A：In 2025, Intel established a foundation for a more focused and execution-driven company by simplifying its organization, reducing bureaucracy, accelerating decision-making, recruiting new leaders, strengthening its balance sheet, and forging strong partnerships with customers.

A：Intel's key priorities in relation to artificial intelligence include capitalizing on the era of AI to drive sustainable, profitable growth, continuing to position Intel to capture growth opportunities presented by AI across all businesses, and focusing on innovations such as software and emerging technologies.

A：Intel's Q4 performance had revenue growth, margins, and EPS above the guidance despite supply constraints that limited its ability to capture all strengths in the market. The company is working to address these constraints and better support customer needs going forward.

A：Strategic objectives for Intel in 2026 include capturing the growth opportunity AI presents across all businesses, strengthening the client franchise, advancing data center AI accelerator and ASIC strategies, and continuing to build a trusted foundry.

A：The deployment of AI is amplifying the importance of x86 in orchestration and control planes to inference edge workloads. In the client computing group, Intel has strengthened its position with the Core Ultra Series 3 lineup and plans to deliver the first Series II SKU by the end of 2025, with achievements including the delivery of the first three SKUs ahead of schedule. Additionally, Intel introduced Series 3 at CES, which is the most broadly adopted and globally available AI PC platform.

A：To address the demand for data centers and AI workloads, Intel is pursuing a hybrid AI approach, working with ecosystem partners, and targeting growth in AI workloads that require both cloud and client computing. The company is also centralizing its data center and AI businesses under one group and advancing traditional server and AI roadmaps together.

A：Changes in the server group map include a focus on the 16-channel Diamond Rapids and areas to accelerate the introduction of Coral Rapids, where multi-tracking will be reintroduced into the data center roadmap. This focus supports AI by simplifying the server group map and providing resources for key products.

A：Intel's AI and accelerated strategy involves developing innovative solutions to integrate their CPUs with fixed function and programmable accelerator IP. The long-term ambition is to rebuild Intel as the compute platform of choice for AI-driven computing, grounded in world-class engineering, an accelerated roadmap, and a renewal culture of execution.

A：Intel is shipping its first products built on Intel 18th A, the most advanced semiconductor process developed and manufactured on U.S. soil. Yields are improving and engagement with customers is ongoing, with the 1.0 PDK available at the end of the previous year. Intel 14 A development remains on track, with meaningful steps taken to simplify the process flow and improve performance, yield, and design enablement.

A：Intel is facing challenges in fully meeting market demand due to limitations in internal plans. The company is working to drive efficiency and increase output from their fabs. Intel is committed to improving in the short term, with efforts to enhance productivity and support customers.

A：Despite facing industry-wide supply constraints for key products, Nvidia's fourth quarter revenue came in at $5 billion, at the high end of the range provided in October. Non-GAAP gross margin came in at 37.9%, which was approximately 140 basis points ahead of guidance due to higher revenue and lower inventory reserves, partially offset by a higher mix of outsourced client products and the early ramp of Intel 18 A to support the launch of Core Ultra Series 3.

A：Nvidia's $5 billion investment closed in the fourth quarter as expected. Revenue for the full year was $50.90 billion, down slightly year over year due to constraints across its manufacturing network and with external suppliers, which limited growth, especially in the second half. Full year non-GAAP gross margin was 36.7%, up 70 basis points on reduced period charges. Full year non-GAOP EPS was 42 cents, up 55 cents year over year on lower period charges and improved operating leverage. Nvidia generated $9.7 billion in cash from operations and made $17.7 billion of gross capital investments with capital offsets of approximately $6.5 billion, resulting in adjusted free cash flow of $-1.6 billion. However, in the second half of 2025, adjusted free cash flow more than doubled compared to the same period in the prior year, ending the year with $37.4 billion of cash and short-term and investment.

A：Intel's Q4 report revealed a 2% revenue increase to $12.9 billion for Intel Products, with a decrease in CCG revenue by 4% while AIPC units grew 16% and DCAI was up 15%. These results reflect efforts to balance constrained supply with strong data center demand and support for client OEM partners. Revenue was $8.2 billion, and client consumption TAM grew by more than 290 million units, marking two straight years of growth post-Covid. CCG launched Ryzen Series 3 ahead of expectations with extremely favorable performance reviews. DCAI revenue was $4.7 billion, up 15% sequentially and reflecting strong demand for traditional server compute.

