INTCIntel Corporation

“One thing that people have been surprised about is how big the business already is—it is at a run rate that is north of a billion dollars already. I think Lip Bu and his partner, Srini, have barely gotten started in terms of what we can make from that, so it has a really strong base from which to grow meaningfully.”

“Strength continued across all segments and customers, as investments in CPUs are accelerating to support the evolution of AI from foundational training to inference and from inference to agentic. We also saw strong ASIC growth with revenue up more than 30% sequentially and nearly doubling year-over-year.”

“Our AIPC revenue grew 8% sequentially and now represents greater than 60% of our client CPU mix.”

“Our collective AI-driven businesses now represent 60% of revenue and grew 40% year-over-year.”

“the feedback from the customer is that CPU is very important when you move from training to inference. On the inference side, in terms of orchestration, control plane, and also managing all the different agents with data, CPU is much more efficient. The ratio of CPU to GPUs used to be 1-to-8, and now it is 1-to-4, and I think it could move towards parity or even better.”

“One statistic we look at is the ratio of CPUs to GPUs. If you look at training solutions, they are generally running seven to eight GPUs to one CPU. As we look into inference, it is probably three to four to one. As you get into agentic and multi-agent, it is potentially even flipping the other direction a little bit.”

“Maybe naively I thought these opportunities would come in the hundreds of millions of dollars level, but so far what we are seeing is demand in the billions of dollars per year kind of level. This is going to be a big part of the foundry revenue as we get through this decade.”

“This ASIC business is sometimes purpose-built silicon optimized for specific workloads that customers want, and that is very important. Besides running and focusing on engineering improvement, we are spending a lot of time with customers. It is important to understand the workload and then tailor for their requirement. It is important to have the right, strong IP portfolio to do that. We have a unique position—we have CPU/XPU and advanced packaging and advanced processing so that we can optimize for the customer. It is a very exciting opportunity and a fast-growing area.”

“Within the quarter, DCAI signed multiple long-term agreements, including Google, supporting our view that the current business momentum is sustainable. In addition, Xeon 6 was selected as the host CPU for NVIDIA's DGX Rubin NVL8 systems, and Xeon remains the most deployed host CPU due to its industry-leading memory, security, and networking orchestration. Lastly, DCAI also established a multiyear collaboration with SambaNova to design a next-generation heterogeneous AI inference architecture combining SambaNova's RDUs and Intel Xeon 6 processors.”

“The CPU now serves as the orchestration layer and critical control plane for the entire AI stack. This is not just our wishful thinking; it is what we hear from our customers, and it is evident in the demand profile for our products. Xeon server demand is seeing strong and sustained momentum. Customers are deploying server CPUs alongside accelerators in a ratio that is moving back towards CPU.”

“Driven by tremendous demand for AI, the semiconductor industry TAM is now approaching $1 trillion. Intel is well positioned to benefit from this demand with three strategically important assets: our x86 CPU franchise, our advanced packaging technology, and our vast manufacturing network.”

“Artificial intelligence is now moving into the real world towards more distributed inference and reinforcement learning workloads, like agentic, physical AI, robots, and edge AI. This shift is now beginning to show up in our results, and I want to spend some time on this today.”

“On the server side, besides x86, we also have the SambaNova partnership for dataflow architecture—we already have some success there. We also recruited top talent—Kavault, who used to run ARM data center server chips, and Srini, who worked with me at Cadence on optimization.”

“We are putting simultaneous multithreading into the roadmap—so we are going to have it in Coral Rapids so we can compete effectively with AMD, and we are trying to accelerate Coral Rapids.”

“Six months ago, we probably were thinking it would be up instead of down from a units perspective; now it is going to be up meaningfully.”

“We recently announced our partnership with SpaceX, xAI, and Tesla to support TeraFab. Elon and I share a strong conviction that global semiconductor supply is not keeping pace with the rapid acceleration in demand. We are excited to explore innovative ways to refactor silicon process technology, looking for unconventional ways to improve manufacturing efficiency that will eventually lead to a dynamic improvement in the economics of semiconductor manufacturing.”

“there is going to be AI—and particularly CPU—opportunities in a lot of different areas: the client space migrating toward AIPC, edge computing, and physical AI specifically. All of those can benefit a lot from CPUs because of the nature of the power consumption relative to performance. Those areas could have even more explosive growth than the data center space.”

“think about the full stack. For agentic AI and later physical AI, how the CPU optimizes working together with foundation models, using data to drive the massive opportunity in agentic AI. Inference is going to be a much bigger market. Physical AI is another big market. It is hard to quantify, but as we go, we will update you.”

“Back to TeraFab, clearly Elon and I believe that global supply is not keeping pace with the rapid acceleration in demand. We both share the vision that we are going to learn a lot together, exploring innovative ways in process and manufacturing. It is a very broad relationship, and we will update you as we go.”

“All demand signals continue to emphasize the growing and essential role of the CPU in the AI era and the unprecedented demand for leading-edge wafers and advanced packaging to realize the vision of driving silicon-based intelligence to the edge efficiently and at scale.”

“This has proven to be our strongest product launch in five years, delivering better performance-per-watt, stronger integrated graphics, and more capable on-device AI features, all while maintaining our broad ecosystem of compatibility that partners and customers value.”

“beyond the product side, we have another bite at the apple, or maybe multiple bites, on the foundry side. We can provide customers with advanced packaging and wafers. We have a strong breadth of offerings to support their CPU or AI needs in the marketplace.”

“we are also quietly building up the GPU with new hires, and we are moving into accelerators so that we can serve the customer from the edge to physical AI and drive new initiatives to stay competitive.”

“Our recent announcement with SambaNova Systems is an example of such partnership on heterogeneous compute architectures.”