Core Viewpoint - Intel has warned that it may halt the development of its next-generation chip, 14A, if it fails to secure a significant external customer and meet key milestones, which could have severe implications for American chip manufacturing [1][2]. Group 1: Intel's Current Situation - Intel is focusing on developing the 14A chip and finding a large customer, marking its first warning about potential fallout from failure [1]. - The company stated that without a significant external customer, it may not be economical to continue developing 14A and its successor nodes, potentially leading to a pause or discontinuation of these efforts [2]. Group 2: Industry Context - Intel has historically dominated the semiconductor industry but has missed critical technological advancements in mobile and AI, while most competitors have outsourced manufacturing to TSMC [3]. - The abandonment of the 14A project could severely impact U.S. chip manufacturing, as most cutting-edge semiconductors are produced in regions where China is gaining influence [4]. Group 3: Future Implications - Analysts suggest that if Intel gives up on 14A, it could lead to a monopoly by TSMC and signify the decline of American-made semiconductors [5].

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Core Insights - Intel reported a quarterly loss of $0.1 per share, significantly missing the Zacks Consensus Estimate of $0.01, marking an earnings surprise of -1,100% compared to earnings of $0.02 per share a year ago [1] - The company posted revenues of $12.86 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 8.36% and showing a slight increase from $12.83 billion year-over-year [2] - Intel's stock has increased by approximately 17.2% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [3] Earnings Outlook - The future performance of Intel's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $12.66 billion, and for the current fiscal year, it is $0.27 on revenues of $50.8 billion [7] Industry Context - The Semiconductor - General industry, to which Intel belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Amtech Systems, another company in the same industry, is expected to report a quarterly loss of $0.08 per share, reflecting a year-over-year decline of 200% [9]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $12.9 billion, exceeding the high end of guidance, driven by strong demand across client and data center segments [29] - Non-GAAP gross margin was 29.7%, impacted by $800 million in non-cash impairment and accelerated depreciation charges, with adjusted EPS at -$0.10 [30] - Operating cash flow for Q2 was $2.1 billion, with gross CapEx of $4.5 billion, resulting in adjusted free cash flow of -$1.1 billion [31] Business Line Data and Key Metrics Changes - Intel products revenue was $11.8 billion, slightly up sequentially, with CCG revenue increasing by 3% quarter-over-quarter due to continued PC refresh demand [31][32] - DCAI revenue decreased by 5% sequentially but was above expectations, driven by strong demand for host CPUs for AI servers [32] - Intel Foundry revenue was $4.4 billion, down 5% sequentially, with an operating loss of $3.2 billion primarily due to impairment charges [34] Market Data and Key Metrics Changes - The company noted solid demand in the client market driven by the end of service for Windows 10 and the aging COVID-era installed base [28] - Hyperscalers and enterprises continued to refresh their CPU installed base, indicating durable demand in core markets [28] - The company expects Q3 revenue to range from $12.6 billion to $13.6 billion, reflecting a potential decline due to seasonal factors [36] Company Strategy and Development Direction - The company is focusing on four major initiatives: organization and culture, foundry strategy, core x86 franchise, and AI strategy [7] - A systematic review of the organization aims to reduce inefficiencies and redundancies, targeting a workforce of 75,000 employees by year-end [8] - The foundry strategy emphasizes building trust with customers through reliable delivery and high-quality manufacturing [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain economic landscape but noted that Q2 saw normal market functioning, allowing demand drivers to manifest [28] - The company is committed to improving its balance sheet and generating better cash flow, with a focus on reducing operating expenses [23][24] - Management expressed confidence in meeting operating expense targets for 2025 and 2026, while also planning for a below-seasonal second half of 2025 [36] Other Important Information - The company has decided to consolidate assembly and test operations in Costa Rica and slow construction in Ohio to align spending with market demand [12] - The company successfully monetized a portion of its ownership in Mobileye and is on track to close the Ultera transaction [24][38] Q&A Session Summary Question: How fast can the company fix the foundry side based on trust? - Management emphasized steady progress on the 18A technology, which is foundational for future products, and the importance of building trust