Shares in Intel rose as much as 5.4 per cent in early US trading after its sales forecast beat estimates by as much as $1 billion, setting the stage for a broader recovery in technology earnings.
The world's biggest chipmaker, which employs some 5,000 people in Ireland, forecast fourth-quarter revenue of as much as $10.5 billion yesterday, topping the $9.5 billion average estimate in a Bloomberg survey.
The company's gross margin - a measure of profitability - may reach the highest level this decade.
Investors are betting that sales of computers, software and communications will rebound faster than other products. Intel may help prolong the rally as IBM . and Google prepare to report earnings tomorrow.
Intel climbed as much as $1.11 to $21.60 in trading before US exchanges opened. The shares, which reached a 52-week high yesterday, have gained 40 per cent this year on the Nasdaq Stock Market.
In July, Intel announced it was seeking 300 compulsory redundancies in Ireland following the decision to mothball one of the four Leixlip factories and make it available for a future investment. This led to speculation that the multinational may be beginning to run down its Irish operations.
Additional reporting Bloomberg