Intel reported a 9.8% rise in quarterly revenue on Thursday ahead of analysts’ estimates, boosted by a stabilizing PC market and a rise in demand for its data center services.
Shares of the world’s largest chipmaker rose 2.2% to $38.38 in extended trading on Thursday.
Intel’s net revenue rose to $16.37 billion from $14.91 billion, beating the average analysts’ estimate of $15.75 billion, according to Thomson Reuters (TRI)
Revenue from the data center business rose 8.4% to $4.67 billion in the fourth quarter, while revenue from its traditional PC business rose 4.3% to $9.13 billion.
The PC unit includes sales of chips for mobile phones and tablets.
Intel has been building its data center, Internet of Things, and automotive businesses, to reduce dependence on the PC market, which has been roiled by users’ shift to mobile phones for their computing needs.
Intel, which will use New England Patriots quarterback Tom Brady to showcase its 360-degree video technology during the 2017 Super Bowl, is also driving deeper into the automotive market.
The company said earlier this month that it would acquire a stake in German digital mapping firm HERE.
“The fourth quarter was a terrific finish to a record-setting and transformative year for Intel,” Chief Executive Brian Krzanich said in a statement.
Intel (INTC) said it expects first-quarter revenue of $14.8 billion, plus or minus $500 million. Analysts on average were expecting $14.53 billion.
However, the company said its net income fell to $3.56 billion, or 73 cents per share, for the fourth quarter ended Dec. 31, from $3.61 billion, or 74 cents per share, a year earlier. (http://bit.ly/2k8Eon7)
Excluding items, the company earned 79 cents per share beating estimates of 74 cents per share.
Worldwide PC shipments fell by 1.5% in the fourth quarter, compared with a 3.9% decline in the preceding quarter, according to research firm IDC, continuing the recent trend of stabilizing demand.