AMD Cuts Revenue Guidance, Tech Plunges on September Jobs Report & Chinese EV Makers Push to Gain Share in Europe 10/7/22

TechCheck

CNBC

Faang, Investing, Management, Disruptors, Cnbc, Tech, Business, Technology

4.5 • 66 Ratings

🗓️ 7 October 2022

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Our anchors begin today’s show with CNBC’s Steve Kovach breaking down chipmaker AMD’s decision to cut revenue guidance for the quarter. Then, Rosenberg Research Chief Strategist David Rosenberg and Citi U.S. Equity Strategist Scott Chronert offer their take on Fed rate hikes, September’s jobs report from the Bureau of Labor Statistics and more. Next, CNBC’s Frank Holland reports on FedEx forecasting lower holiday volume than expected, and CNBC’s Kayla Tausche shares details on two new federal rules restricting the export of certain semiconductors to China. We also circle back to AMD’s sales outlook with Wedbush Securities analyst Matt Bryson, and Bernstein analyst Richard Clarke joins after initiating coverage on Airbnb with an outperform rating. Later, CNBC’s Eunice Yoon covers the push by Chinese EV makers to gain share in Europe. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

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0:00.0	I'm Julia Borsden, and you're listening to CNBC's Tech Check. Our show is live weekdays at 11 a.m. Eastern, listen in.
0:08.1	Welcome to Tech Check. I'm Carl Kintania with John Ford and Dear Durbosa. Today, two big stories.
0:12.6	One, AMD and Samsung, both warning on the economy, cutting guidance, painting a gloomy picture on consumer demand.
0:20.0	What that says about the state of tech,
0:21.5	growth, and which chip makers are best positioned. And then the jobs number. Unemployment falling to
0:26.4	three-five, but investors see that as more ammo for the Fed to keep hiking rates. Stocks moved
0:31.4	lower at the open and have pretty much stayed there. Worst performer in the S&P right now, it is
0:36.1	AMD, down 9%. Meantime, we're watching on
0:39.4	Semi, NVIDIA, Intel, HP, Microsoft, Apple, all dipping as well. Anyone tied John to PC
0:45.5	sales broadly, and we kind of had suspicions that would be the case. Well, yes, we are in
0:50.9	dangerous waters right now, Carl, and I would remind our viewers that Pat Gelsinger, Intel CEO, after last earnings came on
0:58.7	and talked about inventory buildups and the reason why their quarter was so bad, we'll see
1:04.1	whether they were early and prescient in their projections or if it gets even worse for Intel from here. But really, this isn't
1:13.2	just about PCs. The danger here, I think, Dee, is that there's the beginning of a spiral
1:18.8	here. OEMs are ordering less because they're working down their existing inventory, which
1:25.0	they built up when supplies were tight. Meanwhile, demands cooling. If the holiday
1:29.3	season is weak and demand looks weaker, which is why Amazon's having another prime day,
1:34.7	the middle of next week, if the consumer doesn't really show up, then you end up with perhaps
1:40.5	some inventory overhang at the beginning of 23, and you end up with perhaps consumer demand
1:46.2	pull forward for the holidays where, you know, people don't want to order at the beginning of the year,
1:50.8	and then you've got to cut costs, and then, and then, and then, and then exactly it.
1:55.8	I mean, who knows what's in store for us over the next few months, but I would draw a distinction
	...

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