Intel (INTC, Financial) has reported fourth-quarter revenue that surpassed expectations, rekindling investor optimism about the semiconductor giant's potential return to profitability. The Santa Clara-based company achieved Q4 revenue of $14.3 billion, exceeding analyst forecasts. This positive result led to a post-market stock price increase of 2.9%.
Despite this, Intel acknowledges ongoing challenges ahead. The company's latest forecast predicts first-quarter revenue to range between $11.7 billion and $12.7 billion, which falls short of the analyst consensus of $12.85 billion. Intel anticipates breaking even after excluding certain items, whereas the market had expected earnings of 8 cents per share.
Investors are closely monitoring the selection process for Intel's new CEO, as the new leader will shape the company's future direction, including critical decisions such as potential business splits. According to reports, several competitors are considering acquiring all or parts of Intel's business.
Intel's CFO, David Zinsner, mentioned that some customers accelerated demand in the fourth quarter to avoid potential tariff risks, which could lead to a deeper decline in the first quarter. He emphasized the need for caution amid multiple market uncertainties.
