Jul. 24, 2025 –
Intel is set to hold its earnings call on July 24, and according to Reuters, these are some key issues to watch ahead of the event.
Shift to 14A and Potential Writedown
Commentary on Intel’s 14A process will be a key point of interest. According to Reuters, CEO Lip-Bu Tan is prioritizing 14A in an effort to secure major external customers, moving away from the 18A process that former CEO Pat Gelsinger had invested billions into. Reuters cautions that this shift could result in a substantial writedown.
As for 18A, its yields have improved—from 50% last quarter to 55%—paving the way for high-volume manufacturing (HVM) by year-end, according to Wccftech.
Foundry Ambitions Could Become a Burden for Intel’s Core Business
Intel Foundry’s performance is also drawing attention. In May, CFO David Zinsner stated that the unit is expected to break even by 2027, which would require revenue from external customers to reach the low- to mid-single-digit billions, according to Reuters.
Analysts cited by Reuters estimate that Intel’s foundry unit will generate USD 4.49 billion in revenue in the second quarter. However, Reuters notes that the majority of this figure is expected to come from chips Intel manufactures for its own use.
According to Wccftech, citing an investment firm, to help its product division better compete with AMD, NVIDIA, and the broader Arm ecosystem, TSMC is seen as the obvious manufacturing partner due to its superior advanced-node capabilities.
However, Wccftech also points out that Intel Foundry’s high fixed costs require substantial order volume from its own product division to remain viable. As a result, while Intel Foundry and its product unit remain closely connected for now, the report notes that its foundry business could eventually become a limiting factor for the product division.
Financial Outlook and Key Segment Trends
Tariff uncertainty may also weigh on investor concerns. Reuters notes that revenue from Intel’s personal computer unit is projected to decline by about 2% to USD 7.25 billion in the second quarter, after customers accelerated purchases into the first quarter to avoid potential tariff impacts.
In addition, Reuters points out that revenue from Intel’s data center unit is expected to rise around 20% to USD 3.66 billion, indicating a rebound in demand for traditional server chips after several weak quarters. However, Wccftech points out that Intel has lost its decade-long lead in the server CPU market, as AMD’s EPYC lineup has pushed it ahead in market share. Citing data from PassMark, Wccftech highlights that AMD has captured an impressive 50% server CPU market share—up from just 20% only a few quarters ago.