After the earnings announcement, the company's shares ticked higher in after-hours trading.
The company posted first-quarter earnings of 40 cents per share, down from 53 cents per share in the year-earlier period.
Revenue decreased more than 2 percent to $12.6 billion from $12.91 billion a year ago.
The chipmaker's gross margin of 56 percent was down 2 percentage points sequentially and 8 percentage points year-over-year.
Analysts had expected the semiconductor company to report earnings of 41 cents a share on $12.59 billion in revenue, according to a consensus estimate from Thomson Reuters.
Intel CFO Stacy Smith told CNBC that the company is seeing the "nice growth" it anticipated, especially in ultrabooks, convertibles and tablets, which will offset declines in traditional PCs. "We're even more confident in our projection" he said. "We're forecasting low-single digit revenue growth."
The world's largest chipmaker forecast June-quarter revenue in line with expectations-$12.9 billion, plus or minus $500 million-as the personal computer industry grapples with falling sales and a shift toward tablets and smartphones.
It also forecasts a gross margin of 58 percent, plus or minus a couple percentage points and cut its capital expenditures for the year by $1 billion to $12 billion.
"The $12 billion dollars we are going to invest in capital this year really is the core of our competitive advantage," CFO Smith said. "It is the reason that somebody invests in us, because we have this technology leadership that manifests itself in products that leads our competition and allows us to win in markets."
In the mobile category Smith said Intel leads in power efficiency, and that there's a built-in synergy there.
"We're driving this transition in the marketplace where we're moving the company to benefit from these lower-power devices," he said. "And then we benefit on the server side building all the infrastructure that serves those devices."
He added that Intel's priorities are first investing in the business, second is dividends, and third is buying back stock.
But Alex Gauna of JMP Securities remains concerned about the company's mobile strategy. He told CNBC: "The most attractive thing about Intel is its 4 percent dividend yield. I think it's going to be a market performer, just rising and falling with economic sentiment. They need to put a mobile strategy in place that shows some real promise."