Intel (INTC)

Integrated CPU maker + foundry turnaround — the struggling incumbent betting on IDM 2.0

AI exposure 32% — derived from reported segment revenue, not asserted.

Where it sits

Silicon Layer → Semiconductor Devices · figures rebased to Q2 2026, reported 2026-07-23

PC CPUs (notebook/desktop) — incl. AI PCs leads 2 businesses in this sub-tier that together are 94% of revenue, so Semiconductor Devices is effectively the whole company rather than one leg of it. The rest is tagged separately: Robotics & Autonomous Systems at 4%; Foundry Services at 2%.

Also tagged: emerging in Frontier & Emerging Bets → Robotics & Autonomous Systems; emerging in Silicon Layer → Foundry Services.

Reported segments

Client Computing Group (CCG) — 55% of revenue
Data Center & AI (DCAI) — 39% of revenue
Intel Foundry (external merchant) — 2% of revenue
All Other (incl. Mobileye) — 4% of revenue

Primary B1 Devices (CCG 55% client CPUs + DCAI 39% server/AI — DCAI +59% YoY on agentic-AI Xeon 6 demand, now ~2/5 of revenue vs ~24% on the stale FY2025 basis). Network & Edge is no longer a reported segment (folded into CCG/DCAI under current reporting). Foundry is cross-cutting (gross revenue mostly internal, intersegment-eliminated; external $293M in Q2 — small but strategic 18A). Mobileye (autonomy) inside All Other. Basis: Q2 2026.

How the 32% is built

Client Computing Group (CCG) — 55% of revenue × 10% AI-driven (estimate). Intel says AI PCs grew 26% sequentially and are now two-thirds of client revenue, but an NPU-equipped Core Ultra is a product-feature label, not AI-buildout demand; the atlas counts only the genuinely AI/inference-driven slice — management put edge deployments at roughly 10% of the segment
Data Center & AI (DCAI) — 39% of revenue × 65% AI-driven (estimate). DCAI +59% YoY to $6.3B on hyperscale AI demand — server volume +9% with ASP +48% on premium mix, purpose-built AI silicon nearly tripling YoY, and CFO Zinsner flagging CPU:GPU attach 'almost in parity'; Intel does not split AI vs general-purpose server inside DCAI, so the majority-AI share is an estimate that…
Intel Foundry (external merchant) — 2% of revenue × 30% AI-driven (estimate). External merchant foundry was only $293M in Q2 (the $5.8B gross Foundry figure is mostly internal wafers to CCG/DCAI and is intersegment-eliminated, so it is NOT counted here); the small external book skews to 18A custom AI/cloud silicon, but Intel discloses no customer-mix split
All Other (incl. Mobileye) — 4% of revenue × 20% AI-driven (estimate). Mobileye ADAS/autonomy is edge AI and IMS Nanofabrication multi-beam mask writing supports advanced-node (incl. AI) chip masks, but the residual also carries start-ups and divested-business remnants (Altera deconsolidated Sep 2025); no disclosure quantifies the AI portion

Investment read

Moat. x86 is a closed two-firm architecture rivals can take share in but cannot enter, and Intel is one of three firms running leading-edge logic at scale — Panther Lake in high-volume manufacturing on High-NA EUV, 18A-P in risk production. The process lead still sits with TSMC and external foundry revenue is de minimis ($293M in Q2 2026), so the advantage is real but contested, not commanding.

Bottleneck / pricing power. Real pricing and mix leverage, not a price-taker: Q2 2026 DCAI ASP +48% on premium mix with AI server demand ahead of supply, and non-GAAP gross margin 41.8% (+12.1pts YoY, 280bps above guide). The cap is share, not price — AMD and Arm keep contesting server sockets, and foundry has no external-customer scale to price from.

Role in the AI stack. The x86 incumbent and the West's only leading-edge logic alternative to TSMC.

Connected companies

ASML Holding (ASML) — INTC is supplied by: EUV lithography for 18A
Microsoft (MSFT) — INTC supplies: custom Xeon 6 server CPUs powering Azure VM families (Dv7/Ev7)
Amazon (AMZN) — INTC supplies: custom Xeon Scalable CPUs across EC2 (C7i/M7i/R7i)
Alphabet (GOOGL) — INTC supplies: Xeon 6 CPUs powering Google Cloud C4/M4 VM families
Dell Technologies (DELL) — INTC supplies: server + client CPUs in Dell systems
Applied Materials (AMAT) — INTC is supplied by: deposition/etch equipment for Intel fabs
Lam Research (LRCX) — INTC is supplied by: etch + deposition tools for Intel Foundry
KLA Corporation (KLAC) — INTC is supplied by: process control for Intel fabs
Keysight Technologies (KEYS) — INTC is supplied by: semiconductor design validation (Intel partnership)
Hewlett Packard Enterprise (HPE) — INTC supplies: Xeon CPUs for HPE server platforms
Advanced Micro Devices (AMD) — INTC competes with: x86 CPU rivalry (client + data-center Xeon vs EPYC)
NVIDIA (NVDA) — INTC competes with: Data-center AI accelerators — Intel Gaudi 3 vs NVDA GPUs; nominally direct but Intel is a negligible, retreating player
Taiwan Semiconductor (TSM) — INTC competes with: Leading-edge foundry — TSMC vs Intel Foundry 18A external bid
Samsung Electronics (SSNLF) — INTC competes with: #2/#3 leading-edge foundry contenders behind TSMC

Others in Semiconductor Devices

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