Intel Corporation (INTC) Earnings Call Transcript & Summary

That's the power of 11th Gen Core paired with AI.

Awesome. Thanks, Chuck. No matter what the distraction might be, your device can use AI to identify your voice or the voice of your conference call participants so you can stay focused. Now to my favorite part. What's amazing about 11th Gen Core is you don't need to compromise. We're not just the best at one thing. We're the best at everything you do most: creating, collaborating and ultra portable gaming. Here, we have GRID running on the 3 best graphics solutions in the thin and light segment: AMD's 4800U-based system with integrated graphics, our 11th Gen Core processor with integrated Iris Xe graphics and a system with NVIDIA's MX350 discrete card paired with a 10th Gen Intel processor. If you look at the frame per second counter in the upper corner of each screen, you can see that AMD is doing okay with about 35 FPS, while the system with NVIDIA's discrete level card is hovering at around 30 FPS, which is barely playable. But our Iris Xe graphics paired with the 11th Gen core is well into the 55 FPS range. That's up to a 66% better performance on Intel. Now let's switch gears, pun intended, into a different style of gameplay called Gears Tactics from our friends at Microsoft, The Coalition. To remain consistent, we once again have AMD, NVIDIA and our very own 11th Gen Core. Let's see how this game plays out. This time, AMD is fairly playable. NVIDIA is measuring in the high 40 FPS range, and our system is again running at about 55 FPS. It's incredible to see the difference. As you can see, we built the best processor: a processor with compute power to unlock new experiences, things previously unimaginable in these types of thin and light devices. Back to you, GB.

Pretty incredible, right? To quickly recap what you just saw, the 11th Gen Intel Core processor delivered the best creation experience by leveraging built-in AI to accelerate creator workflows up to 2.7x and the best ultra portable gaming experience, giving users up to 2x higher frame rates on popular games like Gears Tactics and demanding games like PUBG that are finally playable on ultrathin and light devices at 1080p. And in a world where we're all relying heavily on digital collaboration, we're delivering a built-in AI engine for more immersive video conferencing solutions like background blur and noise removal but at much lower power. Yes, we know there's even more we can do to transform the PC experience, and that's why we created the Project Athena innovation program. So here to share more on that program is our Corporate Vice President of Mobile Computing, Chris Walker.

Thanks, GB. Last year, we set out a mission to deliver the world's most advanced laptops through our multiyear innovation program, Project Athena. This program is a true industry first. With Project Athena, we're partnering with the entire ecosystem to innovate beyond the CPU, improving almost every technology that is integrated into the PC platform. This includes board, component and cooling design technology, enabling miniaturization that allows us to deliver new form factor designs with better performance and battery life; edge-to-edge displays with compact antennas, meaning strong connectivity in all modes from laptops to 2-in-1s; WiFi 6 at gig-plus speeds, providing best-in-class wireless connectivity with enhanced reliability; Thunderbolt 4, a fast, versatile port for single-cable connectivity; and intelligent performance throughout, harnessing the power of AI. Project Athena is more than just technology innovation. We've rooted the program in thousands of hours of firsthand research, deeply engaging with laptop users and go-getters across the world to develop people-first performance and capabilities. This has helped Intel achieve an accelerated pace, creating the best laptops that help people do wonderful things. We cannot do this alone. We're proud that more than 150 partners are now part of the program. This includes component vendors, ISVs, OS partners, ODMs and OEMs. And as a result of this collaboration, we delivered to date more than 50 verified designs to the first specification across Windows and Chrome. These devices span consumer and commercial, from partners including Acer, ASUS, Dell, HP, Lenovo and Samsung. And we're not stopping here. With today's launch of our 11th Gen Core processor, I'm thrilled to announce the next edition of our Project Athena-based laptops, designs tested and verified under an intensified methodology based on true-to-life key experience indicators of uses and applications, taking those use insights into 25 performance and responsiveness tests in all; experiences that reflect how we use our laptops every day; responsiveness while using WiFi; performance when running on battery, not just plugged in, all while multitasking, logged into your multiple cloud-based accounts, toggling across creating, collaborating, streaming and browsing apps. So when people purchase a laptop verified to meet the second-edition Project Athena specs, they can have confidence that it delivers altogether consistent responsiveness whether plugged in or on battery, waking in less than a second like this Lenovo Yoga 9i, 9 hours or more of battery life in typical real use and screen brightness with laptops featuring full HD displays like this amazingly thin HP Specter. And when you need to go longer, fast charging delivers 4 hours of charge in less than 30 minutes. Finally, every system is guaranteed to deliver Thunderbolt 4, WiFi 6 and high-quality audio and video subsystems for great connectivity and collaboration experiences. With the stunning performance of the 11th Gen Intel Core processor and through the Project Athena program and industry-wide cooperation, we've delivered the best laptops available, the laptop evolved. It's all about what our technology can do for people. To provide a glimpse of this experience in action, we're excited to introduce one of the world's most famous producers and DJs whose Intel-based laptop is essential for his everyday life and his music. Welcome, Diplo. [Presentation]

Project Athena is driving the innovation the PC industry needed and people demanded. By pairing top engineers at Intel with partners from across the ecosystem to innovate and deliver PC platforms with the industry's most advanced components and technologies, we can guarantee the most advanced PC experiences available on the market. Add to this the power and performance of our 11th Gen core processors, and you get something truly special. Ksenia's back to show you.

