Corporate
Intel Completes $5.0 Billion Share Sale to Nvidia
•February 18, 2026
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Why It Matters
Intel’s results signal a turning point as AI‑driven demand offsets slowing traditional PC sales, shaping the competitive dynamics of the x86 and foundry markets.
Key Takeaways
- •Q4 revenue $13.7B, down 4% YoY
- •Full‑year revenue $52.9B, flat YoY
- •GAAP EPS loss $0.12; non‑GAAP EPS $0.15
- •Data Center AI revenue grew 5% YoY
- •Intel 18A chips entered high‑volume US production
Pulse Analysis
Intel’s FY 2025 financials illustrate a company in transition. While overall revenue held steady at $52.9 billion, the modest 4% Q4 decline and GAAP earnings loss underscore lingering pressure on legacy PC and server segments. However, the improvement in operating margin to –4.2% (from –22% a year earlier) and a 15% rise in non‑GAAP EPS reflect cost discipline and higher‑margin AI workloads gaining traction. The company’s cash‑flow strength, with $9.7 billion generated in the year, provides flexibility for strategic investments.
Strategically, Intel is leveraging its 18A process—the most advanced U.S.‑based node—to launch the Core Ultra 3 AI PC platform and accelerate high‑volume manufacturing in Arizona and Oregon. Partnerships such as the Cisco Unified Edge solution embed Intel Xeon 6 SoCs into distributed AI workloads, expanding the company’s reach beyond traditional data centers. The $5 billion Nvidia stock sale further bolsters the balance sheet, while the reorganization of its Network and Edge Group sharpens focus on AI‑centric growth.
Looking ahead, guidance for Q1 2026 anticipates revenue between $11.7 billion and $12.7 billion, with GAAP EPS projected at $(0.21). Analysts will watch supply constraints, especially the expected low‑inventory period in Q1, against a backdrop of robust AI demand that could lift margins. Intel’s ability to scale 18A production and capture AI market share will be pivotal for investors seeking exposure to the next wave of high‑performance compute.
Deal Summary
Intel announced the completion of a $5.0 billion sale of its common stock to Nvidia, strengthening its balance sheet and strategic flexibility. The transaction, disclosed in Intel’s Q4 2025 financial results, marks a major corporate investment by Nvidia in the chipmaker.
Article
Source: StorageNewsletter
Generating $52.9 billion, down 0.4% YoY
Press Release edited by StorageNewsletter.com – February 18 2026, 2:11 pm
Summary
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Fourth‑quarter revenue was $13.7 billion, down 4% YoY; full‑year revenue was $52.9 billion, flat YoY (YoY comparisons not adjusted for the deconsolidation of Altera in Q3 2025).
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Fourth‑quarter earnings (loss) per share (EPS) attributable to Intel was $(0.12); non‑GAAP EPS attributable to Intel was $0.15. Full‑year EPS attributable to Intel was $(0.06); non‑GAAP EPS attributable to Intel was $0.42.
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Forecasting Q1 2026 revenue of $11.7 billion to $12.7 billion; expecting Q1 EPS attributable to Intel of $(0.21) and non‑GAAP EPS of $0.00.
Intel Corp. reported fourth‑quarter and full‑year 2025 financial results.
“Our conviction in the essential role of CPUs in the AI era continues to grow,” said Lip‑Bu Tan, CEO, Intel. “We delivered a solid finish to the year and made progress on our journey to build a new Intel. The introduction of our first products on Intel 18A – the most advanced process technology developed and manufactured in the United States – marks an important milestone, and we’re working aggressively to grow supply to meet strong customer demand. Our priorities are clear: sharpen execution, reinvigorate engineering excellence, and fully capitalize on the vast opportunity AI presents across all of our businesses.”
“We exceeded Q4 expectations across revenue, gross margin, and EPS even as we navigated industry‑wide supply shortages,” said David Zinsner, CFO, Intel. “We expect our available supply to be at its lowest level in Q1 before improving in Q2 and beyond. Demand fundamentals across our core markets remain healthy as the rapid adoption of AI reinforces the importance of the x86 ecosystem as the world’s most widely deployed high‑performance compute architecture.”
Q4 2025 Financial Results
| | GAAP 2025 | GAAP 2024 | vs. 2024 | Non‑GAAP 2025 | Non‑GAAP 2024 | vs. 2024 |
|---------------------|-----------|-----------|----------|---------------|---------------|----------|
| Revenue ($B) | 13.7 | 14.3 | down 4% | — | — | — |
| Gross margin | 36.1% | 39.2% | down 3.1 ppts | 37.9% | 42.1% | down 4.2 ppts |
| R&D and MG&A ($B) | 4.4 | 5.1 | down 14% | 4.0 | 4.6 | down 14% |
| Operating margin | 4.2% | 2.9% | up 1.3 ppts | 8.8% | 9.6% | down 0.8 ppts |
| Tax rate | 198.5% | 125.5% | up 73 ppts | 12.0% | 13.0% | down 1.0 ppt |
| Net income (loss) ($B) | (0.6) | (0.1) | n/m* | 0.8 | 0.6 | up 35% |
| EPS (diluted) ($) | (0.12) | (0.03) | n/m* | 0.15 | 0.13 | up 15% |
*Full reconciliations between GAAP and non‑GAAP measures are provided below.
