Latest news with #Bernstein
Yahoo
27 minutes ago
- Business
- Yahoo
Intel needs a 'hero customer' to turn things around
Intel (INTC) stock is plunging after the company released earnings. Despite reporting a "decent beat," Bernstein managing director and senior analyst Stacy Rasgon said that Intel needs a "hero customer" to recover its customer base. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Intel sharing plans to cut its workforce by about 20% by the end of the year and trim its operating expenses, shares down 9%. Stacy Rasgon is Bernstein senior managing director and senior analyst. Stacy, um, joining us now, you've got a market perform rating on this one, $21 price target. Um, and you you said in your note reacting here, the earnings were actually not bad, but do the earnings matter? Like what matters to investors when it comes to Intel right now? Yeah. And that the numbers don't don't I mean that was my take even into the print, like who cares about the numbers? Right? The question is on, you know, the strategy and what are they going to do? And, you know, is their process roadmap any good or is it not? And are there going to be foundry customers and a and a foundry business that is robust or is there not? Like those are the questions that matter. And we got a little bit of color on that last night and that's that's part of the reason the stock is doing so poorly today. Like that the numbers overall were were okay. It was actually a a a decent beat in in in the quarter, um, they missed earnings, but there were some one-time charges in there. The revenue guidance was was pretty solid. Um, again, earnings margins were a little lower, but I mean, who cares? The biggest issue was was around their, um, process roadmap. Um, particularly their next generation process. I'm going to throw some numbers out, but they they name their processes after nominally the size of the transistors. The next the one they're getting ready to ramp is called 18A. Right. This is the one that the prior CEO Pat Gelsinger sort of, you know, bet the company on effectively, right? Now it's turning out like 18A is is not it's it's 14A with which is I I guess the the next one that's going to potentially save them. Um, that is the node that if they can build a foundry business that they will build around it and it didn't sound like they were entirely confident. And so they actually put some risk factors, new ones in their in their filings, and they talked to us on the call. They basically said we cannot afford to develop 14A if it is only for us. We need external customers, and if we can't get external customers, we may have to stop development on our forward process node. So it didn't sound like that they were incredibly confident on their ability like to to get that node developed and ramped and frankly, to my mind now, the call on the stock is is pretty simple. Can they get a hero customer on that node, which they don't have a process for yet? Can they get a hero customer in the next like 12 to 18 months, a customer that is big enough to make that node viable? And if they can, maybe there's a story here. And if they they can't, then it's it's a problem. Yeah. And right now we have no basis to make that decision one way or the other, and hence the stock is is selling off pretty sharply today. Yeah, I mean, I There was a definite change in town. Yes. I know it just for to zoom out a little bit for people who are haven't been as steeped in this, like, if you look at the numbers here, the annual sales of this company have gone down by something like $20 billion over the past few years. So we've seen this shrinking. Yeah. Um, what is the place of Intel ultimately in the semiconductor universe? What role does it play? Yeah. So let me talk about their products and then talk about like the sort of future, right? So the current products they they sell mostly chips for PCs and chips for servers. And chips for PCs is is is fine, but PCs, I mean I mean they're you know they they had spiked during COVID and and we're in a we've been in a hangover position, but that that that that market's not really growing and and they're losing share. And then in data center, I mean they've they've been decimated. They have like sort of three layers of share loss. They're losing share in the chips that they make to their competitor like AMD. Um, that architecture that both of them make is something called X86. X86 CPUs and servers are losing share to another architecture, which is called ARM. And you've got big customers like the hyperscalers that are starting to build their own chips. And then CPUs in the data center in general are losing share to to GPUs to players like like Nvidia, right? And so they don't really have an answer to any of those. And again, their data center revenues have have collapsed over the last several years because of this. So in