Intel posted its highest third-quarter revenue in the history of the company, raking in $19.2 billion, a 19 percent jump from the same quarter a year prior. This led to an even bigger jump in profit, with Intel posting net income of $6.4 billion, up 42 percent year-over-year. What makes these numbers even more impressive is that Intel contended with a shortage of 14-nanometer silicon.
Earlier this month, Intel CFO and interim CEO Bob Swan said the chip maker was surprised by the return to growth in the PC market, noting that "second-quarter PC shipments grew globally for the first time in six years, according to [market research firm] Gartner." At the time, he also admitted that the rebound had "put pressure on our factory network" and that "supply is undoubtedly tight, particularly at the entry-level of the PC market."
His statements followed reports of Intel having trouble keeping up with demand for 14nm processors. If that affected the company's bottom line, it was not noticeable in its third quarter earnings.
"Stronger than expected customer demand across our PC and data-centric businesses continued in the third quarter. This drove record revenue and another raise to our full-year outlook, which is now up more than six billion dollars from our January expectations. We are thrilled that in a highly competitive market, customers continue to choose Intel," Swan said.
Swan also hinted that Intel is still dealing with a shortage of shorts, saying the company remains "focused on the challenge of supplying the incredible market demand for Intel products." Intel has turned this into a positive and expects a 2018 to be another record year.
It's not just one category that is responsible for Intel's success. The Santa Clara chip maker said it saw growth in every business segment, including a 16 percent year-over-year gain in the PC-centric sector, and a collective 22 percent jump in its data center businesses.
Intel's stellar performance precedes its 9th generation Core processor launch, including its first ever 8-core/16-thread mainstream desktop chip (Core i9-9900K). It also launched a new Z390 chipset. More recently, Intel denied a report that it's abandoning its 10nm development, adding that the volume launch of Cannon Lake scheduled for holiday 2019 is still on track.
Shares of Intel rose as high as 6 percent in after-hours trading following the news, and are up 3.59 percent in early morning trading today.