Intel Corp. recorded record annual revenue, but avoided providing a year-round forecast this year, before the arrival of a new chief executive at a time when the semiconductor giant is trying to defend itself from competitive pressures and rebuild its technological leadership.
The company reported Thursday sales of $ 77.9 billion for 2020, up from $ 72 billion a year ago and ahead of the $ 75.4 billion expected from Wall Street. While Intel has benefited from a boom in demand for PCs in the home-based economy, much of the additional purchase has focused on low-cost laptops that aren’t as profitable. Net income for 2020 was $ 20.9 billion, down from $ 21.1 billion for the same period last year.
Intel’s shares rose more than 6% on Thursday after also increasing its cash dividends.
The gains mark the end of a challenging but profitable year for the semiconductor giant that saw it surpassed in market assessment by rival Nvidia Corp., dismissed by Apple Inc. as a supplier of Mac chips, will suffer market share losses and will face activist investor Third Point LLC pushing for strategic change.
CEO Bob Swan said, “Intel is in a strong strategic and financial position as we make this leadership transition and take Intel to the next level.”