October DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsClean PCRecommendedOne scan can reveal what keeps slowing WindowsLook for cleanup and repair opportunities.Run ScanOctober DealsAmazon USDeal season is back - check today's better picksAmazon US: current deals, useful picks and tech finds.See Picks×
Skip to content
The Finance Base
AI PCs

Intel Revenue Falls 7% to $14.3 Billion as PC Sales Weaken and Turnaround Faces New Test

Intel beat its own Q4 guidance, but revenue still fell 7% to $14.3 billion. Lower PC sales, a 39.2% gross margin and weak Q1 guidance kept pressure on the turnaround.

By TheFinanceBase Team 5 min read
Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Intel’s fourth-quarter 2024 revenue fell 7% year over year to $14.3 billion, from $15.4 billion a year earlier. The quarter ending December 28, 2024, was better than Intel’s own guidance, but it was not a clean recovery: Intel reported a GAAP loss, sharply lower gross margin and a weak first-quarter 2025 forecast of $11.7 billion to $12.7 billion.

What Intel reported for Q4 2024

Intel released its fourth-quarter and full-year results on January 30, 2025. Full-year revenue was $53.1 billion, down 2% from 2023.

Measure Q4 2024 Comparison or context
Revenue $14.3 billion Down 7% from $15.4 billion in Q4 2023
GAAP diluted EPS $(0.03) Loss attributable to Intel
Non-GAAP diluted EPS $0.13 Adjusted result using Intel’s non-GAAP measures
GAAP gross margin 39.2% Down from 45.7% in Q4 2023
R&D plus marketing, general and administrative expense $5.1 billion Down 9% year over year on a GAAP basis

The GAAP and non-GAAP EPS figures are not interchangeable. GAAP follows standard accounting rules, while Intel’s non-GAAP figure excludes items defined in its reconciliation. The headline loss was approximately $100 million, or $(0.03) per diluted share.

Was this a bad quarter?

The answer depends on the benchmark. Interim co-CEOs Michelle Johnston Holthaus and David Zinsner said revenue, gross margin and EPS were above Intel’s fourth-quarter guidance. That is a positive variance against the company’s forecast.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
#1 Best Overall
Sale
Intel® Core™ Ultra 9 Processor 285K 24 cores (8 P-cores + 16 E-cores) up to 5.7 GHz
  • Get ultra-efficient with Intel Core Ultra desktop processors that improve both performance and efficiency so your PC can run cooler, quieter, and quicker.
  • Core and Threads 24 cores (8 P-cores plus 16 E-cores) and 24 threads. Integrated Intel Graphics included
  • Performance Hybrid Architecture Integrates two core microarchitectures, prioritizing and distributing workloads to optimize performance
  • Performance Unlocked Up to 5.7 GHz unlocked. 40MB Cache
  • Compatibility Compatible with Intel 800 series chipset-based motherboards

Against the prior year, however, Intel was still contracting. Revenue declined 7%, gross margin fell 6.5 percentage points, and the company posted a GAAP loss. A guidance beat therefore does not mean revenue grew or that profitability had recovered.

Which businesses drove the result?

Client Computing Group: $8.017 billion, down 9%

Client Computing Group (CCG), Intel’s largest operating product segment in the quarter, generated $8.017 billion. The decline reflected continued PC-market pressure, competitive dynamics and inventory normalization. Intel promoted its AI PC roadmap at the same time, but that strategy had not yet reversed the segment’s year-over-year decline.

Data Center and AI: about $3.4 billion, down about 3%

Data Center and AI (DCAI) revenue was approximately $3.4 billion, down about 3%. The decrease was less severe than CCG’s, but it showed limited momentum in a strategically important market benefiting leading accelerator suppliers. It does not establish that Intel’s entire data-center business was collapsing; it does show that Intel was not capturing that expansion at the same pace as the market’s leading AI-infrastructure vendors.

