With numbers that would seem to put fears to rest that the world’s dominant chipmaker has lost a step to its competitors, Intel Corp. handily beat analyst expectations for the third quarter.
“We executed well in the third quarter with strong results across the business, and we’re on track to a record year,” said Brian Krzanich, Intel chief executive, in a statement. “I’m excited about our progress and our future. Intel’s product line-up is the strongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more.”
The company posted adjusted earnings per share of $1.01 against the 80 cents that analysts polled by Thomson Reuters expected. Revenue clocked in at $16.15 billion against the $15.73 billion that analysts expected. And Intel reported ent income of $4.52 billion… up 34 percent from last year.
Intel shares have been setting the market on fire this week, up some 14 percent in the week alone. And the stock gained another 1 percent in trading after market close.
The numbers are a sign that Intel’s strategic shifts into areas beyond its core personal computing business are beginning to get traction.
The company’s data center business, core memory business, and its Internet of Things business all recorded lights out revenue for the quarter.
Key numbers to look at are in the “Programmable Solutions Group” which is Intel’s business line focused on the areas most likely to contribute to future growth — in autonomous vehicles and chips for artificial intelligence.
Revenue in that group was up 10% to $469 million. The company’s Internet of Things group was up 23% to $849 million, and its non-volatile memory solutions group recorded 37 percent growth, up to $469 million.
More to come.