Intel is going strong and has been having a banner year. Intel reported its latest quarterly earnings and it marks the fifth consecutive quarter of record-breaking profits.

Intel posted its profit statements this week and the company turned in a record of $13.1 billion in profits, up $2.3 billion from the previous quarter for 22% growth year over year. However, gross margins slid 5.5% to 62% overall likely due to price competition and the cheaper chips being sold in higher amounts.

“We achieved a significant new milestone in the second quarter, surpassing $13.0 billion in revenue for the first time,” said Paul Otellini, Intel president and CEO. “Strong corporate demand for our most advanced technology, the surge of mobile devices and Internet traffic fueling data center growth, and the rapid rise of computing in emerging markets drove record results. Intel’s 23 percent revenue growth in the first half and our increasing confidence in the second half of 2011 position us to grow annual revenue in the mid-20 percent range.”

Intel reported operating income of $4.2 billion, up $221 million year over year for a 6% gain. Intel's net income for the quarter was $3.2 billion, a gain of 10% and $290 million. Key growth areas were PC Client Group revenue, which was up 11% YoY. Data Center Group revenue was up 15% YoY and other Intel Architecture Group revenue like communications and embedded was up 84% YoY.

While embedded system chips and communications grew, Atom microprocessor and chipset shrank significantly with revenue down $352 million or 15% YoY. McAfee and Infineon Wireless Solutions acquisitions contributed $1 billion in revenue in the first full quarter with their results. Intel did note that it lost $4 million on equity investments when it expected a $50 million net gain.

Key Intel partner Microsoft also set records with its earnings this week.