A Intel raised annual revenue forecast on Thursday, focusing on the dual strategy of increasing internal production and outsourcing to catch up with rivals.
One of the few in the industry of processors which designs and manufactures its own chips, Intel has been able to tackle supply chain problems better than rivals like Advanced Micro Devices, which have outsourced the manufacturing.
A shift in business working models toward cloud and artificial intelligence-based operations due to the pandemic has also increased demand for processors used in data centers and PCs.
“The digitization of everything continues to accelerate,” said Pat Gelsinger, chief executive of Intel.
Intel said it now forecasts adjusted annual revenue of $73.5 billion, compared to a previous forecast of $72.5 billion and analyst expectations of $72.8 billion, according to data from Refinitiv IBES.
Top-margin data center business revenue fell 9% to $6.5 billion in the second quarter, while its personal computing business revenue increased 6%, beating FactSet’s estimates.
Intel expects third-quarter adjusted revenue of $18.2 billion, compared to projections of $18.1 billion. On an adjusted basis, the company earned $1.28 per share in the second quarter, compared with estimates of $1.06.