Intel reported a surprise second-quarter profit on Friday, sending shares in the company higher by 6%. The company’s strong performance was unexpected given the recent slump in the PC market as a whole.
Revenue fell by 15% to $12.9 billion from $15.3 billion a year ago, marking the sixth consecutive quarter of declining PC sales. Intel’s data center and AI business fell 15% to $4 billion from $4.7 billion during the previous year, while its Client Computing group—the biggest business unit that concerns laptop and desktop shipments – saw a 12% slump in revenue from the previous year to $6.8 billion.
Despite the decline in revenue, Intel was able to record earnings per share of 13 cents, thereby beating a loss of 3 cents per share expected by industry analysts. The semiconductor producer has forecast earnings per share of 20 cents for the current quarter.
For the third quarter, Intel has projected an adjusted gross margin of 43%, higher than estimates of 40%. In 2024, the company expects to sell at least $1 billion worth of its AI chips.
Intel’s shares have risen by about 30% so far for the year to date.