Rank #2
Intel® Core™ i7-14700K New Gaming Desktop Processor 20 cores (8 P-cores + 12 E-cores) with Integrated Graphics - Unlocked
  • Game Without Compromise. Play harder and work smarter with Intel Core 14th Gen processors
  • 20 cores (8 P-cores plus 12 E-cores) and 28 threads. Integrated Intel UHD Graphics 770 included
  • Up to 5.6 GHz with Turbo Boost Max Technology 3.0 gives you smooth game play, high frame rates, and rapid responsiveness
  • Compatible with Intel 600-series (with potential BIOS update) or 700-series chipset-based motherboards
  • DDR4 and DDR5 platform support cuts your load times and gives you the space to run the most demanding games

Network and Edge: about $1.6 billion, up about 10%

Network and Edge revenue increased approximately 10% to about $1.6 billion. That made the group a relative bright spot, although one growing segment was not enough to offset declines in Intel’s larger businesses or the company’s margin pressure.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Intel Foundry: $4.5 billion segment revenue

Intel reported approximately $4.5 billion of Intel Foundry revenue in the quarter, down 13%, and approximately $17.5 billion for full-year 2024. The quarter included $4.3 billion of intersegment eliminations; the full-year figure included $17.2 billion of eliminations.

Foundry segment revenue is not directly comparable with Intel’s $14.3 billion consolidated revenue. Foundry disclosures include activity between Intel businesses, and those internal transactions are removed from consolidated results. Adding segment figures will therefore not reproduce company revenue.

Rank #3
Intel® Core™ Ultra 7 Desktop Processor 265 20 cores (8 P-cores + 12 E-cores) up to 5.3 GHz
  • 20 cores (8 P-cores + 12 E-cores) and 20 threads. Integrated Intel Graphics included
  • Performance hybrid architecture integrates two core microarchitectures, prioritizing and distributing workloads to optimize performance
  • Up to 5.3 GHz. 36 MB Cache
  • Compatible with Intel 800 series chipset-based motherboards
  • Turbo Boost Max Technology 3.0, and PCIe 5.0 & 4.0 support. Intel Optane Memory support. No thermal solution included

Why was first-quarter guidance so weak?

Intel forecast first-quarter 2025 revenue of $11.7 billion to $12.7 billion, GAAP diluted EPS of $(0.27) and non-GAAP diluted EPS of $0.00. Management cited several overlapping pressures:

  • Normal first-quarter seasonality
  • Macroeconomic uncertainty
  • Additional inventory digestion
  • Competitive dynamics

Management said seasonal weakness was being magnified by broader business and market pressures. The forecast therefore represented more than a routine post-holiday dip: it implied another quarter of lower revenue and no adjusted per-share profit.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

What Intel said about its turnaround

Management described a plan centered on simplifying the product portfolio, reducing costs, improving returns on invested capital, advancing the process roadmap and rebuilding competitiveness in data-center products and manufacturing. It said the cost-reduction program was beginning to change the company’s trajectory.

Rank #4
Intel® Core™ i9-14900K Desktop Processor
  • Game without compromise. Play harder and work smarter with Intel Core 14th Gen processors
  • 24 cores (8 P-cores plus 16 E-cores) and 32 threads. Integrated Intel UHD Graphics 770 included
  • Leading max clock speed of up to 6.0 GHz gives you smoother game play, higher frame rates, and rapid responsiveness
  • Compatible with Intel 600-series (with potential BIOS update) or 700-series chipset-based motherboards
  • DDR4 and DDR5 platform support cuts your load times and gives you the space to run the most demanding games

Those statements are management’s claims, not proof that the turnaround had succeeded. The Q4 numbers showed that expense reductions were occurring—R&D plus marketing, general and administrative expense fell 9%—but the company still faced lower revenue, weaker gross margin and a near-term loss forecast.

Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

AI PCs, Intel 18A and Panther Lake

Intel said it was on track to ship more than 100 million AI PCs through PC-maker partners by the end of 2025. That is a forward-looking company target, not a report of completed shipments.

Intel also said Panther Lake, its lead product on the Intel 18A process, was expected in the second half of 2025. The earnings release stated an expectation at that time; it did not establish that the product had launched. Intel identified 18A execution as a central test of its manufacturing strategy.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Best Value
Intel® Core™ i7-14700KF New Gaming Desktop Processor 20 cores (8 P-cores + 12 E-cores) - Unlocked
  • Game Without Compromise. Play harder and work smarter with Intel Core 14th Gen processors
  • 20 cores (8 P-cores plus 12 E-cores) and 28 threads. Discrete graphics required
  • Up to 5.6 GHz with Turbo Boost Max Technology 3.0 gives you smooth game play, high frame rates, and rapid responsiveness
  • Compatible with Intel 600-series (with potential BIOS update) or 700-series chipset-based motherboards
  • DDR4 and DDR5 platform support cuts your load times and gives you the space to run the most demanding games

The company further said more than 200 software-industry partners were working across more than 400 features to optimize software on Intel silicon. These partnerships support the AI PC strategy, but they do not by themselves demonstrate stronger revenue or market share.

