Intel (INTC) This autumn 2024 Earnings Name Transcript

Intel (INTC 1.32%)
This autumn 2024 Earnings Name
Jan 30, 2025, 5:00 p.m. ET

Contents:

• Ready Remarks
• Questions and Solutions
• Name Members

Ready Remarks:

Operator

Thanks for standing by and welcome to Intel Company’s fourth quarter 2024 earnings convention name. At the moment, all individuals are in listen-only mode. After the audio system’ presentation, there will likely be a question-and-answer session. [Operator instructions] Once more as a reminder, at present’s program is being recorded.

And now I might wish to introduce your host for at present’s program, Mr. John Pitzer, company vp, investor relations. Please go forward.

John Pitzer — Company Vice President, Investor Relations

Thanks, Jonathan, and good afternoon to everybody becoming a member of us at present. By now, you need to have acquired a replica of the This autumn earnings launch and earnings presentation, each of which can be found on our investor relations web site, intc.com. For these becoming a member of us on-line at present, the earnings presentation can be accessible in our webcast window. I am joined at present by our interim co-CEOs, Michelle Johnston Holthaus and Dave Zinsner.

As , Michelle can be CEO of Intel merchandise, and Dave continues to function Intel’s CFO. In a number of moments, Michelle will open up with some abstract feedback earlier than offering extra element on Intel merchandise. Dave will then focus on Intel foundry and the general financials, together with our Q1 steering. Earlier than we start, please word that at present’s dialogue comprises forward-looking statements primarily based on the surroundings as we presently see it.

And as such, are topic to numerous dangers and uncertainties. It additionally comprises references to non-GAAP monetary measures that we imagine present helpful info to our buyers. Our earnings launch, most up-to-date annual report on Type 10-Okay, and different filings with the SEC present extra info on particular danger components that might trigger precise outcomes to vary materially from our expectations. In addition they present further info on our non-GAAP monetary measures, together with reconciliations the place applicable to our corresponding GAAP monetary measures.

With that, let me flip issues over to Michelle.

Michelle Holthaus — Interim Co-Chief Government Officer

Thanks, John, and let me add my welcome. It has been roughly two months since Dave and I stepped into our roles as interim co-CEOs. From day one, we now have been working intently collectively alongside the board to drive higher execution of our technique. There are not any fast fixes.

And we’re dedicated to bettering our efficiency and rebuilding our credibility by way of persistent laborious work that delivers tangible outcomes. As a part of this, we’re driving extra centered investments throughout the enterprise. We can’t be all issues to all folks, and we’re prioritizing areas the place we are able to drive differentiated worth. We’re additionally persevering with to simplify our enterprise and grow to be a leaner, extra environment friendly firm.

And most of all, we’re doing a greater job of listening to our clients to make sure we meet their wants. This autumn was a step in the proper path. We delivered income, gross margin, and EPS above our information. Intel merchandise executed to drive income within the quarter, at the same time as PC stock proceed to normalize.

And Intel foundry drove incremental working efficiencies whereas reaching key grant-related milestones, which supported stable upside to gross margins. As co-CEOs, you possibly can count on us to be very easy and direct. We solely make commitments we’re assured we are able to ship. We firmly imagine that what we are saying just isn’t practically as essential as what we do.

And every part we do have to be in service of our clients. Innovating to unravel their most urgent challenges is the surest path to creating shareholder worth. That is the mindset I’ve dropped at my place because the CEO of Intel merchandise. This can be a nice enterprise with nice folks, companions, and IP to design world-class merchandise from edge to cloud.

I take nothing with no consideration. However I firmly imagine that the core x86 structure and the ecosystem we now have constructed and invested in over the many years, create a stable basis for achievement. Our clients share this view. However they want us to enhance our execution and hit our commitments.

I’m setting clear priorities and instructions in every enterprise to drive higher outcomes. I take into consideration Intel merchandise in three buckets. First, shopper edge; second, conventional information middle; and third, the AI information middle. Let me spend a number of moments on every.

In shopper, Intel CPUs energy roughly seven out of each 10 PCs. This can be a robust place that offers us benefits available in the market. That mentioned, the market is changing into extra aggressive, particularly as we see new entrants making an attempt to take part within the AI PC class. Personally, I thrive on competitors.

It drives a wholesome paranoia throughout every part we do, and we’re utilizing it as motivation to up our recreation much more. The success of Core Extremely throughout, Meteor Lake, Arrow Lake, and Lunar Lake has established Intel because the market chief in AI PC CPUs, and we stay on monitor to ship greater than 100 million cumulative methods by the tip of 2025. We’re innovating at scale not like any of our rivals. This was on show earlier this month at CES the place we launched the enterprise variations of our AI CPUs with compelling new options to Intel vPro.

This can be a testomony to the robust ecosystem we now have constructed with IT departments, round manageability, safety, belief and model. And we count on these investments to place us properly as firms start their migration to Home windows 11. Alongside our investments in enterprise, our ecosystem attain additionally positions us properly in AI PC shopper markets. We’re working with greater than 200 ISVs throughout greater than 400 options to optimize their software program on our silicon.

I am excited in regards to the new purposes I am seeing within the pipeline that can start to proliferate over the approaching months. Our aim is to innovate, accomplice and fortify our place as the popular CPU of selection. Looking forward to the remainder of the yr, we’ll strengthen our shopper street map with the launch of Panther Lake, our lead product on Intel 18A within the second half of 2025. As the primary quantity buyer of Intel 18A, I see the progress that Intel foundry is making on efficiency and yields, and I sit up for being in manufacturing within the second half as we display the advantages of our world-class design and course of know-how capabilities.

2026 is much more thrilling from a shopper perspective as Panther Lake achieved significant volumes, and we launched our next-generation shopper household code named Nova Lake. Each will present robust efficiency throughout your entire PC stack with considerably higher prices and margins for us, enhancing our aggressive place and reinforcing our price proposition to our companions and clients. Let me now flip to our conventional information middle enterprise. The group has made good progress towards strengthening our choices and driving higher, extra predictable execution.

This yr is all about bettering Xeon’s aggressive place as we battle more durable to shut the hole to competitors. The ramp of Granite Rapids has been a great first step. We’re additionally making good progress on Clearwater Forest, our first Intel 18A server product that we plan to launch within the first half of subsequent yr. All of this offers a powerful basis on which to construct as we execute.

