Intel hits earnings expectations
Intel Corp. stock rose more than 7 percent in after-hours trading Wednesday as the company’s second-quarter revenue and earnings topped analysts’ forecasts. Growth in its data center and Internet of Things businesses offset lower chip sales declines from declining PC sales.
By 2:58 p.m. PDT, Intel shares were up 2 percent at $30.33.
“Second-quarter results demonstrate the transformation of our business as growth in data center, memory and IoT accounted for more than 70 percent of our operating profit and helped offset a challenging PC market,” said Intel CEO Brian Krzanich in a press release. “We continue to be confident in our growth strategy and are focused on innovation and execution.”
Intel said it expects the Microsoft’s Windows 10 and other product launches will add some pizzazz to client computing in the second half of 2015.
Krzanich revealed on a conference call that Intel plans to introduce its third 14-nanometer chip, while it’s pushing for the launch of its 10-nanometer chip in the second half of 2017. He expects the doubling of chips’ performance today to take closer to 2.5 years rather than the two years as Moore’s Law has stated for the past 50 years. The company said it will always strive to get back to two years.