Intel Sets 52-Week High as Earnings Impress

Third-quarter unit shipments in Intel's flagship microprocessor unit set a record, with sales up 17% from the prior quarter and 26% from the same quarter last year.

Outside its flagship microprocessor arm, Intel saw sales in its wireless unit decline 23% from the prior year, while its operating loss grew to $124 million from $30 million. That division, which consists almost entirely of flash, has been suffering ever since Intel hiked prices earlier this year.

Sales of communications chips grew 12%, while the loss narrowed from $177 million to $94 million.

Based on Tuesday's outlook, Intel said it expects to end the calendar year with revenues of around $30 billion, up between 10% and 12% from last year. Gross margins should average about 55% to 56%.

The company today narrowed its capital spending range to $3.6 billion to $3.7 billion, compared to the previous expectation of $3.5 billion to $3.9 billion.

The stock rose 2.7% or 85 cents in after-hours trading on the news, reaching $31.93. Ahead of the postclose report, Intel shares rose 28 cents to $31.08. The stock has nearly doubled in just six months as investors have anticipated the re-emergence of information technology spending by corporations.

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