This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 75

The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

F500 2025-Intel

Intel is one of the largest semiconductor chip makers in the world. Founded in 1968, it designs, develops, manufactures, markets, and sells computing products and offers related services.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The 300 companies on this list are transforming industries from the inside out.

Fortune collaborated with the Diligent Institute to rank the most innovative boards of directors among S&P 500.

Modern Board 2023-Intel

Intel made the 2023 list as a result of its age dispersion and board independence. But it’s weathered a stormy year with supply-chain snarls in the chip industry and <a href="https://fortune.com/2022/07/15/pc-prises-increasing-as-demand-falls-intel-chip-prices/">depressed demand</a> for personal computers. The company’s shares fell by about 35% from <a href="https://www.google.com/finance/quote/INTC:NASDAQ?sa=X&amp;ved=2ahUKEwiv_LyLiMH-AhU7kokEHYQrCKgQ3ecFegQIKBAa&amp;window=1Y">April</a> 2022 to 2023, and it reported a 32% dip in fourth-quarter earnings year over year. The chipmaker cut management pay in early 2023 as part of a turnaround plan—including a<a href="https://fortune.com/2023/02/01/intel-pay-cut-pat-gelsinger-samsung-amd-sk-hynix-q4-earnings/"> 25% cut</a> to CEO Pat Gelsinger’s base pay—and conducted layoffs as well. Intel has made several new board appointments over the past year, including Lip-Bu Tan, founding managing partner of Walden Catalyst Ventures; and Barbara Novick, cofounder of asset management firm BlackRock. It also tapped Frank Yeary, a managing member of private investment firm Darwin Capital Advisors and an existing member of Intel’s board, as its new chair. There are five women on Intel’s 12-person <a href="https://www.intc.com/board-and-governance/board-of-directors">board</a>.

Fortune Modern Board 25

See which workplaces made this year's list.

GPTW Manufacturing Production Large 2023-Intel

Employees say: 
 
"The work culture is more personal and idea-driven. We have open conversations, and I am not afraid of speaking my heart out. I believe each employee has a voice, and management encourages us to try new things."

Best Large Workplaces in Manufacturing and Production

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-062-Intel

Semiconductor manufacturer Intel took some knocks in 2022 amid slumping PC sales, but it remains on track to achieve its goals of opening new factories and churning out chips as advanced as those made by Taiwan-based TSMC. 
<ul> 
 	<li>In April 2023, Intel reported the largest quarterly loss in company history: $2.8 billion. After the first-quarter loss, Intel said that it would implement layoffs across the company to reduce costs.</li> 
 	<li>One bright spot was Intel-controlled Mobileye, maker of systems and software for self-driving cars, which boosted sales 16% in the first quarter of 2023.</li> 
 	<li>In late 2022 and early 2023, Intel launched next-generation processors including its fourth-gen Xeon Scalable processors, ramping up production to meet pent-up demand.</li> 
</ul>

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Modern Boards 2022 Intel

The pioneering chip manufacturer earned the No. 4 spot because of its strengths in board independence and age dispersion.  
 
Despite up-and-down stock performance of late, Intel received a recent <a href="https://www.marketwatch.com/story/intel-is-on-a-long-and-expensive-road-but-stock-may-not-meaningfully-underperform-further-analyst-says-11645634423">upgrade from analysts</a> due to improved cash flow and long-term projects put in place by CEO Pat Gelsinger, who took on the role in February 2021. Gelsinger <a href="https://fortune.com/2021/12/02/intel-aims-to-vault-ahead-of-competition-during-chip-shortage/">has pledged</a> $250 billion over the next decade for capital expenditures, and Intel is opening two $10 billion fabrication plants in Arizona and another two $10 billion plants in Ohio. The CEO was <a href="https://www.cnbc.com/2022/03/02/why-intels-ceo-was-a-guest-at-bidens-state-of-the-union-address.html">acknowledged by President Biden</a> at the State of the Union address in 2022 for his plans to open a semiconductor hub near Columbus. 
 
Intel’s board has been chaired since January of 2020 by Omar Ishrak, a former chairman and CEO of Medtronic. 
 
