Intel Corporation (NASDAQ: INTC) reported a decent fourth quarter of 2017, driven by their solid top line. The stock rose over 3.7% in the after-hours session on Jan 25th, 2018 (Source: Google finance). The group’s Data-centric revenue excluding McAfee enhanced 21% yoy during the fourth quarter. The cloud segment was up 35% during the quarter while comp service providers enhanced 16%. The enterprise surged 11% on a yoy basis while adjacency revenue enhanced 35%. This segment strength was boosted by ASP as customers transition to Xeon Scalable product in a seasonally strong fourth quarter, IT buy window.
The group is undergoing one of the major transformation from a PC-centric company to a data-centric company. They expanded their TAM to $260 billion with this move. These investments led to the collection of data-centric businesses that are unmatched, growing at double-digit rate and approaching 50% of the Company’s revenue.
The Cloud segment was boosted by a major volume growth and the ongoing customer preference for higher performance products. Enterprise customers offload workloads to public clouds, the group is witnessing these clients to prioritize performance solutions for hybrid and on-premise build outs.
They launched the Intel FPGA SDK for OpenCL to boost productivity for their customers. The group also delivered first-to-market leadership innovations in this Stratix 10 product line, including the first SoC FPGA with an armed processor at more than 1 million logic elements and the industry’s first FPGA with integrated HBM2 memory. Their Internet of Things enhanced 21%, with the ongoing momentum in retail, video and in-vehicle infotainment vertical.
The group’s Memory business enhanced 9% and is in profitability during fourth quarter. They have signed a further agreement and currently forecasts a prepayments reaching over $2 billion over the course of 2018. Mobileye had another strong quarter and business momentum is ongoing. Their steady design winds over the course of 2017 and 15 new program launches in 2018 are both increases a 2.5 times over the prior period.
The group’s EyeQ5 would deliver 23 tera ops of deep learning performance and a 10 watt power envelops or about 2.5 times, the efficiency of the competition. They forecast 2 million EyeQ-equipped cars that would be collecting crowd-sourced data for the REM, which is their road experience management mapping solution.