Chipzilla has surprised the cocaine nose jobs of Wall Street by making a tidy sum on the back of PC sales. This seems to suggest that, at the very least, that the PC slump is over, or that the mobile revolution and the downturn of the PC were not related like the Tame Apple Press and some analysts suggested.
Intel forecast third-quarter revenue above Wall Street's expectations. Chief Financial Officer Stacy Smith said PC sales had stabilised and he expects shrinking demand from consumers in China and other developing countries to rebound, just as it recently has in the United States. Intel now expects the market's recovery to help it grow its full-year revenue about 5 percent, slightly higher than prior expectations.
Chief Executive Officer Brian Krzanich told analysts on a conference call that improved demand from companies replacing old PCs would last at least through the end of 2014. Intel increased its share buyback program by $20 billion. It wants to buy $4 billion of stock in the current quarter, thinking tht there will be more interest in "two in one" devices with detachable keyboards and screens.
Intel said in a statement it expects third-quarter revenue of $14.4 billion, plus or minus $500 million. Analysts had expected $14 billion on average. Revenue from Intel's PC group rose 6 percent in the quarter while its data centre group, a big contributor to gross margins, had revenue jump 19 percent. Chipzilla’s profits have been made without much interesting in its mobile offerings. Intel said its mobile and communications group's revenue fell 83 percent to $51 million and had an operating loss of $1.12 billion.
Intel's second-quarter revenue was $13.8 billion, compared with $12.8 billion in the year-ago quarter. Chipzilla posted second-quarter net income of $2.8 billion, compared with $2.0 billion at the same time last year.