Shares of the Santa Clara, California-based company climbed 1.5% in after-hours trading. Last year, Intel's shares lost about 60%.
As the chipmaker undergoes a historic transition and attempts to emerge from one of its bleakest periods, it has also struggled to cash in on a boom in investment in advanced AI chips - a market led by Nvidia (NVDA.O).
In its quarterly report after the closing bell, Intel said it expects first-quarter revenue of $11.7 billion to $12.7 billion, compared with analysts' average estimate of $12.87 billion according to data compiled by LSEG.
Companies looking to capitalize on generative AI technology have prioritized spending on specialized AI processors that can churn huge amounts of data, crimping demand for the traditional server processors that Intel sells.
The company's outlook for slower demand was due to "normal seasonality" and potential tariffs from President Donald Trump's administration, interim co-CEO and Chief Financial Officer David Zinsner said in an interview.
The threat of tariffs pushed customers to buy more of Intel's chips ahead of the first quarter to avoid higher costs should officials implement the tariffs.
Zinsner said the company's goal was to ensure operating expenses were at roughly $17.5 billion for 2025.
Intel last year scrapped a 2024 forecast that it would sell over $500 million worth of its new AI processors, named Gaudi, suggesting they struggled to compete against Nvidia's chips.
On an adjusted, per-share basis, Intel forecast it would break-even for the current quarter. Analysts expect adjusted profit of 9 cents per share.
It is spending heavily to become a contract manufacturer of chips for other companies, leading some investors to worry about pressure on its cash flows.
Former CEO Pat Gelsinger was ousted last month, leaving two temporary co-CEOs at the helm and shrouding Intel's turnaround strategy in uncertainty.
Co-interim CEO Michelle Johnston Holthaus said in an interview the "board search was progressing" in its search for a new CEO and until the pick is announced "we're focused and we know exactly what needs to be done."
Investors are looking for clarity around the future of the business that a new chief executive would bring.
"The absence of a new CEO announcement may contribute to investor uncertainty, as leadership stability is crucial for navigating this competitive landscape and executing turnaround plans," Running Point Capital Chief Investment Officer Michael Schulman said.
Intel reported fourth-quarter revenue fell 7% from a year earlier to $14.26 billion, beating estimates of $13.81 billion.
Grants Intel received related to federal CHIPS Act money were responsible for part of the company's revenue and profit margins that beat expectations in the fourth quarter, Zinsner said.
The PC market - Intel's largest by revenue share - saw global shipments rise only modestly last year, underperforming analysts' expectations of a strong rebound after months of declines.
The company has also been losing share in the PC and server CPU market to rival AMD (AMD.O), a trend analysts expect to continue into 2025.
