NEW YORK — Intel Corp. raised its third-quarter revenue forecast above Wall Street’s expectations Friday, citing strong demand for its chips and giving another signal that business is improving for one of the world’s biggest technology companies.
Intel shares rose 4 percent.
The leading maker of computer microprocessors now expects sales of $8.8 billion to $9.2 billion. Its last guidance was for revenue in the range of $8.1 billion to $8.9 billion.
Analysts polled by Thomson Reuters were expecting $8.55 billion in revenue.
Santa Clara, Calif.-based Intel also said it expects the quarter’s gross profit margin to be in the upper half of the range it previously forecast.
Because it gets most of its revenue from selling chips that are the “brains” of personal computers, Intel is indicating that PC makers are loading up on new chips faster than even it expected.
While that suggests PC makers believe demand for the computers they’re building will be strong, it doesn’t necessarily mean they’re selling briskly yet.
Intel is benefiting from the fact that PC makers had burned through their inventory, instead of buying new chips, as the financial crisis worsened. Now they have to restock for what they’re hoping will be healthy back-to-school and holiday seasons.
Demand for PCs is stabilizing or improving slightly from deeply depressed levels, as shown in the latest quarterly results from the world’s top two PC makers, Hew lett-Packard Co. and Dell Inc. But the industry is still ailing: It’s on track for its worst year in nearly a decade.
