(Reuters) - Intel on Thursday posted December-quarter results that beat analysts' low expectations, while its forecast for current-quarter revenue missed estimates as the chipmaker grapples with tepid demand for its data center chips and as investors wait for a new CEO.

Shares of the Santa Clara, California-based company jumped more than 1.9% in volatile after-hours trading. Last year, Intel's shares lost about 60%.

As the chipmaker undergoes a historic transition and attempts to emerge from one of its bleakest periods, it has also struggled to cash in on a boom in investment in advanced AI chips - a market led by Nvidia. 

In its quarterly report after the closing bell, Intel said it expects first-quarter revenue of $11.7 billion to $12.7 billion, compared with analysts' average estimate of $12.87 billion according to data compiled by LSEG. 

Companies looking to capitalize on generative AI technology have prioritized spending on specialized AI processors that can churn huge amounts of data, crimping demand for the traditional server processors that Intel sells.

The company's outlook for slower demand was due to "normal seasonality" and potential tariffs from President Donald Trump's administration, interim co-CEO and Chief Financial Officer David Zinsner said in an interview.

Zinsner said the company's goal was to ensure operating expenses were at roughly $17.5 billion for 2025.

Intel last year scrapped a 2024 forecast that it would sell over $500 million worth of its new AI processors, named Gaudi, suggesting they struggled to compete against Nvidia's chips. 

On an adjusted, per-share basis, Intel forecast it would break-even for the current quarter. Analysts expect adjusted profit of 9 cents per share. 

It is spending heavily to become a contract manufacturer of chips for other companies, leading some investors to worry about pressure on its cash flows.    

Former CEO Pat Gelsinger was ousted last month, leaving two temporary co-CEOs at the helm and shrouding Intel's turnaround strategy in uncertainty.   

Intel reported fourth-quarter revenue fell 7% from a year earlier to $14.26 billion, beating estimates of $13.81 billion.

The PC market - Intel's largest by revenue share - saw global shipments rise only modestly last year, underperforming analysts' expectations of a strong rebound after months of declines. 

The company has also been losing share in the PC and server CPU market to rival AMD, a trend analysts expect to continue into 2025.