Intel Faces Strategic Crossroads After Leadership Shakeup and Mixed Earnings

The chipmaker beats Q4 estimates but warns of challenges ahead, as investors await clarity on its CEO search and future direction.

Intel reported Q4 2024 revenue of $14.3 billion and earnings per share of $0.13, both slightly exceeding analyst expectations but reflecting a year-over-year decline.
The company lowered its Q1 2025 revenue guidance, citing seasonal weakness, macroeconomic uncertainties, and competitive pressures in key markets like data centers and AI chips.
Intel's search for a new CEO dominates investor focus after the ousting of Pat Gelsinger, with interim co-CEOs Michelle Johnston Holthaus and David Zinsner leading the company temporarily.
Analysts remain cautious about Intel's turnaround efforts, highlighting ongoing market share losses to AMD and Nvidia in critical segments and questioning the viability of its foundry business.
Despite challenges, Intel continues to invest heavily in manufacturing and process technology, with its nascent foundry business aiming to generate significant external revenue by 2027.