Intel CEO: Clearwater Forest, its first Intel 18A server product, is shipping for revenue
INTC•Intel CEO said Clearwater Forest is shipping for revenue, while Diamond Rapids is sampling and on track to ramp in 2027. The CFO expects fourth-quarter DCAI revenue to grow mid-teens sequentially, CCPG revenue to decline more than 20%, and 2026 PC unit TAM to fall approximately 12%.
1. Product updates
Intel CEO said Clearwater Forest, the company’s first Intel 18A server product, is shipping for revenue. Diamond Rapids, its first Intel 18AP server product, is sampling and on track to ramp in 2027. The CEO also said Panther Lake has ramped successfully, Wildcat Lake demand is outstripping supply, and Nova Lake is tracking ahead of schedule, with design wins expected to be twice those of Panther Lake at launch.
2. Outlook and constraints
The CEO said a faster PC correction and an industry-wide shortage of advanced organic substrates for EMIB packaging are affecting Intel’s ability to scale output. The CFO expects DCAI revenue to grow mid-teens sequentially in the fourth quarter and CCPG revenue to decline more than 20%. The CFO also expects 2026 PC unit TAM to decline approximately 12%, with second-half units down more than 20%, and said Intel does not expect positive cash flow this year.
3. Costs and spending
The CFO said Intel 18A costs have declined approximately 40% since the first quarter. Gross capital expenditures for 2026 remain on track at $20 billion, while 2027 gross capital spending is expected to be up strongly. Fourth-quarter non-GAAP operating expenses are expected to be approximately $4.4 billion.
