Intel Lifts Forecast as Data Chip Surge Cements its Top Spot
- Data Center group grew 24 percent in the first quarter
- Shares rally in after-hours trading on strong performance
Growth in Data Center Business Powers Intel's Strong Results
Intel Corp. said 2018 is looking better than expected thanks to strong demand for the chips that power cloud computing, showing that the company is holding steady against competitors that are trying to break its stranglehold on that lucrative market.
Growth in the data center group has become one of the key indicators of Intel’s overall performance, and investors are focused on whether that unit can maintain the double-digit revenue-expansion rate executives have promised. Intel gave them what they were looking for in the first quarter, with revenue in that group up 24 percent. Based on a strong start to the year, Intel raised its full-year forecast by $2.5 billion, and sales in the first quarter also came in higher than analysts were expecting.