Intel reaps early reward for its faith in future technologies

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Intel has bet heavily on where it sees the future of technology and last night it appeared that the world’s biggest chip maker’s punt has paid off.

The California-based group said that growth in its data centres and in interconnected technologies — the so-called internet of things — had offset weak demand for personal computers that use its equipment.

Intel, which in April bought Altera Corp for $16.7 billion as part of its expansion into data centres, reported second-quarter total revenues of $13.2 billion, down 5 per cent on a year ago but better than forecast. Data centre revenue was $3.9 billion, up 5 per cent on the previous quarter and 10 per cent higher than a year earlier. Internet of things group revenue rose to $559 million, up 4 per cent on a year ago.

“Second-quarter results demonstrate the transformation of our business as growth in data centre, memory and internet of things accounted for more than 70 per cent of our operating profit and helped offset a challenging PC market,” Brian Krzanich, chief executive of Intel, said.

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