Intel was unprofitable in 2025, despite $20 billion in investments

Intel’s financial report shows that the company ended the year with a net loss of $300 million. At the same time, this is a sharp improvement compared to 2024, when the minus reached $18.8 billion. Large-scale external investments played a key role in the almost break-even result.

Lowest annual revenue since 2010

Reports for the fourth quarter and the whole of 2025 recorded Intel’s annual profit at $52.9 billion – this is the worst figure since 2010. The company itself notes that, despite the overall decline, the fourth-quarter results exceeded internal expectations due to high demand due to the development of artificial intelligence.

In the fourth quarter, Intel’s revenue was $13.7 billion, the same as in the previous quarter, but 4% less than a year earlier. The net loss for the year was $300 million, which the company calls an important step forward after a disastrous 2024.

CFO’s Comment and Supply Issues

Intel CFO David Zinsner emphasized that the company exceeded expectations for profit, gross margin and earnings per share, despite the industry-wide supply shortage.

According to him, supply availability will remain the lowest in the first quarter, after which the situation will gradually improve in the second quarter and in the following years. At the same time, fundamental demand in key markets remains stable, and the active implementation of AI confirms the importance of the x86 architecture.

External investments of $20.4 billion

Intel managed to achieve almost zero results only thanks to large-scale capital injections – about $20.4 billion.

• $2 billion from SoftBank
• $4.46 billion from Silver Lake (for 51% of Altera shares)
• $5 billion from Nvidia
• $8.9 billion from the US government

Falling margins and dependence on TSMC

Intel’s supplies were limited by problems with obtaining silicon wafers from TSMC. Due to intense competition and unmet demand, the company suffered a loss of $600 million in one quarter. Gross margin fell to 36.1% compared to 39.2% a year earlier, although it improved slightly to 34.7% for the year.

Client Computing Group (CCG) Results

The Client Computing Group (CCG) reported $8.2 billion in revenue in the fourth quarter, down from the previous quarter and flat year-over-year. Operating income fell to $2.2 billion, and margins fell to 27%.

Despite continued strong demand for client processors, Intel has deliberately redirected its limited internal manufacturing capacity toward more profitable data center solutions. This has increased its reliance on external suppliers and significantly impacted CCG margins.

Data Center and AI Group Growth

The Data Center and AI Group (DCAI) benefited from this strategy. Its revenue in the fourth quarter was $4.7 billion, up 15% from the previous quarter and 7% from a year earlier. Operating income rose to $1.3 billion and margins rose to 26.4%.

Intel again acknowledged that demand for Xeon processors exceeds supply. This imbalance is expected to continue through 2026 due to strong interest from the AI ​​segment.