The world’s information middle workloads nonetheless primarily run on Intel silicon, and we now have a powerful ecosystem, particularly inside enterprise. We’re going to leverage these strengths as we work to stabilize our market share in 2025. One of many methods we’ll do that is by reengaging the x86 ecosystem. We now have seen a optimistic response from the x86 ecosystem advisory group we fashioned final fall, and we’re inspired by the keenness for constructing each semi-custom and {custom} merchandise.

This can be a large space of alternative for the enterprise, and we sit up for speaking extra about this as we now have information to share. Turning to the AI information middle. I’ll begin by saying that that is a horny marketplace for us over time, however I’m not proud of the place we’re at present. On the one hand, we now have a number one place because the host CPU for AI servers.

And we proceed to see a major alternative for CPU-based inference on-prem and on the edge as AI-infused purposes proliferate. Then again, we’re not but taking part within the cloud-based AI information middle market in a significant method. We now have discovered lots as we now have ramped Gaudi and we’re making use of these learnings going ahead. One of many quick actions I’ve taken is to simplify our street map and focus our assets.

Lots of you heard me mood expectations on Falcon Shores final month. Primarily based on trade suggestions, we plan to leverage Falcon Shores as an inside take a look at chip solely with out bringing it to market. This may assist our efforts to develop a system-level answer at rack scale with Jaguar Shores to handle the AI information middle. Extra broadly, as I take into consideration our AI alternative, my focus is on the issues our clients are attempting to unravel, most notably, to decrease the fee and improve the effectivity of compute.

AI just isn’t a market within the conventional sense. It is an enabling utility that should span throughout the compute continuum from information middle to the sting. As such, a one-size-fit-all method won’t work, and I can see clear alternatives to leverage our core property in new methods to drive probably the most compelling complete price of possession throughout the continuum. Earlier than I flip the decision over to Dave, let me shut by talking as Intel foundry’s largest wafer buyer.

I’ve a fairly easy method. Once we are capable of mix world-class merchandise with world-class course of know-how, we win. As CEO of Intel merchandise, I’ll at all times make course of know-how selections primarily based on what’s greatest for my clients. And Intel foundry might want to earn my enterprise day-after-day, simply as I have to earn the enterprise of my clients.

Having mentioned that, I am assured in Intel foundry’s group means to assist my present and future product street map. And I am excited to do extra enterprise with them as their course of know-how continues to advance. A stronger Intel product, mixed with a extra aggressive Intel foundry is a recipe for achievement for Intel total. Dave, over to you.

David A. Zinsner — Government Vice President, Chief Monetary Officer

Thanks, Michelle. Let me add my welcome. I will handle three matters at present: replace on Intel foundry; second, This autumn and full yr financials; and third, our Q1 steering. Beginning with Intel foundry.

I’ve had a possibility to fulfill with quite a lot of our companions and potential clients for Intel foundry over the past couple of months. I come away from these conferences inspired by the chance we now have in entrance of us, and I’ve acquired clear suggestions on what our clients want from us to succeed. This begins with our execution on Intel 18A. This has been an space of fine progress.

Like all new course of, there have been places and takes alongside the best way, however total, we’re assured that we’re delivering a aggressive course of. We’re excited by the launch of Panther Lake this yr and the interior ramp of Intel 18A within the second half that can assist elevated volumes and improved profitability in 2026. From the attitude of exterior clients, Intel 18A is a really aggressive providing that offers every of them a purpose to have interaction with us. Nevertheless, foundry wins are about extra than simply know-how.

Belief can be a major issue. Clients should imagine you possibly can execute constantly and be keen to put money into IP to port a design to a brand new foundry. That is why previous transitions within the trade have typically began with clients giving new foundry companions smaller volumes then progressively rising as belief grows. We have made good progress, however to speed up this, I am asking the group to redouble their efforts.

Supporting IP availability and best-known foundry strategies. I am significantly happy by the willingness of our suppliers and companions to have interaction with us augmenting our experience and laborious work with theirs. Job primary is incomes the shopper’s belief. The Intel 18A design wins up to now present good validation of the technique, and we proceed to have a wholesome RFQ pipeline of potential clients.

However we cannot win each deal out of the gates. We’ll be selective and centered on areas the place we’re assured that we is usually a significant contributor to the success of our buyer and we sit up for updating you as RFQs grow to be wins. As well as, we proceed to have good momentum in superior packaging and in our collaboration with Tower Semiconductor and UMC. All three are crucial to make the most of our property longer for larger charges of return.

This can be a good segue into my different key areas of focus for Intel foundry, bettering our financials and ensuring that we’re deploying our capital appropriately. At roughly $18 billion in income, Intel foundry at present is bigger than all however one exterior foundry. That is clearly not mirrored on our P&L with adverse gross margins and a better than $13 billion working loss in 2024. We’ll systematically assault our prices and stay extremely centered on our aim of delivering breakeven working earnings for Intel foundry by the tip of 2027, and we count on to display enhancements this yr.

The monetary advantages of shifting our wafer quantity from Intel 7 to Intel 18A together with studying to run our fabs extra effectively and our course of nodes longer will likely be essential drivers of bettering our financials. Past 2027, we have to drive to money circulation from operations that helps our capital spending wants and finally generate an excellent return in your capital. I stay very optimistic on our alternative at Intel foundry. The pervasive progress of AI is driving accelerating and unprecedented demand for silicon, and there continues to be an unmet want for better selection and total manufacturing capability within the trade at present.

TSMC is a valued provider to Intel merchandise, an essential accomplice to IMS, they usually’ve established a really excessive normal for what it takes to be a world-class foundry. However the market total wants a number of gamers. And as we execute, Intel foundry has a vital position to play globally and particularly right here within the U.S., the place we proceed to put money into modern R&D and manufacturing capability. We’re additionally happy to signal with the U.S.

Division of Commerce a definitive settlement awarding us as much as $7.86 billion in grants. As , these grants are milestone-based and we now have already acquired $1.1 billion in This autumn and have acquired an extra $1.1 billion in January of Q1. As well as, we proceed to make good progress constructing out our Safe Enclave in partnership with the Division of Protection. We sit up for continued engagement with the Trump administration as we advance this work and assist their efforts to strengthen U.S.

know-how and manufacturing management. Lastly, as you’ll recall, we introduced our intention to ascertain an impartial subsidiary construction for Intel foundry to supply clear governance and operational separation. This construction additionally allows us to hunt further funding choices from each strategic and monetary companions, which we are actually actively starting to discover. Let me now flip to our consolidated monetary outcomes and Q1 steering was $14.3 billion, up 7% sequentially and on the excessive finish of the vary we offered in October because of stable progress in CCG, tools gross sales at IMS and the sting enterprise of NEX Non-GAAP gross margin got here in at 42.1%, 260 foundation factors forward of steering on larger income, higher prices and the receipt of our first chips grant, offset partially by stock reserves associated to Gaudi.

