Intel forecast beats estimate, says 2020 will be a turnaround year for chipmakers

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Intel forecast beats estimate, says 2020 will be a turnaround year for chipmakers

On Thursday, the 23rd of January 2020, the US-based multinational Chipmaker, Intel Corp., headquartered in Santa Clara, CA, had forecasted a better-than-anticipated 2020 revenue outlook, almost entirely buoyed up by a boost in cloud computing and data centre demands, cementing a market concept that 2020 could have been a turnaround year for the global chip industry leaders, a majority of which had still been grappling with a prolonged slowdown.

As the Santa Clara-based chipmaker had beaten its fourth quarter estimate for both operating profit and revenues which eventually lifted its shares’ prices more than 7 per cent in the after-market trading on Thursday (January 23rd), the company’s data centre business climbed 19 per cent.

On top of that, during preparation of the report, January 24th, GMT. 19.05, following an upbeat fourth-quarter earnings’ result, shares’ prices of Intel Corp. had been trading 7.56 per cent higher to $68.11 per share after rising as much as 7 per cent on Thursday’s (January 23rd) after-market trading and Friday’s (January 24th) pre-market trading.

Meanwhile, as the chipmaker had also raised its profit forecast for 2020 to $73.5 billion, above Wall St.’s estimates of $72.5 billion, Intel Corp., Chief Financial Officer, George David said to reporters in a post-earning call late on Thursday (January 23rd), “What we’re seeing is very strong demand from cloud players.

I have to give credit to the hyperscalers for this quarter. We think this is going to help us close the gap to customer demand that we’ve been experiencing. We think all of this is (going to be) resolved in 2020 and we’ll actually be able to start building inventory at the end of the year, which we have not been able to do for two years.

” Besides, according to Intel Corp.’s Thursday’s (January 23rd) fourth-quarterly earnings’ report, the chipmaker’s net revenue surged as much as 8.3 per cent to $20.21 billion on a year-on-year basis, beating an analysts’ estimate of $19.23 billion, IBES data from Refinitiv revealed.