Intel expects revenue growth to return in 2016

During an investor day event at its Santa Clara, Calif. headquarters, the chip giant said it expects to see fiscal 2016 revenue grow somewhere in the mid-single digits.
Written by Natalie Gagliordi, Contributor

Intel said Thursday that it expects to see fiscal 2016 revenue grow somewhere in the mid-single digits.

The chip giant also increased its annual dividend to 1.04, up 8 cents from the prior year.

The revenue guidance can be seen as in-line or slightly above the consensus of a roughly four percent revenue increase for 2016. Either way, investors were pleased with the update, with Intel shares inching up around four percent.

The forecast comes as Intel hosts an investor day at its Santa Clara, Calif. headquarters.

Intel CEO Brian Krzanich also addressed Intel's market strategy as the company looks to move into additional segments to bolster profitability. Intel is still focused on its core chip business, but falling PC sales have forced the company to diversify.

Intel now expects its data center, Internet of Things and memory businesses to be growth engines in both the long and short term. In its most recent earnings report, Intel said its data center group posted $4.1 billion in revenue alone, an increase of 12 percent year-over-year. The Internet of Things Group achieved sales of $581 million, up 10 percent from the previous year.

Intel is also looking to its new Skylake processor family and the Windows 10 operating system to improve PC demand.


Intel also projected 2015 capital spending at $10 billion, plus or minus $500 million, including approximately $1.5 billion on investments to build memory chips.

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