Intel Corporation Inc. quarterly revenue topped $20 billion for the first time, up 8% year over year. This was primarily driven by growth in cloud services, despite growing competition and supply challenges.
Net income rose to $6.91 billion, from $5.2 billion in the quarter ended December. 28, 2019. Fourth quarter earnings were $1.58 per diluted share, up 41% year over year. Full year earnings were $4.66 per diluted share, up 2% year over year on revenue of $72.41 billion.
Data Centre Group revenues rose 19% to $7.2 billion, consensus was $6.39 billion. PC Group revenues rose 2% to $10 billion, while analysts expected a decline in year over year growth.
Intel Corp. experienced a profitable quarter, despite rising competition and supply challenges. As demand for data processing resources rise with the emergence of 5G and IOT products, Intel Corp. (NASDAQ: INTC) is uniquely positioned to benefit from this increased demand. However, Intel remains vulnerable to supply and demand changes for their cloud services.
CEO Bob Swan, said in a statement “our ability to predict the cloud service provider’s, purchasing power, and digestion patterns, is relatively hard. So we know from history, at some point will go into digestion mode and the buying patterns begin to slow down. And it doesn’t impact medium or long-term trends, but it does impact cyclical trends over the course of the year.”
About Intel Corporation Inc.
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California. The company supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel harnesses the capabilities of cloud, IOT products, programmable solutions and 5G connectivity. Intel disrupts industries helping solve challenges through innovation and global connectivity.