Intel raised its annual revenue forecast on Thursday, focusing on its dual strategy of increasing in-house production as well as outsourcing to catch up with rivals.
Intel, one of the one of the few remaining companies in the processor chip industry that both designs and manufactures its own chips, has been able to weather the supply chain woes better that rivals like Advanced Micro Devices that have outsourced manufacturing.
A shift in business working models toward cloud and artificial intelligence-based operations due to the pandemic has also increased demand for processors used in data centers and PCs.
“The digitization of everything continues to accelerate,” Intel Chief Executive Officer Pat Gelsinger said.
Intel said it now expects annual adjusted revenue of US$73.5 billion, compared with its previous forecast of US$72.5 billion and analyst expectations of US$72.80 billion, according to Refinitiv IBES data.
Revenue from the company’s higher-margin data center business fell 9 percent to US$6.5 billion in the second quarter, while its personal computing business revenue rose 6 percent, both beating FactSet estimates.
Intel expects adjusted third-quarter revenue of about US$18.2 billion, above estimates of US$18.09 billion.
On an adjusted basis, the company earned US$1.28 per share in the second quarter, compared with estimates of US$1.06.
(Reporting by Chavi Mehta in Bengaluru and Stephen Nellis in San Francisco; Editing by Shounak Dasgupta)