As the computing business moves from the desktop to the cloud, Intel Intel and companies like it will have to execute a rapid transition. So far they seem to be doing alright.
Intel's first quarter earnings edged out Wall Street's projection: $0.38 per share over the consensus estimate of $0.37. Revenue actually just missed, with $12.76 billion in sales vs. $12.81 billion estimated.
But the real story is the rise of cloud services and other post-PC businesses. While Intel's biggest business sector is PC client revenue ($7.9 billion), that declined 1% from the first quarter of 2013. The growth came from the data center group, which grew 11% year over year to $3.1 billion, and the "Internet of Things" group, which includes embedded chips for a variety of new smartwatches and other non-traditional computer devices. The Internet of things revenues were only $482 million, but that's up 32% year over year. That category was newly broken out by the company this quarter.
Intel shares, which nudged up 0.79% during the day, initially surged about 3% in after hours trading, then receded. As of 4:30pm EST, shares were up 0.86% after hours.
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