Intel forecasts 2020 revenue above estimates, shares rise 7%

This post was originally published on this site
© Reuters. FILE PHOTO: Intel logo is seen behind LED lights in this illustration© Reuters. FILE PHOTO: Intel logo is seen behind LED lights in this illustration

(Reuters) – Intel Corp (O:) forecast full-year revenue above analysts’ estimates on Thursday after beating fourth-quarter earnings expectations, powered by its closely watched data center and PC chips businesses, sending its shares up nearly 7%.

The positive outlook from one of the biggest chipmakers is likely to cement what analysts had already started to see as a recovery year for semiconductors, largely driven by 5G spending for both smartphones and network upgrades.

The Santa Clara, California-based chipmaker expects fiscal year 2020 revenue of about $73.5 billion, compared with analysts’ average estimate of $72.25 billion, according to IBES data from Refinitiv.

Revenue from Intel’s client computing business, which caters to PC makers and is still the biggest contributor to sales, rose 2 percent to $10 billion in the fourth quarter, beating FactSet estimates of $9.74 billion.

Revenue from its high-margin data center business rose 19 percent to $7.2 billion in the quarter, while analysts on average had expected $6.40 billion, according to FactSet.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.