Intel’s fourth quarter earnings soar due to robust server demand

Intel impresses

Intel impresses

Intel’s fourth quarter profits jumped by 48 percent, despite weak PC demand, and the company’s near absence in the booming smartphone and tablet PC processor segment. The company also projected a rosy picture for this year with higher sales and better margins.

Strong demand from the server market saw the company posting a net profit of $3.4 billion (£2.1 billion) for the last quarter of 2010, compared to $2.3 billion (£1.42 billion) the previous quarter. Revenues were up by 8 percent to $11.5 billion over same period last year, beating street expectations.

The company claimed that 2010 was its best year in history.

Demand for Intel’s PC processors was flat for the year; however, chip demand for servers used in data centers increased by 15 percent in the October-December 2010 period.

Intel’s net profit for 12 months in 2010 nearly trebled to $11.7 billion, compared to $4.4 billion recorded in 2009.

Earlier this week Intel had agreed to pay graphics processor leader Nvidia $1.5billion to use its technology in developing Intel’s own microprocessors.

The deal will give Intel an advantage in the handheld devices market such as tablet PCs, smartphones and hand-held computers, analysts believe.

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