Intel expects solid Q3, shares gain

Intel Corp's quarterly revenue forecasts trumped Wall Street's expectations, defying investors' concerns about slowing personal computer sales and buoying its shares.

Doubts about high US unemployment, the risk of a European financial crisis, climbing inventories and sluggish PC sales had clouded the second-half outlook for Intel and other chip makers like Advanced Micro Devices.

But the company, which dominates the PC microchip industry but is struggling in a fast-expanding mobile market, forecast current-quarter revenue of about USD 14 billion, give or take USD 500 million.

Analysts on average had expected Intel's revenue to rise to USD 13.5 billion in the current quarter, according to Thomson Reuters I/B/E/S, less than normal growth for this time of year.

Revenue in the June quarter was USD 13.1 billion, up 22% over the year-ago period and and above the USD 12.8 billion expected by analysts, according to Thomson Reuters I/B/E/S.

Non-GAAP net income in the quarter was USD 3.2 billion, up 10%. Non-GAAP earnings per share were 59 cents.

Shares of Intel rose 1.65% to USD 23.37 in extended trade after closing down 0.3%.