Intel outlook signals no meltdown from chip flaws

Intel Corp., whose microprocessors dominate the personal-computer market, gave an upbeat quarterly and annual sales forecast, signaling optimism that demand will persist even as the industry scrambles to fix vulnerabilities in its PC and server chips.

Sales in the current period will be about $15 billion, plus or minus $500 million, and annual revenue will rise to a record $65 billion, the company said late Thursday. The projections exceed analysts’ estimates.

Intel stock rose 27 percent in 2017, lagging behind the 38 percent advance in the Philadelphia Stock Exchange Semiconductor Index. The benchmark also has outpaced Intel so far this year.

CEO Brian Krzanich is trying to remake Intel into a more general provider of chips, expanding into new markets such as self-driving cars and industrial systems. While those efforts helped, it was a 20 percent sales jump in its data-center chip business that really powered the quarter — and will determine success for the foreseeable future.

Intel repeated its assertion that chip flaws known as Meltdown and Spectre won’t have a material impact on its finances. Forecasts didn’t budge after the potential exploits were made public in early January. Krzanich said Intel has made progress on patching exposed computer systems, but said he’s “acutely aware that we have more to do.”

The chipmaker’s outlook indicates that corporations are spending on infrastructure, a good sign for earnings reports by companies such as Microsoft Corp., said Kim Forrest, an analyst at Fort Pitt Capital Group, which owns Intel shares.

“They look really good,” she said. “Even the data center came back.”