Thanks, Mark. Q2 was an outstanding quarter in which we set a number of records. We beat the expectations we set in April, primarily as a result of stronger desktop and notebook microprocessor volume, and set a second quarter revenue record.
We're executing well to our priorities, and after adjusting for the McAfee transaction, revenue grew 14% year over year while non-GAAP operating margin grew 30%. Our data-centric businesses were up 16% year over year. Technology and performance leadership are fueling our results. And in Q2, we extended our leadership with new breakthrough products in client computing, the data center and memory. With industry-leading products and strong first half results, we're on a clear path for another record year. As we shared in February and reinforced in April, our strategy is to make Intel the driving force of the data revolution across technologies and industries. I outlined our top four priorities for the year in support of that strategy: growing the data center and adjacencies, ensuring a strong and healthy PC business, growing IoT and devices and executing flawlessly in memory and FPGAs. I'd like to take a few minutes to highlight our progress in Q2. First, DCG. The Data Center business grew 9% in Q2 and remains on track to high single digit growth for the year.
Strong public cloud growth continued, with revenue up 35%. Enterprise was down 11%, as workloads continued to migrate to the cloud and memory and solid-state drive constraints impacted server deployments. Comm service provider revenue was up 17%, while adjacencies, which serve all customer segments, rose 12%. Cloud and comm service provider together are the growth engine in the data center, and together now make up nearly 60% of DCG's revenue.
In 5G we're demonstrating end to end leadership in client and infrastructure. We have five ongoing trials with leading global service providers and 15 more in the pipeline. And we're on track with our development of IA, FPGA and ASIC silicon platforms based on new radio standards. Earlier this month, we launched Xeon Scalable, formerly known as Skylake and with it, the industry's biggest platform advancement in a decade.
Using Xeon Scalable, our customers have already achieved over 50 third-party verified performance world records and are seeing more than 1.6x performance increase over our prior generation product across a wide range of real world workloads. For example, the new AVX-512 instructions double floating point performance, benefiting use cases like HPC, VR and AI. In fact, artificial intelligence inference throughput improves by 2.4x gen to gen. And when this silicon innovation is combined with our AI software frameworks optimizations, customers like Amazon Web Services are seeing inference performance improvements of more than 100x. The enthusiasm for Xeon Scalable resulted in our largest early ship program ever.
We delivered more than 500,000 units to over 30 customers who appreciate outright performance leadership. The data center is central to our strategy and is a remarkable opportunity. By 2021 we expect the data center to be a $65 billion silicon opportunity, and we're less than 40% of the total available segment today. As we build out the adjacencies like Ethernet, Silicon Photonics and 3D XPoint memory and pull them all together with rack scale design, we'll be positioned to deliver even higher levels of performance and efficiency to our customers and increase our percentage of the total TAM. The Client Computing Group also delivered fantastic results.
Revenue was up 12% over last year as product leadership combined with a disciplined segmentation strategy led to rising Core mix. We along with our customers and partners in the PC supply chain are driving the evolution of the PC experience, as users seek out high performance and new form factors. We launched the powerful new Intel Core X-series processor family including a new Core i9 Extreme Edition processor, extending our performance leadership. And we'll be shipping our first 10-nanometer products near the end of the year beginning with a lower volume SKU and followed by multiple SKUs and a volume ramp in the first half of 2018. We've seen some modest improvements in the PC consumption but we continue to expect a mid single digit TAM decline for the full year. We also began shipping our next generation 4G LTE modem known as the 7480 to customers.
As I mentioned earlier, we're continuing to make great progress with our wireless ecosystem, laying the groundwork for 5G, and starting in 2018, Intel will partner on what is expected to be the first 5G showcase at the Olympic games. In our Internet of Things business, we're focused on four key verticals, retail, video, industrial and transportation. We saw strong growth across all four, leading to a 26% increase in revenue. We're specifically excited to see the ramp of our IVI designs with both Jaguar Land Rover and Toyota.
We're also about to mark a very important milestone in our transformation. We expect to close the acquisition of Mobileye in the third quarter, several months earlier than expected. Autonomous driving is a massive compute workload that will disrupt industries and save lives and we are investing to win in this important segment. I'm excited to welcome the Mobileye team to Intel. Together, we expect to be the global leader in the $70 billion autonomous driving systems, data and services market opportunity by accelerating auto industry innovation and delivering cloud to car solutions faster and at a lower cost.
And we're looking forward to talking with you in more detail about our plans and the progress we're making in this segment later this quarter. Memory and FPGAs round out our priorities for the year. Our memory business grew 58% over last year, setting an all-time revenue record. A cornerstone for our strategy in this segment is differentiated technology.
And that differentiation was on display earlier this month when we announced availability of the industry's first, and to date only, 64-layer 3D NAND SSDs. Our floating gate architecture already enabled industry-leading density at 32 layers. And we believe our density lead is even greater at 64. We also shipped more than 200,000 units of our revolutionary Optane memory for clients, which are available via our OEM partners and channel partners and have more than 50 data center customers testing Optane SSDs currently which will ship for revenue this year, Optane DIMMs remaining on track for availability next year.
Our memory factory, Fab 68, continues to exceed expectations, ramping ahead of schedule in terms of both output and yield. This will be a big part of our overall supply growth in the second half, which we expect to be greater than 20%. The combination of strong execution and favorable market conditions is accelerating our path to profitability. Core NAND returned to profitability this quarter ahead of our earlier estimate and we expect it to remain profitable for the balance of the year. We also now expect the entire NSG segment to be profitable for the full year of 2018 versus our prior end of 2018 target. Lastly, our FPGA business was down 5% over last year on weaker data center and comms sectors, but remains on track to our mid single digit growth target for the full year, with broad reacceleration in the second half across markets, including the Data Center segment.
At their Build Conference in May, Microsoft disclosed a major advancement in the deployment of Intel FPGAs resulting in the industry's fastest public cloud network and new technology for acceleration of deep neural networks. Audi selected Intel for the Level 3 autonomous driving system in its upcoming A8 where our Cyclone V SoC FPGA technology will perform object and map fusion as well as parking pilot and sensor data pre-processing. We're also seeing strong adoption of our 14-nanometer Stratix 10 FPGAs. We continue to gain key design wins in our focus segments, and we're on track to production later this year. To sum it up, I'm very pleased with our progress, and I'm more confident than ever in Intel's future and growth. Based on our strong first half and higher expectations for the PC business and the expected close of Mobileye, we're raising our full-year revenue forecast from $60 billion to $61.3 billion and our non-GAAP EPS forecast from $2.85 to $3.00. We continue to see intense competition across our businesses. That's the reality of the attractive markets in which we participate. The competition makes us stronger, and we're ready for it. We're executing well to our strategy to transform from a PC-centric company to a data-centric company that powers the cloud and billions of smart and connected devices.
The PC TAM is down more than 15% versus four years ago. Despite that headwind, our revenue is up more than 15% and our operating profit has grown more than 30%. More than 40% of our revenue now comes from our data-centric businesses outside the PC sector. And those businesses together are growing at double-digit rates. And while we're growing the top line, we're intensely focused on operating efficiency. We now expect spending as a percent of revenue to decline about 160 basis points versus last year, bringing it below 34%, on track to the 30% goal we're committed to, to hit by 2020. And with that, I'd like to hand it over to Bob.