Intel shows signs of turnaround for 2020

Intel shows signs of turnaround for 2020

Intel Corp on Thursday signaled the market view that the chip industry would be reaching a turnaround after a prolonged slowdown. Driven by cloud computing demand, the 2020 forecast is expected to see better revenue than Wall Street’s expectations, Intel added.

The company’s sales in its closely watched data center business jumped 19%, helping it beat fourth-quarter profit and revenue estimates and sending its shares up 7% in extended trading.

Chief Financial Officer George Davis said in an interview that sales to cloud computing providers were up 48% year-over-year in the fourth quarter. He added that the trend would be expected to continue this year.

The California-based chipmaker expects a fiscal year 2020 revenue of about $73.5 billion. This is more than $1 billion ahead of the Wall Street consensus, IBES data showed from Refinitiv.