Intel Corporation (NASDAQ: INTC) stock fell 8.5% on July 27th, 2018 (as of 12:38 PM GMT-4; Source: Google finance) though the company reported better than expected results. INTC is now competing for a $260 billion TAM, which is the largest in the company’s history.
INTC in the second quarter of FY 18 has reported the adjusted earnings per share of $1.04, beating the analysts’ estimates for the adjusted earnings per share of 96 cents, according to data compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 15 percent to $16.96 billion in the second quarter of FY 18, beating the analysts’ estimates for revenue of $16.77 billion. INTC’s Client Computing Group is its most profitable segment, posted the revenue of $8.73 billion, ahead of the FactSet projection of $8.48 billion. Intel’s Data Center Group is its second-largest segment and it tallied up $5.55 billion in sales, missing the $5.64 billion guidance.
Moreover, in the second quarter, the Client Computing Group (CCG) launched several new 8th Gen Intel Core processors including: the powerful 8th Gen Intel Core i9 processor for high performance laptops, 8th Gen Intel CoreTM vProTM processors for business, and the 8th Gen Intel CoreTM i7-8086K limited-edition processor for gaming. Data Center Group (DCG) saw strong demand from cloud and communications service providers investing to meet the explosive demand for data and to improve the performance of data-intensive workloads like artificial intelligence. In the comms service provider segment, INTC continued to gain share as customers choose to virtualize and transform their networks and prepare for the 5G transition using Intel architecture. The company’s Programmable Solutions Group also delivered strong results this quarter. PSG again set a record for design win volume, indicating customers’ confidence in the roadmap and growing adoption of FPGAs for workload acceleration from the data center, through the network, and out to the edge.
Additionally, this month INTC announced the planned acquisition of eASIC, which will give us a competitive differentiator and another solution to meet customers’ diverse time to market, performance, cost, and power needs.
For its third quarter of FY18, the company expects the adjusted earnings at $1.15 per share in its midpoint, better than the $1.08 per share that analysts polled by Thomson Reuters are projecting. Revenue is expected to be around $18.1 billion for the second quarter, better than the $17.60 billion that Wall Street was calling for, as per Thomson Reuters.