Intel stock rises on earnings beat, security concerns no issue for investors

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Krzanich's stock sale has raised eyebrows due to its occurring prior to Intel notifying the public about the Spectre and Meltdown 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.

Despite Intel's revenues rising, the company booked a $687m quarterly loss after booking a $5.4bn charge due to recent changes to U.S. tax law.

Intel reported record revenue of $17.1 billion in the final three months of past year, and said its annual revenue hit an unprecedented high of $62.8 billion.

According to Intel CEO Brian Krzanich. Further, though the company said that they are making some real progress, it also admitted that "we're acutely aware we have more to do".

Intel revealed record fourth-quarter revenues during its earnings call last night, but is keen not to lose this profitability to recent security concerns.

Excluding items, the chipmaker earned $1.08 per share for the fourth quarter, up 39 percent from 79 cents a year earlier.

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The products "will start appearing later this year", he said.

We have and may continue to face product claims, litigation, and adverse publicity and customer relations from security vulnerabilities and/or mitigation techniques, including as a result of side-channel exploits such as "Spectre" and "Meltdown", which could adversely impact our results of operations, customer relationships, and reputation. Though Intel has factored the impact into its report, the impact of Spectre and Meltdown is clearly not visible in Intel's stock.

Krzanich said that the PC market improved over the course of 2017 and the competitive environment intensified, but Intel stepped up and delivered record results for the full year. However, the patches recently caused technical problems (random reboot issues). Intel's 360-acre campus in Leixlip in Co Kildare is home to one of the world's most advanced manufacturing processes. But the second largest segment, the Data Center Group, grew 20%, with $5.6 billion in revenue.

Intel plans to release chips that have built-in protections against the Spectre and Meltdown attacks later this year, company CEO Brian Krzanich said Wednesday.

In addition, Linux creator Linus Torvalds publicly criticized Intel, and termed the patches as "garbage.'" Now, Intel has assured that it is working on a hardware fix for the Meltdown and Spectre vulnerability.

"They had all these bullets flying at them with these chip flaws, but when I look at these numbers, it's a blowout across all metrics", said Daniel Morgan, a fund manager with Synovus Trust, which holds Intel shares.