SAN FRANCISCO -- All signs point to a solid quarter for Intel ( INTC). Worldwide PC sales are ticking along nicely, with analysts projecting a 13% increase in shipments this year, and Intel is putting the screws to its main rival Advanced Micro Devices ( AMD). In September, Intel upped its financial forecast for the third quarter -- the first time in more than two years that the chipmaker has raised estimates in the middle of a quarter. Yet the mood on the Street is cautious. After rising some 25% this year, Intel's stock has been stuck in a holding pattern since it reported its second-quarter results. In fact, the stock's closing price Monday of $25.75, up 20 cents or 0.8%, is actually down by a couple percentage points since then. One worry weighing on investors' minds is pricing, particularly given the battering that Intel's profit margins have taken over the last year from its price war with AMD. In a note initiating coverage of Intel with an underweight rating, Morgan Stanley analyst Mark Lipacis wrote that Intel and AMD have enough manufacturing capacity to supply 110% of demand, a situation that "increases the risk of greater-than-normal pricing pressures for microprocessors." Morgan Stanley makes a market in Intel shares and has provided the company with investment and noninvestment banking services in the past 12 months.