That apparently helped offset weak demand for personal computers that use the company’s chips.
Intel shares rose as much as 9.2 percent after market before paring some of their gains, probably as investors twigged that Intel had just cut its full-year capital expenditure forecast for the second time.
Intel said that it was expanding its line-up of higher-margin chips used in data centres to counter slowing demand from the PC industry and agreed to buy Altera for $16.7 billion in April as part of its cunning plan.
Revenue from the data centres grew 9.7 percent to $3.85 billion in the second quarter from a year earlier, helped by continued adoption of cloud services and demand for data analytics.
Chief Financial Officer Stacy Smith was predicting robust growth rates of the data centre group, Internet of Things group and NAND businesses.
Revenue from the PC business, which is still Intel’s largest, fell 13.5 percent to $7.54 billion in the quarter ended June 27.
“Our expectations are that the PC market is going to be weaker than previously expected,” Smith said.
Research firm Gartner predicted that PC shipments would fall 4.5 percent to 300 million units in 2015, with no respite until at least 2016.
Intel forecast current-quarter revenue of $14.3 billion, plus or minus $500 million. While the cocaine nose jobs of Wall Street were expecting revenue of $14.08 billion.
The company also cut its 2015 capex forecast to $7.7 billion, plus or minus $500 million. It had cut its full-year capex forecast to $8.7 billion from $10 billion in April.
The company’s net profits fell to $2.71 billion from $2.80 billion a year earlier.
Net revenue fell 4.6 percent to $13.19 billion, but edged past the average analyst estimate of $13.04 billion. Intel’s stock fell about 18 percent this year.