Intel mid-quarter update •Raise TP to $150 on SOTP, citing better-than-expected server CPU (18A) & EMIB yields + foundry client expansion •CPU tailwinds: GPT-6 agentic capabilities expected to boost server CPU demand. •CWF (Clear Wafer Forest): small volume late-2026 → full production 1Q27. Major volume = Diamond Rapids (mid-2027) with stronger SRAM/LPDDR5X + more cores. •NVDA: potential PC cooperation + likely x86 CPU adoption for head-node (Rosa Feynman variant which is with Intel CPU). •Foundry yields improving:
– 18A (Panther Lake) still ~80% in 2Q26
– Larger server CPU (CWF) yields up to ~50% (from ~20% in June) •Capacity reiterated: 40/60/80 KPM (18A) and 0/6/24 KPM (14A) by end-2026/27/28. •Foundry Projects advancing: Terafab cooperation + HBM base die (likely 2029 for 2 major suppliers). •Backend pipeline robust ($1.1bn/$7bn rev 2027E/2028E). •EMIB/substrate yields tracking ahead of market concerns: Japanese suppliers already at ~45% (from 20–25% in 2Q), targeting >50% by end of Sept and ~55% in Jan. @INTC #EMIB# #HBM#