The rest of the company’s <a href="https://www.intc.com/board-and-governance/board-of-directors">slate of directors</a> has a distinct academic flavor that is relatively rare for a corporate board. Andrea Goldsmith and Tsu-Jae King Liu are the deans of the engineering schools at Princeton University and UC Berkeley, respectively. Risa Lavizzo-Mourey is a former professor of public health at the University of Pennsylvania; she was previously CEO of the Robert Johnson foundation. Frank Yeary is the former vice chancellor at UC Berkeley, though he previously spent 25 years in finance, including an executive role at Citigroup; he is currently a managing member at Darwin Capital Advisors. 
 
CORRECTION: An earlier version of this story incorrectly identified Jim J. Goetz as the chair of Intel's board. Goetz is an independent director.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-Intel

Intel has had a challenging couple of years, as manufacturing and design problems have impaired its rollout of new chips. Its woes have contributed to the global semiconductor shortage, and Intel has been dethroned by Samsung as the world’s leading chipmaker by revenue. CEO Pat Gelsinger is hoping that expanding its production pipeline can restore Intel’s fortunes: The company has pledged $250 billion over the next decade for capital expenditures, and over the next few years it plans to open two new fabrication plants in Arizona and another two in Ohio, investing a total of $40 billion in those projects.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500 108 Intel

It’s been a rough year for the semiconductor giant, and unlike some other companies, Intel can’t put all the blame on COVID-19. In July 2020, Intel shocked the tech industry when it said it would delay a long-awaited upcoming 7-nanometer computer chip owing to manufacturing problems. The surprise postponement spooked investors, who were already worried that the company was lagging competitors like Taiwan Semiconductor Manufacturing Co. In early 2021, former VMware CEO Pat Gelsinger became Intel’s new top boss—a homecoming of sorts, since Gelsinger previously worked at the chipmaker for 30 years. Now, investors are hoping Gelsinger will be able to pull off a turnaround.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-40-Intel

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

World's Most Admired Companies

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-138-Intel

Intel’s big bet on artificial intelligence still hasn’t resulted in blockbuster sales. The semiconductor giant’s 2019 revenue increased 2% year-over-year, to $72 billion. Amid increased competition from the likes of Nvidia and AMD, Intel is doubling down on acquisitions to give it the A.I. technologies and expertise it seeks. Case in point: the $2 billion purchase of Israeli A.I. chip maker Habana Labs, announced in December.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-045-Intel

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

These 52 companies from across the globe are doing well by doing good.

Change the World

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here’s our look at 57 companies that do well by doing good.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Here’s our look at 50 companies that do well by doing good.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Nike, Cisco, MasterCard, SABMiller, Vodafone, Google—and 45 other companies that are doing well by doing good.

Google tops the list once again, marking its eighth appearance and fifth time as No. 1.

Fortune 100 Best Companies to Work For

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Intel is one of the largest semiconductor chip makers in the world. Founded in 1968, it designs, develops, manufactures, markets, and sells computing and related products and services.

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Intel (INTC): Company Profile, Stock Price, News, Rankings

legacy

Intel

intel

As a reminder, today's program is being recorded. Now I'd like to introduce your host for today's program, Mr. John Pitzer, Corporate Vice President of Investor Relations. Please go ahead, sir.

Thank you, Jonathan, and good afternoon to everyone joining us today. By now, you should have received a copy of the Q3 earnings release and presentation. Both are available on our investor relations website, intc.com. For those joining us online today, the presentation is also available in our webcast window. I'm joined today by our CEO, Lip-Bu Tan, and our CFO, Dave Zinsner.

Lip-Bu will open on comments on third quarter results and progress on our strategic priorities. Dave will then discuss overall financial results, including fourth quarter guidance before we transition to answer your questions. Before we begin, please note that today's presentation does contain forward-looking statements based on the environment as we currently see it. As such, they are subject to various risks and uncertainties. It also contains references to non-GAAP financial measures that we believe provide useful information to our investors.

Our earnings release, most recent annual report on Form 10-K, and other filings with the SEC provide more information on specific risk factors that could cause the actual results to differ materially from our expectations. They also provide additional information on our non-GAAP financial measures, including reconciliation where appropriate to our corresponding GAAP financial measures. With that, let me turn it over to Lip-Bu.