terms of the products that they sell, they're they're certainly less relevant than they were and there are other competitors now that are that are much bigger, um, and and and still growing. Yeah. Um, now in terms of the future, I mean, look, people would say, look, Intel's the only sort of US-based source of of purportedly leading edge semiconductor manufacturing, which is a huge sort of geopolitical and and strategic, um, uh, uh, effort of the So there's this view that we need Intel. And I guess that's true, except that Intel is now cutting back on their efforts. They're actually delaying their big buildout in Ohio even further. They're cutting their capex, they're cutting their their their head count, and you've got competitors like like like TSMC, for example, who are actually building a large amount of capacity here in the US and Right. I could make the argument that the longer Intel waits and the longer it takes them to ramp this stuff up, the more capacity is getting built here in the US by other players, maybe the the less we need them over time. And now they're basically saying, you know, if we if we can And by the way, it's smart, you can't build these factories with no customers. That was the problem that that Pat Gelsinger. That was his strategy didn't work. But I mean, if if you now they're basically saying if we can't get customers, we we may have to give up and sort of that puts every puts the onus even more on TSMC. But the longer that they wait, like the you could make the argument that maybe the less we need them, like. But I I don't know, I think again, it's this kind of like dichotomy and this uncertainty that that that that's weighing on it. Related Videos Intel stock sinks: CEO prioritizes cost-cutting over innovation Intel Q2 beat: Company's turnaround still a 'longer-term story' Intel Q2 revenue tops estimates, will slash workforce Intel Plans to Slash Workforce by 15% | Closing Bell Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Times of Oman
8 hours ago
- Business
- Times of Oman
India's rich to get richer, boom in capital markets contributing to this trend: Bernstein Report
New Delhi: India's wealthiest households are set to get even richer, with their growing financial assets creating massive opportunities for wealth management firms. According to a recent report by Bernstein, India's wealth managers are witnessing robust growth, driven by rising demand from the country's uber-rich. These firms, which cater to the top 1 per cent of Indian households, are delivering more than 20 per cent profit growth and 20 per cent return on equity (RoE). It stated "India's uber-rich are only going to get richer. The top 1 per cent households (the uber-rich) in India control approx. USD 11.6 Tn in total assets, of which approx. USD 2.7 Tn are in liquid financial assets that wealth managers can service". The report highlighted that these liquid assets include bank deposits and non-promoter equity holdings. Indian households are gradually shifting more of their incremental savings and wealth into financial assets, boosting the addressable market for wealth managers. The boom in India's capital markets is also contributing to this trend. The ultra-rich are converting their illiquid promoter holdings into liquid financial wealth through IPOs, stake sales, and block deals. The report stated "The uber-rich are cashing in on the capital market boom, converting illiquid promoter holdings to liquid financial wealth through IPOs, stake sales and blocks". At the same time, a new class of wealthy individuals is emerging from the startup ecosystem, including founders and early employees, further expanding the base of high-net-worth individuals (HNIs). This growing cohort of the uber-rich is increasingly seeking professional advice to manage their expanding financial portfolios. However, the advisory market is still largely dominated by self-managed funds, unorganized players, and traditional banks. Specialized wealth managers currently hold only an 11 per cent share in the USD 2.7 trillion liquid financial asset pool. The report noted that these specialized players are well-positioned to grow due to their comprehensive product offerings and personalized services delivered by experienced relationship managers. The report expects these firms to grow their assets under management (AuM) by 20-25 per cent in the near term, and at a compounded rate of 18-20 per cent over the next decade. This growth will be driven both by the increase in the liquid asset pool of the ultra-rich, projected to grow by 13 per cent annually, and a gain in market share by wealth managers, expected to rise from 11 to 17 per cent. Overall, the rich individuals of the country will continue to rise and with that the AuM of specialized wealth managers is set to grow from the current USD 300 billion to USD 1.6 trillion over the next decade.
