Dollars Flow Back Into Tech
IBM and Intel See Surge in Earnings as Businesses Spend Big on Hardware
Two of the world’s largest technology vendors surprised Wall Street by posting surging sales and profits in the first-quarter, and signaled brighter days ahead.
International Business Machines Corp. and Intel Corp. both saw a big boost in spending from businesses, especially on servers and machines used in corporate data centers.
IBM logged the highest revenue growth the company has seen in 10 years, adjusting for currency fluctuations. Its quarterly revenue rose 7.7%, as demand for a new mainframe computer lifted hardware sales 19%.
Intel had a strong quarter, including a 34% jump in profit and revenue growth of 25%. The company benefited from sales of chips used in server systems and other hardware for computer rooms, and revenue rose 32% in that business.
An IBM researcher works at a company lab in December. IBM saw sales rise 7.7% in the first quarter.