with external customers through reliable performance [44][46] Question: What are the tailwinds and headwinds to gross margin looking into next year? - Management indicated that the ramp of Lunar Lake and Panther Lake would impact gross margins, with expectations for improvement as yields and volumes increase [49][51] Question: How does the company plan to engage external customers while hedging on 14A development? - Management reassured that they are focused on building the necessary technology and engaging with customers early in the process to ensure successful outcomes [56][59] Question: What is the expected trend for server products into the third quarter? - Management noted that while they are not providing specific guidance by business unit, they expect to see some improvement in share despite current competitive challenges [69] Question: What is the company's approach to AI strategy? - Management indicated a focus on inference and agentic AI, aiming to provide a full-stack solution that integrates system software with silicon [72][75]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $12.9 billion, exceeding the high end of guidance, driven by strong demand across client and data center segments [30][32]. - Non-GAAP gross margin was 29.7%, impacted by $800 million in non-cash impairment and $200 million in one-time costs, while adjusted EPS was -$0.10 [31][32]. - Operating cash flow for Q2 was $2.1 billion, with gross CapEx of $4.5 billion, resulting in adjusted free cash flow of -$1.1 billion [32]. Business Line Data and Key Metrics Changes - Intel products revenue was $11.8 billion, slightly up sequentially, with CCG revenue increasing by 3% due to continued PC refresh demand [32][33]. - DCAI revenue decreased by 5% sequentially but was above expectations, driven by strong demand for host CPUs for AI servers [33]. - Intel Foundry revenue was $4.4 billion, down 5% sequentially, but above expectations due to better output of Intel 7 wafers [34]. Market Data and Key Metrics Changes - The client market saw solid demand driven by the end of service for Windows 10 and the aging COVID-era installed base [28]. - Hyperscalers and enterprises continued to refresh their CPU installed base, indicating durable demand in core markets [28][30]. - The company expects Q3 revenue to range from $12.6 billion to $13.6 billion, reflecting a potential decline due to seasonal factors [36]. Company Strategy and Development Direction - The company is focusing on four major initiatives: organization and culture, foundry strategy, core x86 franchise, and AI strategy [6][8]. - A systematic review of the organization aims to reduce inefficiencies and increase accountability, targeting a workforce of 75,000 employees by year-end [7]. - The foundry strategy emphasizes building trust with customers through reliable delivery and high-quality manufacturing, with a focus on aligning capacity investments with customer commitments [10][12]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain economic landscape but noted that Q2 markets functioned normally, allowing demand drivers to manifest [28]. - The company is committed to improving its balance sheet and generating better cash flow, with a focus on reducing operating expenses and capital spending [24][25]. - Management expressed confidence in meeting operating expense targets for 2025 and 2026, despite challenges [32][36]. Other Important Information - The company plans to consolidate assembly and test operations in Costa Rica and slow construction in Ohio to align spending with market demand [12]. - The company successfully monetized a portion of its ownership in Mobileye and is on track to close the Ultera transaction [25][39]. - The company is focused on improving its AI capabilities, recognizing the need to develop a cohesive silicon systems software stack [21][22]. Q&A Session Summary Question: How fast can the company fix the foundry side based on trust? - Management emphasized steady progress on the 18A technology and the importance of building trust with customers through reliable performance and timely delivery [44][46]. Question: Can you elaborate on the gross margin side? - Management indicated that lower gross margins in Q3 are primarily driven by the ramp of Lunar Lake and the early stages of Panther Lake, which will improve over time as yields and volumes increase [50][52]. Question: What is the outlook for the foundry strategy and 14A development? - Management reassured that the team is focused on building the necessary technology and engaging with customers to ensure successful development of 14A, while being disciplined with CapEx deployment [58][60]. Question: What is the trend expected in the server market? - Management noted that while they are not providing specific guidance by business unit, they expect to improve their competitive position with upcoming product launches [71]. Question: Can you clarify the AI strategy? - Management stated that the AI strategy will focus on inference and agentic AI, aiming to provide a full-stack solution that integrates system software with silicon [74][80].

