Beancounters working for Barrons have added up the numbers and divided them by their shoe size and decided that Intel will grow like topsy next year.
Barron’s claims that Chipzilla’s shift to higher-growth businesses such as server chips and embedded chips for cars could drive a 25 increase in its shares in a year.
While there is a risk Intel could cut its financial guidance for the year when the chipmaker reports earnings on Tuesday, it is likely to return to sustainable growth by year’s end for the first time in seven years, the publication said.
Those who do not own shares in Chipzilla should wait until after the earnings call to buy shares, it added.
Intel has had a pants few years as demand for personal computer chips has dried up, Barron’s said, but growth in the company’s data centre group, which includes server chips, could eventually bring in more revenues.
The gap between the two businesses has closed over the past five years.
Last year, the data centre business’s operating profit was $7.8 billion, slightly below the $8.2 billion earned by Intel’s client computing division, which includes chips for desktop and notebook computers. In 2010, the data center division brought in just $4.4 billion, compared to the personal computer business’s $13 billion.
Meanwhile, the company’s Internet of Things division, which includes chips for cars, medical devices and factories, composed just four percent of revenue last year but is growing.