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Updated from Tuesday, May 12

Shares of


(INTC) - Get Intel Corporation Report

rose late Tuesday after the chief executive of the world's largest chip company offered encouraging remarks about the state of its business.

Paul Otellini said orders have been "a little better than we expected" in the second quarter. "A lot depends on June."

Otellini was speaking at a meeting with analysts and investors in Santa Clara, Calif., where Intel is based.

Intel's stock, which fell 1% in regular trading, rose almost 3% to $15.64 in the after-hours session.

Otellini said he stands by his remark last month that personal computer sales have "bottomed out" and are recovering from their worst slump in six years. He said he's convinced things are returning to normal seasonal patterns, and that Intel's results have been "so far, so good" in the second quarter.

The first and second quarters are typically the toughest for chip makers, since holidays and back-to-school are bigger PC-buying seasons.

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Otellini didn't offer more detailed guidance on Tuesday. Intel predicted in its quarterly earnings report last month that second-quarter sales would be about the same as those of the first quarter. First-quarter revenue was $7.1 billion, down 26% from the same period in 2008.

Earlier Tuesday, a report from IDC said that

chip inventories

remain high as demand for many computers has slowed along with the broader economy. That report also said rival

Advanced Micro Devices

(AMD) - Get Advanced Micro Devices, Inc. Report

improved its share against Intel, the much larger of the two.

One thing Otellini didn't mention in his speech was the possibility of a huge antitrust fine in Europe for Intel's allegedly abusive behavior toward AMD. A European Union fine against Intel is expected to come Wednesday.

European regulators have accused Intel of illegally thwarting AMD's business by offering big rebates to computer makers and retailers to avoid AMD's products, and selling its server chips below the cost of making them. Intel has denied the allegations and maintained its practices are legal.

In a response to a question, Otellini later said he wouldn't comment on "rumors" about a possible European fine.

This article was written by a staff member of AP contributed to this report.