Intel

systems Chipzilla changes PC biz name to reflect belief edge and robots could be as valuable one day Intel CEO Lip-Bu Tan has acknowledged that the semiconductor giant must catch up to rivals AMD and Arm, and said it now assumes edge AI and robotics will be a business as big as PCs. 1 billion revenue – a 25 percent year-on-year increase. “Q2 was another quarter of solid execution,” the CEO said. “Revenue, gross margin, and earnings per share were above our guidance. 2 billion). Tan remained optimistic about Intel’s prospects, thanks to the AI boom spurring demand for many of its products, and its foundry service.

” That may be the case, but Intel’s hyperscale customers have designed their own Arm-powered CPUs and are deploying so many that analyst firm IDC recently found non-x86 servers now account for almost half of all sales . Intel’s great rival, AMD, has grown its market share to a third of the x86 server market . During the earnings call, Morgan Stanley analyst Joe Moore asked Tan how he plans to regain market share. Tan pointed to Intel’s forthcoming Clearwater Forest, Diamond Rapids, and Coral Rapids processors as evidence the company is creating products that can compete with anyone.

“Some areas we are still behind,” he admitted, “but we are catching up very fast and we try to leapfrog some of the CPU architecture, and we are putting major effort into it. ” Tan is also pondering time in terms of how component shortages impact the company’s sales and revenue. “The industry is facing one of the most severe supply constraints in its history, across leading-edge logic silicon wafers, memory, and substrates,” he said. ” He had slightly better news about Intel’s foundry business, which is developing an advanced manufacturing process called 14A that could make Chipzilla a more formidable competitor to TSMC.

“We remain on track for 14A risk production for our internal products in the second half of 2027, and we made the decision in Q2 to fully commit to high volume ramp in 2028,” Tan said. Intel’s current flagship 18A process is also going well. “In our core PC client segment, Intel 18A is now in volume production across multiple commercial and consumer products,” Tan said. “Our factory output continues to increase sequentially every month. ” So important that Intel recently renamed its PC business the “Client Computing and Physical AI Group” (CCPG).

9 billion revenue came from edge products. Overall CCPG revenue rose 13 percent year-over-year, growth that Intel found pleasantly surprising. Zinsner said the PC market is “softer” in part due to “the memory dynamics in the marketplace,” and predicted Q3 performance will fall.