Intel Corporation Conference Call Summary Company Overview - **Company**: Intel Corporation (Ticker: INTC.O) - **Industry**: Semiconductors - **Market Cap**: $263.778 billion - **Price Target**: Increased from $38.00 to $41.00 Key Points Financial Performance - **4Q Financials**: Non-GAAP revenue of $13.874 billion, exceeding estimates of $13.438 billion and $13.321 billion [doc id='13'][doc id='36'] - **Segment Performance**: - Client Computing (CCG) revenue: $8.193 billion (down 7% year-over-year) - Data Center & AI (DCAI) revenue: $4.737 billion (up 9% year-over-year) - Intel Foundry Services (IFS) revenue: $4.507 billion (up 4% year-over-year) [doc id='13'] - **Gross Margin**: 37.9%, down 206 basis points quarter-over-quarter and 418 basis points year-over-year, but above estimates [doc id='13'] - **EPS**: Reported at $0.15, above the Street estimate of $0.08 and Morgan Stanley's estimate of $0.06 [doc id='13'] Guidance and Future Outlook - **Next Quarter Guidance**: Revenue expected at $12.2 billion (down 10.8% quarter-over-quarter and 3.7% year-over-year), below Street estimates [doc id='14'] - **Gross Margin Guidance**: Projected at 34.5%, below previous estimates [doc id='14'] - **EPS Guidance**: Expected at $0.00, below Street estimates of $0.06 [doc id='14'] - **Long-term Outlook**: Projected revenue for CY2026 at $53.097 billion with a gross margin of 39.0% and EPS of $0.63 [doc id='15'] Market Dynamics - **Supply Constraints**: Ongoing supply issues are impacting revenue growth, with no growth expected in the second half of 2025 [doc id='3'][doc id='4'] - **Competitive Landscape**: AMD has captured all unit growth due to Intel's supply constraints, raising concerns about further share loss [doc id='4'] - **Server Market**: Strong demand exists, but Intel's supply growth is lagging behind competitors [doc id='10'] Strategic Considerations - **Foundry Business**: Intel's foundry strategy faces challenges, including customer skepticism and competition from TSMC and Samsung [doc id='12'] - **Investment in Technology**: Management emphasizes the need for clarity in strategic direction and regaining performance leadership in server CPUs [doc id='22'] - **Partnerships**: Recent partnerships, such as with NVIDIA, are viewed positively but require execution to unlock value [doc id='16'] Risks and Concerns - **Execution Risks**: Uncertainty in the CPU roadmap and foundry strategy could impact stock performance [doc id='19'] - **Market Sentiment**: The stock's recent rally may be driven by geopolitical enthusiasm rather than fundamental improvements [doc id='17'] - **Competitive Pressures**: Continued competition from AMD could lead to further share losses and pressure on average selling prices (ASPs) [doc id='34'] Conclusion - **Investment Rating**: Currently rated as Equal-weight, with cautious sentiment due to stock appreciation and ongoing execution risks [doc id='15'][doc id='22'] - **Price Target Adjustment**: Price target raised to $41.00 based on revised EPS estimates and market conditions [doc id='18']

Not for redistribution without written consent of Morgan Stanley January 20, 2026 05:21 AM GMT Semiconductors | North America Weekly: Earnings Week 1 (INTC) - and thoughts on the microprocessor shortage, Micron LOI with PSMC We preview our first week of earnings as Intel kicks us off - and review the shortage of server CPUs that has been in evidence since late 3q, but is suddenly getting more attention. INTC (EW, reporting after the market close on Thursday, January 22nd): Shortages in CPUs should help supp ...

