The world’s largest semiconductor company, Intel released its Q2 2016 earnings on July 20th. The company’s revenue came in-line with its guidance, while its profitability exceeded both company guidance and analyst expectation. However, Intel’s stock saw a marginal decline in after-hours trading yesterday. This can be attributed to the slower growth in the data center business and a quarter-over-quarter decline in Internet-of-Things (IoT) revenue. We believe that the data center slowdown is not a cause of concern as growth is expected to re-accelerate in the second half of the year. The sequential decline in IoT revenue was due to an inventory burn after a very strong Q1 2016. The segment remains one of the biggest growth drivers for the semiconductor industry and Intel is at the forefront of this new trend.

from Forbes – Tech http://ift.tt/29WM7Su
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