Chip giant Intel's shares rose 7 percent after it posted second quarter results that exceeded Wall Street's expectations.
The Santa Clara, California-based company posted net income of $1.5 billion, compared with a net loss of $454 million in the same quarter last year. The adjusted earnings per share was 13 cents on sales of $12.9 billion in the June quarter.
"Our Q2 results exceeded the high end of our guidance as we continue to execute on our strategic priorities, including building momentum with our foundry business and delivering on our product and process roadmaps," said Intel CEO Pat Gelsinger.
"We are also well-positioned to capitalize on the significant growth across the AI continuum by championing an open ecosystem and silicon solutions that optimize performance, cost and security to democratize AI from cloud to enterprise, edge and client," Gelsinger added.
Intel also said the outlook for the next quarter remained sanguine. The company said it expects to earn an adjusted 20 cents a share on sales of $13.4 billion in the third quarter.
Intel, however saw revenue falling 15 percent to $12.9 billion from $15.3 billion a year ago. CEO Gelsinger cautioned that there are some "persistent weakness" in all parts of the business until the year-end.
"We have now exited nine lines of business since [Gelsinger] rejoined the company, with a combined annual savings of more than $1.7 billion," said David Zinsner, the CFO, according to CNBC.
Break-Up
While revenues from the Client Computing group dropped 12 percent to $6.8 billion, Intel's server chip division saw sales declining 15 percent to $4 billion. The Network and Edge division saw a 38 percent decline to hit up revenue of $1.4 billion and the Foundry Services reported gross income of $232 million.
