Intel (NASDAQ:INTC) stock jumped as much as 8% in extended trading on Thursday after the chipmaker beat third-quarter earnings expectations and reignited revenue growth.
The company known colloquially as "Mr. Chips", declared earnings of $1.42 per share, vs. $1.24 per share as expected by analysts. Revenue grew to $19.19 billion, vs. $18.05 billion as expected by analysts.
Intel CEO Bob Swan told analysts Thursday the company needs to improve its execution in multiple areas, including supply.
"We expect our second-half PC client supply will be up double-digits compared to the first-half, and we expect to further increase our PC client supply by mid-to-high single-digits in 2020, but that growth hasn’t been sufficient," Swan said. "We’re letting our customers down and they’re expecting more from us."
The top business segment, the Client Computing Group, which sells processors for desktop PCs, laptops and two-in-one devices, produced $9.71 billion in revenue in the third quarter, beating the $9.59 billion average estimate among analysts, although it was down 5% from the year-ago period. The company pointed to lower platform volume in the segment.
The next-largest business, the Data Center Group, which focuses on server chips, delivered $6.38 billion in revenue, above the $5.62 billion consensus estimate. The cloud portion of the segment returned to growth. Cloud providers ended a three-quarter capacity absorption cycle.
The Internet of Things Group, which makes computing products for industries and embedded systems, had $1.23 billion in revenue, compared to the $1.12 billion expected.
INTC shares gained $3.23, or 6.2%, to $55.46