We delivered fourth quarter earnings per share of $0.13 versus our steering of $0.12. Larger income, stronger gross margin, and improved working leverage was offset by decrease curiosity and different earnings, which incorporates an accrual associated to our second SCIP settlement of roughly $750 million, reflecting an adjustment in our deliberate capability ramp in Eire. In Q2, we started the method of resizing our expense construction to assist extra modest long-term progress, together with adjusting our capability plans to extra conservative ranges, driving impairments in Q3 and this accrual in This autumn. This autumn working money circulation was optimistic $3.2 billion, down roughly $900 million sequentially because of the money outlays related to our Q3 restructuring costs.

We had gross capex of $6.3 billion with offsets of $1.6 billion within the quarter, leading to an adjusted free money circulation of adverse $1.5 billion. As I discussed earlier, we additionally acquired a portion of the chips grants this quarter. For the total yr, income was $53.1 billion, down 2.1% yr over yr. Modest year-over-year progress in Intel merchandise was greater than offset by decrease income at Mobileye and Altera, in addition to the forecasted decline in foundry providers because of the finish of life on conventional packaging income.

Full yr gross margin was 36% and down 760 foundation factors as a consequence of Q3 impairments, decrease income and stock impacts. Full yr EPS was minus $0.13 and down $1.18 on decrease income, decrease gross margin and better interval costs. We generated $8.3 billion in money from operations, made $24 billion of gross capital investments and generated capital offsets of roughly $13.4 billion from Skip accomplice contributions and authorities grants and incentives. In consequence, adjusted free money circulation was minus $2.2 billion, and we ended the yr with $22.1 billion of money and short-term investments.

Shifting to phase outcomes for This autumn. Intel merchandise income was $13 billion, up 7% sequentially. CCG income was up 9% quarter over quarter as the speed at which our clients digested stock slowed meaningfully from Q3. Whereas troublesome to quantify, we suspect a portion of This autumn income upside was as a consequence of clients’ hedging in opposition to potential tariffs.

DCI income was up barely sequentially of a better-than-expected Q3 as demand for conventional servers stay steady. Income per NEX was up 7.5% sequentially and is now up greater than 20% from Q2 lows as clients are returning to extra regular shopping for patterns, particularly in our edge enterprise. Working revenue for Intel merchandise was $3.6 billion, 28% of income and up $300 million quarter over quarter on larger income and diminished working bills. Intel foundry delivered income of $4.5 billion, up 3% sequentially on elevated EUV wafer combine and better tools gross sales by IMS.

EUV wafer income grew from 1% of complete income in 2023 to better than 5% in 2024. Intel foundry working loss in This autumn of $2.3 billion improved meaningfully sequentially as Q3 was impacted by $3.1 billion of impairments. Excluding impairments, working loss would have been roughly flat quarter on quarter. Turning to All different.

Mobileye reported income of $490 million, up 1% sequentially, with working revenue of $103 million and earlier at present guided for full yr 2025 will increase to each income and working earnings. Altera delivered income of $429 million, up 4% sequentially. Working margin was 21% versus 2% in Q3 on higher gross margins and working leverage. For Q1, we count on Altera income to be down sequentially, lower than total Intel consolidated.

We proceed to make good progress on the stake sale of Altera and see a path for an IPO within the coming years. Now turning to steering. Q1 has traditionally been our seasonally weakest quarter of the yr, down excessive single to low double digits proportion sequentially on common. As well as, we see added strain coming from macro uncertainty, particularly round tariffs, balancing of PC stock and rising competitors.

These mitigating components assist a extra tempered income outlook as we come into the brand new yr. In consequence, we’re forecasting a income vary of $11.7 billion to $12.7 billion within the first quarter of 2025, down between 11% to 18% sequentially. Inside Intel merchandise, we count on income to say no throughout all three of our segments at roughly related charges. We count on Intel foundry income roughly flat to down modestly quarter over quarter, helped by continued combine shift to EUV wafers, Intel 18A samples and superior packaging.

On the midpoint of $12.2 billion, we count on gross margin of roughly 36%, with a tax fee of 12% and breakeven EPS, all on a non-GAAP foundation. Let me take a number of moments to supply some commentary which may be useful on your full yr 2025 modeling. On the consolidated stage, we count on gross margin to enhance from Q1. Intel merchandise gross margin was 51% in 2024 and is predicted to say no this yr as a consequence of product combine in each CCG and DCAI.

Intel foundry gross margin will enhance on EUV combine shift and progress in superior packaging regardless of anticipated depreciation progress in 2025 of roughly 10%. We proceed to focus on 2025 opex of $17.5 billion with additional reductions in 2026. We count on noncontrolled earnings or NCI to web to roughly zero in Q1 and be within the vary of $500 million to $700 million influence this yr on a GAAP foundation. NCI is predicted to develop in fiscal yr 2026 to a variety of $1.2 billion to $1.4 billion on a GAAP foundation and improve additional in future years as we improve wafer outs at our fabs the place we now have agreements with SCIP companions.

We anticipate that our 2025 gross capital investments will likely be roughly $20 billion on the low finish of our earlier information of $20 billion to $23 billion reflecting additional capability changes to Ohio and Eire, in addition to higher utilization of what we name our building in progress. Particularly, we invested forward of demand over the previous few years, and these capital investments will allow us to fulfill anticipated demand at a decrease stage of spending as we drive to extra effectively deploy our capital. We count on 2025 web capex of $8 billion to $11 billion, with roughly half of the offsets anticipated to come back from authorities incentives and tax credit and half from accomplice contributions. Delivering in 2025 stays a high precedence for us on decrease capex, elevated money from operations, and worth unlocked throughout our noncore property.

Lastly, I’ll remind you that we are going to present new phase reporting along with our Q1 earnings. We count on to make additional adjustments to our segments, together with transferring the sting portion of NEX into CCG and our auto enterprise from All Different into CCG. As well as, we count on to maneuver the networking portion of NEX, which incorporates Xeon gross sales into DCAI and the IMS tools enterprise out of Intel foundry into All Different. I am going to wrap up by saying that This autumn was a stable quarter to shut out a difficult yr.