Core Insights - SK hynix has become the first company in the industry to complete the Intel Data Center Certified process for its 256GB DDR5 RDIMM, which is compatible with the Intel Xeon 6 platform [1][2][3] Product Performance - The new 256GB DDR5 RDIMM module delivers up to 16% higher inference performance compared to servers using 32Gb die-based 128GB products [5] - The design utilizing 32Gb DRAM chips achieves approximately 18% lower power consumption than previous 256GB products based on 16Gb 1a DRAM [5] Market Position and Strategy - By validating compatibility with Intel's latest server platform, SK hynix demonstrates its technological leadership in high-capacity DDR5 modules and plans to expand cooperation with global data center operators [3][4] - The company aims to address the growing demand for high-performance, low-power, and high-capacity memory solutions, enhancing customer satisfaction as a "Full-stack AI memory creator" [6][8] Industry Context - In the AI-driven infrastructure environment, memory is a critical determinant of performance, with increasing data processing demands driving market growth for high-capacity memory [4][5] - The collaboration between SK hynix and Intel highlights a shared commitment to advancing memory technology to meet the requirements of capacity-hungry AI applications [7]

Market Overview - Major U.S. stock indices finished higher, with the Dow Jones up nearly 0.4% at 47,474.46, S&P 500 gaining 0.25% to 6,829.37, and Nasdaq advancing almost 0.6% to 23,413.67 [1] Marvell Technology - Marvell shares rose 1.96% to close at $92.89, with adjusted earnings of 76 cents per share and revenue of $2.08 billion, up from $1.52 billion a year earlier, indicating continued growth [2][3] - The company reported record data center sales and a positive full-year growth outlook, forecasting revenue growth above 40% for the fiscal year, driven by AI infrastructure spending [2][3] CrowdStrike - CrowdStrike stock gained 2.46% to finish at $516.55, with third-quarter revenue reaching just over $1.23 billion, a 22% year-over-year increase, and adjusted earnings of 96 cents [4][5] - Subscription revenue rose 21% to $1.17 billion, and annual recurring revenue grew 23% to $4.92 billion, with $265.3 million in net new ARR added [5][6] Boeing - Boeing shares surged 10.15% to close at $205.38, as the company outlined expectations for higher 737 and 787 jet deliveries in 2026 and reaffirmed its intention to acquire Spirit AeroSystems [7][8] - Management's updated production outlook suggested an acceleration in widebody and narrowbody output, which could improve cash flow and margins as supply chain conditions stabilize [8] Intel Corporation - Intel stock climbed 8.65% to finish at $43.47, amid speculation that Apple could utilize Intel's advanced 18A manufacturing process for M-series processors [9][10] - The company is positioned as a leader in U.S.-based advanced chipmaking, with new fabs planned in Arizona and Ohio, and the potential Apple deal is seen as a strategic supply-chain pivot [11] Pure Storage - Pure Storage shares advanced 6.97% to close at $94.72, with quarterly revenue of $964.45 million, exceeding estimates, and earnings of 58 cents meeting expectations [12][13] - Subscription revenue rose 14% to $429.7 million, and annual recurring revenue climbed 17% to $1.8 billion, with the company raising its fiscal 2026 revenue outlook to $3.63–$3.64 billion [13]

Summary of AMD Investor Day Conference Call Company Overview - **Company**: Advanced Micro Devices (AMD) - **Industry**: Semiconductors - **Market Cap**: $393.366 billion as of November 11, 2025 - **Stock Rating**: Equal-weight - **Price Target**: $260.00 Key Industry Insights - **AI Impact**: AI is accelerating across major markets including cloud, enterprise data centers, PCs, gaming, and embedded systems, benefiting AMD as a technology leader [4][10] - **Market Projections**: AMD anticipates a $1 trillion compute market by 2030, with "tens of billions" in Instinct GPU revenue by 2027 and an ~80% CAGR in its AI accelerator business [4][10] Core Strategic Pillars 1. **Compute Technology Leadership**: Emphasis on modular design and shared libraries for CPUs, GPUs, NPUs, and adaptive SoCs [4] 2. **Data Center Leadership**: Focus on MI450 and Helios systems as leadership platforms, with expectations of significant growth in data center GPU market share [5][12] 3. **Expanding AI Everywhere**: Targeting a 35% total revenue CAGR over the next 3-5 years, driven by >60% CAGR in data center and >10% CAGR in core businesses [10][19] 4. **Full-Stack/Open Software Enablement**: Significant investment in software ecosystem, with a 10x year-over-year increase in downloads of AMD's ROCm stack [14] Financial Projections - **Earnings Power**: AMD forecasts >$20 in EPS over the next 3-5 years, with gross margins expected to expand as the product mix shifts towards high-performance and AI products [19][28] - **Revenue Growth**: Projected GAAP revenue of $34.013 billion in 2025, with a gross margin of 51.7% [42] Market Share and Competitive Landscape - **AI Market Share**: AMD aims for a 12% market share in the AI silicon market by 2030, with each point of share valued at $10 billion [21][24] - **Server CPU Market**: Targeting >50% share in server CPUs within the next 3-5 years, driven by enterprise adoption of EPYC for cloud and hybrid workloads [14][19] - **Client & Gaming**: Expected to achieve 40% revenue share in client PCs and gaming over the next 3-5 years, with significant growth in Ryzen AI PC platforms [15] Risks and Considerations - **Market Uncertainty**: The AI market is characterized by high uncertainty, with AMD competing directly with NVIDIA for market share [21][23] - **Execution Risks**: AMD's success hinges on delivering competitive ROI metrics compared to incumbents, particularly in the AI space [21][37] Conclusion - AMD's investor day highlighted a robust growth strategy centered on AI and data center leadership, with ambitious financial projections and a clear focus on expanding market share across various segments. However, the company faces significant competition and market uncertainties that could impact its growth trajectory.

