Intel Corp. is riding high today after posting better-than-expected third-quarter results thanks to record-breaking revenue from its data center group.

The company, whose computer chips continue to power the vast majority of the world’s laptops, desktops and servers, posted a profit of $6.4 billion, or $1.38 per share, on revenue of $19.2 billion, up 19 percent from the same period a year ago.

Earnings before certain costs such as stock compensation came in at $1.40 per share. Wall Street analysts were expecting earnings before certain costs of just $1.15 on revenue of $18.4 billion.

Intel’s Data Center Group saw revenue grow by 26 percent compared to one year ago, topping $6.14 billion, above the $5.89 billion estimates. Meanwhile, its biggest business, the client computing group, which makes central processing units for PCs and similar devices, pulled in $10.23 billion, ahead of analysts’ consensus of $9.33 billion.

The company’s Internet of Things unit also did well, with quarterly revenue growing 8 percent, to $919 million.

“Intel had a blowout third quarter led by massive uptake in data-centric technologies like Xeon processors, FPGAs, networking and storage technologies,” said Patrick Moorhead, president and principal analyst at Moor Insights & Strategy. “PC growth is a testament to Intel’s marketing and sales ability to successfully execute the upsell as well as taking advantage of macro growth where it is strongest, in commercial PCs.”

Intel’s stock promptly went on a roller-coaster ride in the after-hours session, rising as much as 6.5 percent before falling back to less than a 1 percent gain after interim Chief Executive Bob Swan warned the ongoing trade dispute between China and the U.S. could serve as a headwind for next year. Swan told analysts on a call that China remains a “big market” for Intel, not to mention an important part of its global supply chain.

Intel’s quarter looks all the more successful in light of its rival Advanced Micro Devices Inc.’s own miserable showing on Wednesday. AMD offered weaker-than-expected guidance, sending its stock tumbling.

The results also underline Intel’s ability to shine even as it contends with a number of challenges to its business. The company is reportedly struggling to meet manufacturing goals with its 10-nanometer process, while there has been little apparent progress in its hunt for a new CEO.

“The performance demonstrates that despite facing some significant, high profile challenges, Intel is a company that can flat outshine when the chips are down,” said Charles King, principal analyst at Pund-IT Inc. “In addition, it should give pause to competitors who may have believed they stood a good chance of gaining significant share by exploiting Intel’s perceived shortcomings. If these are the kind of results that Intel can deliver in a supposedly weakened state, naysayers will want to stand back when the company is back up and running on all cylinders.”

And that could be sooner than many think. Swan, who is also the company’s chief financial officer, said Intel is sharpening its focus on its goals. He said the company is aiming to slash its operating expenses and divert these funds into more research and development.

“We are growing share in a larger TAM [total addressable market], driving operating leverage while increasing our R&D investments and delivering attractive capital returns,” Swan said in a call with analysts and press. “Our thesis is that the massive growth of data worldwide will increase demand for the analysis, storage and sharing of data.”

Intel also provided better-than-expected guidance. For the fourth quarter, it’s expecting revenue of about $19 billion, with a profit before certain costs such as stock compensation pegged at $1.22 per share. Analysts had forecast a profit of just $1.09 per share on revenue of $18.39 billion.

Photo: Robert Hof/SiliconANGLE