With that mentioned, our profitability is under the place it must be, and we should improve our aggressive place available in the market. Michelle and I’ll proceed taking actions to enhance the operational and monetary trajectory of the enterprise. We’ll stay centered on constructing a stronger Intel merchandise enterprise and changing into a extra environment friendly Intel foundry. And by driving continued progress in these areas, we’re assured in our means to unlock worth for our stakeholders.

Earlier than we open the road to questions, it is price mentioning that the board stays intensely centered on the seek for a everlasting CEO. The search is progressing, however we now have nothing new to report and will not be capable to add further info on this subject at present. With that, I am going to flip it over to John to start out the Q&A.

John Pitzer — Company Vice President, Investor Relations

Thanks, Dave. We’ll now transition to the Q&A portion of our name. As a reminder, we might ask every of you to ask one query and a short follow-up query the place relevant. With that, Jonathan, can we take the primary query, please?

Questions & Solutions:

Operator

Actually, and our first query for at present comes from the road of Ross Seymore from Deutsche Financial institution. Your query, please.

Ross Seymore — Analyst

Hello, guys. Thanks for letting me ask a query. I suppose the primary one could be for MJ. You talked about no fast fixes, however quite a lot of issues to enhance the street map.

Particularly, on the DCAI aspect of issues. Are you able to speak about how a lot you suppose Granite is closing the hole? It seems like Clearwater Forest just isn’t talked about practically as a lot so far as a 2025 occasion neither from a launch or from a income perspective. So, if there’s any updates on that? After which simply total, what it is going to take? And when do you suppose we will externally see that hole shut versus rivals?

Michelle Holthaus — Interim Co-Chief Government Officer

Certain. Thanks for the query, Ross. I have a look at it this fashion. So, once I speak about no fast fixes, I believe it is going to be one to 2 years of constant execution and persevering with to see higher merchandise every year, actually to convey our clients again to the desk and be enthusiastic about Intel’s street map.

Granite Rapids is an effective first step in doing that. It does shut the hole. Our clients are enthusiastic about it, and we’re beginning to see the competitiveness of that product materialize in quantity. However I am additionally very clear about the place we stand.

And so, we have simply bought to see that continued all through ’26 after we get to Diamond Rapids, and so on. So, you additionally requested me about Clearwater Forest. So, I actually have a look at the information middle market in type of two buckets. We now have our P-core merchandise, which is Granite Rapids after which we now have our E-core merchandise, which equates to Clearwater Forest.

And what we have seen is that is extra of a distinct segment market, and we have not seen quantity materialize there as quick as we anticipated. However as we have a look at Clearwater Forest, we count on that to come back to market within the first half of 2026. And 18A is doing simply high quality on a efficiency and yield for Granite Rapids, however it does have some sophisticated packaging expectations that transfer it to 2026. However we count on that to be a great product and proceed to shut the hole as properly.

However that is going to be a journey. It is not a vacation spot.

John Pitzer — Company Vice President, Investor Relations

Ross, do you’ve a follow-up query?

Ross Seymore — Analyst

Yeah, switching over to Dave on the profitability aspect. Are you able to simply stroll us by way of a few of the places and takes on the gross margin sequentially within the first quarter? Clearly, revenues are down, however anything? And then you definitely talked about that it could be the low level of the yr gross margin within the first quarter. However what could be the headwinds and tailwinds as you suppose by way of 2025 as an entire on that metric? Thanks.

David A. Zinsner — Government Vice President, Chief Monetary Officer

Yeah. Thanks, Ross. OK. So, for the primary quarter, the most important apparent contributor to gross margins sequentially is the income decline.

On the midpoint, we’re declining just a little over $2 billion. And in order that clearly on a principally fastened price enterprise, that does have an effect on it. We additionally did have a few bluebirds in This autumn. One was the income beat, and so that really elevated the income a bit.

However the different was after we signed the CHIPS settlement, we have been capable of take a few of the grant and accrue it as type of a profit to price of gross sales as a result of it offset interval bills we had spent earlier than. So, we weren’t positive we have been going to signal it within the fourth quarter, which is why I did not information that within the steering from final quarter, however clearly, materializing that pushed the gross margins up for the fourth quarter. Within the first quarter, I believe what and we have type of telegraphed this now for a number of quarters. Intel merchandise gross margins are going to be underneath strain this yr.

A number of the elements have the next price, specifically, Lunar Lake has the next price, as , as a result of it is bought the reminiscence and package deal. And so, we’re mainly shopping for that reminiscence and turning round and promoting it on the identical value. In order that’s actually weighing the margins down on Lunar Lake. So, margins for merchandise are going to be underneath strain just about all through this yr.

Then as Panther Lake is available in quantity subsequent yr. extra materially and as well as, the merchandise past that, we’ll begin to see some enchancment in margins on Intel merchandise. Now that was at all times to be offset in quite a lot of methods by the margins of Intel foundry. We see extra of a mixture of EUV wafers.

They’ve higher pricing with a greater price. And so, we’ll see a combined enchancment all year long. We’re additionally decreasing our spending there in interval bills as a part of our type of total $10 billion-plus price spending discount. But it surely would not actually present up within the first quarter.

It is not till we get into the second and third quarter that we begin to see that enchancment present up. So these are actually the larger drivers of margins within the first quarter. It’s a low level, as we talked about. The advantages are going to be actually round margins bettering on Intel foundry.

As the combination of EU wafers will increase all year long, specifically, as we get Panther Lake in there within the again half of the yr, and we’re promoting 18A wafers at the next margin. After which subsequent yr, we now have Panther Lake with extra quantity and all these wafers begin to come again, and that turns into a very large profit to Intel total.

John Pitzer — Company Vice President, Investor Relations

Thanks, Ross. Jonathan, can we now have the following query, please?

Operator

Actually. And our subsequent query comes from the road of Stacy Rasgon from Bernstein Analysis. Your query, please.

Stacy Rasgon — Analyst

Hello, guys. Thanks for taking my query First query simply on the phase information for subsequent quarter. Why are all three product segments down equally when it sounds such as you’ve gotten extra headwinds simply on the floor of PC’s stock digestion and possibly the roll-off of a few of that tariff pull ahead? What is going on on within the information middle and the NEX companies that makes them as unhealthy as a shopper into Q1?

David A. Zinsner — Government Vice President, Chief Monetary Officer

Nicely, broadly throughout all markets, and we did not essentially telegraph each market when it comes to the place we predict. However I might say broadly, we’re just a little bit cautious on the macro and that impacts all markets. As well as, seasonality does play in many of the markets, and that does influence the primary quarter as properly. So, I’d say a mix of simply macro uncertainty mixed with type of typical seasonality throughout all the companies.

