Topic: Wealth Management

Stock investment advice: Intel reports record revenue and earnings in 2010

Intel Corp. (symbol INTC on Nasdaq), is the world’s largest computer chip maker.

For 2010, the company reported record revenue of $43.6 billion. That’s up 24.2% from $35.1 billion in 2009.

Earnings jumped 76.1%, to a record $11.6 billion from $6.6 billion in 2009. During the year, Intel paid $1.5 billion to buy back 70 million of its shares. Because of fewer shares outstanding, earnings per share rose 75.2%, to $2.05 from $1.17.

Intel saw strong demand for server processors (up 35%) in 2010. As well, sales of chips for personal computers jumped 21%. Sales of Intel’s Atom processors rose 8%. These processors are used in a broad range of devices, including netbooks, entry-level desktops, tablet and handheld computers, smartphones, and other electronic devices. In 2010, 37 million netbooks units were shipped, up 20% from 2009.

Intel spent $6.6 billion (or 15.1% of its revenue) on research in 2010. That’s up 16.3% from $5.7 billion (or 16.1% of revenue) in 2009. The company’s high research spending weighs on its earnings, because it must immediately write off these costs. However, this spending is giving Intel a steady stream of new products to fuel its growth.

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