Intel’s interim CEO had admitted to chip supply issues only last month.
Intel has reported the best quarter in its 50-year history, with its client computing, Internet of Things (IoT), memory and Mobileye businesses all achieving record revenue.
Intel revenue surged amid relentless client demand for data centre hardware that can support AI-powered applications, the company said.
Third quarter Intel revenue hit $19.2 billion. Net income was $6.4 billion.
Bob Swan, Intel CFO and interim CEO told analysts on a conference call that the company is “one of the few that touches every part of the data revolution”.
He said: “We expect 2018 to be the best year ever.”
Intel’s data-centric businesses grew 22 percent year-on-year, led by a 26 percent growth in its data centre group, and driven by demand for cloud and communications service providers and their data requirements.
Unexpected Surge in Demand for PCs
Its PC business delivered Intel revenue of $10.2 billion, up 16 percent, driven in part by the strength of gaming.
“Stronger than expected customer demand across our PC and data-centric businesses continued in the third quarter,” said Bob Swan.
Intel also saw revenue grow 19 percent year on year for its IoT group, and 21 percent year on year for its memory business.
Intel Revenue: “Best Quarter Ever” After a Taxing Year
Intel has raised its full-year outlook more than $6 billion after achieving growth in every business segment for Q3.
In Intel’s earnings call, Swan called Q3 2018 the best quarter in the company’s 50-year history and that its “disciplined focus is delivering outstanding results”.
It will increase its R&D investments going forward, Swan said.
“Our thesis is that the massive growth of data worldwide will increase demand for the analysis, storage, and sharing of data”
“We are one of the few companies that touches every part of the data revolution, and we’re invested both organically and acquisitively to capitalise on these trends to accelerate the growth of the company, while at the same time delivering significant operating leverage and exiting non-core businesses.
During the quarter, the company had previously admitted to facing supply issues.
In a letter posted online last month, Swan had said that supply constraints in PC chips put pressure on its factories.
Swan said Intel would be investing an extra $1 billion in 14nm production sites and that the company would deliver on its full-year revenue outlook.
The company is also without a long-term CEO; Brain Krzanich resigned from the post after his relationship history with an Intel employee was revealed.
For Q4 2018, Intel is now expecting revenue of around $19 billion on earnings per share of $1.16.
For the full year, it’s expecting revenue of $71.2 billion.
Last quarter, the US multinational reported revenues of $5.5 billion for their data business segment, up by 26 percent year-over-year.