---
title: "Intel (Minutes): Annual capital expenditure reduced from 20 billion to 18 billion"
description: "Intel released its Q1 2025 earnings report (as of March 2025) after the U.S. market close on April 25, 2025, Beijing time, as follows: Below are the Minutes of Intel's Q1 2025 earnings call. For the Q"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/29147681.md"
published_at: "2025-04-25T07:25:25.000Z"
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# Intel (Minutes): Annual capital expenditure reduced from 20 billion to 18 billion

**Intel released its Q1 2025 earnings report (as of March 2025) after the U.S. market close on April 25, 2025, Beijing time:**

**Below are the Minutes of Intel's Q1 2025 earnings call. For a Quick Interpretation of the report, please refer to《**[**Intel: Selling Assets and Layoffs—Can New Leadership Save the Company?**](https://longportapp.cn/zh-CN/topics/29144888)**》**

**I. Key Takeaways from** $Intel(INTC.US) **Earnings Report**

1\. Q1 2025 Financial Performance

1) Revenue: $12.7B, at the high end of guidance, driven by better-than-expected Xeon sales and customer stockpiling ahead of anticipated tariffs.

2) Non-GAAP gross margin: 39.2%, ~3pp above guidance, benefiting from strong Raptor Lake demand and Meteor Lake cost improvements.

3) EPS: $0.13 vs. breakeven guidance, aided by revenue growth, margin expansion, and lower opex.

4) Operating cash flow: $0.8B; capex $6.2B. Adjusted FCF was -$3.7B after offsetting $1.7B.

6) Cash balance: $21B at quarter-end.

7) CHIPS Act grants received: $1.1B.

8) NAND divestiture proceeds: $1.9B post final close of SK Hynix deal.

2\. Segment Performance

**1) Intel Products Group:**

a. Revenue: $11.8B, down 10% QoQ but above expectations.

b. Operating profit: $2.9B (25% margin), down $632M QoQ.

c. CCG revenue: Down 13% QoQ. Below seasonal norms as higher shipments were offset by mix/competitive pressures.

d. DCAI revenue: Down 5% QoQ, with hyperscale AI server demand as a tailwind.

**2) Intel Foundry Services (IFS):**

a. Revenue: $4.7B, up 8% QoQ on Intel 7 pull-ins and advanced packaging.

b. Operating loss: $2.3B, flat QoQ as structural cost improvements were offset by Intel 18A ramp costs.

**3) Other (Mobileye, Altera, IMS):**

a. Revenue: $943M, down 15% QoQ but slightly above guidance.

b. Operating profit: $103M combined.

3\. Q2 2025 Guidance

1) Revenue: $11.2B-$12.4B, down 2%-12% QoQ.

2) Segments: DCAI to decline faster than CCG; foundry revenue to drop QoQ due to Q1 pull-ins, lower wafer/advanced packaging output, and Intel 7 capacity constraints (expected to persist). Other segments flat.

4) Gross margin: ~36.5% at midpoint ($11.8B), pressured by lower revenue, outsourced products, and mix shift to lower-margin client SKUs.

4) Tax rate: 12%.

5) EPS: Non-GAAP breakeven.

4\. Full-Year Outlook

1) Opex: $17B for 2025 ($0.5B below prior), $16B for 2026. (**Flattened leadership structure**—all key product, manufacturing, and G&A functions now report directly to CEO to accelerate decision-making. **Cost cuts continue**.)

2) Total capex: Targeting $18B for 2025 ($2B additional savings identified). (**Optimizing fab utilization** before new spend.)

3) Net capex: $8B-$11B for 2025 (timing uncertainty on CHIPS Act funding).

4) NCI: ~$500M (GAAP) for 2025.

5) 2026 NCI: $1.3B-$1.5B, growing significantly thereafter.

6) Intel 18A on track for Panther Lake production in late 2025, more SKUs in 1H26.

7) PC TAM: Windows 10 EOL, AI PC adoption, and aging pandemic devices support 3%-5% growth.

