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Intel sees another record year thanks to data centre and PC demand

(Image credit: Future)

Intel has had an amazing quarter, partly due to its data centre business and partly because of the transition from Windows 7 to Windows 10.

In terms of revenue, the company has recorded an eight percent rise year-on-year, hitting $20.2 billion. Profits have also risen nine percent, hitting $6.9 billion. Revenue outlook is similar to last year at $19 billion.

The company’s Data Centre Group has recorded revenue growth of 19 per cent year-on-year, touching $7.2 billion. Its Client Computing Group has seen a two per cent rise with $10 billion in revenue.

“We exceeded our expectations for Q4 2019, capping off a fourth consecutive record year,” Bob Swan, Intel’s chief executive, told analysts.

Users migrating to Windows 10 and buying new devices in the process also played a major part in Intel’s success, it was said.

Intel has also benefited from the transition to 10nm chips. The company now boasts 44 offerings containing the new Ice Lake hardware. Intel plans to add nine more products with 10nm technology this year, including the first discrete Xe GPU chip.

“In the second half, we expect to bring the server products and most importantly the PC products back to a more normalised inventory level,” chief financial officer George Davis said.

Intel expects to see a decline in the PC business this year.