Core Viewpoint - Intel's Q2 2025 revenue reached $12.9 billion, exceeding guidance, driven by strong demand in client and data center businesses, despite a decline in gross margin due to impairment and one-time costs [1][11]. Revenue Performance - Q2 2025 revenue was $12.9 billion, up 0.2% year-over-year and 2% quarter-over-quarter, surpassing the guidance range of $11.2 to $12.4 billion [1][11]. - Non-GAAP gross margin was 37.5% after excluding approximately $800 million in non-cash impairments and $200 million in one-time costs, while reported gross margin was 29.7%, down 9.0 percentage points year-over-year and 9.5 percentage points quarter-over-quarter [1][11]. Business Segments - Intel Products segment generated $11.8 billion in revenue, up 0.3% quarter-over-quarter, with client computing group (CCG) revenue increasing by 3.9% [2]. - Data Center AI revenue decreased by 4.9% quarter-over-quarter due to fluctuations in demand from large-scale customers, but AI server CPU demand remained strong [2]. - Intel Foundry revenue was $4.4 billion, down 6.4% quarter-over-quarter, impacted by capacity constraints [2]. - Other businesses generated $1.053 billion, up 11.7% quarter-over-quarter, benefiting from the monetization of Mobileye shares [2]. Future Guidance - For Q3 2025, Intel expects revenue between $12.6 billion and $13.6 billion, with a gross margin of approximately 36% [3][15]. - The company anticipates that advanced node production will improve foundry gross margins starting in 2026, with capital expenditures projected between $9 billion and $18 billion [3][15]. Strategic Initiatives - Intel is focusing on streamlining its organization to enhance efficiency and accountability, aiming to reduce management layers by about 50% [6]. - The company plans to launch its first Panther Lake SKU by the end of 2025 to strengthen its market share in the PC segment [3][8]. - Intel is also working on improving its AI strategy, focusing on inference and intelligent AI, with plans to provide a full-stack AI solution [9][25]. Market Environment - The overall market environment in Q2 2025 was stable, with strong demand in core markets, particularly in client computing and traditional server sectors [10]. - The x86 ecosystem remains resilient, with ongoing updates in CPU demand driven by the end of Windows 10 support and aging devices [10].