Intel Corp. raised its revenue guidance for the third quarter to between $7.3 billion and $7.8 billion, up from earlier guidance of $6.9 billion to $7.5 billion. Analysts expect revenue of $7.2 billion, up from $6.5 billion revenue it posted in the year-earlier period.

In addition, Intel raised the gross margins expectation to 56 percent, up from previous forecast of 54 percent. Intel said it is seeing improved business demand in its core computer chip business across various regions and channels, although demand for its communications products remains soft.

Intel CFO Andy Bryant said that it was still too soon to say whether or not business in September would be strong. "Making a call this early in the quarter leaves you with a lot of uncertainty," he said. But Bryant did say that there appeared to be little build-up of inventory in the PC market as demand for PCs show signs of improvement.

Analysts said the strong performance of Intel's Centrino chipset for wireless notebooks is the key to Intel's raising its earning expectation.

By: DocMemory
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