Krzanich's comments came as Intel delivered record third-quarter earnings that show the company's renewed focus on areas such as programmable devices, non-volatile memory chips, the "Internet of Things" and data centers is paying off.
Intel released its latest quarterly earnings report at the end of trading yesterday in the USA.
Intel Corp. shares soared to a 17-year high in their strongest session in more than three years Friday, bucking an earnings-season trend in which chip makers' strong earnings reports weren't good enough for investors. Excluding items, the company earned $1.01 cents per share, beating analysts' estimate of 80 cents per share. Net income for the quarter totaled $4.52 billion, up 34 percent from the same period a year ago. We're excited about both our products and progress. "Intel's product line-up is the strongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more", said Krzanich in a prepared statement.
RBC Capital's Amit Daryanani, with a sector perform rating, raised his price target to $44 from $40, and called results "impressive" but still voiced some concern about growth in Intel's Data Center Group, or DCG, following a refresh cycle for the company's Xeon scalable processors, or the "Purley" server chip.
"Our strategy is to be the driving force of the data revolution across technologies and industries", he said. The company is exploring quantum computing solutions and neural network processors right now, laying the groundwork for a flexible long-term business plan. At the same time, though, he added that "our PC business remains central to our success".
However, Intel's Data Center Group recorded a 7pc increase in revenues of $4.9bn for the quarter.
The recent Mobileye acquisition also positions Intel to explore the autonomous-driving market in its formative years, forming partnerships with several top-tier carmakers along the way.
In contrast to its PC business, all of Intel's other main product lines showed improvements. What Intel calls "non-volatile" memory revenue surged by 37 percent, to $891 million, and programmable solutions sales reached $469 million, a 10 percent gain from a year ago. "Almost every single business unit was up, with flash leading the charge".
Client computing, or chips for personal computers, remained Intel's biggest business area, with revenue of $8.9 billion.
"It appears AMD's Ryzen consumer desktop effect is kicking in, as Intel's desktop volumes were down 6 percent", Moorhead said.
Intel's results also topped the estimates of Wall Street analysts, who forecast Intel to earn 80 cents a share on $15.73 billion in revenue. Intel's stock gains were the best one-day percentage boost since July 16, 2014, when shares rallied 9.3%.