Intel recorded Q3 revenues of $14.5 billion

Looking ahead, the company predicted revenue of $14.3 billion to $15.3 billion for the fourth quarter. When all is said and done, the company delivered slightly better-than-expected results in the third quarter and guided to about what Wall Street analysts had expected it to. “I do think Intel is more innovative than probably what we’ve seen in the past, but it remains to be seen”.

Krzanich said sales of Intel’s new 6th Gen Core processor had been greeted enthusiastically by customers. This can be seen with the push in data centre products, such as the DC P3608 series, which was unveiled last month and described as the world’s highest performing data centre SSD.

The fall in profits appears to have been caused by an underperformance in the firm’s newly created Client Computing Group, which incorporates mobile and PC sales performance, V3 says. Following the release of the earnings report, shares traded up 0.4% at $32.16 in the after-hours trading session. Gross margin was 63%, down by 2 percentage points year-over-year, while quarterly revenue was approximately flat year-over-year, with servers and the Internet of Things offsetting a declining PC business.

Client Computing posted $8.5 billion in revenue, which was up 13 percent from the previous quarter but down seven percent from the same one a year ago.

Intel had projected revenue of $14.3 billion for this quarter. Revenue from Intel’s data center business, its second largest, jumped almost 12% to $4.14 billion in the third quarter, as increased adoption of cloud services spurred demand for the company’s chips.

Receive News & Ratings for Intel Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Intel and related companies with MarketBeat.com’s FREE daily email newsletter. Stephen Belanger, an analyst with Technology Business Research, agreed that the combination of Windows 10 and Skylake chips will help spur sales, but is unsure whether it will be enough to reverse the decline in Intel’s PC chip sales.

Several other analysts have also issued reports on the stock. That’s a concern because Intel’s INTC, -0.53% data center business is its biggest growth engine right now, thanks to a boom in cloud conversions.

Intel said on Tuesday it expected the data center business to grow in “low double digits” in 2015, compared with its earlier forecast of about 15 percent growth. The company began the year expecting to spend $1.3 billion on its factories, but disappointing sales and unexpectedly slow introduction of new lines of microprocessors resulted in a series of cuts to the forecast.