Intel's chipmaking division has reported a staggering $13 billion loss in 2024, but the company's latest quarterly earnings suggest that the worst may be behind it. In its Q4 2024 and full-year earnings release, Intel announced a quarterly loss of $126 million on $14.3 billion in revenue, a significant improvement from its previous quarterly loss of $16.6 billion.

The company's primary businesses were all down this quarter, and barely up over the full year. However, Intel's foundries, which lost nearly double the amount in 2024 compared to 2023, are expected to see "financial improvements" coming next year as the company ramps up production of its extreme ultraviolet lithography (EUV) chips. Intel aims to hit "op inc break-even" by the end of 2027, with its 18A process, which uses EUV, expected to produce chips in volume in the second half of next year.

Some industry observers argue that the significant losses in Intel's foundry business are a necessary investment in the company's future, allowing it to catch up to rivals and maintain its position as the only major chipmaker that designs and fabricates its chips from scratch. This strategy was seemingly endorsed by ousted Intel CEO Pat Gelsinger, who had emphasized the importance of investing in the company's foundry business.

Despite the significant losses, Intel's new co-CEOs appear committed to the company's graphics card business, with one of them promising at CES 2025 that Intel remains dedicated to the venture. The company has also made progress in its restructuring efforts, laying off 15,000 employees by the end of 2024, as previously announced.

Over the full year, Intel lost $18.76 billion on $53.1 billion in revenue. While the company still faces significant challenges, its latest quarterly earnings suggest that it may be turning a corner. As the company continues to navigate the highly competitive semiconductor industry, investors and industry observers will be watching closely to see if Intel can sustain its momentum and return to profitability.

The company's efforts to revamp its foundry business and invest in emerging technologies like EUV lithography will be crucial in determining its long-term success. With the semiconductor industry expected to continue growing in the coming years, Intel's ability to adapt and innovate will be key to its survival and competitiveness.

As the company moves forward, it will be important to monitor its progress and assess the effectiveness of its strategies. With the industry landscape constantly evolving, Intel's ability to stay ahead of the curve will be critical in determining its future success.