Intel's revenue for the fourth quarter declined by 4 percent year-over-year, amounting to $13.7 billion. This figure aligns with prior quarters and slightly exceeds expectations set by Wall Street analysts. The company’s Chief Financial Officer, David Zinsner, highlighted that the demand for server CPUs, particularly from hyperscaler customers, has significantly outpaced expectations, largely driven by the ongoing growth in AI data centers.
Despite this, Intel warned that the surge in AI-related demand could negatively affect the market for PC chips. The non-GAAP earnings per share reached 15 cents, reflecting a 15 percent increase from the previous year, surpassing both analyst expectations and Intel's forecasts. Additionally, the gross margin stood at 37.9 percent on a non-GAAP basis, down from the previous year but still above projections.
Looking ahead, Intel anticipates that CPU shortages will peak in the first quarter, which concludes in late March. The company projects first-quarter revenue to be between $11.7 billion and $12.7 billion, indicating an 11 percent sequential decline. Following the earnings release, Intel's stock fell over 12 percent in after-hours trading, settling at $47.60.