Intel stock have climbed after the chipmaker said it expects its revenue to grow again next year and raised its quarterly dividend.
Shares of Intel Corp advanced $US1.22, or 3.7 per cent, to $US34.38. They are on pace for their biggest gain since late August, when the market was bouncing back from a deep slump. Intel was the biggest gainer among Dow Jones industrial average stocks.
Intel said it expects its annual revenue to rise by a percentage in the mid-single digits. That's similar to analyst projections and it represents an improvement from 2015, as Intel expects its revenue to fall about one per cent this year. The company also said it will boost its capital spending to $US10 billion ($A13.90 billion) next year, far above its estimate of $US7.3 billion in 2015. That estimate includes $US1.5 billion in spending on memory products.
The company plans to raise its quarterly dividend to US26 cents from US24 cents.
Intel's business has struggled because consumers and companies are buying fewer of its PCs and more smartphones and tablets that use chips made by Intel's competitors. But recently the company has enjoyed more success with chips that it makes for bigger computers that run in corporate data centres and "cloud computing" operations. While Intel's third-quarter profit and revenue slipped, the results were stronger than expected.
Intel is currently forecasting $US55.31 billion in revenue in 2015. If that holds up, it would be the second time in three years that its annual revenue has fallen.
According to FactSet, analysts expect Intel's revenue to grow about four per cent in 2016.
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