Shares of Intel jumped 7 percent in after-hours trading as the company confirmed that 2020 will be a turnaround year for the chip industry.
Continue Reading Below
The chipmaker sees fiscal year 2020 revenue of about $73.5 billion. That would be more than $1 billion more that estimates according to Refinitiv.
|AMD||ADVANCED MICRO DEVICES INC.||55.31||+0.78||+1.43%|
|TXN||TEXAS INSTRUMENTS INCORPORATED||132.21||-0.60||-0.45%|
On Thursday Intel reported fourth-quarter net income of $6.91 billion. On a per-share basis, it had net income of $1.58. Earnings, adjusted for one-time gains and costs, were $1.52 per share, topping Wall Street expectations.
The world's largest chipmaker posted revenue of $20.21 billion in the period, also exceeding Street forecasts.
The company's sales to cloud computing companies rose 48 percent year-over-year, while data center business jumped 19 percent.
“In 2019, we gained share in an expanded addressable market that demands more performance to process, move and store data,” said Bob Swan, Intel CEO. “One year into our long-term financial plan, we have outperformed our revenue and EPS expectations. Looking ahead, we are investing to win the technology inflections of the future, play a bigger role in the success of our customers and increase shareholder returns."
Driving the 2020 recovery year for chipmakers is 5G spending for both smartphones and network upgrades, according to Reuters.
Intel's outlook confirms the turnaround that rival manufacturers Texas Instruments and Taiwan Semiconductor have reported.