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In the latest quarter, Intel faced a drop in sales alongside a net loss, as the US-based chipmaking giant works to recover after upheaval led to the departure of CEO Pat Gelsinger last year.
The company, headquartered in Silicon Valley, announced that its revenues slid 7% year-over-year in the fourth quarter, settling at $14.3 billion. Additionally, it reported a net loss of roughly $126 million, a stark contrast to the $2.7 billion profit it secured during the same period the previous year. Market analysts had predicted a fourth-quarter loss around $838 million on revenue of $13.8 billion.
David Zinsner, who is currently serving as interim co-CEO and chief financial officer, commented, “The cost-cutting strategy we implemented last year is positively impacting our company’s trajectory. We’re instituting a culture focused on efficiency while aiming for enhanced returns on our invested capital and better profitability.”
Intel is actively on the lookout for a new CEO who can help steer the company back to stability. Gelsinger had to step down in December after four years in the role, as investor trust dwindled over his strategy to transform the company into a customer-oriented chip manufacturing entity. This transition comes after Intel reported a historic loss of $16.6 billion in the third quarter of 2024, marking its largest quarterly loss ever.
Looking ahead, Intel’s sales and profit forecasts for the first quarter of 2025 fell below Wall Street’s expectations. The company estimated its revenue to range between $11.7 billion and $12.7 billion for the current quarter, missing the average analyst prediction of $12.9 billion.
Following this announcement, Intel’s stocks saw a slight increase of about 2% during after-hours trading in New York.