Core Insights - Broadcom is advancing an open ecosystem for VMware Cloud Foundation (VCF), enabling customers to build and extend modern private clouds with increased flexibility and adaptability across infrastructure layers [1][2] - The new VCF AI ReadyNodes and expanded ODM self-certification program aim to enhance participation from OEMs and ODMs, facilitating the adoption of next-generation technologies [2][4] Open Hardware Ecosystem - Broadcom is expanding its open hardware certification program to include VCF AI ReadyNodes, allowing for self-certification by ODM partners, which will enhance sourcing flexibility and reduce total cost of ownership [2][4] - Supermicro and OVHcloud are among the first to certify their systems as VCF AI ReadyNodes, which will streamline the migration to optimized GPU solutions for AI adoption [3][4] Edge Ecosystem Expansion - Broadcom is introducing new edge-optimized nodes for various applications, supporting the deployment of private cloud infrastructure closer to data generation points [4][5] Networking Strategy - A new strategy to unify network fabrics using standards-based EVPN and BGP networking will simplify operations in modern private clouds, enhancing interoperability and promoting cloud-like simplicity [6][7] - Collaboration with Cisco on the Nexus One fabric solution will provide customers with architectural flexibility and lower total cost of ownership [7][8] Open Source Contributions - Broadcom is a leading contributor to the Kubernetes community and has announced that VMware vSphere Kubernetes Service is now a Certified Kubernetes AI Conformant Platform, reinforcing its commitment to open standards [9][10]

Summary of Advanced Micro Devices (AMD) Conference Call Company Overview - **Company**: Advanced Micro Devices (AMD) - **Industry**: Semiconductors - **Market Cap**: $419.276 billion - **Stock Rating**: Equal-weight - **Price Target**: $246.00 - **Current Stock Price (as of Oct 31, 2025)**: $256.12 Key Points Industry Dynamics - The traditional server market is experiencing significant demand, with CPU shortages attributed to Intel's supply constraints [3][5] - Component shortages in hard disk drives, DDR5 DRAM, and enterprise SSDs indicate exceptional demand across the board [3][4] AMD's Performance - AMD is expected to have a strong data center quarter due to robust server demand and Intel's limitations [1][11] - AMD's server CPU market is projected to grow 5.3% quarter-over-quarter (q/q) and 31.5% year-over-year (y/y) in Q3, and 5.1% q/q and 21% y/y in Q4 [5] - The MI355 product is showing growth, but the MI450 launch next year is critical for future performance [1][11][14] Competitive Landscape - Intel's data center segment growth was only 0.4% y/y and 4.5% q/q, indicating AMD is likely to capture most of the market growth [5][11] - AMD's GPU demand is stable, but no near-term upside is expected; significant growth is needed to meet earlier management expectations [6][12] Future Outlook - The MI450 rack scale solution is anticipated to be a key driver for AMD's growth next year [14][16] - AMD's ability to provide better ROI than NVIDIA will be crucial for gaining market share [14][16] - The company is optimistic about its growth trajectory, but analysts remain cautious due to high expectations in the AI sector [20][16] Financial Projections - Expected revenue for Q3 2025 is $8.730 billion, with a gross margin of 54.1% [17] - For 2025, projected non-GAAP EPS is $4.28, with revenue estimates of $33.414 billion [29][34] Risks and Considerations - High expectations in AI may limit upside potential; the stock has risen over 25% since the Open AI deal, leading to concerns about over-optimism [15][20] - AMD's reliance on cloud providers and the need to resolve ecosystem issues create uncertainties [14][16] Conclusion - AMD is positioned to capture significant growth in the server CPU market, driven by strong demand and Intel's supply challenges. However, the company must navigate high expectations and competitive pressures, particularly from NVIDIA, to sustain its growth trajectory.

