Intel, helped by a stabilising personal computer market, gave a revenue outlook for 2015 that was above Wall Street's expectations and also raised its dividend.

Intel said last night it expects revenue to grow by a mid-single digit percentage next year. Analysts on average have been forecasting 3.4% revenue growth for 2015. 

Chairman Andy Bryant said he saw progress in Intel's strategy of staking out a big chunk of market share in tablets this year by offering manufacturers subsidies to use its chips. 

"I’m not going to tell you I'm proud of losing the kind of money we’re losing but I’m also going to tell you I’m not embarrassed by it like I was a year ago about where we were," Bryant said. 

"This is the price you pay for sitting on the sidelines for a number of years and then fighting your way back into the market," he added. 

The California-based company said capital spending next year will be about $10.5 billion, compared to about $11 billion expected in 2014. 

Intel also said it would increase its dividend by six cents to 96 cents on an annual basis. 

A global slump in personal computer demand that began with Apples launch of the iPad four years ago has stabilised in recent months, in part due to companies replacing employees' older laptops. 

Intel came late to the mobile industry and under CEO Brian Krzanich, who took over last year, it has rushed to make its technology more suitable for tablets and smartphones and compete better against Qualcomm, MediaTek and others. 

Krzanich said a plan disclosed this week to merge Intel's mobile unit with its PC group was in line with manufacturing customers that see their own product lineups of smartphones, tablets and laptops merging. 

He said Intel was on track to exceed its goal of seeing its chips used in 40 million tablets this year. 

That strategy made Intel the second biggest tablet chip supplier in the June quarter, according to market research firm Strategy Analytics, but it cost the company billions of dollars in subsidies.