Intel and Nvidia also ended a long legal battle by signing a cross-licensing agreement, under which Intel has agreed to pay Nvidia US$1.5 billion. Intel will pay $300 million to Nvidia next week and then make annual payments through January 2016.

While Intel remains dominant in the PC space, it is now trying to make its way into the smartphone and tablet space, which is dominated by ARM. Tablets based on Intel's Oak Trail chips are expected to start shipping by the end of this quarter.

Intel has also said that it will make smartphone-related announcements at the Mobile World Congress, which will be held next month in Barcelona. The company is developing a low-power chip for smartphones code-named Medfield, which is based on the Atom core.