Intel revenue surge gives PC market a lift
Intel has raised its third-quarter revenue forecast, citing stronger-than-expected global demand for computing products.
The news underscored recent investor confidence in technology stocks, and Intel’s continued strong performance in the processor market.
Intel’s stock has risen about 25% this year, whereas chief rival AMD has fallen more than 35%. The announcement came on the same day AMD introduced its next-generation processor, codenamed Barcelona, in a long-awaited bid to win market share from Intel.
Princeton Tech Research analyst Paul Leming says Intel’s bullish forecast suggests the PC market has fared well in recent weeks, despite gloomy economic forecasts and general antipathy towards Windows Vista. “A portion of this certainly is market share gains momentum continuing to move over to Intel, and, secondarily, I think this has some positive things to say about the state of the PC market in the important back-to-school season,” he says.
Intel raised its forecast for third-quarter revenue to between $9.4 billion and $9.8 billion, from its previous range of $9.0 billion to $9.6 billion.
Intel, which is scheduled to report its third-quarter results on 16 October, also expects its gross margin in the quarter to be in the upper half of its previous range of “52% plus or minus a couple of points.”