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CLAIM #31868 · Intel Corporation (INTC) · 2023Q3 earnings call · Oct 26, 2023 · due Dec 31, 2026

this business longer term should have margins that are very similar to margins you see from its peers when they are operating at healthy levels of margins.

David Zinsner · CFO

PENDING
graded after results covering Dec 31, 2026 are reported

How to check this claim

Look at: Data Center and AI (DCAI) segment operating margin

It came true if: DCAI segment operating margin within 5 percentage points of comparable peer data center segment operating margins (e.g., AMD Data Center segment) at healthy levels

Where: Intel segment reporting (10-K/10-Q DCAI operating income and revenue) compared to peer disclosures

In context

ectory of the ASP expansion in the Data Center segment. How do I look at that and kind of think about what the normalizing operating profit might look like in DCAI as you guys look out over time? I know that you turned profitable this quarter. I'm just trying to think about -- understand how you guys are thinking about the path of profitability in that segment. David Zinsner: Yes. Maybe I'll start. Pat, feel free to chime in. Obviously, it was, I think, pretty important for us to show profitability this quarter. That was one of Pat and I's goals written on a sheet of paper that we wanted to see this business return to profitability. That said, it's making a lot of investments right now to improve the product portfolio on the CPU side and make the investments necessary on the AI front. But this business longer term should have margins that are very similar to margins you see from its peers when they are operating at healthy levels of margins. And so we have a lot of work to do to get there but I think the path is pretty clear. And of course, ASP will be a component of that but there's a lot of efficiencies that you can drive beyond just ASPs that will improve the margins longer term. Pat Gelsinger: Yes. And as Dave and I think about the 60-40 model that we're driving to long term, we think about the Data Center business being above that for it, where some of the more volume-oriented businesses like client might be a little bit below that. But taken together, that's how we're driving the business. And overall, as we said, we see a lot of margin expansion potential across Data Center, Client, Networking and Foundry as we get back to process leadership and build that business up. I'd also emphasize that as we build our foundry ca

Verify independently

SEC filings for INTC · Claim quote is verbatim from the 2023Q3 earnings call.