Intel shares were set to trade sharply higher on Friday after the company beat fourth-quarter earnings forecasts. The shares jumped 5% in pre-market trading.
Intel posted a loss of $687m with a $5.4bn one-off charge related to US tax changes factored in.
However, excluding the US tax charge and other exceptional items, the company reported earnings per share of $1.08 for the fourth quarter. Revenue rose 4.1% to $17.1bn versus $16.4bn in the prior year.
Both figures exceeded analysts´ projections, which called for a profit of 86 cents per share on revenue of $16.34bn, according to Thomson Reuters.
In common with the general trend, Intel also said the bottom line would benefit substantially over the longer term as a result of the Trump administration´s tax reforms, with the top rate of corporate tax falling from 35% to 21%.
Intel claimed its effective tax rate would fall to just 14% in 2018 following the tax changes.