John Pitzer — Company Vice President, Investor Relations

Stacy, do you’ve a follow-up query?

Stacy Rasgon — Analyst

Yeah, I do. Thanks. So, you additionally talked about elevated competitiveness weighing on margins not less than into Q1. So once more, I presume that is a query on pricing.

I suppose, is that proper? Do you count on that to persist by way of the yr? And the way do you consider that competitiveness, probably weighing on pricing throughout shopper and particularly within the information middle?

John Pitzer — Company Vice President, Investor Relations

Sure, OK. So, the co-CEOs are attempting to determine who ought to reply OK, go forward, Michelle.

Stacy Rasgon — Analyst

I believe whoever desires to take it.

John Pitzer — Company Vice President, Investor Relations

Yeah.

Michelle Holthaus — Interim Co-Chief Government Officer

The way in which I have a look at that’s we do have elevated competitors as we see new market entrants significantly come into CCG. We have got an excellent product in Lunar Lake there, however as Dave talked about, the margins on that product are extra pressured primarily based on the price of the product. However we’re going to stem the market phase share decline in shopper, and we will go after successful each socket. That mirrors itself when you consider the information middle market as properly.

As I mentioned, Granite Rapids is a really optimistic step in a aggressive path, however we now have to stem the tide of share loss in information middle. And so, we will likely be preventing for each socket in that enterprise. And the best way I have a look at it’s we should be aggressive. We have to win share, and we have to present our clients that they will win with us.

John Pitzer — Company Vice President, Investor Relations

Thanks, Stacy. Jonathan, can we now have the following query, please?

Operator

Actually, and our subsequent query comes from the road of C.J. Muse from Cantor Fitzgerald. Your query, please.

C.J. Muse — Analyst

Sure, good afternoon. Thanks for taking the query. I suppose first query underneath your new co-leadership. I’d be curious to listen to how your technique has probably advanced particularly for IFS.

David A. Zinsner — Government Vice President, Chief Monetary Officer

I imply I believe, and we have talked about this over the past couple of quarters. For one, we aren’t trying to spend forward of success. And so, you noticed our capex information come down from the 20 to 23 vary down to twenty, that is in assist of that technique. We need to completely wow the shoppers.

However to try this, we have got to be very cautious round what we’re promising them as properly. So, I believe what you will see quite a lot of is just a little bit extra conservatism round how we deploy capital, how we have interaction with clients. We need to be doing greater than what we promised to each flip, to each stakeholder, together with buyers, together with clients, together with suppliers, so what have you ever? That is just about the technique. The primary aim of constructing a world-class foundry, that is nonetheless in place.

We really feel that there completely is a necessity for one more participant within the modern semiconductor manufacturing area. Particularly, within the U.S., it aligns with the federal government the U.S. authorities’s curiosity as properly. So, we’re completely dedicated to that.

It is now about being very cautious and cautious round producing the most effective ROIC for the shareholders.

John Pitzer — Company Vice President, Investor Relations

C.J., do you’ve a follow-up query?

C.J. Muse — Analyst

I do, thanks. I suppose, Dave, one other query for you. I imagine that three months in the past, the said aim for 2025 was to be free money circulation optimistic, I suppose, given type of the weak spot we’re seeing in Q1 and uncertainty, are you able to type of stroll by way of the way you’re fascinated with the trail to turning free money circulation optimistic?

David A. Zinsner — Government Vice President, Chief Monetary Officer

Yeah. So, we’re not clearly guiding past the primary quarter. However I’d simply say, we did an excellent job in a difficult state of affairs in ’24 round money circulation from operations by driving robust working capital enhancements, and we adjusted capex accordingly, and that helped stem the tide. So, whereas we have been adverse in ’24, we have been nearer to zero than we must always have been primarily based on the highest line outcomes.

I might say it is extra about the identical in ’25. We’ll be acutely centered on money circulation from operations, actually managing working capital successfully. We adjusted the capex down, as I talked about in relationship to a distinct outlook. We do count on some fairly important offsets as properly greater than $10 billion of offsets, which will even assist.

I will not throw out a quantity but for adjusted free money circulation for the yr, however I’d simply say that it is a focus that the place we need to enhance. I’d say along with that, we now have these noncore companies, and we see alternative to monetize there. That can assist us ship as a result of that is a spotlight of us, the main focus of ours in 2025. We’re far alongside on the method of Altera.

I believe that by the point we get to earnings subsequent quarter, we’ll have one thing to say there that can assist generate some money that we are able to use to ship.

John Pitzer — Company Vice President, Investor Relations

Thanks, Jonathan. Can we now have the following query, please?

Operator

Actually. And our subsequent query comes from the road of Joe Moore from Morgan Stanley. Your query, please.

Joe Moore — Analyst

Nice, thanks. Within the ready remarks, you made reference to the kind of tempering of expectations of Falcon Shores. Are you able to speak about what was behind that? And type of what does it take so that you can get aggressive in that area?

Michelle Holthaus — Interim Co-Chief Government Officer

Yeah, in fact, I can, Joe. I believe it actually comes all the way down to taking the time over the past six weeks to actively have interaction with the groups, have a look at our street maps, have a look at the place we’re from a aggressive perspective and from an execution perspective, and that actually resulted in that call. A variety of conversations with my clients as properly with reference to what they see is required to be aggressive and to ship the proper product. And so, once I checked out that, clearly, we now have our Gaudi product, we’re studying lots from that.

However one of many issues that we have discovered from Gaudi is it isn’t sufficient to simply ship the silicon. We want to have the ability to ship a whole rack scale answer, and that is what we’re going to have the ability to do with falcon excuse me, with Jaguar Shores. Falcon Shores will assist us in that means of engaged on the system, networking reminiscence, all of the part capabilities of that, however what clients actually need is that full-scale rack answer. And so, we’re capable of get to that with Jaguar Shores.

I believe we have additionally seen lots this week with DeepSeek and quite a lot of the joy round not one dimension matches all. And so, I am additionally making an attempt to have a look at the street map to say there’s quite a lot of IP and property that we now have at Intel Product co that we are able to leverage to handle this market. We have got nice CPUs, GPUs, ASICs, FPGAs, and we have to work out how we harness these as a result of if we have seen something this week, when there are constraints placed on clients, they work out alternative ways to deploy know-how. And in order that’s additionally an excellent alternative and one thing that I am taking a look at and taking a look at if there’s ways in which we could be disruptive there.