First, let's talk about PC gaming, one of today's fastest-growing segments with more than 1.2 billion gamers worldwide. As you saw earlier, systems powered by 11th Gen Intel Core allow you to seamlessly transition from work to play. With advanced integrated Iris Xe graphics, Emmy is achieving up to 60 frames per second while honing her skills. A couple of years ago, playing popular eSports games on laptops like this was nearly impossible. And sharing and streaming with your friends was simply unheard of, but with the 11th Gen Intel Core-powered devices, gamers can now game, stream and record. Emmy's dad is using the latest laptop from the competition. She knows peak PC performance is the key to victory, and the 11th Gen Intel Core processor delivers. Let's look at their streams. You can see how fluid and smooth the stream is on Emmy's system, while the competition can't keep up despite having more cores. Simply incredible. So whether you're playing the hottest new title or gaming and streaming in high-stakes eSports games, our new 11th Gen Core processor delivers the best gaming experience on a thin and light laptop. Next, let's talk about how PCs can help us stay productive, especially in today's environment. Veronica is a college student who spends the most of her day studying or in class. So features like longer battery life and blazing-fast connectivity are essential. She's also benefiting from up to 22% faster web browsing, gen over gen, helping her easily navigate multiple tabs and applications all at once. And with Project Athena-based devices, we deliver far more, like a 4-hour charge in less than 30 minutes, narrow bezels delivering 12- to 15.6-inch touch displays, precision touch pads, pen and voice capabilities and more. These features make it easy to work anywhere you like and never miss a beat. Every Project Athena-based laptop wakes in less than a second so you can get right back to work and stay focused and productive. And finally, these laptops are for content creators, too. Like Nick, he wants to use some 4K footage he captured. Since he's using one of the latest Project Athena-based devices, he's confident in his battery life lasting long enough for his trip. And when he gets home, his laptop transforms into a serious workstation. With a single Thunderbolt 4 cable, he can connect to multiple 4K monitors, each at 60 hertz with HDR capability, along with an attached high-speed drive delivering speeds of up to 40 gigabits per second, and with generational improvements of up to 80% faster for Auto Reframe. That's enough power and performance to inspire anyone's creativity. We know that people aren't trying to use their PCs. They're trying to get something done. And our job is to build technology that doesn't get in their way. That's why we're so excited about these new devices. Best of all, these PCs are launching on ultrathin and ultralight design. Take a look. [Presentation]

Project Athena-based laptops powered by the 11th Gen Core processor pair powerful platforms with industry-leading performance. These devices set the bar and deliver real-world experiences that were purposely designed with the end user in mind, a person who relies on their laptop to help them achieve their goals through creating, connecting and more. And now that we've delivered that PC experience that rises to the occasion, we want to make it more easily recognizable. And with that, our Chief Marketing Officer, Karen Walker, is here to share our plans.

Hi, everyone. I am so happy to be here with you to celebrate this moment. As GB and Chris just shared, we are delivering dramatically new technology and experiences with our 11th Gen Intel Core and Project Athena innovation program. These advancements are not just steps. They are leaps resulting from a new approach to engineering. With 11th Gen Core and Project Athena, we have set a bar for laptop experiences that allows people to get things done without compromise. Separately, the impact of 11th Gen Core and Project Athena are profound. But together, they are exceptional, so exceptional that they deserve their own platform brand. Today, I'm thrilled to introduce Intel Evo. Intel Evo is something entirely new. It starts with a product foundation, 11th Gen Core, and then we layer on thousands of hours of coengineering work via Project Athena. The result is Evo. You'll see the Intel Evo brand come to life through a fabulous new campaign that we're launching this fall with our global partners. But we're not only adding a new platform brand to the family. We're celebrating a new era for Intel, an era that signaled it was time to embrace and celebrate the future of our iconic brand. Intel has only had 2 major brand transitions in its entire history, the first in 1969 and again in 2006, and we strategically chose those times to represent pivotal moments in our history. And today, we're doing it again. Say hello to the new Intel. You've already seen some of the key elements of our modernized look, the new Intel logo, and hopefully, you're liking it. Our new look represents our role as a catalyst for technology that moves the world forward. We want our new brand to serve as an indicator to our customers and partners that they can count on Intel to deliver leadership and drive the industry forward. And as you can see around me, from Xeon to Core, to everything in between, our entire portfolio of products is getting an updated look. I am so excited for the future of Intel as I believe we will continue to deliver world-changing technology that enriches the lives of every person on this planet because all you need is an idea, an Intel Inside to go do something wonderful. GB, I'll pass it back to you to close out the show.

Thanks, Karen. What you really see here today is the breadth, scale and commitment of Intel to lead the industry forward. Only Intel has the unmatched assets to do this, thousands of world-class engineers who touch thousands of designs annually and develop hundreds of patents. Pair that with a strong ecosystem partnership, and the result, we're able to deliver new experiences that were previously unimaginable. Now I opened this event with a promise to show you and prove to you how we're advancing the PC platform and bringing new experiences to life. We did this with the launch of the 11th Generation Core, the best CPU for thin and light laptops. We did this with the launch of the second generation of Project Athena, now represented by Intel Evo, a badge that signifies the most advanced laptops available in the market. And now that we've delivered the technology, it's your turn to go out and do something wonderful.