Intel Corporation (NASDAQ: INTC) stock surged over 2.1% today (as of 9:38AM EDT on July 28th, 2017; Source: Google finance) post their decent second quarter results update.
They reported a revenue rise of 14% year over year post adjusting to the McAfee transaction, while their data-centric businesses enhanced 16% on a year over year basis. Data Center business surged over 9% yoy in the second quarter of 2017 driven by solid performance of the public cloud which rose 35% yoy. The group expects to maintain their high single digit growth track for the year. Growing migration to the cloud and memory and solid-state drive constraints hurt the server deployments. Comm service provider revenue surged 17%yoy. Cloud and comm service provider account over 60% of DCG’s revenue. The group has five ongoing trials with leading global service providers while fifteen more are in the pipeline. The group sees an outstanding $65 billion silicon opportunity by 2021 for the data center. Accordingly, they are positioning themselves via building out the adjacencies like Ethernet, Silicon Photonics, and 3D XPoint memory
Client Computing Group Revenue rose 12% yoy during the quarter driven by the products and segmentation strategy. They launched Intel Core X-series processor family comprising a new Core i9 Extreme Edition processor. The group would be shipping their first 10-nanometer products near the end of the year followed by multiple SKUs and a volume ramp in the first half of 2018.
Intel is focusing on Video, industrial, transportation, and retail for their Internet of Things business. They generated a solid growth across all four, leading to a 26% increase in revenue.
Intel’s Operating income surged 190% yoy to $3.8 billion, while EPS enhanced 115% yoy to $0.58. Intel has over $4.7 billion in cash from operations, while paid dividends of $1.3 billion.
After Mobileye, the group sees $70 billion autonomous driving systems, data, and services market opportunity by accelerating auto industry innovation and delivering cloud to car solutions faster and at a lower cost.
For the next quarter, the group expects an EPS guidance of $0.80 and gave a revenue guidance of $15.7 billion. For the full year of 2017, they expect an EPS of $3.00 and expects a revenue of $61.3 billion. Intel stock rose over 4.4% in the last four weeks.