Intel's Quarterly Revenue Tops Expectations

Intel has posted December-quarter results that exceeded analysts' low expectations.

Last year, Intel's shares lost about 60%. I Photo: Intel Facebook

However, its forecast for current-quarter revenue fell short of estimates as the chipmaker grapples with tepid demand for its data center chips and as investors await the appointment of a new CEO, Max A. Cherney and Arsheeya Bajwa reported for Reuters.

Shares of the Santa Clara, California-based company climbed 3.8% in after-hours trading.

Last year, Intel's shares lost about 60%. The company's quarterly results and forecast were overshadowed by questions about its long-term strategy and efforts to replace former CEO Pat Gelsinger, who was ousted last month.

Two interim co-CEOs currently lead the former No. 1 U.S. chipmaker, which is struggling to catch up to its rivals, particularly AI chipmaker Nvidia.

As Intel undergoes a historic transition and attempts to recover from one of its bleakest periods, it has also struggled to capitalize on the surge in investment in advanced AI chips.

During a conference call with investors, Co-Interim CEO Michelle Johnston Holthaus announced that Intel was shelving its forthcoming graphics processing unit (GPU) design, Falcon Shores, leaving the company with no major new products for AI customers.