Intel Corp. has jacked up its third quarter revenue and gross margin expectations, citing stronger-than-expected global demand for its microprocessors.
The Santa Clara, Calif., said revenue for the period ending September 30 could be as much as 13 percent above the figure it reported in the year-ago quarter while it sees an improvement of up to 3 percentage points in gross margin for the period.
The company's revised forecasts is expected to boost the stock market, which has stumbled in recent days on growing concerns about the U.S. economy amid fears continuing weakness in the housing market would hurt overall economic growth.
Intel said it now expects revenue for the third quarter to be in the range of $9.4 billion to $9.8 billion compared with an earlier estimate for between $9 billion and $9.6 billion. The company in the third quarter of 2006 reported revenue of $8.7 billion.
The company said it also sees gross margin for the three months ending September 30 in "the upper half of the previous range of 52 percent plus or minus a couple of points" compared with the 49.1 percent it had in the third quarter of 2006.
Intel's statement points to continue strength in the computing sector with the likelihood that rival Advanced Micro Devices Inc., which today debuted its quad-core microprocessor codenamed Barcelona, could also be benefiting from the improved market conditions.