Intel Lifts Revenue Guidance

The chipmaker also sees margins at the top end of its forecast.
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Intel

(INTC) - Get Report

boosted its third-quarter revenue forecast, citing stronger-than-expected demand for its computing products.

The Santa Clara, Calif., chipmaker now sees third-quarter revenue of $9.4 billion to $9.8 billion, up from its prior forecast of $9.0 billion to $9.6 billion.

Intel also said it expects gross margins to be at the upper half of its previous projection of 52%, plus or minus a couple of points.

Analysts polled by Thomson Financial have an average forecast for third-quarter revenue of $9.4 billion and earnings of 28 cents a share. Intel doesn't provide earnings guidance.

Intel has been in a pricing battle with top rival

Advanced Micro Devices

(AMD) - Get Report

, which has weighed on both companies' margins in recent quarters. Intel's improved outlook comes on the same day that AMD is set to release its redesigned server chip, the Opteron processor.