(Reuters) - Intel Corp's reported better-than-expected quarterly profit and revenue on Wednesday as growth in its data centers and Internet-of-Things businesses helped offset weak demand for personal computers that use the company's chips.
Shares of the world's largest chipmaker rose 5.2 percent in after-market trading.
Intel forecast current-quarter revenue of $14.3 billion, plus or minus $500 million. Analysts on average were expecting revenue of $14.08 billion, according to Thomson Reuters I/B/E/S.
The company also cut its 2015 capital expenditure forecast to $7.7 billion, plus or minus $500 million. It had cut full-year capex to $8.7 billion from $10 billion in April.
Revenue from Intel's data center business, its second-largest, grew 9.7 percent to $3.85 billion in the second quarter from a year earlier, helped by the continued adoption of cloud services and demand for data analytics.
The world's biggest chipmaker has been expanding its line-up of higher-margin chips used in data centers to make up for slowing demand from the PC industry.
The company agreed to buy Altera Corp
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But with the cycle of upgrades ending and the dollar's continued strength leading to price increases overseas due to the devaluation of local currencies, PC demand has slumped again and is expected to stay weak for the foreseeable future.
Intel said revenue from the business, its largest fell 13.5 percent to $7.54 billion in the second quarter ended June 27.
The company's net income fell to $2.71 billion from $2.80 billion a year earlier. Earnings per share, however, were flat at 55 cents, due to a fall in the number of weighted average shares outstanding. (http://bit.ly/1Hvmgay)
Net revenue fell to $13.19 billion from $13.83 billion, the company said.
Analysts on average had expected a profit of 50 cents per share and revenue of $13.04 billion, according to Thomson Reuters I/B/E/S.
(Reporting by Abhirup Roy in Bengaluru; Editing by Simon Jennings)
