During the Q3 2025 earnings call, Intel announced its first profit in almost two years, attributing it to various factors. CEO Lip-Bu Tan and CFO David Zinsner addressed the current chip shortages that are expected to peak in the first quarter of the following year. As a result, Intel will prioritize AI server chips over some consumer processors to manage the supply and demand imbalance.
Intel disclosed plans to release new AI GPUs annually to meet the rising demand for AI servers, following the lead of competitors like Nvidia and AMD. However, this shift may impact the availability of Intel gaming GPUs in the market.
The company is focusing on the release of Panther Lake, featuring an 18A process for high-performance consumer PC chips. Despite the anticipation for this product, Intel will only launch one SKU this year, with a gradual rollout of additional SKUs in 2026. The high cost associated with Panther Lake may prompt Intel to emphasize its existing Lunar Lake chips initially.
While Intel has acknowledged challenges with its 18A process, including yield issues, the company aims to address these concerns gradually. Intel plans to collaborate closely with customers to optimize output and adjust pricing to align demand with available supply.
Intel’s 18A process is projected to power upcoming client and server products for at least the next three generations. The company’s focus on this long-term strategy indicates a shift away from the traditional “tick-tock” model of chip development.
Despite initial concerns about the future of Intel 14A, customer support has bolstered confidence in this next node. Intel remains optimistic about the performance and yield potential of 14A compared to the current 18A process.
Overall, Intel’s strategic decisions reflect a commitment to navigating the current industry challenges while setting the foundation for future innovation and growth.
