Intel data centre division leads Q1 growth

Semiconductor giant joins IBM in withdrawing 2020 guidance

Chipmaker supreme Intel has released its latest quarterly financials, with the company’s data centre group the standout performer in a quarter interrupted by Covid-19.

Intel’s revenues are split between those gained from PC chip sales, and what it calls “data-centric” sales — chips that service data-heavy workloads across a distributed computing landscape, from multi-cloud to the edge and back.

Despite the novel coronavirus pandemic prompting well-documented supply chain disruptions, Intel registered strong growth across both segments. Profits still fell short of expectations, however, prompting concerns business might slow in Q2. Like IBM, the company withdrew its 2020 projections, citing Covid-19-induced economic uncertainty.

Overall, first-quarter revenue was up $19.8 billion, up 23 percent year-over-year. The company’s PC-centric revenue grew by $9.8 billion, up 14 percent year-over-year, while the company’s data-centric revenue grew 34 percent year-over-year, up $10 billion.

Gains in Intel’s data-centric revenue were led by the company’s Data Center Group (DCG), which posted a $7.0 billion revenue increase and 43 percent year-on-year growth. If you take the Russian doll further, within that group,  Intel registered 53 percent year-on-year growth in cloud service provider revenue, as the company continues to benefit from steady hyperscale chip demand.

Intel’s memory business (NSG) and Mobileye also set new revenue records in the first quarter. This year Intel demonstrated its eagerness to ramp up 5G efforts with the introduction of several 5G network infrastructure products, including the new Intel Atom P5900, a 10nm system-on-chip (SoC) for wireless base stations.

“Our first-quarter performance is a testament to our team’s focus on safeguarding employees, supporting our supply chain partners and delivering for our customers during this unprecedented challenge,” said Bob Swan, Intel CEO.

In response to the Covid-19 outbreak, Intel has invested $100 million to support its employees and donated a million pieces of PPE to healthcare workers. The company has also pledged $60 million to fund an initiative exploring how technology can aid communities hardest hit by the pandemic.

“The role technology plays in the world is more essential now than it has ever been, and our opportunity to enrich lives and enable our customers’ success has never been more vital. Guided by our cultural values, competitive advantages and financial strength, I am confident we will emerge from this situation an even stronger company,” Swan added.