Good afternoon, and thank you for joining us. The demand environment in Q3 was more balanced than previous quarters. Strong momentum in DCAI drove upside and enabled the strongest revenue growth for the segment in 15 years. This was partially offset by weakness in CCPG, driven by the industry-wide impacts from higher memory prices and limited IT budgets.

The industry continues to navigate one of the most significant supply shortages in the history, driven by the unprecedented demand for super intelligence. Against this backdrop, I am pleased by the progress we make growing our server supply in Q3. I am mindful about the ongoing challenges we face in the future quarters to keep pace with the server demand. The successful completion of our equity offering in August provided us with the necessary financial resources to capture the growth ahead.

I am very pleased to add new sovereign funds and long-term growth investor in addition to our existing shareholders. We are deploying this capital quickly and prudently. We expect CapEx and purchase commitments for key components to increase significantly over the next several quarters. I want to thank our substrate memory foundry equipment suppliers for their strong partnership and collaborations as we work together to expand supply and support growing demands.

Turning to business units. First, DCAI. Within our server business, we are making steady progress on our roadmap. Granite Rapids on Intel 3 has become one of the fastest-ramping server products. Clearwater Forest, our first Intel 18A server products, is shipping for revenue. Demand for 2027 is significant, especially in CPU dense agentic rack scale infrastructure.

Diamond Rapids, our first Intel 18A-P server product, is sampling and on track to ramp in 2027 with strong interest for inference and agentic workloads. We were pleased to recently announce an agreement with Oracle Cloud Infrastructure to deploy our latest generation CPUs to support their AI build-out. I also want to acknowledge headwinds limiting our progress to meet this extremely high AI-driven demand.

First, Intel 3 yield and cycle time continue to improve, but I am demanding significant execution from the team. Second, even as our Intel 3 wafer outputs ramps quickly, an industry-wide shortage of advanced organic substrates for our EMIB packaging is also impacting our ability to scale output. Finally, early this month, an unfortunate and tragic accident led to an extended shutdown in our Israel factory.

While the teams have worked quickly to address the situation, it will impact our Q4 10-nanometer server shipments. Purpose-built silicon remains our fastest-growing business segment, tripling over the last three years and poised to triple again over the next few years. We see further growth opportunity with both existing and new potential customers, including AI labs, and expanding our IP portfolio to meet the needs of a wider array of customers.

Lastly, we recently unveiled our Intel GPU D-Series inference-optimized GPU. Early feedback is encouraging. Performance is tracking well. This is new market for us, and it will take time to scale, but customer engagements are progressing towards firm commitments. Turning to our client business, in recent weeks, our customers began signaling a PC slowdown based on the memory prices and availability. Year-to-date system endpoint prices have increased significantly, placing additional pressure on already limited IT budgets.

The pace of this PC correction has accelerated over the last two months as our OEM partners are aggressively managing inventory to match the softer sell-through. We expect the current environment to persist until memory availability and prices begin to normalize. While the next few quarters will be challenging for the PC market, our roadmap continues to strengthen, and our long-term outlook remains positive.

We have successfully ramped Panther Lake on Intel 18A, and demand for the Wildcat Lake is outstripping supply. Nova Lake, our first Intel 18A-P client product, is tracking ahead of schedule, with design wins expected to be twice those of Panther Lake at launch. We look forward to sharing more at CES in January. As the market normalizes, we expect this portfolio drives meaningful share gains. Intel Foundry execution continued to improve consistently.

During the quarter, Intel 3 and Intel 18A yields both increased again, with Intel 18A improving at a double-digit rate. Wafer output on both nodes exceeded expectations. Intel 18A-P remains on track for launch by year-end across our internal product portfolio, and external customer engagement continues to build. We are engaged with a couple of highly strategic customers, and I am increasingly confident that our Intel 18A-P will be an attractive node for external foundry customers.

Intel 14A also remains on track. in October, as committed, we released our industry-standard 0.9 PDK to select customers. It is our highest quality 0.9 PDK, meeting industry standard yield and performance criteria at release. As is standard practice in the foundry business, I have consistently maintained that we will not disclose customer details. That being said, I remain highly encouraged by the progress we are making with multiple potential customers on 14A.

On advanced packaging, we are pleased by the progress we are making with EMIB and EMIB-T for our internal products. Both continue to see significant external customer traction as well. We continue to improve on execution, working with our supply chain to secure the capacity to meet the needs of our advanced packaging customers.

