INTC · 10-K · 2025A · Full report
DCAI Pricing and Competition
INTEL CORP · 2026-01-23 · Importance 41 · Surprise 32
Server ASPs decreased 4% in 2025 due to pricing actions taken primarily in the first half of the year and a higher mix of lower core-count products, both reflecting a competitive data center environment. ASPs improved in the second half of 2025 as demand strengthened, partially offsetting the earlier pricing pressure. DCAI operating income improved year-over-year, helped by lower operating expenses from headcount reductions and lower Gaudi inventory-related charges. However, Q4 2025 server revenue was constrained by wafer fabrication supply limitations on Intel 7 and Intel 3 nodes, affecting competitiveness and fulfillment.
Key facts
- DCAI server ASPs decreased by 4% from 2024, primarily due to pricing actions taken in first half of 2025 and higher mix of lower core count products.
- DCAI benefited from lower 2025 Gaudi AI accelerator inventory-related charges relative to 2024.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | negative | realized | — | DCAI server ASPs decreased by 4% from 2024, primarily due to pricing actions taken in first half of 2025 and higher mix of lower core… |