Thanks, Mark. The second quarter was significantly stronger than we forecasted in April and our results demonstrated our customer's preference to the performance of Intel XPUs as workloads grow, diversify, and become increasingly complex. That leads for performance manifested in strong mix in ASPs across the business. Our Q2 results are proof points for the megatrends that underpin our strategy. The world's insatiable appetite for data is driving demand for solutions to process, store and move it faster and better. Customers want to work with partners, who can deliver performance and platforms to address their most important technology challenges. Our data-centric businesses overall performed roughly in line with our April expectations. Data center and IoTG customers chose our highest-performing products leading to strong mix in ASPs.
While our cloud customers absorb capacity they put in place over the last year, we continue to expect cloud demand to improve in the second half. Enterprise and government spending remains weak however, particularly in China. PC demand continued to improve particularly in the commercial segment. We now expect the PC TAM to be up slightly for the full year. Strong demand for our highest-performing products and the productivity and TCO gains they deliver continues. Mix was stronger than we anticipated.
While small core supply improved we were not able to fully satisfy customer demand for these SKUs in the second quarter. Tariffs and trade uncertainties created anxiety across our customers supply chain and drove a pull-in of client CPU orders into the second quarter. We also halted shipments to certain customers in response to the U.S. government's revised entity list. After a thorough review, we were able to resume shipments of some products in compliance with regulations and the net impact on the second quarter was limited. While we hope and expect trade issues to be resolved, further tightening of export restrictions would come with revenue risk to our business.
As a result, we entered the second half of the year a little more cautious than we were 90 days ago. We met with many of you in May at our investor meeting, where we outlined three major thrusts of our game plan to transform our company and grow. First, we're pursuing the largest opportunity in our company's history a nearly $300 billion TAM comprised not just of CPUs for PCs and servers, but of XPUs and adjacent technologies for an incredibly wide range of workloads and devices. Second, we're strengthening our product leadership by accelerating the rate of innovation. And third, we're evolving our culture and improving our execution so that we can play an even greater role in our customer's growth and success. I'll take a few minutes to share some of the progress we're making. I'll start with expanding our opportunity and expanding our TAM. Over the last few years, we have dramatically expanded our served market, while the PC market was declining. Our served market now is more than five times larger and growing faster and we have reallocated spending to expand our capabilities in higher growth areas. We are evolving Intel Inside from a CPU inside a PC to XPUs inside everything that processes stores and moves data. Big bets in 5G, AI and autonomous systems are an important part of this transformation. In May, I outlined a disciplined framework for investing in and evaluating big bets as we expand into new markets. First, we'll invest where we have an opportunity to lead major technology inflection. Second, our investments should allow us to play a larger role in our customers' success. And finally, they must show a clear path to profitability and attractive returns. Network infrastructure, which is transforming as the industry transitions to 5G, is one of our most important areas of investment and we are laser-focused on this opportunity. This business is growing at a 40% CAGR since 2014 from just over $1 billion in revenue to more than $4 billion last year. The network cloudification that comes with 5G expands our opportunity in the core network and at the edge, as more data moves closer to where it is created. We expect to be in production on Snow Ridge, Intel's 10-nanometer system-on-chip technology for 5G base stations early next year. We've already announced that two large telecom equipment manufacturers have committed to this architecture and we're on track to 40% share in this market segments by 2022. While the 5G network opportunity meets each of our investment criteria, the 5G smartphone opportunity does not.
This is why we decided to exit the 5G smartphone modem business and conduct an analysis of our options for the remaining parts of that portfolio. Today, we announced the sale of the majority of our 5G smartphone modem business to Apple. This deal preserves Intel's access to critical IP we have developed.
It enables us to focus on the more profitable 5G network opportunity where we are growing and winning share. Another growth market we're gaining share is the Internet of Things. We are using our architecture accelerators and software assets, combined with unmatched scale and partners to develop one of the industry's fastest-growing IoT portfolios. Taken together, the IoTG and Mobileye businesses grew at 22% over last year after adjusting for the sale of Wind River. More intelligence is moving to the edge and more industries want to harness the power of data to create business value innovate and grow. Devices and systems are becoming more autonomous. This is a trend IoTG is shaping and capitalizing on. Our team's work is producing outstanding results. In the second quarter, we grew at roughly 3x the market rate and are positioned to significantly outgrow the market over time. Here again, we saw demand for performance and strength across all verticals we served with computer vision being an especially critical workload. Mobileye is positioned to lead another huge opportunity, autonomous driving. This business has grown at more than 30% CAGR since we acquired them in 2017. Our market leadership continues to build momentum with 20 new design wins this year, representing 11 million lifetime units. Nissan's ProPILOT 2.0 and NIO's pilot vehicles have begun production featuring Mobileye base L2+ system for hands-free assisted driving technology. I visited the Mobileye team in Israel last month and was treated to an autonomous ride through the streets of Jerusalem. The progress we are making in Level four and Level five autonomy is extraordinary. Our mobility as a service JV with VW for deploying a commercial robotaxi service in Tel Aviv by 2022 is on track.
