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Intel (INTC) this afternoon reported Q2 revenue and earnings per share that topped analysts' expectations, and raised its year outlook, marked by surging sales of memory chips such as NAND flash, among other things, sending the stock higher in late trading.

Revenue in the three months ended in September rose 2.4%, year over year, to $16.15 billion, yielding EPS of 94 cents.

Analysts had been modeling $15.73 billion in revenue and 80 cents a share in net income.

Intel's gross profit margin declined to 63.9% in the quarter, on a non-GAAP basis, from 64.8% a year earlier.

Intel said its products for the data center rose by 7%, to $4.9 billion. Chips for "client" devices were unchanged at $8.9 billion. The "Internet of Things" business saw a 23% surge, to $849 million.

Memory chips, including NAND flash, and the "Optane" non-volatile memory products, rose 37%, to $891 million. And programmable chips, the fruits of its purchase of Altera, rose 10% to $469 million.

For the current quarter, the company sees revenue of $15.8 billion to $16.8 billion, above the average estimate for $16.1 billion. EPS is expected in a range of 81 cents to 91 cents, again higher than consensus for $83 cents.

Gross profit is expected to decline slightly, this quarter, to 63%, give or take a couple of percentage points.

For the full year, the company sees revenue of $61.5 billion to $62.5 billion, which is up from the company's prior forecast for $60.8 billion to $61.8 billion. EPS is now seen in a range of $3.20 to $3.30, up from the prior $2.95 to $3.05, and higher than the average $3.01 estimate.

CEO Brian Krzanich said the company had "executed well" in the quarter, adding "we're on track to a record year."

Krzanich noted "more innovation" is "on the way," in particular for "artificial intelligence, autonomous driving, and more."

Intel shares are up 7 cents at $41.42, though the shares have been up and down a bunch the last half hour.