Strong results. Caroline jeff bezos and andy jassy deleting chaps amid an antitrust probe. Lets check in on these markets. This is a macro picture on the day and some earnings galvanizing a drive higher. Nasdaq up more than 2 then. We see the core pce that the fed so loves coming in line. We are not calling, but we are not exceeding expectations. The market is relieved and we are seeing about of good, healthy increase in certain stocks. A 10 year yield dives down onto the back of that pce number. Even though we see bonds indeed rallying coming yields falling lower, the dollar still resilient against the japanese yen. Will we see intervention from the boj . Moving on, have a look at what it is doing against bitcoin. Dollar strength against bitcoin. Crypto on the downside. Ed it is all about earnings. Intel is off session lows. And just a moment, ian king will give us the numbers and then we will speak to the intel ceo. Microsoft and alphabet are all about cloud growth driven by ai products. Microsoft, 31 topline growth on azure. We will go deeper on that later in the show. Clearly, alphabet is outperforming. If a jump in that stock. A dividend for the first time. It joins the 2 trillion Market Cap Club if it closes at that level. Joining names like microsoft, apple, nvidia. That is important. We are starting to believe that there was growth at alphabet and google driven by all the investment around ai. That is later in the program, but we start with semi conductors. Caroline lets dig in on all things intel. Ian king was discussing with the business. This seems to be a worry about forecasts. Q1 was pretty resilient, the forecast, tepid. You are absolutely right. The issue that investors had was with the forecast that pat and his team put out and that was considerably lighter than the consensus. That was explained by pat and his Management Team as being related to a structural issue that some of the excess demand cant be met because of an issue with a shortage of a certain type of manufacturing. Ed it is important to talk about the Server Market. What did we learn about intels place . Ian as i forwarded it along to you, the Server Market, the basic Server Market at intel has owned for many years isnt growing at a rate that it has in the past because spending is going elsewhere, into Ai Accelerators. And that isnt a big market for intel yet. Ed we should talk about foundry. Intel is pursuing two business models. Ian that is the big story, isnt it . Pat is pursuing some longterm fundamental changes to the chip industry. If it plays out how he projects, we will see a whole different intel and a whole different industry, but in the meantime he has to report Quarterly Earnings based on what is happening right now. Ed ian king, thank you so much. Caro, it is the earnings context. But like every earnings, it is about outlook and the long term. The story with intel that the market is seizing on right now. Caroline we want to dig in to the longterm with the ceo. But we have to acknowledge the short term. The worst selloff since july 2020. We are at the worst since january 2024. This is a company that has lost a third of its market capitalization this year alone. Ed we know that ai is a complicated story. The Server Market needs cpus and it also needs memory, which we discussed with micron the other day. A lot of this is happening in parallel. Some of the cloud growth is not necessarily ai related. Data Center Infrastructure is needed for nonai reasons as well. Lets try to unpick what is happening in a name that you say is down. We welcome now to bloomberg tv and radio worldwide and joining us is the intel ceo pat gelsi r ger. The stock is down more than 10 and we are kind of here again where there is the shortterm and the longterm where you are trying to convince investors of a return to Technology Leadership and also grow a foundry business. Have you an updated timeline of when you think you will achieve that target . Pat yes, thanks. We delivered solid q1. We met on revenue, we beat on earnings. A bit tepid in the first half, but we see a lot of improvement as we go through the year. With that, the foundry business as i would say we will see progress every quarter from now until the end of the decade. It just gets better and better as we move into our new technologies. Getting back to process leadership, which had better asps and we can build better products with them. We win more external foundry customers as scale grows and we get past this period where we had to invest and catch up and create. Everything becomes a tailwind Going Forward and we hit key milestones. One of those i was very proud of his we went to production this week with our first server part for intel 3. The u. S. Is back to leadership process technology being manufactured on our shores for the first time in a decade. Everythings coming together as we would say and we are very optimistic that we will deliver. The foundry business and the Manufacturing Capabilities as we have laid out in the company, the industry, and the world. Caroline 2024 the bottom in many aspects. They want to understand the pace of the climb necessary. How can you tell us about how quickly you will be able to scale back that market share you have so far lost . Pat we look at intel now in these two different perspectives. Intel product and we expose through our recast financials that we have a very solid business with healthy financials and we expect those to improve over time. But the big story has been about exposing the financials for foundry and the losses associated with them. We will cross through profitability through the middle of that period as we start to moderate