New York - US technology giant Intel said on Tuesday its profits edged higher in the first quarter, as gains in its data centre operations help offset weakness in the personal computer market.
Profit for the quarter rose 3% from a year earlier to $2bn, while revenues were flat at $12.8bn.
Intel has long been the dominant maker of chips for PCs but has been diversifying as the industry moves toward mobile and wearable computing.
The latest results, which show weaker-than-anticipated demand for PCs, "reinforce the importance of continuing to execute our growth strategy", Intel chief executive Brian Krzanich said in a statement.
The results showed an 8% year-over-year drop in revenue at Intel's client computing unit, which includes the PC chip-making business. From the fourth quarter, the drop was a steep 16%, following the end of an upgrade cycle for many PC users.
But data centre revenue rose 19% from a year ago. And the "Internet of Things" group, which includes new products such as wearable and home automation devices, saw an 11% jump in revenue
Intel shares gained more than 2% in after-hours trade following the results, which were largely in line with analyst forecasts.