Intel issued disappointing quarterly guidance on Thursday, but reported earnings and revenue that topped estimates. Shares were up 3% after hours.
Here’s how the company did in the fourth quarter compared with LSEG estimates:
Earnings per share: 13 cents adjusted vs. 12 cents expected
Revenue: $14.26 billion vs. $13.81 billion expected
Intel’s revenue declined for a third straight quarter, decreasing 7% from a year earlier, according to a statement. The company’s net loss for the quarter totaled $126 million, or 3 cents per share, compared with net income of $2.67 billion, or 63 cents per share, in the same quarter a year ago.
It’s the chipmaker’s first earnings report since announcing the departure of Pat Gelsinger as CEO. Gelsinger, who took the help in CEO, had a brutal tenure, giving up market share to competitors and falling way behind in the artificial intelligence race while committing billions of dollars for manufacturing plants.
Intel appointed two interim co-CEOs, finance chief David Zinsner and Intel Products CEO Michelle Johnston Holthaus, to succeed Gelsinger.
“Dave and I are taking actions to enhance our competitive position and create shareholder value,” Johnston Holthaus was quoted as saying in Thursday’s release.
The search for a new CEO is progressing, but there’s nothing new to report, Zinsner said on a conference call with analysts.
Johnston Holthaus said the company has decided to only use its planned Falcon Shores artificial intelligence processor for servers as a test chip and won’t be selling it, based on industry feedback. In 2023 Intel said it would focus on Falcon Shores after canceling its Rialto Bridge graphics processing unit for servers.
Intel will now focus on a product called Jaguar Shores “to address the AI data center more broadly,” she said.
Adjusted results exclude stock-based compensation, acquisition-related adjustments and interest on an annulled fine from the European Commission.
Intel said it will report breakeven profit for the first quarter, with revenue of between $11.7 billion and $12.7 billion. The LSEG consensus was $12.87 billion in revenue and 9 cents in adjusted earnings per share.
Management pointed to seasonality, economic conditions and competition, and said clients are digesting inventory. The prospect of tariffs adds to the uncertainty, Zinsner said.
Intel’s Client Computing Group, which sells PC chips, produced $8.02 billion in revenue in the fiscal fourth quarter. Revenue was down 9% year over year but above the $7.84 billion consensus among analysts polled by StreetAccount.
“While difficult to quantify, we suspect a portion of Q4 revenue upside was due to customers hedging against potential tariffs,” Zinsner said.
The Data Center and Artificial Intelligence segment, which provides processors to cloud providers and corporate server farms, generated $3.39 billion in revenue. That was down 3% and inline with StreetAccount’s $3.38 billion consensus.
Intel’s Network and Edge unit contributed $1.62 billion in revenue, up 10% and above the $1.5 billion consensus from StreetAccount.
During the quarter, Intel finalized a $7.86 billion U.S. government grant to support manufacturing in four states.
The company expects volume chip production based on its 18A process technology in the second half of 2025, according to a presentation. Next-generation laptop chips carrying the code name Panther Lake will launch in the second half of the year, Intel said.
In October, CNBC reported that Intel was looking to sell at least a minority stake in Altera, its business that sells field-programmable gate array chips. Intel acquired Altera for $14.5 billion in 2015.
“We are, you know, far along on the process of Altera,” Zinsner said. “I suspect that by the time we get to earnings next, next quarter, we’ll have something to say there that will help generate some cash that we can use to to deliver.”
Before Thursday’s close Intel shares were down 1% for the year, while the S&P 500 index was up about 3%.
Ben Powell, chief strategist for Middle East and Asia Pacific at BlackRock Investment Institute, during a Bloomberg Television interview at the Abu Dhabi Finance Week (ADFW) conference in Abu Dhabi, AD, United Arab Emirates, on Monday, Dec. 9, 2024.
Bloomberg | Getty Images
The wave of capital pouring into artificial intelligence infrastructure is far from peaking, said Ben Powell, chief investment strategist for APAC at BlackRock, arguing the sector’s “picks and shovels” suppliers — from chipmakers to energy producers and copper-wire manufacturers — remain the clearest winners as hyperscalers race to outspend one another.
The surge in AI-related capital expenditure shows no sign of slowing as tech giants push aggressively to secure an edge in what they see as a winner-takes-all contest, Powell told CNBC Monday on the sidelines of the Abu Dhabi Finance Week.
“The capex deluge continues. The money is very, very clear,” he said, adding that BlackRock is focused on what he called a “traditional picks and shovels capex super boom, which still feels like it’s got more to go.”
AI infrastructure has been one of the biggest drivers of global investment this year, fueling a broader market rally, even as some investors question how long the boom can last.
Nvidia, whose GPU chips are the backbone of the AI revolution, became the first company to briefly surpass $5 trillion in market capitalization amid a dizzying AI-fueled market rally that sparked talk of an AI bubble.
The build-out has set off long-term procurement efforts across the tech sector, from chip supply agreements to power commitments. Grid operators from the U.S. to the Middle East are racing to meet soaring electricity demand from new data centers. Companies, including Amazon and Meta, have budgeted tens of billions of dollars annually for AI-related investments.
S&P Global estimates data-center power demand could nearly double by 2030, mostly driven by hyperscale, enterprise and leased facilities, along with crypto-mining sites.
‘Dipping toes into credit market’
Powell also noted that leading tech firms have only begun to tap capital markets to fund the next phase of AI expansion, suggesting additional capital is on the way.