Time of India
9 hours ago
- Business
- Time of India
India's rich to get richer, boom in capital markets contributing to this trend: Bernstein Report
India's wealthiest households are set to get even richer, with their growing financial assets creating massive opportunities for wealth management firms. According to a recent report by Bernstein , India's wealth managers are witnessing robust growth, driven by rising demand from the country's uber-rich . Explore courses from Top Institutes in Please select course: Select a Course Category Operations Management Data Science Finance Project Management Digital Marketing Technology Cybersecurity Product Management Public Policy MBA Healthcare Design Thinking Data Science Artificial Intelligence Data Analytics Degree Leadership CXO healthcare Others PGDM Management MCA Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details These firms, which cater to the top 1 per cent of Indian households, are delivering more than 20 per cent profit growth and 20 per cent return on equity (RoE). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo It stated "India's uber-rich are only going to get richer. The top 1 per cent households (the uber-rich) in India control approx. USD 11.6 Tn in total assets, of which approx. USD 2.7 Tn are in liquid financial assets that wealth managers can service". The report highlighted that these liquid assets include bank deposits and non-promoter equity holdings. Indian households are gradually shifting more of their incremental savings and wealth into financial assets, boosting the addressable market for wealth managers. Live Events The boom in India's capital markets is also contributing to this trend. The ultra-rich are converting their illiquid promoter holdings into liquid financial wealth through IPOs, stake sales, and block deals. The report stated "The uber-rich are cashing in on the capital market boom, converting illiquid promoter holdings to liquid financial wealth through IPOs, stake sales and blocks". At the same time, a new class of wealthy individuals is emerging from the startup ecosystem, including founders and early employees, further expanding the base of high-net-worth individuals (HNIs). This growing cohort of the uber-rich is increasingly seeking professional advice to manage their expanding financial portfolios. However, the advisory market is still largely dominated by self-managed funds, unorganized players, and traditional banks. Specialized wealth managers currently hold only an 11 per cent share in the USD 2.7 trillion liquid financial asset pool. The report noted that these specialized players are well-positioned to grow due to their comprehensive product offerings and personalized services delivered by experienced relationship managers. The report expects these firms to grow their assets under management (AuM) by 20-25 per cent in the near term, and at a compounded rate of 18-20 per cent over the next decade. This growth will be driven both by the increase in the liquid asset pool of the ultra-rich, projected to grow by 13 per cent annually, and a gain in market share by wealth managers, expected to rise from 11 to 17 per cent. Overall, the rich individuals of the country will continue to rise and with that the AuM of specialized wealth managers is set to grow from the current USD 300 billion to USD 1.6 trillion over the next decade.
Business Upturn
13 hours ago
- Business
- Business Upturn
Coforge shares jump nearly 3% after Bernstein maintains ‘Outperform' rating with target price of Rs 2,038
By Aman Shukla Published on July 25, 2025, 09:52 IST Shares of Coforge Ltd climbed close to 3% in Friday's trade after global brokerage Bernstein reiterated its Outperform rating on the stock, setting a target price of ₹2,038. As of 9:51 AM, the shares were trading 2.37% higher at Rs 1,715.80. Bernstein highlighted the company's healthy Q1FY26 performance, with revenue rising 8% sequentially, powered by strong traction in the Americas and its travel-focused vertical. The brokerage said this momentum reflects a solid demand environment and long-term growth visibility. While the EBIT margin for the quarter came in at 13.2%—slightly below expectations by 50 basis points—Coforge's management remains optimistic about hitting a 14% margin target by the end of FY26. This signals confidence in improving operational efficiency going forward. Bernstein also noted that the recent dip in Coforge's stock price has created a compelling entry point for long-term investors, especially as the company continues to benefit from robust digital transformation trends across its key markets. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Yahoo
21 hours ago
- Business
- Yahoo
Alphabet hikes AI spending plan: 'It's about time,' analyst says
