Intel Corporation today reported second-quarter revenue of $10.8 billion, up 34 percent year-over-year. The company reported operating income of $4.0 billion, net income of $2.9 billion and EPS of 51 cents. Increase in demand in the PC market, coupled with increased consumer spending and renewed corporate spending resulted in the best quarterly performance by the California based chip-maker ever.

"Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," said Paul Otellini, Intel president and CEO. "Our process technology lead plus compelling architectural designs increasingly differentiate Intel-based products in the marketplace. The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future."

PC Client Group revenue was up 2 percent sequentially, with record mobile microprocessor revenue. Data Center Group revenue was up 13 percent sequentially, with record server microprocessor revenue. Intel Atom  microprocessor and chipset revenue of $413 million, up 16 percent sequentially, which really gave weight to the numbers. The average selling price (ASP) for microprocessors was slightly up sequentially. The net gain from equity investments interest and other was $204 million, higher than the company's revised expectation of $180 million.