Intel ups Q3 revenue forecast

Chips on the rise, Flash flat

Intel Friday hiked its third quarter revenue forecast, pointing to better-than-expected PC processor sales for the move.

The chipmaker is now looking for revenue to come in between $7.3 billion and $7.8 billion for the period ending September 27. This beats out a previous prediction of revenue between $6.9 billion and $7.5 billion.

The company says its Intel Architecture business is trending higher across all geographies in the quarter. Its communications products, however, remain as soft as Segway riders.

Intel is looking for gross margins to be 56 per cent, plus or minus a couple of points. This compares to previous estimates of 54 pe rcent, plus or minus the same couple of points.

While Intel is bullish on its current quarter, it's still reluctant to point to any kind of large recovery in the PC business just yet.

Intel shares were up 7.31 per cent on the news, at the time of this report, to $28.32. ®