Intel brought some cheer to the technology sector by raising its third-quarter revenue forecast of $7.6 billion to $7.8 billion.
Intel's forecast, based on stronger microprocessor sales, was the latest signal the beleaguered chip industry has begun to rebound after a three-year downturn marked by slack corporate spending on technology.
Shares rose in after-hours trading, as analysts said back-to-school sales of computers were promising and expressed hope for the holiday shopping season.
Intel, the world's largest maker of semiconductors, said its microprocessor business continued to enjoy strong, broad-based demand, especially in emerging markets. Demand for communications products remained soft, however, the Santa Clara, California-based, company said.
Intel, known for its conservative forecasting, surprised investors and analysts in late August by raising its third-quarter revenue forecast to a range of $7.3 billion to $7.8 billion. The revision put that outlook at the more bullish end of the range.
Intel said it would update its expectations for the fourth-quarter tax rate when it announces third-quarter results on October 14th. All other forecasts by the chipmaker were unchanged.