Story updated with conference call comments from Intel CEO Paul Otellini.

SANTA CLARA, Calif. (

TheStreet

) -- Chipmaker

Intel

(INTC) - Get Report

blew past Wall Street's revenue and profit estimates in its

second-quarter results

, in what the company is describing as its best quarter ever.

Intel shares were trading at $22.57, up $1.57, or 7.47% at 6:20 p.m. EDT.

The chipmaker brought in revenue of $10.8 billion, up from $8 billion in the same period last year and above analysts' estimate of $10.25 billion. Excluding items, Intel earned 51 cents a share, a significant hike on 18 cents a share in the prior year's quarter. Analysts surveyed by Thomson Reuters had expected Intel to post earnings of 43 cents a share.

Despite concerns that

the weak Euro and general economic unease in Europe would weigh on Intel's numbers

, the chip maker posted a

good quarter.

The company's results were boosted by strong demand from corporate customers, according to Intel CEO Paul Otellini, in a statement released after market close. "

This helped Intel achieve the best quarter in the company's 42-year history," he added.

Intel, which competes with

AMD

(AMD) - Get Report

, also surpassed its own gross margin forecast. The chip giant had predicted a second-quarter gross margin between 62% and 66%, but achived a gross margin of 67%.

Looking forward, Intel also offered third-quarter guidance and expects to bring in revenue between $11.2 billion and $12 billion, well above analysts' estimate of $10.92 billion.

Intel expects a third-quarter gross margin between 65% and 69%.

Speaking during a conference call after market close, Intel CEO Otellini struck a bullish tone with regard to the IT spending environment, which could have positive implications for other tech companies such as

IBM

(IBM) - Get Report

and

Microsoft

(MSFT) - Get Report

.

"The economies of the world continue to reflect improved economic momentum," he said, explaining that Intel's server business had a record quarter. To illustrate his point, Otellini pointed to chip sales into IP data center servers, which grew 170% year over year.

The Intel chief also said that companies, including smaller firms, are refreshing their PCs, which has helped drive demand for the company's processors. "We expect the industry to ship 40 million netbooks this year," he added.

-- Reported by James Rogers in New York

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