Summary of Key Points from the Conference Call Industry and Company Involved - **Industry**: Semiconductors, specifically focusing on North America - **Companies**: Intel Corporation (INTC) and Nvidia Corporation (NVDA) Core Insights and Arguments 1. **Collaboration Announcement**: Intel and Nvidia announced a partnership to develop custom data center and PC products, including Nvidia-custom x86 CPUs and x86 SOCs integrating Nvidia graphics chiplets with Intel CPUs [3][4] 2. **Investment Details**: Nvidia will invest $5 billion in Intel's common stock at a price of $23.28 per share [3] 3. **Market Impact**: The server CPU market is currently around 30 million units, with Intel holding approximately 65% market share. Nvidia's expected shipment of 30,000 racks this year represents a small contribution to Intel's overall market share [5][10] 4. **Strategic Importance**: The collaboration is seen as a positive development for Intel, particularly in enhancing its position in AI systems and regaining lost content from Nvidia's shift to its own Grace CPU [4][9] 5. **Long-term Product Release**: New products from this collaboration are not expected to hit the market until 2027 [13] 6. **Foundry Relationship Speculation**: There is potential for a future Nvidia-Intel foundry relationship, although no immediate plans were disclosed [14] 7. **Stock Market Reaction**: Initial enthusiasm for Intel's stock may fade if the partnership does not evolve into a foundry aspect, which is a concern for some investors [19] Additional Important Insights 1. **AMD's Position**: The collaboration is viewed as neutral for AMD, as it does not significantly impact their market share in either server or PC segments [22] 2. **ALAB's Outlook**: The partnership may affect ALAB due to potential changes in connectivity standards, but the specifics remain unclear [23] 3. **Capex Expectations**: Intel's capital expenditure is expected to increase, with estimates for 2026 capex around $13.2 billion, influenced by the partnership [24][25] 4. **Risks and Opportunities**: The semiconductor industry faces various risks, including competition from AMD and potential delays in new product launches, which could impact revenue growth [28][30] This summary encapsulates the key points discussed in the conference call regarding the Intel and Nvidia partnership, its implications for the semiconductor industry, and the potential market dynamics moving forward.

