PC Chips No Longer Down: Intel Profits Soar

Written by Oonagh Reidy     16/07/2014 | 10:35 | Category: INDUSTRY

The chips are no longer down as Intel enjoys PC resurge

PC Chips No Longer Down: Intel Profits Soar Intel today reported second-quarter revenue was up 8% to $13.8 billion, attributed to rising demand in chips for PC's, tablets and the ,Internet of Things,, said Intel CEO Brian Krzanich.

 He said he expects businesses renewing ageing PC fleets to last until the end of the year.

Q2 operating income rose 53% of $3.8 billion on the back of the stabilization of the PC market. 

The chip maker also lifted full year growth forecast FY14 to approximately 5 percent, higher than previous forecasts.

Intel's second quarter net income also soared 45% to $2.8 billion and up 40% compared to same time 2013.

"Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data center to PCs to the Internet of Things," said Krzanich. 

"With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40 million unit tablet goal."

Intel expect the first systems featuring the new 14nm Broadwell processor to be on shelves "during the holidays."

PC Client Group sales were up 6 percent y-o-y to $8.7 billion, Data Center revenue also soared almost 20%,  and revenues at the Internet of Things Group grew 24 percent during Q2. 

However, revenues at Intel's 'Mobile and Communications' unit which makes mobile chips,  fell to just $51 million, down 67% on Q1 and 83% year-over-year.

The 'Software and Services' unit both fell. 

Intel forecasts Q3 revenue of $14.4 billion, plus or minus $500 million and gross margin percentage of 66 percent. 

Shares soared on the better than expected result.