Global coverage of REM or Road Experience Management mobilized real-time crowdsourced mapping capability is expanding rapidly. Several major auto OEMs, most recently Ford, are adopting this breakthrough data-centric capability. To understand the power of this data consider this; 1.5 million kilometers is sent to the cloud daily for BMW production vehicles. With the data collected from just the last four weeks, Mobileye was able to automatically map 94% of the German Autobahn and motorway network. And the commercial opportunity for REM extends beyond real-time maps for vehicles. Since announcing the agreement earlier this year, Mobileye and Ordnance Survey have jointly launched a service that delivers high-precision road network location data to companies across multiple sectors. Artificial intelligence is a $10 billion data center silicon opportunity by 2023. And today it's fueling cloud customer demand for solutions that accelerate demand in AI workloads. This is evidenced by the fact that key cloud customers, most recently Baidu, are collaborating on our Nervana Neural Network Processor for Training or NNP-T. NNP-T will sample to customers later this year expanding our already diverse AI portfolio which spans multiple architectures including ASICs like NNPI, TPUs, GPUs, and FPGAs, all unified by single programming model, One API. The second major element of our game plan is extending product leadership by accelerating the rate of innovation. The future of computing will require a solution-oriented mindset building on six pillars of innovation. Over the last 50 years, Intel has delivered breakthrough-after-breakthrough in computing performance that has propelled technology and society forward. We are far from finished as our product and customer announcements over the last quarter demonstrate.
Our Data Center Group just announced a very important strategic partnership with SAP to optimize Intel's platforms including Xeon Scalable processors and Optane DC persistent memory for SAP's end-to-end enterprise software applications including SAP S/4HANA. For over a decade, we have worked closely with SAP and developing differentiated breakthrough technologies that make organizations run more efficiently. The broadening of our strategic partnership with SAP will allow our mutual customers to accelerate the organization's digital transformation by deploying SAP business applications optimized for Intel-based infrastructure in the cloud, on-premises, and in hybrid environments.
Our ecosystem partners have already received Icelake server samples. We are making good progress on Icelake server and are now planning to start production wafers in the first half of 2020 with the volume ramp in the second half of the year. Both yield and defect density are ahead of schedule for our 10-nanometer data center products. Cascade Lake, which is ramping now, is on track to be one of our fastest ramping products ever and we have a great solution for our customers in the first half of 2020 with Cooper Lake in the same platform as Icelake. We are working more deeply with our customers to understand their needs and become the partner that they rely on to innovate and grow their businesses. They challenge us. It's producing results and it's making us better. For example in the second quarter, we announced a strategic partnership with Google to collaborate on Anthos, a new reference design based on the second-generation Xeon Scalable processor and an optimized Kubernetes software stack that will deliver increased workload portability to customers who want to take advantage of hybrid cloud environments. These deep customer engagements are frankly one of my favorite parts of the role. We are constantly thinking about how we can help our data center customers harness the potential of data by processing, storing, and moving it more efficiently. And a central part of the equation is interconnect technology, which is why we recently announced our intention to acquire Barefoot Networks. Barefoot Networks is an emerging leader in Ethernet switch silicon software with the programmability and flexibility necessary to meet the performance needs of the hyperscale cloud. We closed the transaction this week and we are excited to have the Barefoot team as part of the Intel family.
Our client computing customers can look forward to exciting new Intel products this year. In the second quarter, we launched a special edition of the world's best gaming processor the Core i9-9900KS. We also launched our new 10th Gen Core product family codenamed Ice Lake which integrates Wi-Fi 6, Gen11 graphics and AI acceleration. While we are delivering on the present we are also creating the future.
Intel Labs is researching completely new architectures like quantum and neuromorphic computing that promise incredible leaps in performance and power efficiency. Neuromorphic computing strives to emulate the neural structure and operation of the human brain, which could deliver big advancements in artificial intelligence by allowing computers to sense, learn and behave more naturally and efficiently. Just this month, we announced an eight million neuron neuromorphic system comprising 64 Intel Loihi research chips that's now available to the broader research community. Finally, we are evolving our culture and improving execution because our customers are counting on us. Our process technology road map continues to improve and we're making excellent progress on 10-nanometer.
We began shipping Ice Lake clients in the second quarter supporting systems on the shelf for the holiday selling season and expect to ship Agilex, our first 10-nanometer FPGA later this year. We now have two factories in full production on 10-nanometer. We are also on track to launch 7-nanometer in 2021. With a roughly 2x improvement in density over 10-nanometer, our 7-nanometer process, which will be comparable to competitors' 5-nanometer nodes, and will put us on pace with historical Moore's Law scaling.
We're also making steady progress increasing CPU supply. Through our investments, focused execution and tighter customer collaboration, we expect our PC CPU supply will be up mid single-digits this year, while we expect the PC TAM to grow slightly. We'll continue to work with our customers to meet their required product mix and ramp additional capacity to ensure we are not a constraint on their growth. A final point of pride in the second quarter that speaks to Intel's values is the release of our annual Corporate Responsibility Report, which highlights the progress made over the last year toward our 2020 goals around environmental sustainability, supply chain responsibility, diversity and inclusion and social impact. We achieved a number of our 2020 goals ahead of schedule: energy conservation, non-hazardous waste recycling, workforce diversity and technology empowerment. Being responsible stewards of the communities in which we operate is central to our culture and it is helping us transform and deliver the results you expect of us. I'm proud of what our team has accomplished over the last quarter and look forward to sharing more proof points of our progress with you in the coming months. With that, I'll hand off to George, who will take you through the financial details.