What factors drove INTC's strong Q4 2024 performance?

Intel's strong Q4 2024 performance was driven by several key factors:

1. **Revenue Exceeding Expectations**: Intel's revenue for Q4 2024 exceeded Wall Street's $13 billion projection, reaching $14.26 billion. This surpassed analysts' expectations and reflected robust sales across key segments.
2. **Cost Reduction Initiatives**: The company made significant progress on its $10 billion cost reduction plan, including a greater than 15% workforce reduction. These initiatives positively impacted profitability and liquidity, as evidenced by the recognition of $2.8 billion in restructuring charges.
3. **Product Innovation and Market Positioning**: The launch of Intel's 18A processor and the Core Ultra 200V Series processors, known as Lunar Lake, highlighted its commitment to innovation in AI and mobile computing. These products are expected to bolster Intel's competitive edge in the AI and CPU markets.
4. **Strategic Partnerships**: Intel's multiyear commitment with Amazon for custom chips expanded their partnership and reinforced its position in the cloud computing sector. Such partnerships are crucial for driving future revenue growth.
5. **Optimistic Outlook for Q4**: Despite Q3 challenges, Intel provided an optimistic outlook for Q4, forecasting EPS of $0.12, above analysts' estimates of $0.08. This positive guidance likely bolstered investor confidence and contributed to the stock's surge.

In summary, Intel's strong Q4 performance is attributed to its revenue exceeding expectations, successful cost reduction initiatives, product innovation, strategic partnerships, and an optimistic outlook for the quarter.