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Intel Predicts 2010 PC Boost

Intel CEO Paul Otellini expects businesses to increase their PC spending next year.

(Updates with Intel's closing stock price)

NEW DELHI, India (

TheStreet

) --

Intel

(INTC) - Get Intel Corporation Report

CEO Paul Otellini expects businesses to increase their spending on PCs next year, according to a

Reuters

report.

Speaking at a press conference in New Delhi, India, Otellini struck a bullish tone, further raising expectations for a recovery in computer sales.

"There is a very good chance corporate spending on PCs will improve significantly in 2010," he said, according to

Reuters

, but did not provide specific details.

The world's largest chipmaker recently gave strong fourth-quarter revenue guidance, well above Wall Street's estimate, and Otellini has cut a confident figure over the last few months.

This isn't the

first

TheStreet Recommends

time that Intel has fueled talk of a

tech rebound

. When Intel reported its second-quarter results in July, the chip giant enjoyed its strongest sequential growth since 1988, and Otellini confidently predicted an

improvement

in the PC market.

In its

third-quarter

results last week, Intel CFO Stacy Smith said that the PC market is "recovering nicely," as the firm blew past Wall Street's estimates.

Despite Intel's revenue beat, however, the company said that overall enterprise spending remains

weak

, making Otellini's latest comments particularly significant.

The company has also cited

Microsoft's

(MSFT) - Get Microsoft Corporation Report

Windows 7

launch as a potential growth catalyst for the PC market, and is seen as a bellwether for the broader tech sector.

Intel, which competes with

AMD

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

and

Texas Instruments

(TXN) - Get Texas Instruments Incorporated Report

, was in India to announce a partnership with Indian computer maker

HCL Infosystems

and telecom giant

BSNL

for low-cost broadband devices.

Shares of Intel ended Tuesday's trading session down 9 cents, or 0.5%, to $19.74, as the Nasdaq slipped 1.2%.

-- Reported by James Rogers in New York