Intel Corp at Deutsche Bank Technology Conference Transcript

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

Question: Ross Seymore - Deutsche Bank - Analyst : <_ALACRA_META_ABSTRACT>So with that fun stuff out of the way, why does the government own 10% of you guys now?

Question: Ross Seymore - Deutsche Bank - Analyst : What's the -- I've heard various interpretations of the warrant side that you mentioned and the 51% threshold and all those sorts of things. Describe why that occurred. Why is that mechanism in the agreement?

Question: Ross Seymore - Deutsche Bank - Analyst : Do you expect the US government being involved changes the probabilities all else being equal, and we'll get into some of the other triggers that are necessary. But all else being equal, improves the odds of your Foundry business, garnering external customers?

Question: Ross Seymore - Deutsche Bank - Analyst : And then you also had a $2 billion investment from SoftBank. How did that come about? And was there any interaction or relationship between the US government and SoftBank, those two moves that you -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 28, 2025 / 3:45PM, INTC.OQ - Intel Corp at Deutsche Bank Technology Conference

Question: Ross Seymore - Deutsche Bank - Analyst : Is this likely to be the end of these sorts of capital raising efforts now that you've gotten, whatever it is, $7 billion, $8 billion, I guess?

Question: Ross Seymore - Deutsche Bank - Analyst : Earlier this year, you and I talked about the fact that oftentimes, you need a financial investor to set the value of a subsegment of your company before a strategic investor would come in. Has that already occurred with these two separate investments that we already discussed? I know it's in the company as a whole, not just the Foundry side. Or would we still have to have the kind of precursor be a financial before a strategic potential customer would put money into the Foundry?

Question: Ross Seymore - Deutsche Bank - Analyst : Yeah.

Question: Ross Seymore - Deutsche Bank - Analyst : Let's pivot over to the technology side of things. We'll get to 14A in a minute, but is success in ramping 18A, a prerequisite for 14A working? Or are they different enough that they're not completely codependent?

Question: Ross Seymore - Deutsche Bank - Analyst : And Panther Lake still on time? Still on track?

Question: Ross Seymore - Deutsche Bank - Analyst : And then the 14A side, on last quarter's 10-Q, you guys put in a risk statement, which we were joking last night, nobody ever reads, but this one actually was worth reading because you scared the pants off everyone. So you basically said 14A you need external customers. Otherwise, the return isn't there, and Lip-Bu kind of summarized that even on the call. What led to that risk factor being for the first time inserted in your documents?

Question: Ross Seymore - Deutsche Bank - Analyst : The fact that Lip-Bu talked about it so proactively on the call, the risk factors and everything, and you put it in the 10-Q, and I know all the caveats that you just said, that you don't get to say the mitigating side of the equation. I've heard people think that, or kind of pause at the idea that you could scare potential customers away, or you could kind of get them off the sidelines that they have to step up now if they ever want to. Otherwise, they're going to deal with the monopoly. Which one ended up happening? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 28, 2025 / 3:45PM, INTC.OQ - Intel Corp at Deutsche Bank Technology Conference

Question: Ross Seymore - Deutsche Bank - Analyst : On the 18A side of things, the way you guys structured the technology was very kind of high-performance compute friendly, and a little less kind of mobile friendly. Is the same thing apply to 14A? And I know there's different flavors of 18A, but just kind of at the highest of levels?

Question: Ross Seymore - Deutsche Bank - Analyst : So 14A customers are going to happen, and they'll probably not be named by you. But if you were to win a Foundry customer for 14A, what is the timeline necessary as you try to balance the ROI and the investments and all those sorts of things?

Question: Ross Seymore - Deutsche Bank - Analyst : So whether it's an external customer, an internal intel ramp on 14A, is the time frame kind of '28, '29, '30?

Question: Ross Seymore - Deutsche Bank - Analyst : Got you. Why don't we talk a little bit about the product road map side of things? So much of what we've discussed so far has been on the Intel Foundry side. But if we pivot over to the product side of things. Talk about between notebook, desktop and server. Where you think the product line is strong or needs some work? And what are you guys doing to address it?

Question: Ross Seymore - Deutsche Bank - Analyst : Is Diamond Rapids something that you hope closes the gap? It's better than Granite, but it doesn't get you to --

Question: Ross Seymore - Deutsche Bank - Analyst : And if we think across those products just to kind of blend the product and the Foundry side, talk a little bit about the external to internalization of where those are produced from -- you talked about Panther versus Lunar, and then Nova? And then the same thing on Diamond versus Granite, et cetera?

Question: Ross Seymore - Deutsche Bank - Analyst : Let's talk a little bit about the CapEx side of things. You guys, I think, have alluded to next year, it will come down year-over-year. I know there's a gross versus a net dynamic to think about. Now we have a change in what we're grants from the government are now equity investments that you won't get next year. Just talk a little bit about how you're thinking of CapEx and kind of where is the normalized level Intel can operate whichever one you want gross or net?

Question: Ross Seymore - Deutsche Bank - Analyst : Let's talk about gross margin a little bit. You guys have kind of been around the 40% mark, plus or minus. You have a target that's significantly above that, but we can talk about how you get there in a bit. In the nearer term, say, the next year or two, what are the pluses and minuses getting above the 40%? Or are you guys trying to fix so many things at once that operating at this level is not your goal, but you're kind of fine with it because there's bigger things to address?

Question: Ross Seymore - Deutsche Bank - Analyst : So all being equal, should be knock on wood past the trough in gross margin?

Question: Ross Seymore - Deutsche Bank - Analyst : So in the last minute or so we have left, I just want to wrap things up. With Lip-Bu coming back, he was on the Board for a period, last and now came back. You saying it Intel, both of you guys are industry veterans, highly respected. You're not taking on an easy job turning around the company. But clearly, you see something that keeps you excited about it. So why don't you just summarize in a minute, literally that we have left, what's the vision you guys have where Intel could be?

Question: Ross Seymore - Deutsche Bank - Analyst : Perfect. Well, Dave, we truly appreciate you coming down to the DB Tech Conference and spending some time with us. So thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 28, 2025 / 3:45PM, INTC.OQ - Intel Corp at Deutsche Bank Technology Conference