Updated from 1:49 p.m. EDT with new stock prices

Strong earnings from tech stalwarts Intel ( INTC) and Yahoo! ( YHOO) helped lift the sector Wednesday.

Intel was rising 4.87%, after beating third-quarter expectations and guiding higher for its fourth-quarter revenue outlook. The chipmaker reported net income of $1.86 billion, or 31 cents a share, up from $1.3 billion, or 22 cents a share, in the year-ago period. Analysts polled by Thomson Financial expected earnings of 30 cents a share.

In the fourth quarter, Intel sees revenue of between $10.5 billion and $11.1 billion, above the consensus of $10.4 billion. Shares were climbing $1.24 to $26.72.

Intel's beat also boded well for chipmakers Nvidia ( NVDA), which was rising 7.68% to $39.54, and KLA-Tenecor ( KLAC), which was jumping 3.39% to $54.92.

Yahoo! shares were advancing 7.98%, after its own earnings beat . The Internet search provider reported third-quarter net income of $151 million, or 11 cents a share, vs. $159 million, or 11 cents a share, in the year-ago period. Yahoo! said revenue grew to $1.77 billion, up from $1.58 billion in the same period of 2006. Excluding certain items, revenue rose to $1.28 billion, vs. $1.12 billion in the year-ago period. Analysts polled by Thomson Financial predicted earnings of 8 cents a share on revenue of $1.24 billion.

For the fourth quarter, Yahoo! expects revenue of between $1.31 billion and $1.45 billion. Analysts expect revenue of $1.37 billion. Yahoo! shares were climbing $2.13 to $28.82.

Intel, Nvidia, KLA-Tenecor and Yahoo! are components of the Nasdaq 100, which was up 28 points to 2,179.14.

Sonus Networks ( SONS) was gaining 11.50% after Piper Jaffray upgraded the telecommunications equipment provider to outperform from market perform. Shares were gaining 72 cents to $6.98.

Amphenol ( APH) was rising 7.57% after the electronic and fiber optic cable maker beat third-quarter projections and offered bullish full-year guidance. Excluding items, the company earned 50 cents a share, vs. 39 cents a share in the year-ago period. The company reported third-quarter sales of $734 million. Analysts expected earnings of 49 cents a share on revenue of $692.7 million in the third quarter.

The company now sees full-year revenue of between $2.81 billion and $2.83 billion and earnings of between $1.89 and $1.91 a share. For the full year, analysts saw earnings of $1.83 a share on revenue of 2.74 billion. Shares were rising $3.01 to $42.78.

On the losing side, IBM ( IBM), which also posted an earnings beat, saw shares edge down 3.19% after the computer maker said it saw flat hardware sales . Shares were losing $3.82 to $115.78.

WebMD ( WBMD) was falling 13.61% after warning of a third-quarter revenue shortfall. The medical information Web site said it expects revenue of between $86 million and $87 million, below its previous target of $89 million to $94 million. Analysts expect revenue of $92.6 million. Shares were falling $7.89 to $50.10.