Squawk on the Street SOTS 2nd Hour: Intel Slumps, Software Scrutiny, & Winter Weather Market Impacts 1/23/26
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Jan 23, 2026 Byron Dieter, Bessemer Ventures partner and veteran tech investor, highlights how AI reshapes software and fuels M&A. Jeremy Siegel, Wharton professor emeritus and WisdomTree economist, offers a long‑term market and interest‑rate perspective. They dive into Intel's post‑results slump, software sector scrutiny, AI’s impact on vertical software, and how an East Coast winter storm could ripple through energy and travel.
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Rotation Into Small Caps Has Legs
- Jeremy Siegel says the rotation into small caps and value has real momentum and can persist into 2026.
- He argues lower PEs on small caps mean modest growth can produce strong returns compared with high-PE megacaps.
AI As A Margin Multiplier
- Siegel expects AI to drive cost cuts and margin expansion as more firms adopt AI in 2026.
- He forecasts moderate AI adoption could lift profit margins by a few percentage points across firms.
Intel Needs Yield Proof Before Scale
- Mizuho's Vijay Rakesh warns Intel's recovery depends on improving 18A yields and proving capacity before customers commit.
- Foundry ambitions hinge on delivering yields, locking customers, then scaling CapEx to meet demand.