Intel Corp.

Q2 performance beat + strong AI-led demand (good; surprising strength vs guide) - Revenue: $16.1B, about $1.8B above the midpoint of guidance. - Non-GAAP gross margin: 41.8%, about +280 bps vs guidance (driven by higher revenue, better yields, and better ASPs from mix/pricing). - Non-GAAP EPS: $0.42 vs $0.20 guidance. - AI-driven businesses: grew >70% YoY, contributing ~70% of revenue. - Cash/financial health: Operating cash flow $7B; exited quarter with about $30B cash & short-term investments. - Surprising “top-line” read-through: Lip-Bu said this is the strongest revenue growth in >15 years, attributed to demand outpacing supply.

Supply constrained but improving execution; capacity skew is late-quarter/into Q4 (key outlook; both good and constrained) - Management reiterated industry-wide wafer/memory/substrate supply constraints will persist. - Intel expects supply growth is non-linear, more skewed to the end of Q3 and into Q4, especially for servers. - Q3 guidance: revenue $15.8B–$16.8B (mid $16.3B), gross margin 42%, EPS $0.38 (non-GAAP). - Q4 timing implication (not a formal guide, but discussed): if supply improves toward late Q3/Q4, revenue should benefit in Q4, but Intel expects it will still be behind demand.

Client Computing (PC/edge) strong quarter on mix/ASP; near-term softness expected (mixed; downside risk) - CCPG revenue: $8.9B, +15% sequential, above expectations. - Drivers: ASP/mix (including for pricing actions and mix shift to higher-end products); AI PC revenue +26% sequential, now ~2/3 of client revenue mix. - Edge deployments: ~10% of CCPG revenue. - Negative/offset: CCPG operating profit down ~$173M QoQ due to inventory charges (stranded inventory from match-set issues) as Intel optimized factory output. - What to expect next: Stacy asked if margins would fall—Intel guided flat gross margin QoQ in Q3 and expects client revenues to be flattish, with market softer due to memory dynamics and constrained PC environment.