uploads///Intels Main Groups Are Still Seeing Robust Growth

How Intel Plans to Evolve in Light of Declining PC Market


Jul. 28 2017, Published 4:40 p.m. ET

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.

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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.


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