Intel Corp forecast first-quarter sales and profit below Wall Street estimates, according to results released on Thursday. The company pointed to continued weakness in demand and ongoing challenges across key markets.

As a result, Intel’s outlook disappointed investors who were looking for clearer signs of recovery. The forecast underlined the pressure facing the chipmaker as it works through a prolonged turnaround effort.

📉 Revenue and Profit Outlook Misses Expectations

Intel said it expects first-quarter revenue to range between $12.2bn and $13.2bn. Analysts had expected revenue of about $14.25bn, according to LSEG data.

Meanwhile, Intel projected adjusted earnings of 13 cents per share for the quarter. That figure also fell short of market expectations, which stood at 33 cents per share.

Consequently, the company signalled that near-term performance would remain under strain.

🖥️ Weak Demand Weighs on Core Businesses

The company said weak demand continues to affect its PC and data centre businesses. These segments have faced slower customer spending and inventory adjustments over recent quarters.

Moreover, Intel highlighted intense competition within the semiconductor industry. Rivals have gained ground, particularly in areas linked to artificial intelligence and advanced manufacturing.

As a result, Intel continues to lose market share in some segments, despite ongoing investments.

🏭 Cost Cuts and Turnaround Efforts Continue

Intel has pursued aggressive cost-cutting measures as part of its turnaround plan. The company has reduced expenses, scaled back investments, and streamlined operations.

At the same time, Intel is investing heavily in expanding its manufacturing footprint. The company aims to become a major contract chip manufacturer for external customers.

However, these investments have weighed on margins. Therefore, profitability remains under pressure in the short term.

📊 Fourth-Quarter Results Provide Limited Relief

Intel reported fourth-quarter revenue of $15.4bn, which beat analysts’ expectations. The company also posted adjusted earnings of 54 cents per share, above forecasts.

Despite this, the stronger quarter failed to offset concerns about the weaker outlook ahead. Investors focused more on the cautious first-quarter guidance than the recent performance.

🧭 Leadership Signals Long-Term Focus

Chief executive Pat Gelsinger said Intel remains focused on executing its long-term strategy. He stressed that the company continues to make progress on product roadmaps and manufacturing plans.

Nevertheless, he acknowledged that market conditions remain challenging. Therefore, Intel expects volatility to persist as it works toward stabilising revenue and margins.

🌍 Industry Conditions Remain Challenging

The semiconductor industry has faced uneven recovery patterns. While demand linked to artificial intelligence has surged, other areas remain soft.

As a result, companies like Intel continue to face mixed conditions across their portfolios. Analysts expect competitive pressures and pricing challenges to persist through the year.