We are also seeing robust progress in the readiness of HBI, which is an enabler of 3D chip stacking for our upcoming server products. Across our manufacturing network, additional capacity continues to come online. Intel 3 tool installation is progressing well in Ireland, as is in the ramp of the 18A in both Oregon and Arizona, including Fab 62, our second high-volume 18A fab. In New Mexico and Malaysia, we are adding capacity to support strong customer ramps for advanced packaging next year.

In New Albany, Ohio, the team recently achieved important construction milestone with installation of the first major structural truss. And we continue to evaluate unique and highly differentiated opportunity to accelerate our Ohio build-out. And I hope to share more on this in the near future. Looking to the future, I have always emphasized that rebuilding Intel is going to be multi-year journey. And I remain firmly committed to making it happen.

We are only one year and a half into this journey. We have made enormous strides in this 18 months, including a dramatic resizing of our workforce, eliminating middle management and bureaucracy, streamlining our executive ranks, and established an almost entirely new leadership team. We have installed once again an engineering-centric culture, streamlining our product portfolio and put in place a more competitive roadmap for Intel products and Intel Foundry. We still have much more to do.

The resurgence in demand for CPU is meaningful tailwind for us along our transformation journey. Increasingly, energy efficiency is becoming the most important metric for the AI infrastructure build-out. While GPUs are great at thinking tasks, deterministic CPU are far more efficient at doing tasks. While GPU reasoning query run as high as multiple watt-hours of energy, a single CPU query could cost only joules of energy.

Applying even conservative estimates to the total number of digital agents and agents served per CPU, it is easy to anticipate a massive dollar and unit TAM for CPUs over the coming five years. By our estimates, server CPU TAM, largely driven by agentic workloads, could increase as much as five times from where it is today, from $40 billion to more than $200 billion over five years. This makes the opportunity for Intel enormous.

We are, of course, mindful of fierce competition underway as nearly every fabless company race to meet this unprecedented demand with their own offering. But Intel is uniquely positioned to benefit from this demand in three ways. First, as a custodian of x86, the most widely deployed ISA in the world, we are doubling down on x86 innovation, have an exciting Tick-Tock roadmap of CPU innovations in the pipeline.

In addition, for the first time, we are making fully modular, verified instances of our x86 CPUs optimized for the custom workloads available to our customers. Second, as one of the just three advanced node semiconductor foundries in the world, and the only one domiciled in the U.S., we are well positioned to support not only our own demand but also the demands of wider fabless industry.

We are also open to building any CPUs at scale for our customers fully agnostic to underlying ISA. Third, as modern computing platforms increasingly become complex system in the package, our leadership in advanced packaging offers highly differentiated solution, especially to meet the requirements of the massive AI infrastructure build-out underway.

This is why I remain optimistic on the opportunities ahead for Intel, even as we have works to do. Lastly, while we remain focused on executing against our near-term priorities, we cannot lose sight of what come next. Intel has a deep portfolio of technology and IP that positions us to drive the next wave of computing. We continue to invest in breakthrough technologies, including silicon photonics, neuromorphic computing, advanced materials, and quantum computing that we believe can unlock the important of new opportunities over time.

This week, we announced our intent to acquire Classiq, an Israel-based quantum software provider, moving our quantum efforts from foundational research towards commercialization. Classiq's overarching hardware-agnostic software platform layer provides a gateway for more consumers to explore quantum computing.

It is a wonderful complement to our already strong internal quantum hardware and software stacks and enable us to further extend our compute platform offerings to include QPUs in addition to CPUs, GPUs, and ASICs. Post-acquisition, Intel will become a full stack revenue-generating quantum computing company. In summary, while we did well in Q3, there's clearly more work to do.

I'm disappointed that we were not able to meet strong customer demand in this quarter. We face near-term challenges, including manufacturing supply shortage, the unprecedented memory crunch, and the resulting softness in PC demand. But I remain confident in our path forward.

We need to address these challenges with urgency without losing sight of the massive opportunity in front of us. I want to thank our employees, partners, and suppliers for their tireless effort in this quarter. With that, I will turn the call over to Dave for additional details.