A：Supply challenges affected Intel's financial results by causing an operating profit of $3.5 billion, down approximately $200 million quarter over quarter, on a higher mix of outsourced products and seasonally higher operating expenses. Intel Foundry delivered revenue of $4.5 billion, up 6.4% sequentially. In Q4, an operating loss of $2.5 billion was reported, driven by the early ramp of Intel 18 A within the quarter. Looking forward, Intel forecasts a Q1 revenue range of $11.7 to $12.7 billion, with a midpoint reflecting a lower end of seasonal Q1 within Intel products. They expect a pronounced revenue decline in CCG than in DCAI and foresee Intel Foundry revenue up double digits with a gross margin of approximately 34.5% and a tax rate of 11% on a non-GAAP basis.

A：For 2026, the industry is anticipated to improve available supply beginning in the second quarter and for each of the remaining quarters in the server market. The outlook suggests a strong year of growth for data center AI (DCAI). Client CPU inventory is lean, and there is excitement for Series 3. Rising component pricing due to intense demand to support the rapid expansion of AI infrastructure is a watched dynamic that could limit revenue opportunity. The company targets 2026 operating expenses of $16 billion, noncontrolling interest (NCI) net to approximately $325 million in the first quarter and $1.2 billion for the year, and a share count forecast to be 5.1 billion shares in the first quarter. Capital expenditures are expected to be flat to down slightly and more weighted to the first half of 2026. The company plans to retire all $2.5 billion of maturities as they come due during the year and expects positive adjusted free cash flow for the full year.

A：To address the supply shortfall, the company is focusing on ramping up tool spending significantly in 2026 compared to 2025. Additionally, they are seeing improvements in wafers starts across Intel 7, Intel 3, and 18A, which is contributing to addressing the supply issue.

A：The company has decided not to spend on 14A capacity until customers are secured, which is expected in the back half of the current year and the first half of the following year. Once visibility improves, the company will consider spending on 14A capacity.

A：The improvements being made include a 7% to 8% yield improvement per month, better consistency in delivery, and a reduction in defects to ensure the shipment of quality wafers to customers. These improvements are crucial for the PC client and the development of 18A and 14A.

A：Gross margins are expected to improve throughout the year as supply improves and Panther Lake's cost structure gets better. The focus is on driving down the cost structure of the products being built to improve margins, aiming to reach 40% before setting a new target.

A：Success in the foundry business includes developing a world-class foundry, simplifying the process flow, building up the IP portfolio, yield improvements, and seeing variations get better. They are anticipating engagement from key customers in the second half of the year to determine capacity commitments for future deployment.

A：Advanced packaging is considered an early indicator of success in the foundry business, with potential revenue north of a billion dollars from engagements already suggesting excitement and success in the area. The technology is particularly supportive of AI and is expected to be very special.

A：The plan for server prospects includes focusing on simplifying the product group map, introducing Copper Rapids to add multi-threading to data center workloads, and having a dedicated team to build the data center and AI under the leadership of a new hire. The team is in place, the road map is clear, and efforts are concentrated on introducing Copper Rapids and enhancing its multi-thread capabilities.

A：The company is focusing on the mid and high-end of the client segment and is pushing excess production into the data center space to meet customer demand. This strategy is based on prioritizing main customers and important customers in the data center and client segments.

A：The subseasonal performance in the first quarter implies that without supply constraints, the company would be operating above seasonal expectations. For the second to fourth quarters, the implication is that the company should not model performance as above seasonal, given the expected availability of supply.

A：The hyperscalers' situation in servers is driven very strongly by their own needs. The shortage is impacting them, making them subseasonal, and there is also enterprise demand that is being observed.

A：The down expectation in data center units for the first quarter is primarily due to supply issues. The company is shifting resources to meet high demand in the data center, but cannot entirely vacate the client market. Despite working to improve supply in the second quarter, the first quarter represents the trough of this situation.

A：Inventory levels are not directly related to receiving awards for external foundry efforts. The engagement with potential external customers is very active, and the process of moving from milestones to production volume is based on the customer's commitment and readiness, rather than inventory levels.

A：Intel expects to start receiving a significant amount of revenue from external foundry efforts sometime in the second half of 2024, as it engages with key customers and works towards production commitments. The timeline for this revenue includes milestones such as product testing and yield performance, and it's expected that substantial production and revenue will follow in 2025 and 2026.

A：Intel views the current demand as largely an X86 phenomenon driven by an upgrade cycle in older networks. The company faces competition in the market but is optimistic about improving supply throughout the year. Market share is not seen as being solely determined by supply constraints, with product performance and lifecycle being more critical factors.