Intel Share Price Could Rise by 25 Percent Next Year

According to a report by the financial publication Barron’s, the Intel Shares might see a price growth of about 25 percent in next year powered by robust growth of server chips and embedded chips.

Though there is risk that Intel might cut the financial guidance for the year but, according Barron’s, there is high chance that the company will return to sustainable growth level for the first time in almost seven years.

The Barron’s has advised the investors to wait till the earnings call on Tuesday before buying the shares, if they already do now own.

Intel has been struggling to grow because of the ever dying demand of personal computer chips but its data center server chips have been bringing in constant revenue growth.

In 2010, the profit from data center division was $4.4 billion compared with $13 billion earned by personal computers division. However, last year, the gap was already closing because the operating profit from data center business had grown to $7.8 billion and that from client computing division had shrunk to $8.2 billion.

The Internet of Things division, which makes chips for embedded computing like medical devices and cars etc, is also showing growth and stood at 4 percent of revenue last year.

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