Intel Corp. reported better-than-projected fourth-quarter revenue, while the semiconductor maker cautioned that its push to become more competitive is still a work in progress.

Gross margin, or the percentage of sales remaining after excluding the cost of production, was 39.2% in the fourth quarter and will be 33.8% in the current period. At its peak, Intel regularly reported gross margin of well above 60%. Nvidia’s is above 70%.

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.