“At the consolidated level, we expect gross margin to improve from Q1.”

In context

“easing competition. These mitigating factors support a more-tempered revenue outlook as we come into the new year. As a result, we are forecasting a revenue range of $11.7 billion to $12.7 billion in the first quarter of 2025, down between 11% to 18% sequentially. Within Intel Products, we expect revenue to decline across all three of our segments at roughly similar rates. We expect Intel Foundry revenue roughly flat to down modestly quarter-over-quarter helped by continued mix shift to EUV wafers, Intel 18A samples and advanced packaging. At the midpoint of $12.2 billion, we expect gross margin of approximately 36%, with a tax rate of 12% and break-even EPS, all on a non-GAAP basis. Let me take a few moments to provide some commentary that may be helpful for your full-year 2025 modeling. At the consolidated level, we expect gross margin to improve from Q1. Intel Products gross margin was 51% in 2024 and is expected to decline this year due to product mix in both CCG and DCAI. Intel Foundry gross margin will improve on EUV mix shift and growth in advanced packaging despite expected depreciation growth in 2025 of roughly 10%. We continue to target 2025 OpEx of $17.5 billion with further reductions in 2026. We expect non-controlled income, or NCI, to net to roughly zero in Q1 and be in a range $500 million to $700 million impact this year, on a GAAP basis. NCI is expected to grow in fiscal year 2026 to a range of $1.2 billion to $1.4 billion, on a GAAP basis, and increase further in future years, as we increase wafer outs at our fabs where we have agreements with SCIP partners. We anticipate that our 2025 gross capital investments will be appr”