Intel's Strong Revenue Forecast Sends Stock Price Soaring to 10-Year High

Paul Lilly

The sky isn't falling, after all

Analysts can talk about the post PC era until they're blue in the face, Intel will continue to cash checks either way. Big ones, at that. Intel reported second-quarter revenue of $13.8 billion , up 8 percent for $12.8 billion in the same quarter a year ago. That translates into a $2.8 billion profit for the quarter, which is 40 percent higher than the $2 billion profit it recorded in Q2 2013.

"Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data center to PCs to the Internet of Things," said Intel CEO Brian Krzanich . "With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40 million unit tablet goal. In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays."

Intel may have been slow to recognize the consumer shift into mobile, but has since been able to gain a strong foothold in the segment. Still, the PC market has been kind to Intel -- the company's PC Client Group recorded revenue of $8.7 billion in Q2, up 9 percent sequentially and 6 percent year-over-year. Meanwhile, it's Mobile and Communications Group actually saw its revenue fall 67 percent sequentially to $51 million.

Looking ahead, Intel is forecasting $14.4 billion in revenue for Q3 and growth of approximately 5 percent for the full year. Investors reacted positively to the quarterly results and revenue forecast -- Intel's stock price is up 7 percent today at $33.93, which is higher than it's been for the past decade.

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