The shares of Intel Corporation (NASDAQ:INTC) gained 5% closing at $35.95 after the chipmaker announced its annual revenue and dividend outlook for 2015. The primary reason behind this outlook is the improvement in personal computer segment and the company has released a forecast much above the market expectations.
In its annual investor meeting yesterday, the chipmaker has done some exciting revelations including better-than-expected revenue forecast. According to Intel Corporation (NASDAQ:INTC), the revenue is likely to grow at mid single-digits with gross margin of 62%. The company has set capital spending target of $10.5 billion for 2015 and annual dividend of $0.96 per share. The revenue forecast of the chipmaker exceeded market expectations of 3.4% revenue growth.
During the meeting, Andy Bryant, Chairman of Intel Corporation (NASDAQ:INTC), said,
“Today’s dividend announcement reflects the board’s confidence in Intel’s strategy. It also reflects the board’s ongoing commitment to create value and return cash to Intel’s stockholders.”
At the same time, Bryant explained the existing losses and its relatively minuscule success in the recent years. He added,
“I’m not going to tell you I’m proud of losing the kind of money we’re losing but I’m also going to tell you I’m not embarrassed by it like I was a year ago about where we were. This is the price you pay for sitting on the sidelines for a number of years and then fighting your way back into the market.”
In addition to the positive outlook from the chipmaker, improvement in the demand of personal computers is another reason behind these figures. After declining sales for the past four years, the personal computer market is stabilizing as the major tech companies replace their employee’s computers/laptops.
Despite the existing losses and Intel Corporation (NASDAQ:INTC)’s late entry into the mobile chip market, the shares of the company have grown 38.51% this year.
This article has been written by Prakash Pandey.