Core Insights - Intel reported better-than-expected revenue for Q2 2025 but faced an unexpected loss due to impairment charges related to excess tools [3] - The company is undergoing significant restructuring under new CEO Lip-Bu Tan, including workforce reductions and cost optimization measures [4][8] Financial Performance - Revenue for Q2 2025 was $12.9 billion, a 1% increase from Q2 2024's $12.8 billion, beating expectations [2] - Adjusted EPS fell to -$0.10 from $0.02 in Q2 2024, indicating a miss [2] - Gross margin decreased to 27.5% from 35.4%, a drop of 790 basis points [2] - Intel Foundry revenue increased by 2% to $4.4 billion compared to Q2 2024's $4.3 billion [2][5] - Data center revenue was reported at $3.9 billion [6] Strategic Initiatives - The company has completed most of its plan to cut its workforce by 15% and is optimizing its manufacturing footprint [4] - Intel has decided to halt planned projects in Germany and Poland and will slow construction at a plant in Ohio to align spending with market demand [4] Market Reaction - Following the earnings report, Intel's shares rose approximately 2% in after-market trading, indicating a positive investor response despite the earnings miss [7] Future Outlook - Intel is guiding for Q3 2025 revenue between $12.6 billion and $13.6 billion, which would represent a slight decline year-over-year at the midpoint [9] - The company expects to break even on a per-share basis, a significant improvement from last year's third-quarter loss [9] - CEO Tan is focused on controlling costs before shifting attention to innovation, suggesting a long-term turnaround strategy [8]

Financial Performance - Q2 2025 revenue was up 0.2% year-over-year, exceeding April outlook by $1.1 billion[17] - Non-GAAP gross margin decreased by 9.0 percentage points year-over-year, falling 6.8 percentage points below April outlook[17] - Non-GAAP EPS decreased by $0.12 year-over-year, $0.10 below April outlook[17] - The company projects Q3 2025 revenue between $12.6 billion and $13.6 billion[40] - The company expects approximately $18.0 billion in GAAP additions to property, plant and equipment for full-year 2025[47] Segment Performance - Client Computing Group revenue was $7.6 billion with a 26.1% segment operating margin[23] - Data Center and AI revenue was $4.1 billion with a 16.1% segment operating margin[25] - Network and Edge Group revenue was $4.7 billion with a -71.7% segment operating margin[28] - All Other segment revenue was $943 million with a 6.6% segment operating margin[32] Strategic Initiatives - The company is focused on disciplined foundry, revitalizing x86 ISA, addressing AI opportunity, and improving balance sheet[15] - Intel 18A is progressing with Intel 14A engagements underway[15] - The company is simplifying operations and improving execution[12] - The company expects Altera stake sale to close in Q3[33]

Company Overview - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Utilization - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Company Overview - Intel plans to reduce its workforce to 75,000 by the end of this year, down from 99,500 at the end of 2024 [1] - The company is undergoing a significant turnaround under new CEO Lip-Bu Tan, who aims to rectify past strategic errors [2][7] Financial Performance - Intel forecasts a third-quarter loss of 24 cents per share, exceeding Wall Street's estimate of an 18-cent loss [4] - Expected revenue for the September quarter is between $12.6 billion and $13.6 billion, with a midpoint of $13.1 billion, surpassing analysts' average estimate of $12.65 billion [4] - The second-quarter revenue was flat at $12.9 billion, ending a four-quarter streak of sales declines and beating estimates of $11.92 billion [6] Market Conditions - The PC market outlook remains uncertain as customers advanced shipments to the first half of the year amid ongoing trade negotiations [5] - PC shipments rose by 6.5% in the June quarter, but macroeconomic uncertainty is causing reluctance among customers regarding spending commitments [5] Strategic Initiatives - CEO Tan is focusing on a next-generation chipmaking process called 14A, moving away from the previously developed 18A technology [7] - The company incurred restructuring costs of $1.9 billion in the second quarter due to job cuts [8] - Adjusted losses for the June quarter were 10 cents per share, compared to an expected profit of 1 cent per share, with an unadjusted loss of 67 cents per share, which was worse than the anticipated 26-cent loss [8]

Exhibit 99.1 Intel Corporation 2200 Mission College Blvd. Santa Clara, CA 95054-1549 News Release Intel Reports Second-Quarter 2025 Financial Results News Summary SANTA CLARA, Calif., July 24, 2025 – Intel Corporation today reported second-quarter 2025 financial results. "Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency," said Lip-Bu Tan, Intel CEO. "We are laser-focused on strengthening our core product portfolio and our AI road ...