the level of investment required to go rebuild that decade of underinvestment. As we do that, if we had that today, we would be more than double the earnings we are forecasting. It becomes a Huge Positive lever for us. And as i like to say, all of that is in our control. All of these things are in our control and it gets better as we win additional external foundry customers. Ed the link is about growing market share server to support the costs necessary for the foundry business. You were asked an interesting question on the call in the context of servers built on x 86 versus armbased alternatives and you gave a pretty thorough explanation about the Data Center Cpus, but i didnt hear what was happening in the real world. Where are data centers being built and what are they being built on right now . Pat we have been in a period now for a number of quarters were Data Center Cpus have been fairly tepid and we do see that improving. We had a good improvement in the First Quarter of the year and we expect that to continue and there is time for a refresh, but we are also seeing that the cpus as head nodes for test cases. We can now run 70 billion perimeter maters natively on the cpu. I dont need a special accelerator. I can do everything in of the Software Stack i already use inside data centers and we are seeing that these power efficient products we are bringing to the marketplace are going to enable us to stabilize and regain market share with much higher core counts. The asps are going up very nicely on that through the year. We saw growth in q1 and we expect that to continue through the year. And in the back half of the year, our accelerator product line we believe becomes a very compelling solution for enterprise customers and we have quite a number of announcements of those this quarter. Customers such as bosch and dell and supermicro all bringing those into the micro marketplace. He cloud partners like the fastest glowing cloud provider in asia. All of those coming alongside the intel strategy, so we see the momentum building area caroline momentum and we are with tv, radio audiences, the ceo of intel, Pat Gelsinger. On momentum, Everyone Wants to talk about ai and all of its ways and means. Im really interested in ultimately you were going to be shipping in excess of 40 million ai pcus, but what is the demand like at the moment and what is the cost like . Pat when we announce to the category at the end of last year , everybody said, wow, what is going on . You are seeing a flurry of interest of other people coming into the market. But intel is unquestionably the leader. First to declare the market and first to describe the use cases, and our first product is having a very robust ramp into the marketplace. To some degree, im racing to catch up to the demand. We are reaching supply commitments, but not all of the upside requests. This is very robust and we expect to exceed the 40 million units. We will introduce our next generation product in the middle of this year, so all of these pieces we are very optimistic and we see use cases and communications where all of a sudden i get summarization, contextualization, translation in real time all running on my pc. All of these use cases are becoming ai enabled and intel leading the ai pc parade is a very exciting time and what will be the biggest pc refresh in decades. Caroline this is a conversation about your technology and your fundamentals of the business. Im going to take a turn for the moment and it is a sensitive question. Given your relationship with israel and the fact that you are one of the largest employers over there, how are you currently feeling about students in the United States protesting against endowments being invested in companies associated with israel at this moment . Pat well, we have been in israel for 40 years now and it has been an incredible country for us, an incredible innovators and extraordinary resilience by the israeli people. And they continue despite the challenges of the war that is going on there to deliver against their objectives. We are very committed to support our teams wherever they are in the world. That said, we seek peace and we have been clearly emphasizing that we need to find routes of sustainable peace in the region. We have been supporting perspectives that reinforce that across the region. As we look across the world, there continues to be the turbulence and fundamentally our strategy is about building fundamentally resilient supply chains around the world. There will be these challenges across the world, whether that is in israel, ukraine, or asia, and we are committed to making sure that we can support the Global Markets that we serve with a strategy that we really was billed a turbulent world. Ed lets end on Ai Accelerators. Gaudi is on track for 500 million this year. A well probably domd 3. 