of the first foundry customer signed on in twenty twenty six so i i don't think this you know negates you know positive

C.J. Muse (Senior Managing Director) 00:48.110

momentum on the foundry side of intel for eighteen a but but clearly nvidia and apple are kind of the two main potential customers that we're looking for so incrementally slight negative but you know i don't think it removes the potential and and clearly there's still a lot of

C.J. Muse (Senior Managing Director) 01:02.910

work that you know quite frankly intel has to do on eighteen a in terms of you know their yields and their ability to actually act as a foundry so you know it's going to be baby step progress slight negative here but i don't think it changes much to

Kelly Evans (Anchor) 01:16.270

be honest dwell on that for for just an extra second explain to us CJ the difference between if i could call it like this business line versus the other ones that intel relies upon

C.J. Muse (Senior Managing Director) 01:25.320

sure so you know historically they've built for their internal products only and you know becoming a foundry is a seismic change in your business model they've had major shifts in in who's running the different businesses bringing in new people fresh ideas with lip boo the new

C.J. Muse (Senior Managing Director) 01:43.070

CEO so you know it's going to take time for them to kind of progress into a foundry as opposed to just building for themselves internally all right i want

Kelly Evans (Anchor) 01:51.390

to come back to you on nvidia but matt curious for your take on this news as well a sign for for intel that it faces a much much longer road ahead or a temporary set back and is the stock signaling that to us today

Matt Bryson (Senior Managing Director) 02:04.680

yeah so kelly i think with intel that a lot of their foundry progress at least in terms of chip building is really focused around fourteen a eighteen a they developed like CJ was saying for their own products with fourteen a that's really aimed at foundry customers first and so

Matt Bryson (Senior Managing Director) 02:22.840

i i'd be surprised if there's a large boundary win with with eighteen a whether it's apple whether it's nvidia i think the more important focus this is what does panther lake look like which is their own product that will be the first product out on eighteen eight

Kelly Evans (Anchor) 02:41.510

what are your expectations for that in other words for investors who say OK maybe this is a sell by by this by the dip opportunity on the news matt do you think those prospects look pretty bright for twenty twenty six or no

Matt Bryson (Senior Managing Director) 02:55.640

so i think it's hard to tell panther lake will probably get a big announcement at CES so in a couple weeks the the chips will filter out you'll see reviews you'll get a feel for how it competes against AMD AMD the last few years has been consistently taking share from intel but

Matt Bryson (Senior Managing Director) 03:15.400

then i also think that it's a more difficult backdrop right now on the PC side so we're seeing memory costs go up that means PC products are going to go up so i i personally think it's a tough start to the year for intel not doing anything they're doing per se but just because i

Matt Bryson (Senior Managing Director) 03:29.230

think we're gonna have a tougher market over the next six to nine months

Kelly Evans (Anchor) 03:32.790

you do a tougher semi market or a tougher stock market broadly

Matt Bryson (Senior Managing Director) 03:36.630

a tougher market for PCS and that's sixty percent of their revenue it's just with memory costs so much higher PC prices go up you you end up with demand destruction and there's not there's not much intel can do about that is

Kelly Evans (Anchor) 03:47.470

that the flip side of kind of the the good performance of an intel and AMD a micron the flip side of that you think is that literally buying a laptop or these about to get a lot more expensive

Matt Bryson (Senior Managing Director) 03:58.630

exactly and for the memory makers it doesn't matter right they're they're shipping into AI to some extent in AMD or or even an intel can focus more on on standard server cpus where there there is some better demand to support inference but from an intel perspective again it's

Matt Bryson (Senior Managing Director) 04:16.510

it's roughly sixty percent of the revenues end up in that that CCG bucket and so if you end up with a more difficult PC environment i think it's hard for them to get around