Intel just disclosed that it made $539 million from its Internet of Things group during the second quarter, up 12% on the preceding quarter, and up 24% from a year ago.
Overall, the semiconductor giant generated quarterly revenue of $13.8 billion, in line with analyst expectations and its previously issued guidance, and $2.8 billion profit. Intel also said it expects to generate about $14.4 billion in revenue during Q3 (give or take $500 million), with its gross margins expected to reach 66%. Investors like the result and guidance and Intel shares are up about 3% in after-hours trading.
Intel, which has been suffering amid a huge consumer shift away from PCs and into mobile devices, has been making a huge push into the so-called “internet of things,” which is basically the idea that all of our mundane possessions will eventually be connected devices.
Intel describes its Internet of Things group as the business that provides the “hardware, software, tools, systems integration, and network and cloud infrastructure” needed to support connected devices.