Intel Corporation (NASDAQ:INTC) surprised investors on Thursday by posting better-than-expected second quarter results. The company posted sterling performance in its chips business, which shows that NVIDIA Corporation (NASDAQ:NVDA) now has a tough competitor to tackle apart from AMD. Intel has been a dominant player in the data center and PC market, which is subject to volatility. But after the quarterly results, it is safe to say that Intel has succeeded in repositioning itself as a major chip company in the lucrative segments of AI, cryptocurrency, self-driving cars and high-performance data center.
Another major competitor in chips business, AMD earned $1.2 billion in revenue in the second quarter. Intel Corporation (NASDAQ:INTC), on the other hand, increased its revenue guidance for full fiscal 2017 by $1.3 billion. This shows that Intel has huge potential to challenge NVIDIA Corporation (NASDAQ:NVDA) and AMD in the near future.
Analysts think that Intel Corporation (NASDAQ:INTC) chips will become a major threat to NVIDIA after the launch of Xeon Scalable, chips designed for high-end server market. Intel CEO Brian Krzanich said during the earnings call that data center is a “remarkable opportunity” for Intel, and the company expects data center business to become a $65 billion opportunity by the end of 2021. The second quarter results also had very little effect from the sales of Xeon Ramp chips. Brian Krzanich said that Xeon Ramp sales will go “higher and higher” and their full effect will be visible by 2018.
Intel Corporation (NASDAQ:INTC) is making a major foray into the self-driving cars business. Earlier this year the company announced to acquire driverless cars technology company Mobileye NV. The buyout will be completed by the end of the third quarter this year.
Intel has also become a key Internet of Things player, a domain where NVIDIA Corporation (NASDAQ:NVDA) has a small footprint. Intel Corporation (NASDAQ:INTC) IoT revenue increased by 26% in the second quarter to reach $720 million.
Intel increaed its full-year adjusted earnings guidance by $0.15 to $2.85-$3.15. Revenue forecast was also increased by $1.3 billion to $61.3 billion, plus or minus $500 million.
The competition between NVIDIA Corporation (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC) will heat up in the second half of 2017. NVIDIA’s data center business revenue in the second quarter came in at $400 million. The company has several partnerships in self-driving cars business with major automakers. Analysts also believe that NVIDIA Corporation (NASDAQ:NVDA) Drive PX 2 platform will power General Motors driverless cars. NVidia also has a partnership with Audi.