Intel is continuing to grow its core business units even as the silicon giant looks to new areas for future prospects.
Intel reported its third quarter fiscal 2017 (3Q17) financial results on Oct. 26, with revenue coming in at $16.1 billion, for a two percent year-over-year gain. Net income was reported at $4.5 billion, a 34 percent gain over the the third quarter of fiscal 2016.
The Client Computing Group, which includes chips that land in consumer PCs, remains Intel's largest single business unit, with revenue reported at $8.9 billion, roughly flat year-over-year.
"PC market conditions continued to improve, and we achieved record Core i5 plus Core i7 client mix," Intel CEO Brian Krzanich said during his company's earnings call. "We're especially excited about the launch of our latest 8th Generation Core processor, code-named Coffee Lake."
Krzanich said the Coffee Lake silicon family includes Intel's first six-core desktop CPU. Looking forward, he noted Intel is on track to ship its first low-volume 10-nanometer part by the end of the year.
Intel's Data Center Group Growing Even Faster than Consumer Segment
Intel's Data Center Group is growing faster than the consumer segment, with 3Q17 revenue of $4.9 billion, for a seven percent year-over-year gain. Much of the data center growth is being driven by the cloud service provider market, where Intel reported a 24 percent year-over-year gain. In contrast, Intel reported a decline of six percent for its enterprise and government market segment.
Intel is also working on next generation technologies that include both Quantum Computing as well as neural network processing.
"We delivered a 17-qubit superconducting test chip for quantum computing to our research partner, QuTech, and we'll follow that up with a 49-qubit test chip by the end of the year," Krzanich said. "We also unveiled the Loihi, a self-learning test chip that mimics the brain's basic mechanics and makes machine learning faster and more efficient."
"Later this quarter, we'll ship the Nervana neural network processor, the industry's first commercially available processor of its kind," Krzanich added.
Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist.