Data Centers Help Intel Beat Earnings Expectations

Intel's (INTC) earnings beat expectations on the back of its strong data center business. Overall for the second quarter, Intel reported net income of $2.7 billion, or 55 cents a share. That was down $100 million from a year ago, but was the same in per share terms because Intel has bought back a lot of stock. The results were above expectations of Wall Street analysts, who forecast that Intel would make 50 cents a share. Intel's earnings are no longer a prisoner of the personal computer market. Chief Financial Officer Stacy Smith says the company now gets 40% of revenue and 70% of operating profit from data center processors, flash memory chips and chips used to add computer power to everything from cars to air conditioners. Intel's data center group took over in the first quarter as the biggest provider of operating profit in the company.

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