Intel (NASDAQ:$INTC) announced its second quarter earnings on Thursday, July 27. The semiconductor company saw its stock increase by about 4% in after-hours trading following its second quarter earnings report. The rise was mainly due to the fact that both reported earnings and revenue surpassed analysts’ expectations.

For its second quarter, Intel reported an earnings per share of $0.72, beating average analysts’ expectation of $0.68 according to Thomson Reuters. Revenue was $14.76 billion for the second quarter, also beating average analysts’ expectations of $14.41 billion according to Thomson Reuters.

Intel is currently attempting to move away from its PC business due to a continued decline in PC shipments both in the U.S. and globally. This move is being done despite the fact that Intel’s Client Computing Group takes in the most revenue when compared to Intel’s other businesses. However, despite competition from AMD (NASDAQ:$AMD) with its Ryzen PC chips, Intel’s Client Computing Group raked in about $8.2 billion in revenue in the second quarter.

Another business Intel is pulling away from is its Internet of Things Group, with plans to discontinue some of its Internet of Things products. However, for the second quarter, the Internet of Things Group saw a revenue of $720 million – a 26% increase year-over-year.

Intel’s Data Center Group, which also is in competition with AMD, took in about $4.4 billion in revenue. The rise was 9% year-over-year. The company also revealed its Data Center Group’s next generation Xeon Scalable chips, codenamed Purley, in an attempt to expand its Data Center business. Financial firm MKM Partners’ managing director Ruben Roy believed that as Intel pushes its Purley chips, the Data Center Group will experience faster growth.

Intel’s Non-Volatile Memory Solutions Group improved the most for its second quarter, with a year-over-year increase of 58%. The business turned in $874 million in revenue. Meanwhile, Intel’s new Programmable Solutions Group did the worst in the company’s second quarter with a decrease of 5% year-over-year. The group raked in $440 million in revenue.

Intel has posted an expectation of $0.80 in earnings per share with a $15.7 billion in revenue for the its third quarter. The company is also looking to expand with new technologies like artificial intelligence with the acquisitions of companies like Altera (NASDAQ:$ALTR), Nervana (traded privately), Mobileye (NYSE:$MBLY), and Movidius (traded privately).

Although Intel’s stock has fallen by 3.5% so far this year, investment firm Hilliard Lyons noted that even with high competition, Intel is at a place where it can outperform its competitors on a risk-adjusted basis for the next five years.

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