Intel Corp. (INTC) reported yet another record quarter and projected better expected 1Q revenue and margins. While Intel and other semiconductor companies have warned in recent months of weakening consumer demand for PCs, the company’s exposure to the enterprise market has helped buffer it from declines.
Smith said 2011 should be another strong year for Intel, with revenue likely up about 10% from 2010 on strong server and emerging markets growth.
Intel is increasing its capital expenditure for it’s upcoming 22nm products. and investing $6 billion to $8 billion over several years to upgrade its manufacturing plants in the U.S. and build a new research facility in Oregon.
In after-hours trading, Intel shares recently grew 2.5% to $21.82 as results and guidance topped Street estimates. The stock is up 1.6% over past 12 months, which is below the Philadelphia Semiconductor Index gain of 22%.
Otellini said “many” Intel-powered tablets–running on Microsoft Corp.’s (MSFT) Windows 7, Google Inc.’s (GOOG) Android and Nokia Corp.’s (NOK) MeeGo–will roll out over the year. He also said smartphones with Intel chips will appear in 2011.
In addition, Otellini said netbook shipments rose 20% in 2010 and should again grow in 2011 despite demand for tablets. He said the company plans to bring “unique innovations” to netbooks during the year.