Technology giant Intel posted a 12-per cent rise in quarterly profit as the world's biggest computer chipmaker said demand, while uncertain, was holding up despite the global economic crisis.
Intel said last night it expects revenue in the fourth quarter of $10.1 billion to $10.9 billion. The midpoint of that range, $10.5 billion, is around 2 percentage points lower than Wall Street had hoped but better than many had feared.
Meanwhile, profit in the quarter topped Wall Street targets and Intel shares rose 5 per cent in after-market trade.
Investors said Intel is benefiting from one of its strongest product line-ups in years, is executing well and keeping a lid on costs. But the company's uncertainty over the financial crisis's influence on the computer sector limited the positive effect on other tech stocks.
"For me, this is a relief rally more than anything else," said Sean Conner, senior equity analyst, First American Funds in Minneapolis.
"If you have to be somewhere with a slower future, this may not be a bad place to be," said Mike Holland, fund manager at Holland & Co, which oversees assets in excess of $4 billion, including Intel, IBM and Apple.
Intel's shares rose 4.5 per cent to $16.65 in extended trade as analysts and investors said the lowered outlook was better than many had hoped against the backdrop of a global financial crisis.
The stock had closed down 6.2 per cent ahead of the report in regular session trading on Nasdaq on fears it would do worse.
Intel said the average selling price for its microprocessors dipped as sales increased of its smaller, lower-priced Atom processor for use in new mobile computers that are smaller than conventional notebooks. It said it generated $200 million in revenue from Atom chip sales.