Not meaningful
In the fourth quarter, the company generated $4.3 billion in cash from operations.
Full‑Year 2025 Financial Results
| | GAAP 2025 | GAAP 2024 | vs. 2024 | Non‑GAAP 2025 | Non‑GAAP 2024 | vs. 2024 |
|---------------------|-----------|-----------|----------|---------------|---------------|----------|
| Revenue ($B) | 52.9 | 53.1 | flat | — | — | — |
| Gross margin | 34.8% | 32.7% | up 2.1 ppts | 36.7% | 36.0% | up 0.7 ppts |
| R&D and MG&A ($B) | 18.4 | 22.1 | down 17% | 16.5 | 19.4 | down 15% |
| Operating margin | (4.2)% | (22.0)% | up 17.8 ppts | 5.5% | (0.5)% | up 6.0 ppts |
| Tax rate | 98.3% | 71.6% | up 26.7 ppts | 12.0% | 13.0% | down 1.0 ppt |
| Net income (loss) ($B) | (0.3) | (18.8) | n/m* | 1.9 | (0.6) | n/m* |
| EPS (diluted) ($) | (0.06) | (4.38) | n/m* | 0.42 | (0.13) | n/m* |
*Full reconciliations between GAAP and non‑GAAP measures are provided below.
Not meaningful
For the full year, the company generated $9.7 billion in cash from operations.
Business Unit Summary
In Q1 2025 Intel reorganized the Network and Edge Group (NEX) into CCG and DCAI and adjusted segment reporting accordingly. Effective September 12 2025, Altera was deconsolidated after Intel sold 51 % of Altera’s common stock. Prior‑period segment data have been retrospectively adjusted; no changes to consolidated financial statements for earlier periods.
Business Unit Revenue and Trends
| Business Unit | Q4 2025 | vs. Q4 2024 | 2025 | vs. 2024 |
|---------------|---------|-------------|------|----------|
| Intel Products – Client Computing Group (CCG) | $8.2 B | down 7% | $32.2 B | down 3% |
| Intel Products – Data Center and AI (DCAI) | $4.7 B | up 9% | $16.9 B | up 5% |
| Total Intel Products revenue | $12.9 B | down 1% | $49.1 B | down 1% |
| Intel Foundry | $4.5 B | up 4% | $17.8 B | up 3% |
| All other | $0.6 B | down 48% | $3.6 B | down 1% |
| Intersegment eliminations | $(4.3 B) | — | $(17.7 B) | — |
| Total net revenue | $13.7 B | down 4% | $52.9 B | flat |
Operating segment revenues include intersegment transactions and are presented as actual and rounded; totals may not sum.
Business Highlights
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Intel unveiled the Intel Core Ultra Series 3 processor family – the first AI PC platform built on Intel 18A, designed and manufactured in the United States. It is expected to power more than 200 designs from global OEMs across laptops, gaming handhelds, robotics, and industrial edge devices.
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Intel and Cisco announced a collaboration on an integrated platform for distributed AI workloads. Powered by Intel Xeon 6 system‑on‑chip (SoC), Cisco Unified Edge brings compute, networking, storage, and security closer to data sources for real‑time AI inferencing at the edge. Intel also placed its Data Center and AI businesses under Kevork Kechichian, EVP & GM of the Data Center Group.
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Intel 18A entered high‑volume manufacturing in Arizona and Oregon, reinforcing Intel’s unique position in U.S. advanced semiconductor manufacturing. Intel Foundry and ASML demonstrated technical viability of the most advanced lithography scanner (High‑NA EUV) for future high‑volume production.
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Leadership appointments: Cindy Stoddard (SVP & CIO), Robin Colwell (SVP of Government Affairs), Annie Shea Weckesser (SVP & CMO), and Craig H. Barratt, Ph.D., as an independent board member.
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Completion of the $5.0 billion sale of Intel common stock to Nvidia, strengthening Intel’s balance sheet and strategic flexibility.
Business Outlook
Intel’s guidance for Q1 2026 (both GAAP and non‑GAAP) is:
| | GAAP | Non‑GAAP |
|---------------------|------|----------|
| Revenue | $11.7 – $12.7 billion | — |
| Gross margin | 32.3% | 34.5% |
| Tax rate | (79)% | 11% |
| EPS (diluted) | $(0.21) | $0.00 |
Reconciliations between GAAP and non‑GAAP financial measures are included below. Actual results may differ materially from Intel’s outlook due to factors described in the “Forward‑Looking Statements” section of the original release.
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