Nothing in Intel’s fourth quarter 2024 earnings report resolved some of the biggest questions facing the company, but a couple of items discussed during the Q4 earnings call–one having to do with the company’s GPU roadmap, and the other regarding its long-awaited 18A process technology–deserve to be further highlighted.
Falcon Shores
When it comes to data center AI processing, Intel is still trying to find the right processor for the job. That much was made clear during the call by Intel co-CEO Michelle Johnston-Holthaus, who said the company’s once-hyped Falcon Shores GPU will not see the light of day.
This announcement did not come as a complete surprise to anyone who heard Johnston-Holthaus speak at the Barclay’s investor conference last month, where she did not sound terribly excited about the product.
Alluding to that appearance, she said during the earnings call, “Many of you heard me temper expectations on Falcon Shores last month. Based on industry feedback, we plan to leverage Falcon Shores as an internal test chip only without bringing it to market. This will support our efforts to develop a system-level solution at rack scale with Jaguar Shores to address the AI data center.”
Later on the call, in response to an analyst question, she delved deeper into the decision process, saying, “I think it really comes down to taking the time over the last six weeks to actively engage with the teams, look at our road maps, look at where we are from a competitive perspective and from an execution perspective, and that really resulted in that decision. A lot of conversations with my customers as well in regards to what they see is needed to be competitive and to deliver the right product.”
The inference-focused Jaguar Shores chip previously had been listed as the successor to Falcon Shores, but Johnston-Holthaus that the slow market adoption of Intel’s Gaudi AI accelerator taught the company that “it's not enough to just deliver the silicon. We need to be able to deliver a complete rack scale solution, and that's what we're going to be able to do… with Jaguar Shores. Falcon Shores will help us in that process of working on the system, networking memory, all the component functions of that, but what customers really want is that full-scale rack solution.”
Intel 18A
Another topic much-discussed during the earnings call was Intel’s 18A process technology. That should come as no surprise, as Intel and industry analysts alike have long focused on the importance of the 18A process and its significance as the final piece of the company’s “five nodes in four years” strategy.
Johnston Holthaus outlined this year’s expectations for 18A from a product perspective, saying, “Looking ahead to the rest of the year, we will strengthen our client road map with the launch of Panther Lake, our lead product on Intel 18A, in the second half of 2025. As the first volume customer of Intel 18A, I see the progress that Intel foundry is making on performance and yields, and I look forward to being in production in the second half as we demonstrate the benefits of our world-class design and process technology capabilities.”
She added that as Panther Lake achieves “meaningful volumes” with clients into next year, the company will proceed with its next PC processor, currently code-named Nova Lake.
Of course, 18A also will be key to the future prospects of Intel Foundry, and the unit’s ability to emerge from losses and operational questions to be successful. The other INtel co_CEO, David Zinsner, commented during the earnings call, “Like any new process, there have been puts and takes along the way, but overall, we're confident that we are delivering a competitive process. We're excited by the launch of Panther Lake this year and the internal ramp of Intel 18A in the second half that will support increased volumes and improved profitability in 2026. From the perspective of external customers, Intel 18A is a very competitive offering that gives each of them a reason to engage with us.”
Following the earnings call, Jack Gold, president and principal analyst of J. Gold Associates, observed that for Intel “the 18A process is critical to both their own products as well as being able to make the foundry a viable business. So far they say they are on track, and we should know more in about six months as new volume products come out."
But Johnston-Holthaus, who also is CEO of Intel Products, made clear that Intel Foundry in its move to 18A process, will have to continue to earn its business with the products side of the company. “As CEO of Intel products, I will always make process technology decisions based on what is best for my customers, and Intel foundry will need to earn my business every day, just as I need to earn the business of my customers,” she said. “Having said that, I'm confident in the Intel Foundry team’s ability to support my current and future product road map, and I'm excited to do more business with them as their process technology continues to advance. A stronger Intel product, combined with a more competitive Intel foundry is a recipe for success for Intel overall.”