Intel reports Q4 beats on top and bottom line, stock rises on foundry revenue prospects

On By Littum

Intel (Intc) announced its earnings in the fourth quarter Thursday and beat estimates on top and bottom line, but came short on Q1 guidance. The company still said that its new foundry business is expected to produce meaningful external revenue by 2027.

Intel shares rose 1% after the report.

The report is Intel’s first since the exposed CEO Pat Gelsinger over frustrations related to his huge reversal plan for the company.

Intel is currently being led by Co-Ceo’s David Zinsner, who also serves as CFO, and Michelle Johnston Holthaus, also CEO of Intel Products. The company is still searching for a permanent CEO to take the reins and try to revive the tipped chipmaker.

For the quarter, Intel reported earnings per Share (EPS) of $ 0.13 on a turnover of $ 14.3 billion. Analysts expected EPS of $ 0.12 on a turnover of $ 13.8 billion. The company saw EPS at $ 0.54 and $ 15.4 billion in revenue in the same quarter last year.

However, Intel said it expects revenue between $ 11.7 billion and $ 12.7 billion in the current quarter. Analysts were looking for $ 12.85 billion. Adjusted gross margins are also set to get into 36%, below the expected 39% Wall Street.

The Intel share is down with a staggering 54% over the past 12 months and reported the biggest quarterly loss in its history last quarter. However, Intel is not the only chipmaker to hurt. Rival AMD (AMD) is down by 36% over the past year. NVIDIA (NVDA) continues on the other side of winning steam and rising 93% in the last year, despite having suffered a massive Rout on Monday on the back of worries related to China’s Deepseek AI.

Intel’s still Nascent Foundry business, which both produces chips for Intel and is designed to act as a contract manufacturer for third parties, remains a feature of its total income despite announcing agreements to build chips for Amazon’s (Amzn) AWS and Microsoft (MSFT). The Intel Foundry business brought $ 4.5 billion in line with expectations.

Intel’s client calculation company, which includes chips for PCs, saw a $ 8 billion revenue versus $ 7.8 billion expectations, while its data center business peaked at $ 3.39 billion. Wall Street was looking for a $ 3.37 billion revenue.

Intel is working to build new facilities to investigate and construct chips all over the United States, but the company is dealing with a relatively flat PC market despite promises that AI -PCs would help bend the space by 2024.

According to IDC, PC shipments rose only 1% in 2024, and there is still plenty of uncertainty around 2025.

“The overall macroeconomic concerns seem to overshadow some of the progress and excitement around AI -PCs,” Ryan Reith, Group President with IDC’s worldwide unit trackers said in a statement.