5 billion. Nvidia will do 34 billion. You have said that choice is important and also the cpu was important and i accept that many share it. Do you see a clear path where the numbers i outlined rebalance in your favor in the Ai Accelerator market Going Forward . Pat given the strength that we saw at our vision event, we had 20 plus customers coming out publicly in support of our accelerator strategy, we are starting to see that pipeline of activity convert. And ultimately much of the activity that you have seen so far on generative ai has been in cloud training. Now i think the ultimate monetization of ai happens as business deployments start to occur and those are the areas we see strike. We launched the open platform for enterprise ai. How do we enable these use cases inside of the enterprise but in an open architecture that many get to participate in . We announced openai networking to standard ethernetbased scale up and scale out networking. And obviously the momentum we are seeing with gaudi, all of that is in the second half of the year. You can see a very accelerated cycle. A lot of enthusiasm for gaudi. The unquestioned leader in total cost of ownership for enterprises. Building on the xeon franchise and the position we had. And literally isvs and cloud providers, but most importantly enterprise customers seeing the value proposition. We feel like we are getting a lot of momentum in the category and feel good about the potential for ai everywhere. Hey ipc, edge, and cloud. Caroline ending on an optimistic note, we thank you so much, Pat Gelsinger on all things ai and all things intel numbers. Lets keep the focus on earnings for a moment. The forecast for snap is a good one. Shares popping. Up 25 lets 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 doesnt 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 whats 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 IntelligenceServices Helping deliver strong earnings results. I want to get to it with hillary. Lets comment on the one moving the most today. Alphabet, parent of googled. Cloud always been seen as the lagger there. But it is helping bring about market share with startups. Indeed it is. Thank you for having me. Google is well known for having a strong presence among startups, Tech Companies. They have among the best ai assets around historically. They are going to benefit from this along with everybody else. Caroline i think many were waiting for these offerings, how are people adopting them and boosting their own productivity . Microsoft has shown a light on the fortune 100 using the azure cloud at the moment. Cloud is still good for googled. Hilary the cylinders are really starting to get going. It is interesting because microsoft is absolutely benefiting from a share perspective due to their leading position in ai across their businesses and across cloud. I view ai as ultimately a contributor, but it is definitely an accelerant to cloud migrations. Ed good morning. The share reactions of each are interesting. Alphabet more pronounced. When i talked last night about cloud, ai solutions did make a meaningful contribution to the 28 cloud growth year on year, but she didnt put a number on it. Microsoft did put a number on it. They said 31 azure, 7 from ai. Really interesting share reaction. I put it to you that alphabet isnt probably jumping as much on that cloud narrative as it is the sweetener of a dividend. Hilary i think you are right about that. Investors were pleased to see the results across the board. I think they breathed a sigh of relief that cloud accelerated and businesses accelerated quarter over quarter, but the big piece of new information here was operating margin improvement and commitment to that through the year as well as the dividend. Importantly, it signals a shareholder friendly her stance than we have seen from google historically. Ed hilary, do you believe now through the lens of alphabet and microsofts earnings that Corporate America is spending on using generative ai . Hilary i believe they are. I believe most of Corporate America is experimenting with ai and testing generative ai in microsoft azures cloud and elsewhere. There are some early adopters who are starting to get to some level of scale. Microsofts seven points of ai contribution were good. I would say they were generally in line. Microsoft did signal that they were capacity constrained. I still believe it will be in the second half that we see microsoft doing inferencing on the cloud really brought now and start to drive that number. Caroline we are talking about two names that have already done phenomenally well in the height around ai. We also think about what data dog it is up to. How are these Companies Going to benefit . Hilary the whole cloud consumption conference, they will benefit with a lag. We are not seeing it on a broadbased basis yet. There are a select few who will benefit. They will benefit from the absence of cost optimization we saw last year. They will see the flow through of what is effectively a cyclical cloud consumption. We heard that from microsoft last night. Companies are starting to do things, they are taking on multiple projects and bringing those back. That is a positive. Ed we are down week one of mega cap tech and im bracing for week two. What do you think is the blanket takeaway of this sevenday period so far . Hilary i would say overall cautiously optimistic. Again, i stick to the names where expectations are low, valuations are reasonable, and companies have idiosyncratic drivers. The cloud consumption complex amazon should show some pretty good results based on the fact that they have a lot of Tech Companies and startups who are experimenting with ai, but it is company by company and enterprise budgets remain somewhat constrained in the first half. More of that opening up in the second half. Caroline always so good to get your expertise in the time that we have earnings and all the time. We think you for being here. Ed lets get some news in talking tack. A Food Delivery Service launching its International Platform in riyadh, its first location outside china. According to sources, the company looked into expanding in the middle east for months and could launch as early as a few months from now. The move comes as Chinese Companies seek growth abroad to combat a domestic slowdown read u. S. Secretary of state Antony Blinken and chinese president xi met. A warning was issued saying china and the United States shoul