John Pitzer — Company Vice President, Investor Relations

Joe, do you’ve a follow-up query?

Joe Moore — Analyst

I do. And thanks on your candor about all of that. I believe individually, you talked about in his ready remarks about probably seeing tariffs driving some pull ahead. Are you able to simply speak about how pervasive that is likely to be? Is that conservatism that, that is likely to be occurring? You are seeing proof that is occurring? Just a few colour on the place that is coming from.

David A. Zinsner — Government Vice President, Chief Monetary Officer

Sure. I imply, we clearly have a reasonably good sense of what clients want from quarter to quarter. And in a few cases, clients ordered greater than we predict they have been digesting. And so, it was actually simply the analytics that gave us perception into, they’re doing that for a purpose, and we all know tariffs are large topic of quite a lot of our clients.

It was within the area you may count on within the Asian area that we noticed this. It is laborious for me to extrapolate this past this quarter. Rather a lot not identified but round what is likely to be the plans on tariffs. I simply thought it was just a little little bit of hedging happening by clients that pulled income into the fourth quarter and away from the primary quarter.

John Pitzer — Company Vice President, Investor Relations

Thanks, Joe. Jonathan, can we now have the following query, please?

Operator

Actually. And our subsequent query comes from the road of Timothy Arcuri from UBS. Your query, please.

Timothy Arcuri — Analyst

Thanks lots. Dave, I additionally needed to ask about gross margin. I believe the message you have been saying is that it is type of 60% incremental, and that was type of off of the 39.5 that you simply guided for This autumn, however clearly, you got here in, you had these one-timers and now we’re all the way down to March. So, are you able to simply kind of stage set us for type of how to consider the incrementals from right here?

David A. Zinsner — Government Vice President, Chief Monetary Officer

Incrementals from Q1 in different phrases, into Q2, 3, and 4. Is that what you are saying?

Timothy Arcuri — Analyst

Sure. Sure. Simply type of like, is it off of three.95%? Is it off of three.65%.

David A. Zinsner — Government Vice President, Chief Monetary Officer

Yeagh. The rule of thumb has typically been 60% on this interval of what I name catch-up. Clearly, we predict we are able to do higher fall-through as we get extra stabilized. The one dynamic in ’25 is this sort of margin strain round product like Lunar Lake.

That most likely pulls the vary all the way down to most likely one thing extra like within the 40% to 60% fall-through might be the proper method to consider it only for that dynamic. Now we get into ’26 and also you begin to see much more 18A quantity by way of Panther Lake, I believe we’re within the 60%-plus vary at that stage.

John Pitzer — Company Vice President, Investor Relations

Tim, do you’ve a follow-up query?

Timothy Arcuri — Analyst

I do. Yeah, Dave, additionally, so that you took the capex to the low finish, however there’s $1.2 billion outflow that is within the financing part of the money circulation assertion. What’s that? I suppose I am making an attempt to determine simply on an apples-to-apples foundation, is like capex actually coming down this yr? And is {that a} line merchandise within the financing part, is that going to maintain getting greater this yr? Thanks.

David A. Zinsner — Government Vice President, Chief Monetary Officer

Yeah. No let’s have a look at, let me return on the capex. When you have a look at capex for ’25, the $20 billion forecast, what’s driving that decrease is mostly a perform of higher using property underneath building. So, our philosophy has been to take a position type of forward of what was required, and we constructed up a fairly important stability in property underneath building, I imply, to the tune of better than $50 billion.

So, we even have quite a lot of capital on the stability sheet that actually hasn’t been deployed. And so, what we pushed the groups to do in an effort to drive higher ROA and return on invested capital is to have them digest as a lot as that as attainable and restrict the quantity of purchases that we make externally. And that is going to permit us to get all the way down to the $20 billion vary. I’d be, we’re not doing any funky financing round this, however I’d be within the spirit of transparency, say that capex is 2 issues, proper? It is what you place when it comes to orders on tools, and it is once you give them the money.

And so, for positive, we’re working the cost phrases of suppliers to enhance our — to enhance our capex, decrease our capex, that’s pushing spend out at the same time as we’re getting the property in. However fairly truthfully, by the point we have really deployed it and it is depreciating, we have really, in all circumstances, I believe, spent the cash as a result of it goes on to property underneath building and possibly hangs in there for like 9 months earlier than it is ever deployed.

John Pitzer — Company Vice President, Investor Relations

Thanks, Tim. Jonathan, can we now have the following query?

Operator

Actually. Our subsequent query comes from the road of Vivek Arya from Financial institution of America Securities. Your query, please.

Vivek Arya — Analyst

Thanks for taking my query. First type of associated questions are on the information middle server CPU market. MJ, I am curious, once you have a look at Intel versus your x86 competitor, do you suppose these share positive factors are due to higher design or entry to higher manufacturing? And so, what could be fastened and what is going to take time to repair or should you have been to outsource extra, proper, to exterior foundry does that enable you regain share, and I think about that applies extra to cloud. After which on the enterprise aspect, have you ever seen any share shifts at all around the previous few years?

Michelle Holthaus — Interim Co-Chief Government Officer

Thanks, Vivek. Nicely, as you have a look at information middle and the competitiveness, as I mentioned and said earlier, Granite Rapids did a great job of creating a great first step in closing the hole versus competitors, however we nonetheless have a niche. And so, we have got to be laser-focused subsequent on delivering diamond rapids. And the suggestions for each of these merchandise early may be very optimistic.

With regards to exterior manufacturing, I have been fairly clear about this in the best way I give it some thought in my philosophy. The way in which I have a look at it’s you must have the proper product on the proper course of and you must ship that inside the proper market window. When you have a look at Intel’s total at present, we do about 30% of our manufacturing externally throughout quite a lot of companions. That is most likely the excessive for the place we’re at present, however it’s going to by no means be zero.

What I can inform you is 18A goes properly. They earn my enterprise, clearly, each for Panther Lake and for Clearwater Forest. However as I take into consideration being extra aggressive in information middle transferring ahead and I have a look at future designs, I’ll ask myself that query each time as we have a look at the street map. So, I believe it could not be unfathomable that I’d put a knowledge middle product exterior.

If that meant that I hit the proper product, the proper market window, in addition to the proper efficiency for my clients.

John Pitzer — Company Vice President, Investor Relations

Vivek, do you’ve a follow-up query?

