Intel Corporation

Fastest sequential data center growth this decade. Revenue would have been meaningfully higher with more supply. Custom ASIC business grew 50% in 2025 and reached $1 billion annualized run rate in Q4. Hyperscalers willing to commit long-term supply agreements.

Exited 2025 with $37.4 billion cash and short-term investments. NVIDIA $5 billion investment closed in Q4. Repaid $3.7 billion of debt in 2025. Plan to retire all $2.5 billion of maturities in 2026. Second half adjusted free cash flow of $3.1 billion.

14A development on track with simplified process flow. PDK 0.5 released to customers who are beginning test chip designs. Firm supplier decisions expected second half 2026 through first half 2027. Risk production targeted late 2027 with volume production in 2028, matching leading foundry timeline.

Q1 2026 gross margin guided to 34.5%, down sequentially on lower revenue, increased 18A volumes and product mix. 18A yields improving at 7-8% per month but not yet at industry-leading standard. Management targeting 40% as near-term gross margin goal before setting higher target.