Thank you, Lip-Bu. We delivered a strong quarter, exceeding our guidance for revenue, gross margin, and earnings per share. This marks the eighth consecutive quarter of exceeding our financial expectations. Our Q3 results reinforce the essential role our server CPUs play in the build-out of super intelligence or AI infrastructure. Results also demonstrate our improving execution as we grow supply to capture the strong demand for AI compute.

Third quarter revenue was $16.5 billion, led by record year-over-year growth in DCAI. Strong execution across our factory network and external supply chain drove better than expected server CPU output. This strength was partially offset by weakness in client, where industry-wide PC consumption is being impacted by memory shortages and limited IT budgets. Third quarter non-GAAP gross margin was 44.1%, approximately 200 basis points higher than Q2 in our guidance.

The sequential improvement was driven by improved costs on Intel 3 and Intel 18A, and a more favorable product mix. Third quarter non-GAAP EPS was $0.52, compared with our guidance of $0.38. The upside was driven by higher revenue, stronger gross margin, and disciplined spending, which together produced better than expected operating leverage. Operating cash flow was $5.91 billion.

We ended the quarter with approximately $54 billion in cash and short-term investments, in addition to $15 billion of borrowing capacity under our new extended revolvers, up from $10 billion previously. In early August, we further strengthened our balance sheet through a $23 billion equity offering. The incremental interest income associated with the offering contributed approximately $0.01 to Q3 EPS that was not contemplated in our original guidance. Now moving to segment results. DCAI revenue was $7.3 billion, up 17% sequentially and nearly 80% year over year.

Revenue was meaningfully ahead of our expectations as our factory network and external suppliers supported higher output. The work our teams have done to increase supply is having a tangible impact. Based on our current outlook, DCAI revenue is on track to finish 2026 nearly $10 billion above expectations entering the year. Q3 growth was broad-based across hyperscale, enterprise, and Neo Cloud customers.

We also continued to see strong momentum in purpose-built silicon, with revenue increasing more than 50% sequentially and more than doubling year over year. Despite our progress to increase capacity, demand for DCAI products continues to meaningfully exceed available supply. DCAI operating profit was $3 billion, representing 42% of revenue and increasing approximately $600 million sequentially. The improvement was driven by higher revenue and lower operating expenses.

Granite Rapids is now the largest product family in our server portfolio as we continue to increase output from our Ireland facility. Earlier this month at the Open Compute Project Global Summit, we demonstrated select Clearwater Forest configurations that scale beyond 46,000 cores per rack at approximately 133 kilowatts of total rack power, delivering best-in-class performance per watt. We also introduced the Intel GPU D-Series, formerly code-named Crescent Island, which is designed to improve the economics of sustained memory-intensive AI inference.

Customer interest in both product families is running ahead of our initial expectations. CCPG revenue was $8.1 billion, down 9% sequentially and below our expectations. We previously noted that memory shortages could pressure the second half PC TAM. That pressure intensified during Q3, particularly late in the quarter, and resulted in a meaningful adjustment in customer purchasing patterns. Despite the near-term weakness, we saw several positive developments.

Our AI PC revenue grew 35% year-over-year, even as total CCPG revenue declined 5%. Our client products on Intel 18A continue to ramp well. Wildcat Lake, our cost-optimized Intel 18A client CPU, increased units by approximately 70% sequentially and is sold out. Lastly, our Edge business was more resilient, supported by continued momentum in Edge and physical AI design wins. CCPG operating profit was $2.3 billion, representing 28% of revenue and approximately flat sequentially, primarily due to lower inventory charges.

Turning to Intel Foundry. Intel Foundry revenue was $6.7 billion, up 16% sequentially, driven by better-than-expected growth on Intel 3 and Intel 18A. External foundry revenue was $411 million, an increase of $118 million sequentially, primarily due to a non-recurring customer program.

Intel Foundry reported an operating loss of $1.9 billion, an improvement of $236 million sequentially, even as we continue to invest aggressively to prepare Intel 14A for risk production next year. Higher yields, better cycle times, and increased factory utilization continue to reduce wafer costs. Intel 3 costs improved approximately 15% from Q1 levels, while volumes increased in the mid-teens sequentially. Intel 18A costs have declined approximately 40% since Q1, reflecting continued yield and cycle time improvements.

