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

Core Viewpoint - The discussion highlights the challenges and potential setbacks faced by Intel in its transition to a foundry model, particularly in relation to its competitors like Nvidia and Apple, while also addressing the broader market conditions affecting the PC segment. Intel's Foundry Transition - Intel is expected to face a longer road ahead in its foundry business, with significant work needed on its 18A process technology and yields [4][7] - The shift from building chips for internal products to becoming a foundry represents a seismic change in Intel's business model [5] - The company has undergone major leadership changes to facilitate this transition, but progress will take time [6] Market Conditions and Challenges - The focus on Intel's foundry progress is primarily around the 14A process, which is aimed at foundry customers, while 18A was developed for internal products [7][8] - The upcoming Panther Lake product is anticipated to be announced at CES, but the competitive landscape against AMD remains challenging [10] - Rising memory costs are expected to increase PC prices, leading to potential demand destruction, which could negatively impact Intel's revenue from its Client Computing Group (CCG) [11][13] Competitive Landscape - AMD has been consistently gaining market share from Intel, adding pressure on Intel's performance in the PC market [10] - The overall market for PCs is projected to be tough in the coming months, which could hinder Intel's growth prospects [11][12]