Intel's Interim CEO On 3 Big Bets The Company Is Making

Intel CEO Bob Swan

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Intel reported a strong second quarter, but that wasn't enough to ease investor concerns about competition from AMD, product delays and slowing margin growth, prompting the company's stock price to drop as much as 9 percent Friday.

Bob Swan, Intel's interim CEO, addressed those concerns in an interview with CNBC Friday morning, where he talked about three big bets the company is making that is expected to impact gross margins but will help Intel's business grow in the long run.

"There's a couple dynamics that are contributing to that and they all have to do with progress," Swan told CNBC.

One of those bets is the Santa Clara, Calif.-based company's next-generation, 10-nanometer processors, which have been delayed for years now and are now expected to launch for the 2019 holiday.

The delays, which have been the result of manufacturing issues, have raised concerns over whether AMD will have a significant advantage next year with the rival's equivalent 7nm server and client processors.

What follows is a transcript from Swan's interview with CNBC on Friday morning.