2016 Could Be The Best Year Yet for Intel Corporation

The chip-maker is expected to have better than expected revenue growth results and eps for the coming year.

Could 2016 be the best year for the chip-manufacturer giant, Intel Corporation? According to Motley Fool, the answer to that question is ‘Yes.’ In the current year, the sales of the tech giant were worse than expected due to quite a few factors because of which the revenue generated in 2015 witnessed an overall decline.

The analysts and the company itself remain hopeful for the coming year mainly because of two of the segments, which include its client computing group and its data center group. Even though the client computing group I is much larger than the data center group, the latter is growing at a fast rate. It is expecting the PC sales to see a slight dip in the market in the following year. As for the data center group, the tech organization initially expected it to grow by 15% but now it has lowered down its expectations to ‘low double digits’.

For the coming year, Intel has over three segments to consider which include Internet of Things, non-volatile memory and software services. Even though, in their own space, these business units do not amount to much but in aggregate they were able to generate as much as $7 billion in the current year. The tech corporation states that increased revenues are expected from all three business units for the year 2016.

From revenue perspective, turns out the following year is going to be the best year for the chipmaker as all the businesses are likely to grow. As for the earnings per share estimations, analysts are estimating the range to be $2.06 to $2.61 per share. Back in 2011, the EPS of the tech organization was $2.39. As for the mobile efforts, Intel is expecting to reduce loses in the mobile market by as much as $800 million in the coming year.

Intel stock was at $35 per share on December 23, 2015 which indicated an increase of 0.78%. In the coming year the earnings per share growth is expected to be at 6.42%. In the past five year, the growth rate of ESP was 24.60%. Return on equity rate of the tech giant is 20.30%. The total market cap of the chip manufacturing corporation is 168.89 billion. The share price was seen hit an high of 35.05 and a low level of $34.78. The price to earnings reported by the company is 14.96.