Intel Corp on Thursday gave a bullish forecast and blew past Wall Street profit and revenue expectations for the fourth quarter on the strength of data center sales, the business it sees as key to its transformation from a PC supplier.
[...] Intel Chief Executive Brian Krzanich said the company would start shipping chips later this year with “silicon-based changes” to protect against the so-called Spectre and Meltdown security threats.
Revenue from the company’s higher-margin data center business rose about 20 percent to $5.58 billion, beating the average analyst estimate of $5.13 billion, according to Thomson Reuters I/B/E/S. Revenue from Intel’s PC group hit $9 billion for the quarter, a 2 percent decline from the year before, but ticked up 3 percent for the year to $34 billion.
Intel predicted $65 billion in revenue for 2018, well above expectations of a $63.7 billion forecast.
In an interview ahead of Intel’s earnings call with investors, Chief Financial Officer Bob Swan said the company sees no “meaningful impact” on corporate earnings as a result of the security vulnerabilities, reiterating an assessment the company made on Jan. 3.