PC market boosted by rise in Intel revenues

Chip giant Intel has increased its forecast for third quarter revenues as demand for computing devices is more than expected.

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 per cent this year, whereas chief rival AMD has fallen more than 35 per cent. 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 (£4.7 billion) and $9.8 billion (£4.9 billion), from its previous range of $9.0 billion (£4.5 billion) to $9.6 billion (£4.8 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 per cent plus or minus a couple of points."

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