'Fast Money' traders react to Intel quarterly results

Core Viewpoint - Intel is facing supply constraints that have negatively impacted its guidance and gross margins, particularly related to its Panther Lake processor [1][2]. Supply Constraints - The company warned of supply constraints last quarter, with the peak expected in the current quarter (Q1) [1]. - The CFO indicated that the weakness in guidance is attributed to these supply issues [2]. Gross Margins - Gross margins are weaker than expected, primarily due to challenges with the Panther Lake processor [2]. Foundry Business - There is ongoing speculation about new customers for Intel's 18A and 14A processes, but the CFO suggested that no significant announcements are expected soon [3]. - The signal for new customers will be an increase in capital expenditures (capex), which has not changed thus far [4]. Capital Expenditures (Capex) - The company has been struggling with its balance sheet and has made significant cuts across its business, limiting its ability to invest in capex [5]. - The lack of new customers is a key reason for the stagnation in capex [7]. Stock Performance - Despite the challenges, Intel's stock has seen a rise of 47% over the last three months, with an 11% increase just yesterday [6]. - Revenue was down 4% year-over-year, indicating that the company is not performing as well as expected [8]. Market Position - Competitors like Taiwan Semiconductor Manufacturing Company (TSMC) are not concerned about Intel's competitive position, as they plan to spend three times more on capex [10]. - The current stock price may not reflect the long-term opportunities available to the company [11].