What the results mean competitively

The quarter exposed simultaneous challenges rather than one decisive failure. Intel’s PC revenue was falling while AMD was gaining share in parts of the market. Its DCAI business was slightly lower even as demand for AI infrastructure was expanding rapidly around leading accelerator vendors. At the same time, Intel was funding an expensive manufacturing and foundry strategy while product revenue and gross margin were under pressure.

One quarter cannot prove that Intel has permanently lost its position. It does show why execution on 18A, next-generation client and server products, and manufacturing economics matters. Intel must improve products and process technology while generating enough cash and margin to support that investment.

What to watch after the report

  • Q1 2025 actual revenue: whether results land inside or below the $11.7 billion–$12.7 billion forecast.
  • Gross margin: whether the 39.2% GAAP level stabilizes or declines further.
  • Client Computing Group: signs that PC demand, inventory and competitive pressure are becoming less severe.
  • Data Center and AI: a return to growth would indicate better participation in server and AI demand.
  • Intel 18A and Panther Lake: evidence that the process and product timetable is being met.
  • Cost and capital discipline: whether lower expenses translate into improved profitability without weakening the product roadmap.

Bottom line

Intel’s Q4 2024 result was better than its internal guidance but still a year-over-year deterioration. Revenue fell 7% to $14.3 billion, CCG declined 9%, GAAP gross margin dropped to 39.2%, and Intel forecast a much weaker first quarter with a GAAP loss. The report bought the turnaround time; it did not resolve Intel’s competitive, product, margin or manufacturing challenges.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Source: Intel’s fourth-quarter and full-year 2024 financial results.

Quick Recap

SaleBestseller No. 1
Intel® Core™ Ultra 9 Processor 285K 24 cores (8 P-cores + 16 E-cores) up to 5.7 GHz
Intel® Core™ Ultra 9 Processor 285K 24 cores (8 P-cores + 16 E-cores) up to 5.7 GHz
Performance Unlocked Up to 5.7 GHz unlocked. 40MB Cache; Compatibility Compatible with Intel 800 series chipset-based motherboards
$519.99
Bestseller No. 2
Intel® Core™ i7-14700K New Gaming Desktop Processor 20 cores (8 P-cores + 12 E-cores) with Integrated Graphics - Unlocked
Intel® Core™ i7-14700K New Gaming Desktop Processor 20 cores (8 P-cores + 12 E-cores) with Integrated Graphics - Unlocked
Game Without Compromise. Play harder and work smarter with Intel Core 14th Gen processors
$360.17
Bestseller No. 3
Intel® Core™ Ultra 7 Desktop Processor 265 20 cores (8 P-cores + 12 E-cores) up to 5.3 GHz
Intel® Core™ Ultra 7 Desktop Processor 265 20 cores (8 P-cores + 12 E-cores) up to 5.3 GHz
20 cores (8 P-cores + 12 E-cores) and 20 threads. Integrated Intel Graphics included; Up to 5.3 GHz. 36 MB Cache
$371.60
Bestseller No. 4
Intel® Core™ i9-14900K Desktop Processor
Intel® Core™ i9-14900K Desktop Processor
Game without compromise. Play harder and work smarter with Intel Core 14th Gen processors
$474.99
Bestseller No. 5
Intel® Core™ i7-14700KF New Gaming Desktop Processor 20 cores (8 P-cores + 12 E-cores) - Unlocked
Intel® Core™ i7-14700KF New Gaming Desktop Processor 20 cores (8 P-cores + 12 E-cores) - Unlocked
Game Without Compromise. Play harder and work smarter with Intel Core 14th Gen processors; 20 cores (8 P-cores plus 12 E-cores) and 28 threads. Discrete graphics required
$354.99

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

What’s actually slowing this PC down?

Pick the symptom - the matching free tool is one click away.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More from the Money Desk

Recommended PC Tool
Recommended PC Tool
Outdated Drivers Are Slowing You DownFree scan - exact matches
Windows Errors? Fix Them Before They SpreadFree repair scan

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.