Intel's (INTC) Q4 2024 financial performance was marked by a significant net loss of $19.2 billion, a stark contrast to the $1.7 billion net income reported in Q4 2023. This loss was primarily driven by substantial non-cash charges, including $3.3 billion in impairments and accelerated depreciation for manufacturing assets, and $3.1 billion in goodwill and intangible asset impairments. Additionally, a $9.9 billion valuation allowance on deferred tax assets further exacerbated the loss.

Revenue for Q4 2024 totaled $53.1 billion, reflecting a 2% decline from $54.2 billion in Q4 2023. This decrease was attributed to lower revenue from Intel Foundry Services and other segments, despite a 3% increase in Intel Products revenue. The Client Computing Group (CCG) and Data Center and AI (DCAI) segments saw revenue growth of 4% and 1%, respectively, driven by higher notebook volumes and increased server ASPs.

Gross margin in Q4 2024 declined by $4.4 billion (20%) compared to Q4 2023, primarily due to higher impairment charges, accelerated depreciation, and increased unit costs associated with Intel 4 and Intel 7 products. These factors were partially offset by benefits from government incentives under the CHIPS Act and lower excess capacity charges.

Operating expenses in Q4 2024 rose to $29.0 billion, up from $21.6 billion in Q4 2023. This increase was driven by higher restructuring charges, including $2.8 billion related to the 2024 Restructuring Plan, and increased investments in process technology. The restructuring plan aims to reduce Intel's cost structure by 15% through headcount reductions and other measures.

Cash flow from operating activities decreased to $8.3 billion in Q4 2024, down from $11.5 billion in Q4 2023. This decline was due to the net loss incurred during the quarter, partially offset by favorable adjustments for non-cash items such as depreciation and share-based compensation. Meanwhile, cash used for investing activities decreased to $18.3 billion, reflecting lower capital expenditures and higher proceeds from government incentives.

Intel's balance sheet at the end of Q4 2024 showed total assets of $196.5 billion, up from $191.6 billion at the end of Q4 2023. Cash and short-term investments totaled $22.1 billion, a decrease from $25.0 billion in the prior year, while total debt increased slightly to $50.0 billion. The company suspended its quarterly dividend starting in Q4 2024 as part of its liquidity management strategy.

Segment performance in Q4 2024 highlighted mixed results. The Client Computing Group (CCG) revenue increased by $1.0 billion, driven by a 12% rise in notebook volumes. However, desktop revenue declined by $516 million due to lower demand. The Data Center and AI (DCAI) segment saw a modest revenue increase of $182 million, supported by higher server ASPs, while the Network and Edge (NEX) segment grew by $68 million.

Intel's strategic initiatives in Q4 2024 included the implementation of the 2024 Restructuring Plan, which aims to streamline operations and reduce costs. The plan involves a 15% reduction in workforce and a focus on core investments in process and product competitiveness. Additionally, Intel delayed several manufacturing facility projects due to reassessed demand and financial constraints.

Macroeconomic and geopolitical factors continued to pose challenges for Intel in Q4 2024. The company faced headwinds from global economic uncertainty, inflation, and geopolitical tensions, which impacted demand for its products and increased operational risks. Revenue from China, which accounted for 29% of total revenue, was particularly affected by these factors.