Citing continued demand for the chips that power notebook computers, Intel Corp. tightened the range of its third-quarter revenue forecast Thursday but kept the midpoint unchanged at $9.9 billion (Ђ7.97 billion).
The world's largest maker PC microprocessors said it now expects revenue to be between $9.8 billion (Ђ7.89 billion) and $10 billion (Ђ8.05 billion), compared with its previous estimate of $9.6 billion (Ђ7.73 billion) to $10.2 billion (Ђ8.21 billion).
Wall Street analysts expect Intel to earn 36 cents per share on sales of $9.92 billion (Ђ7.99 billion), according to a survey by Thomson Financial. As with previous quarters, the company reported strong demand for its Centrino chips designed for wireless-enabled laptop computers. The chips, like the computers, carry a price premium over those built for desktops. Intel said it continues to see double-digit year-over-year growth driven by notebook demand. But some analysts are concerned that while demand is strong, Intel may be struggling to meet demand, particularly with chipsets that control communication between the processor and the rest of the computer.
Apjit Walia, a semiconductor analyst at RBC Capital Markets, said it appears the company has made some progress in easing the supply issue. The update was released after markets ended trading. Intel shares closed at $26.09, up 43 cents, or 1.7 percent, on the Nasdaq Stock Market. In after-hours trading, they lost 20 cents, AP reports.