Intel reported record second-quarter sales and topped analysts’ estimates for this period, allaying concern that a rebound in technology spending is losing steam.
Third-quarter sales will be $11.6 billion, plus or minus $400 million, the world’s biggest chipmaker said. Analysts had estimated $10.9 billion on average, according to a survey. Second-quarter sales soared 34 percent to $10.8 billion.
Intel renewed optimism that the industry will avoid getting mired in another slump. “This takes your probability for a double-dip [recession] way down,” said Keith Goddard, president of Tulsa, Okla.-based Capital Advisors.
CEO Paul Otellini expects the PC market to rise as much as 16 percent annually through 2014, helping maintain Intel’s sales gains. Analysts estimate revenue growth will slow to 6 percent next year and 1 percent in 2012.
Intel, of Santa Clara, Calif., jumped $1.64, or 7.8 percent, to $22.66 in extended trading. Rival Advanced Micro Devices rose 5.7 percent to $7.95 in late trading, while Microsoft climbed 2.3 percent to $25.70.