Intel 18A yields continue their upward trajectory to industry-standard levels ahead of our internal projections. Since Q1, Intel 18A client CPUs have grown from less than 5% of revenue to now nearly one-third of client CPU revenue. These results represent meaningful progress, although we still have considerable work ahead of us to deliver a sustainably profitable foundry business. Now turning to outlook. Demand signals from our data center customers continue to strengthen.

We expect the industry to remain supply constrained throughout 2027 and into 2028. As Lip-Bu discussed, the adoption of agentic AI is broadening the role of CPU compute. AI workloads are moving beyond prompt-based responses toward multi-step reasoning, orchestration, and autonomous persistent action. Our CPUs play a central role in enabling these workloads. As a result, we continue to see strong demand for our DCAI products.

We now expect industry server CPU units to grow more than 30% in both 2026 and 2027. Growth would be higher in both years if additional industry supply were available. At the same time, the PC market is weakening after remaining resilient during the first half of 2026. We expect the 2026 PC unit TAM to decline approximately 12%, with second-half units down more than 20%. We do not expect a sustained recovery until memory availability improves and pricing begins to normalize.

For 2027, we're planning for the PC unit TAM to decline roughly 10%. We expect year-over-year declines to be more pronounced during the first half, with the potential for improvement in the second half against an easier comparison. Our longer-term view of the PC market remains unchanged. Traditional PCs will play an important role in enabling AI applications and driving strong returns on AI infrastructure spending. In addition, we're just now seeing new agentic systems in the market.

We also continue to see attractive longer-term opportunities in Edge and physical AI as agentic applications spread across the economy. Taking these factors together, we're guiding Q4 revenue to a range of $15 billion-$16 billion. At the midpoint of $15.5 billion, we expect a gross margin of 38%, a tax rate of 11%, and EPS of $0.25, all on a non-GAAP basis.

Our guidance includes an impact of roughly $300 million to revenue and 200 basis points to gross margin based on our early assessment of the incident at Fab 28. By segment, we expect DCAI revenue to grow mid-teens percent sequentially, with purpose-built silicon growing faster than DCAI overall. Please note, almost all of the $300 million impact from Fab 28 is related to 10-nanometer server products.

We expect CCPG revenue to decline greater than 20% sequentially as customers move quickly to reduce weeks of inventory and align purchases with their expectations for 2027 consumption. The sequential decline in Q4 gross margin primarily reflects lower overall revenue against our fixed cost base as we adjust client wafer starts to current demand conditions. In addition, revenue mix, especially the strong growth expected in purpose-built silicon, is creating difficult quarter-on-quarter compares.

These headwinds will be partially offset by continued yield and cost improvements on Intel 3 and 18A. We expect non-GAAP operating expenses of approximately $4.4 billion in Q4 and approximately $16.3 billion for the full year. We expect non-controlling interest, or NCI, to be approximately $250 million in Q4, and we currently expect NCI of approximately $1.1 billion in both 2027 and 2028.

Lastly, we expect Q4 fully diluted share count of 5.44 billion, representing a full quarter of shares issued for our August equity offering. Moving to CapEx. Our 2026 gross capital expenditures remains on track to be $20 billion, and we expect 2027 gross capital spending to be up strongly. We have made good progress securing the equipment required to support our growth plans with firm purchase orders to equipment suppliers increasing nearly 40% sequentially.

We're also accelerating clean room build-outs, including Fab 62 in Arizona, and exploring opportunities to accelerate in Ohio. Despite this increase in capital spending and working capital, we remain committed to deleveraging in 2027. We will remain disciplined as we invest, and we will not spend a dollar of capital unless we have confidence in the health of our products and process technologies and clear evidence of customer demand.

Our confidence in all three is improving. In closing, I want to offer a few words outlining the opportunity we see ahead. Our core server CPU market is growing faster than ever, and edge and physical AI represent meaningful incremental opportunities for client class CPUs, even as we navigate the current market conditions. Importantly, as we improve our product execution and roadmap, we have opportunities to regain share and grow even faster than our underlying markets.

