Intel, the world's biggest chipmaker, forecast second-quarter sales that topped analysts' predictions, indicating that demand for personal computers remains strong.
Sales will be $10.2 billion, plus or minus $400 million, the company said today in its quarterly earnings statement.
The forecast follows record first-quarter sales, fuelled by consumers ordering laptops.
Demand will increase further in the second half as more businesses upgrade their computer networks - something they were slow to do during the recession - said Hans Mosesmann, a Raymond James and Associates analyst in St Petersburg, Florida.
Intel rose 23 cents, or 1 per cent, to $22.77 at 4pm New York time on the Nasdaq Stock Market. The shares have gained 12 per cent this year.
First-quarter net income climbed to $2.44 billion, or 43 cents a share, from $629 million, or 11 cents, a year earlier. Analysts projected 38 cents a share.
Revenue increased 44 percent to $10.3 billion, compared with the average estimate of $9.85 billion.
In January, the Santa Clara, California-based company forecast sales of $9.7 billion, plus or minus $400 million.
It predicted gross margin, or the percentage of sales remaining after deducting the cost of production, would be about 61 per cent.
Intel supplies more than 80 per cent of the world's PC processors, making its sales a barometer of computer industry demand.
Bloomberg