00:00The way you would describe it is the vibes are good, like people are feeling positive about what you're unveiling.
00:04Yes, but it's been a long journey to get here and finally launching, you know, what we think is the most powerful mobile processor for mobile computing with our new process, Node 18A.
00:16It's something the industry has been waiting for and wondering if we would pull off.
00:19Okay, for those that aren't deeply within the industry and coming to your foundry and understanding what's going into this new processor, the Core Ultra Series 3, what makes them different?
00:29We took our most powerful mobile processor from last year and built it on the most power efficient mobile processor from last year, combining those two capabilities.
00:42And so we run workloads from last year at 40% lower power this year on this processor.
00:50And it's, I've been asking, knowing I've been coming here, I've been asking our customers, what would you say?
00:55They'd say super powerful, surprisingly power efficient.
00:57That's what they told me last night.
00:59So here's the thing, Jim, and with respect, AMD and Qualcomm's customers would say the same thing.
01:04You know, AMD and Qualcomm have already been out there this week saying that their processors and parts, best battery life, best performance.
01:12And they both argue that they're taking share, right?
01:15What data points can you point me to that would evidence Intel's back in the lead in that market based on this technology?
01:22I get asked quite often, what's the killer app for an AI PC?
01:25And up until this part, I didn't have an answer.
01:29But if you're into mobile gaming, we built a GPU in Series 3 with an AI capability called multi-frame generation.
01:39So you would typically render a frame and then render a frame.
01:42In between, you can now use AI to do multi-frame generation.
01:47It's quadrupling the frame rate and super smooth play.
01:51So I would take that system up against any of our competitors if you're into mobile gaming.
01:55But is Intel in the lead?
01:56I believe so, yes.
01:572026 is fascinating, bigger picture.
02:01You have some forecasters, I think IDC, saying that the market will shrink 9% this year.
02:06You have others saying it will grow literally because of AI PC.
02:11What is your kind of forecast?
02:12And, you know, it comes back to the same question we've had at CES for a couple of years now is, does the AI PC resonate with anyone at the corporate level or at the consumer level?
02:21So a couple of things.
02:22So that is part of the conversation we're having this week.
02:25But the feedback I keep getting from our customers is keep ramping supply of these new processors because they believe they're going to win with them.
02:34Right.
02:34And from an AI standpoint, another thing that's happened, because we've been deploying AI PCs now for two years, we have the equivalent of 40 data centers worth of compute on the edge.
02:46And now we have, like Arvin, the CEO of Perplexity, came and did a talk with me.
02:50And he's now figuring out with us how to run portions of his Comet browser directly on the AI PC for four reasons.
02:58He sees better performance.
03:00He sees better security and privacy, better cost.
03:04But for more importantly, more control.
03:08So for business, they have more control.
03:09So I'm seeing these big AI companies actually start to tap into what can they do more locally.
03:15Same with, so I guess another thing that's happened is edge computing.
03:20I know you've been talking about edge computing between cloud and PC.
03:24We used to sell these parts maybe a year or two after we launched them into factories and so forth.
03:30But because the Series 3 process is really good at perceiving the environment with our visual processor and doing motor control of factory equipment and robotics,
03:39we have demand on day one for Series 3 from edge customers.
03:44So let's talk about the supply, because you have got vertical integration.
03:48You're actually using your foundries.
03:49You are printing the silicon.
03:51Yes, and we're building capacity specifically for clients.
03:56And that's a real value proposition for our customers, because they can depend on us to keep supporting our product lines for them.
04:02But in a way, you are the client of your own Intel foundry.
04:06Oh, yes, yes.
04:06Why did you go with them, not TSMC?
04:08What turned you to think, okay, these are the ones, this is the supplier I need?
04:13There's three things that they did with 18A that it's really impressive.
04:16They used the latest EUV technology you can buy.
04:19High QISML.
04:20Yep, yep, that's right, that's right.
04:21And they did two new unique innovations.
04:23We call it ribbon-fet or gate all around and backside power delivery so you can separate power from signals.
04:30We get 15% better performance per watt.
04:33And multiply that times 20 or 25 watts in a PC.
04:36And we have 30% better chip density.
04:40And so that allows us to compact our design, which allows our customers to compact their design and put in bigger batteries.
04:47And so they're now driving all-day battery life to multi-day battery life.
04:51Jim, I think we have to end by talking about pricing.
04:53You know, the background is that memory is an issue at the moment.
05:00How do you manage it?
05:01Do you pass on the cost or do you weather the storm, feast and famine, cyclical memory problems?
05:06You've been around, right, with respect.
05:09It's a conversation we're having this week.
05:11A conversation or an acknowledgment that it's a problem?
05:13Well, it definitely is an issue in the industry.
05:16Our customers are struggling on what they're going to do with it.
05:18And they haven't decided yet.
05:20But what they're asking us to do is keep our build plan solid because in 2026, they see a chance to really gain share on the back of Series 3.
05:31We just have a few seconds.
05:32Does the PC market grow, stay flat or shrink in 2026?
05:37I think it's going to be plus or minus where it's at.
05:40Now, some people are much more dire than that.
05:42But we had the same conversation when tariffs came up and all the predictions, whether really drastic or big pull-ins, they kind of didn't come true.
05:52There was something more in the middle.
05:53So we're planning for more in the middle.
05:55But, of course, we'll react with our customers as we need to.
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