Beyond our Core x86 franchise, we are investing in three large opportunities where we have meaningful momentum but relatively modest revenue today: purpose-built silicon, advanced packaging, and external wafer foundry. Each represents tens of billions of dollars of new markets where our technology, manufacturing assets, and customer relationships provide us a differentiated opportunity to participate. Taken together, we have line of sight to long-term double-digit revenue growth with meaningful leverage and improving margins.

We have significant work ahead of us. However, the combination of stronger markets and the cultural changes set into motion by Lip-Bu to improve execution, transparency, and discipline gives us increasing confidence in Intel's long-term earnings power and free cash flow growth, a solid foundation for building sustainable shareholder value. With that, I'll turn it over to John to begin the Q&A.

Thank you, Dave. As a reminder, please ask one question and a brief follow-up in order to allow us to accommodate as many callers as possible. With that, Jonathan, can we take the first question?

Certainly. Our first question comes from the line of Timothy Arcuri from UBS. Your question, please.

Thanks a lot. Dave, I am wondering, with all the puts and takes and what is going on in PC, I am wondering if you can give us maybe some guardrails, maybe you could say it, next year. It seems like DCAI could grow $10 billion-$15 billion year-over-year, but PC, I am guessing, is maybe down a touch. Can you just maybe give us guardrails for the year and sort of how to think about the shape of the year?

Yeah. Thanks, Tim. I am not obviously going to guide next year, but maybe I will give you some qualitative information. I would say at a high level, we see next year as a growth year. We feel like the momentum that we saw in data center this quarter and taking away the impact from Israel, that momentum would have continued into the fourth quarter. We see that continuing next year. The only little nuance is the first half of the year, we are still a bit constrained. We talked about putting 40% more capacity in substrates, but a lot of that does not hit us until the back half of the year.

In addition, we are still constrained on Intel 3, and we're going to work towards moving, as Lip-Bu said, some of our supply into Oregon, but it's going to take a while before that comes out of the fab and gets into products. But we're very optimistic and enthusiastic about the opportunities for us next year in terms of growth on the data center business. In addition, we talked about within DCAI, we also have purpose-built silicon.

That business has been growing at a 3x rate over the last three years. We see that growing at a 3x rate in the next three years. We're really bullish about that throughout 2027. Obviously, the client is going to be the most difficult to call. As I talked about, we see TAM declining in 2026 by about 12% on a unit basis.

We think that's going to be about 10% next year on a unit basis. That will be one dynamic. There's going to be this kind of inventory correction. We're in the throes of that right now. We felt a little bit of it in the third quarter. We're going to feel a lot of it in the fourth quarter.

We think it extends at least out into the first quarter. After that, I think you'll start to see the inventory correction part of this start to wane, and we'll be back into more of what's going to go on on the TAM side, which, as I said, we're thinking about 10% down. The one added piece of this is we come into next year with Nova Lake as our product offering, and we think this is the best set of products we've had in a very long time.

We think it covers the gamut of what's required to participate in client. We're very excited about it. We think next year and in the future years, we're in a kind of a market share gain type of environment for our clients. Obviously unfortunate that we've run into this challenge on the memory side and its impact on client, but we are very enthusiastic about the product set.

You didn't ask this question, but I'll just extend it out beyond this year. We do think that the PC is going to go through a renaissance despite this. We think that as AI workloads start to shift around, there's going to be a lot of workload required in the client space, either as a PC or as some kind of agentic box. We do see this market as being pretty interesting. It's got to obviously get through this bit of challenge that we have, but longer term, feel really good about the market.

Tim, do you have a quick follow-up question?

I do, yeah. Dave, you did say that CapEx is going to be up a lot next year. I think a lot of us are thinking kind of like $30 billion, but I guess the real question is: Are you committed to generating free cash flow next year, or do you think because of the CapEx burden that that will be hard? Thanks.

Yeah, it is a good question. We have not exactly locked into the number. We do not do that until we get towards the end of this year. But we have a directional understanding of what is likely to happen. And we have been putting POs in place with equipment vendors given the lead time, so we have some sense of what is going to happen.

I think next year is an investment year for us as we look at the year. Probably not a dynamic where we are going to have positive free cash flow next year, but it is because we see this as a tremendous opportunity to invest into the growth. And one thing that we have seen is you make the right investments, you ramp the node in the right way, you see profitability, and you see return on invested capital.

Intel (INTC) Q3 2026 Earnings Call Transcript

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