Intel reported last night that it earned a net income of $3.4 billion on revenues of $19.7 billion with flat year-over-year growth. This, despite 38 percent growth in sales to PC makers.

“Intel delivered strong first-quarter results driven by exceptional demand for our leadership products and outstanding execution by our team,” Intel CEO Pat Gelsinger said. “The response to our new … strategy has been extraordinary, our product roadmap is gaining momentum, and we’re rapidly progressing our plans with re-invigorated focus on innovation and execution. This is a pivotal year for Intel. We are setting our strategic foundation and investing to accelerate our trajectory and capitalize on the explosive growth in semiconductors that power our increasingly digital world.”

From a financial perspective, Intel didn’t exactly move the needle this past quarter. Revenues were down slightly from the $19.8 billion it earned in the year-ago quarter, hence the use of the word “flat,” and net income was down from the $5.7 billion it reported a year ago.

Intel has two primary businesses, one focused on the PC market and one on datacenters. Intel’s PC business beat expectation by $1 billion in revenues thanks to 38 percent growth YOY, driven of course by strong pandemic-era demand. But its datacenter business saw revenues fall from $6.99 billion last year to $5.56 billion, which could be a red flag for the future.

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