**II. Earnings Call Details**

**2.1 Executive Highlights**

1\. Strategy & Operations

1) Leadership: New CEO focused on turnaround. Q1 beat seen as step forward.

2) Culture: Streamlining orgs, empowering teams for faster decisions.

3) Structure: Flattened hierarchy; 4-day office weeks start Q3 2025.

4) Priorities: AI-era products, foundry trust-building, balance sheet strength via cost discipline and asset monetization (e.g., Altera 51% stake sale to Silver Lake for $4.4B net cash, expected 2H25 close).

5) Roadmap: Adjusting products for AI workloads while ensuring execution.

6) Foundry: Emphasizing PDK reliability and customer adaptability.

2\. Financial Strategy

1) Macro: Trade/inflation risks but underlying demand intact.

2) Costs: Opex down $400M QoQ, $700M YoY; more savings ahead.

3) Deleveraging: Lower opex/capex targets plus non-core asset sales.

4) Guidance: Wider-than-usual ranges reflect uncertainty.

**2.2 Q&A**

**Q: Balancing internal vs. foundry roadmaps?**

**A:** Flatter orgs focus on execution. Panther Lake’s 18A ramp is critical for internal/external foundry trust.

**Q: 2025-26 gross margin drivers?**

**A:** 2025 pressure from Lunar Lake mix/AT&A startup costs; 2026 improvement with Panther Lake/18A insourcing. Tariffs remain a wildcard.

**Q: Why was Q1 margin above guidance?**

**A:** Revenue beat and Raptor Lake mix helped; without these, closer to guide.

**Q: Foundry customer additions?**

**A:** Priority is internal execution (Panther Lake), then PDK reliability for external clients.

**Q: Panther Lake vs. Clearwater Forest?**

**A:** Panther Lake (18A) is lead product for late 2025; Clearwater Forest (E-core) follows in 1H26.

**Q: Intel 7 capacity constraints?**

**A:** Raptor Lake demand strong; n-1/n-2 products popular in macro uncertainty. Balancing AI PC vs. legacy output.

**Q: AI strategy—x86 or broader?**

**A:** Workload-first approach with edge/inference focus; exploring disruptive architectures.

**Q: Data center outlook?**

**A:** Q1 hyperscale strength may not repeat; Granite Rapids/Xeon 6 to drive 2H recovery. Share gains in enterprise but challenges elsewhere.

**Q: 2025-26 capex?**

**A:** Targeting $18B for 2025; improving ROIC may reduce future needs. Long-term IDM model assumes ~25% capital intensity.

**Q: Older products (Raptor Lake) outselling new?**

**A:** Macro/tariffs drive OEM preference for cost-optimized n-1/n-2 SKUs.

**Q: Panther Lake timing risks?**

**A:** On track for late 2025; commercial AI PC demand remains robust.

**Q: Weak Q2 guide?**

**A:** Q1 hyperscale surge unlikely to continue; balancing share/margin amid tariff risks.

**Q: Panther Lake internal wafer %?**

**A:** Targeting ~70% on 18A; Nova Lake will use more internal nodes.

**Q: Early-quarter trends?**

**A:** Solid start but tariffs may soften Q2; upside possible if momentum holds.

**Q: Data center AI products (Gaudi/Falcon Shores)?**

**A:** Strategy update coming; workload-focused with Jaguar Shores in roadmap.

**Q: Turnaround timeline?**

**A:** No quick fixes; executing roadmaps while exploring disruptive tech.

**Q: IDM sustainability?**

**A:** Balanced internal/external wafer sourcing key to capital efficiency.

**Q: Altera opex impact?**

**A:** 2025-26 opex targets include Altera; post-divestiture adjustments likely.

**Q: Rack-scale AI strategy?**

**A:** Leveraging XPU/IPU/optics with x86 ecosystem advantages.

<End>

**Disclosures:** [**Dolphin Research Disclaimer**](https://support.longbridge.global/topics/misc/dolphin-disclaimer)

### Related Stocks

- [INTC.US - Intel](https://longbridge.com/en/quote/INTC.US.md)
- [04335.HK - INTEL-T](https://longbridge.com/en/quote/04335.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.