Intel Earnings Beat Lifts Tech

Updated from April 15

SAN FRANCISCO -- Intel(INTC Quote) profit narrowed in the first quarter, but the chipmaker posted sales that were slightly ahead of Wall Street expectations and rebutted fears of a tech spending slowdown with a strong sales outlook for the current quarter.

Intel said its new line of chips for high-end servers enjoyed brisk demand during the quarter, particularly in the North American market. And the company said shipments of mobile processors were up sharply year over year, with Intel now expecting notebook chips to outpace desktop chip shipments this year instead of in 2009.

"Our first-quarter results demonstrate a strengthening core business and a solid global market environment," said CEO Paul Otellini. ...