Summary of Conference Call on NVIDIA and Intel Partnership Industry Overview - **Industry**: Greater China Technology Semiconductors - **Region**: Asia Pacific Key Company Insights - **NVIDIA** plans to invest **US$5 billion** in **Intel** common stock, indicating a strong partnership between the two companies [2][6] - **Intel** will continue its CPU foundry outsourcing to **TSMC**, which may negatively impact ARM-based AI PCs and AMD's laptop CPUs initially, with potential future effects on **ASMedia** in desktop PC chipsets [1][6] Core Partnership Developments 1. **Product Development**: The partnership aims to jointly develop multiple generations of custom data center and PC products, focusing on integrating NVIDIA and Intel architectures using **NVIDIA NVLink** [6][10] 2. **Market Impact**: - Intel will produce NVIDIA-custom x86 CPUs for data centers, which will be integrated into NVIDIA's AI infrastructure platforms [6][10] - Intel will also offer x86 SoCs that integrate NVIDIA RTX GPU chiplets, expanding their market reach [6][10] 3. **Market Addressability**: NVIDIA highlighted an addressable market of **150 million** notebook units, indicating significant potential for the new x86 SoC that combines Intel CPU and NVIDIA GPU [6][10] Implications for Competitors - **MediaTek**: Slightly negative outlook for MediaTek's WoA in the gaming/AI PC market due to the new x86 SoC fusing Intel CPU and NVIDIA GPU [6][10] - **ASMedia**: The direct impact on AMD's desktop CPU share is expected to be limited, but overall sentiment may be negative for ASMedia due to potential future collaborations between Intel and NVIDIA [6][10] Strategic Insights - **TSMC's Role**: The partnership does not change NVIDIA's ARM roadmap, but emphasizes TSMC's strong foundry capabilities and Intel's advanced packaging capabilities, which could enhance the integration of NVIDIA GPU chiplets with Intel CPUs [6][10] - **Market Expansion**: The partnership is expected to expand the total addressable market (TAM) for both companies, with Intel gaining exposure to NVLink-based AI infrastructure and premium laptop CPUs, while NVIDIA gains access to the laptop graphics segment and x86 rack-scale solutions [6][10] Risks and Considerations - **Market Dynamics**: Potential risks include increased competition from AMD, supply chain diversification, and the impact of US-China tensions on semiconductor supply chains [15][19] - **Financial Outlook**: Intel's 2026 EPS is projected at **~29x** with a focus on regaining market share in desktop and server segments following CPU shortages [17][19] Conclusion The partnership between NVIDIA and Intel represents a significant strategic move in the semiconductor industry, with implications for various players in the market. The collaboration aims to leverage both companies' strengths to create innovative products while navigating potential competitive and market risks.

Summary of Semiconductor Industry Conference Call Industry Overview - The focus is on the semiconductor industry in North America, particularly the strength in supply chains for general-purpose servers, which benefits companies like Intel (INTC), Advanced Micro Devices (AMD), and Micron Technology (MU) [1][7]. Key Points 1. **Supply-Demand Dynamics**: There is a tightening supply-demand balance for CPUs, DDR5 RDIMMs, and eSSDs, attributed to strong demand in the general-purpose server market across enterprise and cloud sectors. The reasons for this tightness are not entirely clear, with some attributing it to strong demand for traditional CPUs driven by inference needs, while others suggest a catch-up in server investments after previous reductions [2][4]. 2. **Market Sentiment**: The impact of these trends on stock performance is uncertain due to significant multiple expansions in AI-related stocks. Only AI-related numbers are expected to drive stock prices higher, despite the positive outlook for the semiconductor ecosystem [3]. 3. **Microprocessor Supply**: A tight supply for microprocessors is expected to persist through early next year for both Intel and AMD, driven by unit volume demand. However, Intel's stock performance appears influenced by event-driven theories rather than fundamental supply-demand dynamics [4]. 4. **DRAM Market**: Strong demand for DDR5 RDIMMs is anticipated, with a positive pricing outlook for Q4. Micron is expected to report strong results, but investor focus is primarily on high bandwidth memory (HBM) developments [5]. 5. **eSSD Market**: The eSSD market shows significant strength, with large orders indicating robust demand, although this is not central to the investment thesis for INTC, AMD, or MU [6]. Additional Insights - **Inventory Levels**: Semiconductor company inventory is currently at 114 days, which is 26 days above the historical median, indicating a potential oversupply risk if demand falters [28]. - **Short Interest Trends**: Short interest as a percentage of float for various companies shows fluctuations, with notable increases for companies like IonQ and decreases for others like AVGO [37]. - **Valuation Methodology**: Price targets for AMD and INTC reflect high multiples based on expected growth in data centers and AI, with AMD projected at $168 and INTC at approximately $24.6 [38][39]. - **Risks**: Risks to the semiconductor sector include potential pricing pressures due to elevated inventories and competition in the HBM market, which could lead to swift price reductions if demand weakens [44]. Conclusion The semiconductor industry is experiencing a period of tightening supply and strong demand, particularly in the server market. While this presents opportunities for companies like Intel, AMD, and Micron, the overall impact on stock performance remains uncertain due to high valuations and potential risks associated with inventory levels and market competition.