Intel Corp at Bank of America Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Vivek Arya - Bank of America - Analyst : <_ALACRA_META_ABSTRACT>And so before we get things started, I know post-close Intel made an announcement about Apollo's investment in your Ireland plan, maybe we could just give an update on that. And importantly, what does that imply for this year's capital expenditure?

Question: Vivek Arya - Bank of America - Analyst : Got it. Make sense. Second thing, John, on Computex, so Pat had a keynote yesterday. If you could maybe give a summary of the main announcements we heard about Lunar Lake, we heard about Gaudi, even we heard about Gaudi's pricing, which I thought was interesting. So maybe if you could just get us up to speed on? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 9:40PM, INTC.OQ - Intel Corp at Bank of America Global Technology Conference

Question: Vivek Arya - Bank of America - Analyst : Got it. So let's talk about the PC market first. So during COVID, we got too high of like 340 plus million units. Now I think they like 260, 270. What does AI PC mean, does it mean a faster refresh cycle, does it mean an ASP upside? When do we start to see it become more tangible?

Question: Vivek Arya - Bank of America - Analyst : Got it. Sitting here in June, would you already have visibility into that conceptual refresh or is it too early to --

Question: Vivek Arya - Bank of America - Analyst : And does it imply better than seasonal is that what a refresh implies or is that?

Question: Vivek Arya - Bank of America - Analyst : Got it. Makes sense. On the AI PC side, John, what we hear about is, so many TOPS there. Is that the right metric? Is that the right metric is that what we should all be chasing. This person have so many TOPS, or that's why that silicon is better.

Question: Vivek Arya - Bank of America - Analyst : I see. And can you double-click on whether you think of AI PC as an enterprise play or as a consumer play? And what implications does that have? Because you guys dominate enterprise. Consumer, does that become a more competitive environment? What if, there used to be Intel Inside, what are their Snapdragon inside, right. What -- how does that compensate?

Question: Vivek Arya - Bank of America - Analyst : Right, make sense. I'm glad you brought up this ARM versus x86 right question. So we have Microsoft who I think for the first time launched a new PC technology, right, and launch surface with ARM then at Computex, the ARM CEO, Rene Haas, right? He said that he thinks there will be a 50% conversion to ARM right by 2029. What does Intel's view on how that competition right, obviously, you made it clear that competition right, is kind of good for both sides. But how seriously should we take those claims? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 9:40PM, INTC.OQ - Intel Corp at Bank of America Global Technology Conference

Question: Vivek Arya - Bank of America - Analyst : Got it. John, you've started the market, right, for a long period of time. Technically, is there anything about ARM that gives it a power efficiency advantage over x86? Or is it just a different implementation and that there is no structural advantage that ARM has?

Question: Vivek Arya - Bank of America - Analyst : So why not stress the battery life? Because I would imagine that as a consumer, I would be more attracted to somebody saying the battery life could be, I don't know, 20 plus hours as opposed to some hazy notion of what AI could be?

Question: Vivek Arya - Bank of America - Analyst : Right. Makes sense. On the data center side, what are you seeing in terms of just kind of near term second half outlook, what does the launch of Sierra Forest and Granite Rapids mean, in terms of how the market share evolves versus AMD and then if I could just kind of ask the Part C of that NVIDIA launching, right Grace Blackwell for a lot of people want Blackwell, I guess they are getting Grace as well with that better performance. So does how does that change the dynamic of the --

Question: Vivek Arya - Bank of America - Analyst : Is the ability for ARM to penetrate the server market different than what it is in the PC market or it's the same dynamic just because it does have a lot of champions kind of on the server side in terms of customer silicon, Microsoft or Amazon, Graviton, and Google now with Axion and --

Question: Vivek Arya - Bank of America - Analyst : Got it. John in the few minutes, we have wanted to touch on two topics quickly. First, as Huawei restrictions for Intel had announced back in May that Q2 could be, I think, at the lower end of 12.5% to 13.5%. Just what does that imply for the full year because when we look at why we I think the only ship like mid-single digit million or so, right. So is it really an impact beyond? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 9:40PM, INTC.OQ - Intel Corp at Bank of America Global Technology Conference

Question: Vivek Arya - Bank of America - Analyst : So, does it conceptually mean because this was only I don't know like a harvest quarter impact that we will see a full quarter impact in Q3 or --

Question: Vivek Arya - Bank of America - Analyst : I see. Okay. So it's incremental too, right.

Question: Vivek Arya - Bank of America - Analyst : I see, got it. And then the last topic was on Intel Foundry Services, right? So now the name of the combined kind of manufacturing side plus external foundry, what came as a surprise was just the period at which Intel would breakeven in that business. So what went into that thinking is it just the write-downs are different than when the original decision was made. Like talk us through what that implies for?

Question: Vivek Arya - Bank of America - Analyst : Got it. But I think with that, thank you so much, John.

Question: Vivek Arya - Bank of America - Analyst : Really appreciate your perspectives. Thanks everyone.