Intel Cash Machine May Print $12 Billion This Year
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Intel Corp. increased its cash pile by $2 billion last quarter selling the fingernail-sized chips that run the world’s personal computers, underscoring the technology industry’s ability to wring profit at an unprecedented pace.
The biggest chipmaker boosted its earnings forecast for the year to a record yesterday, calling for the gross margin to widen to 66 percent. That means Intel’s free cash flow may reach $12 billion in 2010 and $13.5 billion next year, according to Patrick Wang at Wedbush Securities in New York.