Chipmaker Intel beats revenue expectations amidst Q4 loss

Core Insights - Intel reported a net loss of $126 million for Q4 2024, a significant decline from a profit of $2.67 billion in the same quarter last year, with revenue down 7% to $14.3 billion, although this was slightly better than analysts' expectations [2][3] - For the full year 2024, Intel's net loss reached $18.8 billion, compared to a profit of $1.7 billion in 2023, primarily due to restructuring charges and challenging market conditions [3] - The company's share price increased by 2% in after-hours trading following the earnings release, indicating a positive market reaction despite the losses [2] Company Performance - Intel's Client Computing Group, which includes PC chips, experienced a 9% revenue decline to $8 billion in Q4, but there was strong momentum in AI components for personal computers, with plans to ship over 100 million AI PCs by the end of 2025 [10] - Interim co-CEO Michelle Johnston Holthaus emphasized that the fourth quarter showed positive developments, with revenue, gross margin, and EPS exceeding guidance [6] - The company is exploring opportunities to leverage its existing chips and assets to compete against premium Nvidia GPUs, particularly in the AI sector [9] Leadership and Strategic Changes - Intel's CEO Pat Gelsinger was ousted due to a loss of confidence from the board regarding his turnaround plans, coinciding with a significant job cut plan affecting over 15,000 positions [4][5] - The company is currently in search of a permanent CEO following Gelsinger's departure [11] - Intel's market valuation has dropped significantly, with shares falling 60% last year, now valued at approximately $90 billion, a stark contrast to Nvidia's market position [5] Market Context - Intel faces intense competition from Asian semiconductor giants like TSMC and Samsung, as well as from Nvidia, which has emerged as a leader in AI chip production [4] - The company is optimistic about potential collaborations with the new U.S. presidential administration to promote domestic chipmaking [10]