Intel tops Wall Street estimates
Intel (INTC) announced its fiscal 2Q17 results on Thursday, July 27. The chipmaker posted $14.8 billion in revenue in 2Q17, up 9% from the same quarter last year. The company’s operating income, which was down drastically in 2Q16 due to restructuring charges, climbed to $3.8 billion in 2Q17, up 190% compared to 2Q16. Meanwhile, net income surged 111% YoY to $2.8 billion.
The company has been controlling the data center market with its x86 chips. However, the company is seeing increasing pressure from rival AMD (AMD). Intel saw a 9% YoY growth in the division.
Intel’s Client Computing Group provides more revenue than any other business segment. The Client Computing Group raked in $8.2 billion in revenues, growing 12% YoY. However, the company has been moving away from the PC market, as PC unit sales continue to fall.
Intel plans to shift to AI as PC market falls
As the PC market is falling, the company is investing in artificial intelligence. The company’s $15.3 billion takeover of Mobileye is expected to be completed by fiscal 3Q17. The company faces stiff competition from Nvidia (NVDA), which is a leader in AI.
Meanwhile, its Data Center group saw revenues of $4.4 billion, a 9% increase YoY. While the company’s Internet of Things business makes up a small portion of its total revenues, it rose 26% YoY and posted $720 million in revenues.