We've reported on AMD's Q2 2018 results just yesterday and noted that things are looking rosy for the red team. Now the blue giant published its quarterly results, and the basic diagnosis is “that's a ton of money.” The company raked in $17 billion in revenue, up 15% year-on-year, and made $5.3 billion in operating profit, up 37% since the same quarter last year.
Net income got a 78% boost from Q2 2017, up to a massive $5 billion. Stockholders should be extra-happy with the earnings per share of $1.05, an 82% rise year-on-year. Intel's ever-important gross margin saw a very slight drop of 0.2% on the year to a still-impressive 61.4%.
It's not all good news, though. Intel let slip that its only expects system with 10-nm chips inside in the second half of 2019. After we last discussed the issue, that bit of news comes as no surprise, but it nevertheless bothered investors enough that stock prices took a tumble. After all, arch-rival AMD seems to be firing on all cylinders with its roadmap, while any next-generation Intel architectures are still waiting for the 10-nm node to yield well enough to ramp. Should AMD and other Intel rivals ship products on 7-nm-class processes from TSMC and GlobalFoundries, it would mark the first time in recent memory that Intel didn't enjoy a chip process advantage.
|Q2 2018||Q2 2017||Change|
|Revenue||$17 billion||$14.8 billion||up 15%|
|Operating income||$5.3 billion||$3.8 billion||up 37%|
|Net income||$5.0 billion||$2.8 billion||up 78%|
|Gross margin||61.4%||61.6%||down 0.2%|
|Earnings per share||$1.05||$0.58||up 82%|
According to Intel's report, every one of the company's major business segment saw revenue growth. In heartwarming news to PC enthusiasts in general, Intel's Client Computing Group brought in $8.7 billion, a 6% rise compared to Q2 2017. The company remarks that it saw demand for its “highest-performance products” in this segment and predictably mentions gaming as one of the underlying reasons for that growth.
The Data Center Group brought in $5.5 billion in revenue, or a whopping 27% year-on-year growth. The Internet of Things group is still a relatively minor player in the Intel mix with $880 million in revenue. However, that amount represents a historical record and a 22% rise since Q2 2017. Intel's non-volatile memory and Mobileye businesses likewise had record quarters. Income from the Non-Volatile Solutions Group rang in at $1.1 billion (up 23% year-on-year), while revenue from Mobileye went up by 37%.
As for future projections, Intel believes it'll bring in $18.1 billion in revenue in Q3 2018 (a 6% rise versus the current quarter), plus or minus $500 million. The company is counting on a 32.5% operating margin in that quarter and on earnings per share of $1.05.