Self-driving cars, data centres and IoT deliver record gains for Intel in Q3

27 Oct 201727 Shares

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Intel booth at CES 2016. Image: Kobby Dagan/Shutterstock

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Intel is most definitely driving autonomously into the post-PC era.

Chip giant Intel has reported third-quarter revenues of $16.1bn, up 6pc on last year, driven mainly by gains in the data centre sphere, the internet of things (IoT) and its long-standing memory business.

Intel is making the transition from a tradition based mainly on PCs to one where the cloud and sensors in everything from homes to cars will power the future.

‘Intel’s product line-up is the strongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more’
– BRIAN KRZANICH

While Intel’s Client Computing Group still accounts for the majority of Intel revenues at about $8.9bn in Q3, revenues were flat year on year.

However, Intel’s Data Center Group recorded a 7pc increase in revenues of $4.9bn for the quarter.

The IoT Group recorded a 23pc rise in revenue to $849m while the Non-Volatile Memory Solutions Group saw revenues jump 37pc to $891m.

Intel’s Programmable Solutions Group also saw gains of 10pc to $469m for the quarter.

Momentum will drive Intel to a $62bn year

In the third quarter, Intel generated approximately $6.3bn in cash from operations, paid dividends of $1.3bn and used $1.1bn to repurchase 31m shares of stock.

The momentum in Q3 is expected to carry forward to Q4 and Intel has raised its full-year outlook by $700m to reach $62bn.

The company said the quarter was marked by important autonomous vehicle customer wins as well as the early conclusion of its acquisition of Mobileye for $15.3bn.

“We executed well in the third quarter with strong results across the business, and we’re on track to a record year,” said Brian Krzanich, Intel CEO.

“I’m excited about our progress and our future. Intel’s product line-up is the strongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more.”

Intel booth at CES 2016. Image: Kobby Dagan/Shutterstock

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com