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FILE PHOTO: Intel’s logo is pictured during preparations at the CeBit computer fair, which will open its doors to the public on March 20, at the fairground in Hanover, Germany, March 19, 2017. REUTERS/Fabian Bimmer/File Photo
(Reuters) – Intel Corp (INTC.O) forecast full-year revenue above analysts’ estimates on Thursday after beating fourth-quarter earnings expectations, powered by its closely watched data centre 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 (56 billion pounds), 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 centre business rose 19 percent to $7.2 billion in the quarter, while analysts on average had expected $6.40 billion, according to FactSet.
Reporting by Munsif Vengattil in Bengaluru and Stephen Nellis in San Francisco; Editing by Maju Samuel
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