Vivek Arya — Analyst

Sure. Thanks, John. So possibly one for Dave on this noncontrolling curiosity. I believe David mentioned $500 million to $700 million for this yr, so just a little bit decrease than I believe the $700 million you had earlier than.

However then it begins to develop to $1.2 billion or $1.4 billion. Is that this at all times going to maintain on rising, proper? Like what’s the proper method for us to mannequin it as a result of the much less you outsource. I suppose the extra you insource, the extra you give to a foundry, the extra reversals, proper, you must do on this NCI half, I’d think about. So, is it an affordable approach to mannequin how a lot of a headwind that is to your reported EPS?

David A. Zinsner — Government Vice President, Chief Monetary Officer

Sure, it is a good query. I imply, simply to interrupt all of it out, it is extra than simply the SCIPs. SCIP 1 and a couple of are clearly in there, but in addition Mobileye exhibits up in noncontrolling curiosity. And as we promote down stakes in firms like Mobileye and Altera, it really exacerbates that NCI.

So, Altera would not have any NCI, however as quickly as we promote a stake, it will have NCI. So, there are a selection of issues that go into it, which makes it just a little bit troublesome to forecast as a result of you must type of know, you must know two issues with certainty, one, precisely what share of each asset you’ve? And two, what your manufacturing goes to appear like within the fabs that you’ve these skips. So, what we felt comfy was, was guiding guiding ’25 and providing you with a sign for ’26, it is prone to go up in ’27. However I believe it is most likely too quickly to really establish what the precise quantity will appear like.

John Pitzer — Company Vice President, Investor Relations

Thanks, Vivek. Jonathan, can we now have the following query, please?

Operator

Actually. Our subsequent query comes from the road of Ben Reitzes from Melius. Your query, please.

Ben Reitzes — Analyst

Dave and MJ, I needed to, I do know in your ready remarks, you mentioned you sit up for working with the Trump administration. I used to be questioning should you may simply give just a little extra element about your preliminary talks with them. Have they reached out? And who’s like main the discussions out of your aspect? And any colour on what you are precisely speaking about and what they’re significantly thinking about? I imply Howard Lutnick, clearly, it seems like that is very close to and pricey to him throughout his affirmation hearings and would love to simply type of get just a little bit extra colour on the place you, what you’ve finished to this point and the place you suppose it is going? After which I am going to have a follow-up.

David A. Zinsner — Government Vice President, Chief Monetary Officer

Sure. OK. Thanks, Ben. Perhaps I am going to take that because the co-CEO.

sure, we now have good engagement with them. We have actually been engaged because the election, with the group at varied ranges, clearly, on the CEO stage, but in addition, we now have a powerful authorities affairs group that engages with them day-after-day. I really feel actually good about their outlook on bringing semiconductor manufacturing again to the U.S. I believe this can be a very optimistic signal, clearly, for us.

Fairly truthfully, we by no means left the U.S. So, we’re in a type of the pull place in that regard. And I believe they perceive the worth of doing R&D within the U.S. for superior semiconductor manufacturing, which is also optimistic.

They need to see extra jobs coming again to the U.S. We pay excessive wage, high-tech jobs. In order that’s clearly optimistic for them. However extra importantly, that is about safety, each when it comes to simply the provision chain but in addition in type of safe manufacturing for the Division of Protection, which we’re clearly ready to do for them.

I think about that as we progress, we’ll be extra engaged with them to make this a actuality. And each Michelle and I will likely be assembly pretty commonly with the Trump administration officers to go make their objectives or actuality for the U.S.

John Pitzer — Company Vice President, Investor Relations

Ben, you mentioned you had a follow-up?

Ben Reitzes — Analyst

I needed to double-click on a previous query on gross margins and ask it just a little bit extra in caveman phrases fairly than incremental. You talked about being the underside. I am making an attempt to determine how excessive it goes sequentially as we go all year long, given it seems like you are going to be much more value aggressive in server CPUs and shopper CPUs from what I heard. So, along with, I am making an attempt to stability that with the considered outsourcing extra to TSMC for the yr, and so on.

So, if that is the low level. I suppose what I am making an attempt to say, are you able to be extra prescriptive in gentle of that pricing remark I made and if it is proper, then simply give us just a little extra colour on the place we go from the 1Q, that may be nice.

David A. Zinsner — Government Vice President, Chief Monetary Officer

Sure, I imply, we are typically aggressive within the product area. And in addition, as I discussed, the fee construction is underneath some strain, specifically due to Lunar Lake. In order that completely will influence the gross margins on merchandise. There will not be quite a lot of elevate in that enterprise unit by way of the yr.

And it is actually not till Panther Lake comes that they, I believe, begin to see some higher price construction and have a component that is very aggressive that I believe permits us to maybe even calm down a few of that strain in a aggressive market. That mentioned, the foundry enterprise will see enhancements. Over the course of the yr, extra wafers will likely be coming again. With Panther Lake, it turns into even higher within the following yr.

We’re bettering the fee construction of the foundry enterprise as a part of our total spending discount plan. So, that will even assist. After which simply consider, these wafers that we’re producing at Intel and 18A have a lot better price construction and margin construction relative, I ought to say, relative to the value construction than their predecessors and that will likely be helpful on the foundry aspect. So, within the caveman macro sense, I believe the most effective factor to do might be take this like someplace within the 40% to 60% fall-through and that is most likely the proper rough-order math to get you to the place the margins will go in any quarter primarily based on what you are projecting the income to be in that quarter.

John Pitzer — Company Vice President, Investor Relations

Thanks, Ben. Jonathan, can we now have the following query, please?

Operator

Actually. Our subsequent query comes from the road of Aaron Rakers from Wells Fargo. Your query, please.

Aaron Rakers — Analyst

Yeah, thanks for taking the query. I need to construct off of that final query just a little bit. In the course of the ready remarks, you had talked about 1% in 2023 with EUV wafer combine and that progressed to north of 5% this yr. Are you able to give us a framework of how you’ll outline success wanting by way of 2025, possibly exiting the yr so far as EUV wafer combine? And remind us once more what the delta is when it comes to price construction, the margin dynamics of an EUV wafer.

David A. Zinsner — Government Vice President, Chief Monetary Officer

Sure. Nicely, I am going to say on the second half, possibly I am going to reply that one first. I’d say the value on these wafers goes up at 3x the price of these — sorry, possibly mentioned, the blended ASP and value goes up 3x as you go to 18A versus the fee. So, it is a fairly dramatic enchancment in gross margins as you progress into 18A versus pre-EUV wafers.

