What factors contributed to INTC's earnings growth in 2024?

Intel's earnings growth in 2024 was driven by several key factors:

1. **Revenue Growth**: Although there was a year-over-year decline of 7% in revenue, the fourth quarter saw a revenue of $14.3 billion, surpassing the estimated $13.81 billion. This indicates a positive trend in the company's revenue generation, which is a critical component of its earnings growth.
2. **Gross Margin Improvement**: The non-GAAP gross margin for the fourth quarter was 42.1%, which was 260 basis points ahead of guidance. This improvement in gross margin reflects enhanced operational efficiency and profitability, directly contributing to the earnings growth.
3. **Sequential Growth**: The fourth quarter's revenue represented a 7% increase sequentially, suggesting a strengthening financial performance over the course of the year. This sequential growth is a positive indicator for earnings, as it reflects increasing profitability over time.
4. **Strategic Initiatives**: Intel's internal foundry model is expected to save the company between $8-$10 billion by the end of 2025 and help achieve non-GAAP gross margins of 60%. These strategic initiatives are likely to have a positive impact on earnings in the long term, as they address cost reduction and margin improvement.
5. **Market Conditions**: Despite challenges in the semiconductor industry, including intense competition and rapid innovation cycles, Intel's performance in the fourth quarter indicates resilience and the ability to navigate these challenges effectively. Favorable market conditions and Intel's ability to capitalize on them are crucial for earnings growth.

In conclusion, Intel's earnings growth in 2024 was primarily driven by revenue surpassing estimates, improved gross margins, sequential revenue growth, strategic initiatives, and effective management of industry challenges. These factors combined to contribute to the company's financial success in the year.