Intel posted whopping results today. The cloud, and data centers in particular, are accounting for the steep increase.
In its quarterly earnings call today, Intel executives pointed to increased Internet usage, smart phones and tablets as contributing factors for the increased demand.
Year over year, its Data Center Group revenue was up 32%, with particular demand for high-end servers for the enterprise and the data center.
The New York Times had this to say:
This market for so-called "cloud computing" helped Intel weather the forces that are slowing other parts of the computer market -- mounting pressure from low-priced tablet computers, and continuing economic uncertainty.
Overall, Intel posted revenues of $12.9 billion, $1.3 billion higher than Wall Street's expectation of $11.6 billion. Revenues were up 25% compared to a year ago and overall 12% higher compared to the previous quarter.
Intel CEO Paul Otellini said that Intel expects high demand for its server technology to continue over the next several years.
Intel has room to catch up in the mobile space. But its focus on technology for the data center is paying off in a substantial way.
Disclosure: Intel is a ReadWriteWeb sponsor.