Intel Corp at UBS Global Technology and AI Conference Summary

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

Question: Timothy Arcuri - UBS AG - Analyst : <_ALACRA_META_ABSTRACT>Perfect. So, John, let's talk about just the shortages that you're experiencing right now. There is -- demand is definitely better. But part of it also is that you have tightness on Intel 10 and 7, and you are diverting products, or you have a mix issue such that you're short on supply. So can you actually talk about both PC and server demand and also supply?

Question: Timothy Arcuri - UBS AG - Analyst : And so we have a situation where there's multiple hyperscalers now asking for long-term agreements. Can you also talk about that?

Question: Timothy Arcuri - UBS AG - Analyst : And do you think that that drives some upgrades? Do you think that it drives an upgrade cycle?

Question: Timothy Arcuri - UBS AG - Analyst : John, one thing I hear, and you actually got these questions coming out of earnings was that, well, the customers aren't buying the new products. So there's some perception that customers are still buying the old products, that's part of all of this. Can you --? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 3:55PM, INTC.OQ - Intel Corp at UBS Global Technology and AI Conference

Question: Timothy Arcuri - UBS AG - Analyst : Great. So let's talk about 18A. And Panther Lake is out. Yields, I think, were initially unpredictable and low, but I think that's back on track. So can you just talk about 18A and progress? It seemed like Lip-Bu was a little more bullish on the progress last call?

Question: Timothy Arcuri - UBS AG - Analyst : Great. And then can you kind of dovetail that into 18AP? And you've made progress on the PDK milestones and the plan to leverage the 18A family. And you've said that you're going to keep on leveraging that family for the next three generations of both client and server. So when would you expect the sort of -- to get more news on 18AP and for us to have more milestones?

Question: Timothy Arcuri - UBS AG - Analyst : Great. Can we just -- can you remind us what the outsourcing ratio is going to be? I think you said it's 30% this year. Can you remind us sort of some milestones, maybe the direction of it in '26 and '27?

Question: Timothy Arcuri - UBS AG - Analyst : Great, John. Can you also then extend that to 14A? How is the node development progressing? What are the next milestones we can expect on 14A?

Question: Timothy Arcuri - UBS AG - Analyst : So what's the next most important milestone that we should be listening for on 14A?

Question: Timothy Arcuri - UBS AG - Analyst : And even at the same time, though, you said that even if you do sign a customer, you might not even tell us about it. So is there anything else tangible besides just to --?

Question: Timothy Arcuri - UBS AG - Analyst : Great. I actually wanted to ask you about advanced packaging. So the external advanced packaging revenue is still pretty small, but we do hear about a lot more engagements there. And you've been very clear that the back-end engagements will lead the front-end engagements. So would we think we're about to see an inflection point here with respect to EMIB and EMIB-T given some of the tightness we're seeing for CoWoS?

Question: Timothy Arcuri - UBS AG - Analyst : Got it. Let's talk about how you prioritize capacity between server and PC. Obviously, these hyperscalers are coming to you, wanting to have LTSAs and they're talking about that. Obviously, and you've also said that you're prioritizing wafers to server. And so -- but at the same time, PC is getting better as well, demand. So are you happy losing some PC share? You're okay with that through '26 because -- I asked that because AMD put up a pretty aggressive share gain target in a PC.

Question: Timothy Arcuri - UBS AG - Analyst : And just on that front, Lip-Bu has been kind of rethinking the entire data center roadmap. And I think Pat was maybe a little more bullish on peak on E-core. And the idea was originally that Diamond Rapids was going to stem some of those share losses. It sounds like now maybe that optimism is pushed out to Coral Rapids. Can you just talk about how the data center server roadmap is changing?

Question: Timothy Arcuri - UBS AG - Analyst : Coral Rapids. Okay. So John, let's just talk about PC. Do you feel like you're losing some ground in PC? I mean -- and how do you think about the -- you're fighting off AMD, you're fighting off ARM. How do you think about your PC roadmap?

Question: Timothy Arcuri - UBS AG - Analyst : And just on PC, John, how do you -- you've been following these markets a long time. How do you think about memory price increases impacting the market? I mean, it's historically been -- at least people think of it as being a fairly elastic market. So can you just talk about that?

Question: Timothy Arcuri - UBS AG - Analyst : Great. John, let's talk about AI. Can you just update us on where the roadmap is? I know there was some optimism sometime back about Falcon Shores. And just talk about where the accelerator roadmap is.

Question: Timothy Arcuri - UBS AG - Analyst : Can you talk, John -- you've been there now for several years. Can you talk about Lip-Bu coming on board? How has the company changed under Lip-Bu?

Question: Timothy Arcuri - UBS AG - Analyst : John, you used to be an analyst. So you sort of think about the company being on the inside. I'm sure you also think about it still in your old hat, too. So oftentimes, people argue, well, Intel should be broken up into the foundry and into a fabless chip business. How do you think about that? I mean, it's easier said than done. You don't have any external customers now for the foundry. So it's not -- so it's kind of a moot point right now. But how do you think about that? Like what boxes have to be checked for you to get to that point if you were going to do that? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 3:55PM, INTC.OQ - Intel Corp at UBS Global Technology and AI Conference

Question: Timothy Arcuri - UBS AG - Analyst : And John, one of the big keys to improving profitability is to get off of Intel 10 and 7 and the wafer costs don't change very much, but the wafer prices go up a lot. So that helps margins in Foundry. However, the transfer pricing to the product business goes up alongside of that. So is the product roadmap in a good enough place that it's able to absorb those price increases when you think about this transfer pricing model?

Question: Timothy Arcuri - UBS AG - Analyst : But doesn't it -- so it improves profitability in Foundry, but it brings profitability down in the product business?

Question: Timothy Arcuri - UBS AG - Analyst : But you think it's still..

Question: Timothy Arcuri - UBS AG - Analyst : Still a net --

Question: Timothy Arcuri - UBS AG - Analyst : Got it. And then let's talk about CapEx, John. So I think the original plan was this year, it sounded like it was going to be down, and now it sounds like it's biased down. But can you talk about CapEx in light of you being short of supply?

Question: Timothy Arcuri - UBS AG - Analyst : Got it. And then can you just talk about -- I'm not asking you to guide gross margin for next year, but can you talk about just the puts and takes? And is the 40% to 60% drop-through still the right way to think about gross margin as we kind of go into next year?

Question: Timothy Arcuri - UBS AG - Analyst : And John, last question. How has the involvement of the US government changed the behavior of the company? Has it changed anything at all?

Question: Timothy Arcuri - UBS AG - Analyst : Great. Well, John, we're out of time. Thank you again.