In all probability, it might be powerful for me to hazard a guess on precisely how we’ll exit the yr when it comes to our proportion of EUV. It is positively going to go up. You understand branded is on Intel 3, Panther Lake is on Meteor Lake is on Intel 3 or 4, 4 and three node. Panther Lake is on 18A this yr.

So, we’ll see a fairly significant soar within the proportion of wafers that will likely be EUV as we exit ’25.

Ross Seymore — Analyst

Aaron, do we now have a follow-up query?

Aaron Rakers — Analyst

I do, and it is most likely a dumb query, however I am simply going to ask it as a result of I am just a bit confused that the SCIP influence, this $500 million to $700 million going to $1.2 billion. Simply remind us once more, so we’re all clear that once you report EPS on a non-GAAP foundation, that is in that EPS quantity, simply so we — I am modeling it appropriately. I am positive my friends are already, however I need to be certain that I’ve bought that each one clear in my head.

David A. Zinsner — Government Vice President, Chief Monetary Officer

I simply need to be clear. It is not simply SCIP. I imply that features the Mobileye earnings and can embody the Altera earnings to some extent. However sure, all of that within the NCI, we do take it in opposition to our non-GAAP quantity to get our absolutely diluted non-GAAP EPS quantity.

John Pitzer — Company Vice President, Investor Relations

Aaron, thanks. Jonathan, we now have time for yet another query.

Operator

Actually. And our ultimate query for at present comes from the road of Srini Pajjuri from Raymond James. Your query, please.

Srini Pajjuri — Analyst

Thanks. Thanks for squeezing me in. Dave, on the foundry breakeven, I suppose, goal for 2027. Perhaps are you able to speak about what are the assumptions behind that? I imply do you suppose you may get there with principally inside wafers? Or do you want exterior clients as properly? In that case, what kind of income do we’d like from exterior clients to, I suppose, obtain that breakeven?

David A. Zinsner — Government Vice President, Chief Monetary Officer

Sure. So, we’re nonetheless aiming to get to breakeven in 2017, as you identified. It is actually on the again of inside wafers or wafers from Intel merchandise, I ought to say. And it is clearly, lots primarily based on EUV wafers, which carry a greater margin.

And as that blend improves, that considerably improves the margins. However extra importantly, I believe the unique premise by creating this totally different P&L construction was to drive the foundry enterprise actually at that time was only a perform of producing to be extra centered on effectivity, to squeeze out extra from the prevailing footprint, to be extra delicate to capital and finally, simply take into consideration ROIC in every part they do, and I believe that has labored really. I imply I hear it on a regular basis. It is wonderful the transformation we have seen in employees conferences, and Michelle and I attended that, they’re utterly pivoted to find out how to make cash in that enterprise.

And so, I believe it is working. I believe we’ll see considerably extra effectivity as we go into work by way of ’25 and into ’26. So, I be ok with our means to get to breakeven. Clearly, we need to have exterior clients.

And so, we now have some very small quantity that we have assumed for ’27. But when 18A appears prefer it’s one thing that hunts primarily based on suggestions from clients. And I really feel like we’ll most likely outperform in that regard when it comes to the combination of exterior clients versus inside clients. So these are all of the components that I believe will drive ’27 to profitability.

And finally, clearly, we need to get to push to breakeven and finally, we need to get the enterprise to a worthwhile stage that is in line with what the foundry trade will get.

John Pitzer — Company Vice President, Investor Relations

Srini, do you’ve a fast follow-on?

Srini Pajjuri — Analyst

Sure. A fast one. So, on the 18A Panther Lake, I believe previously, I believe, Dave, the remark was that you simply count on to convey roughly 70% of the die in-house. Is that also the plan? After which is it fairly set in stone that you simply’re bringing it again for positive? Or do you’ve any flexibility whether or not to convey again extra of the die or much less of the die if it’s worthwhile to.

So simply making an attempt to grasp.

David A. Zinsner — Government Vice President, Chief Monetary Officer

I will let Michelle reply that as a result of it truly is her choice on how she builds her merchandise.

Michelle Holthaus — Interim Co-Chief Government Officer

Sure. So, we did transfer Panther Lake inside 18A design win. However as I said earlier than, we have a look at every technology of merchandise primarily based on what’s the proper product, what’s the proper course of, what’s the proper market window and what permits our clients to win. So, for Panther Lake, that was 18A.

And as I mentioned, we’re very proud of the place we’re from a efficiency and yield perspective at this level within the course of. So, that can keep on 18A. Then as you look ahead, to our next-generation product for shopper after that, Nova Lake will even have die each inside and out of doors for that course of. So, you will really see compute tiles inside and out of doors.

Once more, it is about optimizing to what permits us to win available in the market, what permits us to win with our clients and optimizing the general product portfolio as a result of on the finish of the day, if our clients are profitable, we win, that drives extra wafers and Intel foundry and that enables us to win, however I am going to proceed to have a stability. And as I mentioned, we’ll be doing the identical look throughout our information middle portfolio as properly.

David A. Zinsner — Government Vice President, Chief Monetary Officer

Nice. Thanks, Michelle. So, with that, let me wrap up by saying thanks, as at all times, for becoming a member of the decision. MJ and I admire the chance to debate our progress and the actions we have taken.

This autumn was a great step ahead, clearly, however we now have quite a lot of laborious work forward of us, and we’re wanting ahead to updating you as we go alongside. We hope to see lots of you in particular person on the buyers conferences we’ll be attending in Q1. And I might additionally like to focus on that the Intel foundry group will likely be internet hosting their second annual Direct Join Consumer occasion on April twenty ninth in San Jose, and we hope lots of you’ll be a part of that in particular person. So, thanks, and good evening.

Michelle Holthaus — Interim Co-Chief Government Officer

Thanks.

Operator

[Operator signoff]

Length: 0 minutes

Name individuals:

John Pitzer — Company Vice President, Investor Relations

Michelle Holthaus — Interim Co-Chief Government Officer

David A. Zinsner — Government Vice President, Chief Monetary Officer

Ross Seymore — Analyst

Dave Zinsner — Government Vice President, Chief Monetary Officer

Stacy Rasgon — Analyst

C.J. Muse — Analyst

Joe Moore — Analyst

Timothy Arcuri — Analyst

Vivek Arya — Analyst

Ben Reitzes — Analyst

Aaron Rakers — Analyst

Srini Pajjuri — Analyst

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