Computer chip giant Intel reports record earnings

Intel Corporation reported record-high earnings as the company shipped more chips than ever despite talk of a gloomy global computer market. The Northern California-based chip titan topped $14 billion in quarterly revenue for the first time with net income climbing to an unprecedented $3.5 billion. "Intel delivered record-setting results again...driven largely by double-digit unit growth in notebook PCs (personal computers)," said Intel chief executive Paul Otellini. "We also saw continued strength in the data center fueled by the ongoing growth of mobile and cloud computing." The earnings buoyed confidence in Intel amid an overall slowdown of personal computer sales and bested the expectations of financial analysts. Intel stock prices rose more than four percent to $24.44 per share in after-hours trading that followed release of the earnings results. The company said revenue for the year was on track to hit $55 billion, topping last year by 26 percent. Intel saw gains in sales of chips for business computers and data centers, but a 32 percent year-over-year drop in sales of Atom microprocessors tailored for gadgets in the booming market for smartphones and tablets. Demand for chips in hot emerging markets such as China and Brazil was offsetting weakening US sales, Otellini said during an earnings conference call.