Editor’s note: Intel generates healthy growth across business segments, including Internet of Things, in delivering record 2nd quarter revenue, says Technology Business Research Analyst Daniel Callahan.
HAMPTON, N.H. – In its earnings report last week, Intel grew revenue to $14.8 billion in 2Q17, a year-to-year increase of 14% (excluding divested Intel Security).
Client Computing Group maintained its position as the primary source of Intel’s revenue, growing 12% year-to-year in 2Q17 to $8.2 billion which Intel attributes to ASP strength and inventory build.
Data Center Group followed at $4.4 billion, up 9% year-to-year in 2Q17. Intel noted that Cloud and Communications Service Provider segments contributed 60% of this segment’s revenue in 2Q17.
Internet of Things, while a smaller piece of Intel’s overall revenue, again showed strong growth at 26% year-to-year to $720 million in 2Q17.
Intel noted traction in the industrial, automotive and video segments with its IoT business. Another breakout segment is Intel’s Non-Volatile Memory Solutions Group achieving an impressive 58% growth year-to-year to $874 million in 2Q17.
It wasn’t all good news, however, with Programmable Solutions Group declining 5% year-to-year to $440 million this quarter attributed to loss of business in data center and wireless segments.
Intel’s operating income was up 30% percent to $4.2 billion in 2Q17 attributable to improved profitability across its business segments and due to spending control with R&D and SG&A.