Intel Hikes Revenue View as PC Demand Improves

By Technology FOXBusiness


Intel (INTC) raised its revenue outlook for the current quarter and fiscal year, saying demand for business computers has been stronger than anticipated.

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Shares jumped 4.2% to $29.12 in after-hours trading on Thursday. Through the closing bell, Intel was up 7.7% on the year.

For the second quarter, Intel is projecting revenue of $13.7 billion, plus or minus $300 million. The Santa Clara, Calif.-based chip maker previously expected $12.5 billion to $13.5 billion in revenue.

Intel said it expects some revenue growth for the full year, up from a prior estimate for flat sales.

As for gross margins, Intel sees the mid-point of its range to increase by a point to 64%, plus or minus a couple of percentage points, for the second quarter. Intel cited higher PC unit volume. Full-year gross margin is forecasted to be in the upper half of Intel’s initial outlook, which called for 61% plus or minus a few percentage points.

The company is scheduled to report second-quarter earnings on July 15.

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Intel, which supplies chips used by Dell, Hewlett-Packard (HPQ) and other PC makers, has shifted the company’s focus to counter a decline in computer demand. Early this year, Intel suggested the PC market was showing signs of “stabilization.”

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