Intel reported better-than-feared fourth-quarter revenue, but warned that its return to competitiveness will take time.

While the $14.3 billion in fourth-quarter sales beat estimates, part of that was from customers ordering ahead of possible U.S. tariffs, the company’s leaders said. First-quarter sales will fall short of analysts’ projections because of weaker demand and competitive pressure, they cautioned.

First-quarter revenue will be $11.7 billion to $12.7 billion, the Santa Clara-based semiconductor company said Thursday in a statement, missing the $12.85 billion average analyst estimate. Profit excluding some items will be break-even, compared with the 8 cents a share analysts were projecting.

The chipmaker didn’t give a status update on its search for a new CEO. The eventual new leader is expected to address options that include a breakup. Bloomberg and other media outlets have reported that competitors are considering bids for all or parts of the company.

Meanwhile, interim leaders said they are focused giving realistic projections that they feel the company can meet, and won’t commit resources speculatively.

“We’ve got to be prudent around the uncertainty across the markets,” Chief Financial Officer and interim CEO David Zinsner said in an interview.

In the fourth quarter, the company had a loss of 3 cents a share, excluding certain items.

Intel gained as much as 3.2% in extended trading, after closing at $20.01 in New York. The shares have lost more than 50% of their value in the last 12 months.

Intel, until recently the world’s largest chipmaker, ended 2024 with its lowest revenue in more than a decade after posting a third straight-annual decline. CEO Pat Gelsinger was pushed out in December by the board, which cited a need for more competitive products.

Gelsinger, who rejoined Intel as CEO in 2021 to turn it around, had insisted Intel was better kept whole and that his expensive spending plan would return its manufacturing and products to industry prominence. He didn’t last the five years he said it would take for his plan to bear fruit.

Investors, who initially supported his initiatives, deserted the company’s stock when the spending on new plants, equipment and research took a massive toll on finances. Meanwhile, rivals better exploited an industry shift to artificial intelligence technology, eroding Intel’s market share. Gelsinger partially addressed the issue by reducing spending and cutting 16,000 jobs, but Intel still needs to improve its chips, particularly artificial intelligence accelerators, in order to restore top-line growth.