|
While there is a risk Intel could cut its financial guidance for
the year when the chipmaker reports earnings on Tuesday, it is
likely to return to sustainable growth by year's end for the
first time in seven years, the publication said.
Investors who do not own stock in Intel should wait until after
the earnings call to buy shares, it added.
Intel has struggled to grow as demand for personal computer
chips has dried up, Barron's said, but growth in the company's
data center group, which includes server chips, could eventually
bring in more revenue.
The gap between the two businesses has closed over the past five
years.
Last year, the data center business's operating profit was $7.8
billion, slightly below the $8.2 billion earned by Intel's
client computing division, which includes chips for desktop and
notebook computers. In 2010, the data center division brought in
just $4.4 billion, compared to the personal computer business's
$13 billion.
Meanwhile, the company's Internet of Things division, which
includes chips for cars, medical devices and factories, composed
just 4 percent of revenue last year but is growing at a
high-single-digit pace.
Intel shares closed on Friday at $31.46.
(Reporting by Anjali Athavaley; Editing by Alan Crosby)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