“The big companies have only just started dipping their toes into the credit markets… feels like there’s a lot more they can do there,” he said.
The “hyperscalers” are behaving as if coming second would effectively leave them out of the market, Powell said. That mindset, he added, has pushed firms to accelerate spending even at the risk of overshooting.
Much of that capital, Powell noted, is likely to flow to the companies powering the AI build-out rather than model developers, reinforcing a growing view among global investors that the most durable gains from the AI boom may lie in the hardware, energy and infrastructure ecosystems behind the technology.
“If we’re the recipients of that cash flow, I guess that’s a pretty good place to be, whether you’re making chips, whether you’re making energy all the way down to the copper wiring,” Powell noted, expecting “positive surprises driving those stocks in the year ahead.”
Netflix’s headquarters are pictured in Hollywood, California on December 5, 2025.
Patrick T. Fallon | Afp | Getty Images
“Who’s watching?” Netflix asks whenever someone accesses its site. On Friday, it was probably everyone with an interest in business, markets and television.
The key characters that had people hooked were Netflix and Warner Bros. Discovery, which jointly announced that the streaming giant will acquire the latter’s film studio and streaming service, HBO Max. The equity deal value is pegged at $72 billion.
Netflix investors did not seem too jazzed about the deal, with shares dropping 2.89% on the sheer size of the transaction.
“Look, the math is going to hurt Netflix for a while. There’s no doubt,” Rich Greenfield, co-founder of LightShed Partners, told CNBC. “This is expensive,” he added.
But if one side is paying a lot, that means the other is receiving a bounty. Indeed, investors cheered the potential Warner Bros. Discovery windfall, sending the stock up 6.3% on the news.
It is not a done deal yet, and faces regulatory scrutiny. U.S. President Donald Trump said he would be involved in the decision, Reuters reported Monday, after a senior official from the Trump administration told CNBC’s Eamon Javers on Friday that they viewed the deal with “heavy scepticism.”
Despite this initial show of resistance, stranger things have happened in this administration, and the transaction might eventually go through. We may as well get ready for Netflix’s next blockbuster: “The K-Pop Demon Hunters’ Song of Ice and Fire”?
What you need to know today
U.S. stocks had a positive Friday. The S&P 500 clocked its ninth winning session in 10 and rose 0.3% for the week. Asia-Pacific markets traded mixed Monday. Japan’s Nikkei 225 ticked up even as data showed the country’s economy shrinking more than expected in the third quarter.
Netflix to buy Warner Bros. Discovery’s film and streaming businesses. The total equity value of the deal is $72 billion, announced the two companies Friday. But the transaction could run intoregulatory hurdles.
China’s exports grow more than expected. In U.S. dollar terms, shipments in November jumped 5.9% year on year, outstripping the 3.8% increase estimated in a Reuters poll and returning to growth from October’s 1.1% drop. But U.S.-bound exports plunged 28.6%.
A Ukraine peace deal is ‘really close.’ That’s according to Keith Kellogg, the U.S. special envoy for Ukraine, who reportedly said Saturday that there were two key outstanding issues: the future of Ukraine’s Donbas region and its Zaporizhzhia nuclear power plant.
[PRO] Have $1 million to invest? The current investment landscape might look volatile. But veteran strategists suggest that the path forward is more straightforward than it seems, advising how they would craft a $1 million portfolio.
And finally…
A construction workers paints an eagle on the Marriner S. Eccles Federal Reserve Board Building, the main offices of the Board of Governors of the Federal Reserve System, on Sept. 16, 2025 in Washington, DC.
Elon Musk has called for the European Union to be abolished after the bloc fined his social media company X 120 million euros ($140 million) for a “deceptive” blue checkmark and lack of transparency of its advertising repository.
The European Commission hit X with the ruling on Friday following a two-year investigation into the company under the Digital Services Act (DSA), which was adopted in 2022 to regulate online platforms. At the time, in a reply on X to a post from the Commission, Musk wrote, “Bulls—.”
On Saturday he stepped up his criticism of the bloc. “The EU should be abolished and sovereignty returned to individual countries, so that governments can better represent their people,” he said in a post on X.
Musk’s comments come as top U.S. government officials have also intensified their opposition to the decision.
Secretary of State Marco Rubio called the fine an “attack on all American tech platforms and the American people by foreign governments,” in a post on X on Friday.
“Today’s excessive €120M fine is the result of EU regulatory overreach targeting American innovation,” said Andrew Puzder, the U.S. ambassador to the EU, on X on Saturday.
“The Trump Administration has been clear: we oppose censorship and will challenge burdensome regulations that target US companies abroad. We expect the EU to engage in fair, open, & reciprocal trade — & nothing less.”
Last week, the Commission said breaches included “the deceptive design of its ‘blue checkmark,’ the lack of transparency of its advertising repository, and the failure to provide access to public data for researchers.”
“With the DSA’s first non-compliance decision, we are holding X responsible for undermining users’ rights and evading accountability,” said Henna Virkkunen, executive vice president for tech sovereignty, security and democracy, at the time.
X now has 60 days to inform the Commission of plans to address the issues with “deceptive” blue checkmarks. It has 90 days to submit a plan to resolve the issues with its ads repository and access to its public data for researchers.
“Failure to comply with the non-compliance decision may lead to periodic penalty payments,” the Commission said in a statement.
X.ai, the company which owns X, and the Commission have been approached for comment. oh
