Intel (INTC) BofA Securities 2024 Global Technology Conference summary

Strategic capital initiatives and financial structure

• Announced SCIP 2, a $11B joint venture with Apollo for Ireland Fab 34, enabling capital recycling and supporting global operations without altering capital expenditure plans.

• Structure mirrors SCIP 1 but applies to an already built facility, with Intel holding 51% and Apollo 49%.

• No significant near-term P&L impact; full consolidation with non-controlling interest reflected in financials.

• SCIP deals are expected to be the last of their kind, with future capital needs met by operational cash flow.

Product roadmap and AI PC strategy

• Lunar Lake AI PC platform launches in Q3, offering over 100 TOPS at the SoC level and 40% better power efficiency than Meteor Lake.

• Xeon 6 E-core (Sierra Forest) released in Q2; P-core (Granite Rapids) to follow in Q3, targeting data center growth.

• Gaudi 3 AI accelerator now in market, with over $500M revenue expected this year, showing strong momentum.

• AI PC market expected to drive ASP uplift more than unit growth, with ecosystem development ongoing.

Market outlook and competitive dynamics

• PC market projected at 276-278M units in 2024, with long-term stability around 300M units; enterprise refresh cycle anticipated in H2 due to Windows 10 end-of-life.

• AI PC shipments forecasted at 40M units in 2024, rising to 60M in 2025, leading the market.

• Competition with Arm intensifies, but x86 ecosystem and compatibility seen as key strengths, especially in enterprise.

• No structural power efficiency advantage for Arm; performance depends on execution and ecosystem lock-in.