Comms chips

Intel Beats Expectations on Cloud Growth

Intel proved to be a bright spot in the semiconductor market this week, as its earnings beat Wall Street analysts' expectations, based on its strength in the data center. (See Intel Earnings Flat As Cloud Growth Offsets PC Decline.)

Multiple analysts, including those quoted in this CNBC article, say Intel Corp. (Nasdaq: INTC) 's success in an otherwise down market for semiconductors marks its shift from being a PC company to data center focus.

Track critical shifts in the components business in our components section here on Light Reading.

Alex Gauna, an analyst at JMP Securities, tells CNBC that Intel has made the shift to the cloud, and is the dominant player there with 90% of the market. "Fundamentally, Intel is the cloud right now," he says. "They are completely dominant with their Xeon family of chips. And that really is the opposite side of the weakness in PC."

According to Intel, its Data Center Group revenue was up 8% quarter over quarter and up 12% on a year-on-year basis. That offset decline on the PC side in what was a flat overall revenue growth quarter.

— Carol Wilson, Editor-at-Large, Light Reading

DHagar 10/16/2015 | 1:40:54 PM
Re: Intel beats expectations danielcawrey, interesting points - thanks!  They definitely "understand" the changing markets and keep developing the technology focus accordingly.  I am with you, it's great to see good companies succeed!
danielcawrey 10/15/2015 | 9:45:50 PM
Re: Intel Beats Expectations Remember when Intel was marketing to the consumer sector? That doesn't really happen now, a sea change. For example, Macbooks have Intel Inside. But that's not something the average person even knows. 

The cloud has changed the game because we're all still relying on Intel, but in a more distributed way. Nice job, Intel. 
DHagar 10/14/2015 | 3:47:57 PM
Re: Intel Beats Expectations Carol, Intel is one smart company and continues to move ahead of the crowd!  Interesting that they have completed transitioning into data centers - that should keep them well positioned for years.

It's great to see a smart and productive company win.  Their position should continue to keep them in the lead in the cloud.
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