Bernstein internet equity research analyst Mark Shmulik joins Market Catalysts with Julie Hyman and Wedbush Securities managing director and equity analyst Dan Ives to discuss Alphabet's (GOOG, GOOGL) earnings report and the tech giant lifting its capital expenditure (CapEx) outlook. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Shares of Alphabet are rising this morning after initially falling as the company announced that increase in capex spending for the full year. It now expects to spend $85 billion this year. That's $10 billion more than the previous forecast. And CEO Sundar Pichai reassuring Wall Street that the investments are necessary to keep up with strong customer demand. Here with more is Mark Molik, Bernstein internet equity research analyst and still with us, Dan Ives from Wedbush Securities. Mark, I want to get to you first because it is interesting that initially the street, uh, the stock reaction was sort of negative to that bigger capex number and then it seemed to be okay. We're convinced that it is necessary and it's supported by demand. How are you thinking about it? It's about time. Um, you know, I get the shock, you know, it's a big step up. It's very ungoogley, uh, you know, the the kind of $10 billion step up in capex. And I imagine some of the algos saw kind of the free cash flow compression, you know, driven by that step up in capex as well. Um, you know, but this has kind of been a a place where every single kind of mega cap has been talking about the risk of underinvesting is greater than overinvesting and I think that's doubly true in Google's case, given kind of search is, you know, front and center and what they're trying to do with their cloud business. Uh, I think it's about time that they stepped up that investment and, you know, I think this shows a slightly different, perhaps more aggressive side on Google that, uh, at least from my seat was, uh, very well received. And so what does this do for them? If I'm an investor and I'm looking at this increased capex spend and I, you know, where are they deploying it? What is it? What's the sort of ROI on doing something like this? Yeah, I think for now the ROI looks really good, right? And you've seen that in kind of the acceleration in the cloud business, not just on GCP side, but you know, kind of the bundling of of Gemini into workspace. You've also seen that on improving kind of core performance. Management spent a lot of time talking about engagement improvements on, uh, you know, kind of AI overviews, AI mode, the Gemini app, etc. and how that's monetizing it. At least for now, you know, AI overviews at a similar rate. So the ROI today looks really good. Uh, you know, the question is, does that continue, right? You know, how are they acquiring kind of GPUs and TPUs on the on the capital side, you know, the allocation kind of seems to be kind of 50/50 between the cloud business and core. Does that mix continue, uh, on a similar dimension? So I think that's still an open-ended question. Uh, you know, we're cautiously optimistic that, you know, current ROI continues, but uh, but we'll certainly see. And then Mark, on search, does this quarter show that the, the kind of rumors of the death of Google search have been greatly exaggerated? You know, this has kind of been consistent, right? They haven't missed a quarter in search since Chat GPT launched, you know, two and a half, almost going on three years ago. Um, you know, this stuff takes a long time and perhaps revenue is a lagging indicator. I know there's been a lot of focus on paid click growth, you know, which also accelerated, but then we've got YouTube accelerating and improving as well. So we'll see what happens over the next two weeks when the rest of the digital ad sector reports. You know, we think it's probably going to be pretty good for the entire sector. So it's more of a secular trend at the moment of just strong digital ad growth entirely, but this seems to be one of those things where it's kind of been, you know, instead of slowly than all at once, it's kind of the opposite. It's all at once of all this fear and all this behavior change, but then actually shift behavior from here, shift dollars. Like that's a much slower process. And in the meantime, I think Google search is executing very well on what they can control. Right. Dan Ives, when you go to search something, do you Google it? Do you Chat GPT it? Do you cloud it? I don't know. It's a combination. I mean, look, but but I think those are great points. The the reality is is that you look at Google, they're back at the cool kids table. And they're stepping up. They're no longer in the corner, you know, where the view is, they're on the defensive. They're on the offensive. $10 billion step up capex, great numbers on search. I think, you know, I think there's 25, 50 hour upside from here, and I think it just shows like this is an AI arms race. You cannot be on the outside looking in. We've talked about it. The AI party 10:00 p.m.. It was 9:00 p.m.. That party goes to 4:00 a.m.. The last thing one to be is on the outside of the party looking through the window. Related Videos Mortgage rates steady, Trump says no capital gains on home sales Intel Q2 revenue tops estimates, will slash workforce Tesla stock has an 'Elon tax' but offers 'front-row seat' to AI Tractor Supply Q2 beat, Valero Energy falls, Spotify upgraded Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
