Intel Increases Fourth-Quarter Revenue Forecast (Update1)
By Dan Goodin
Santa Clara, California, Dec. 5 (Bloomberg) -- Intel Corp., the world's biggest computer-chip maker, increased its fourth- quarter sales forecast as demand for processors rises in Asia.
Sales will be $6.8 billion to $7 billion, Intel said in a statement. The Santa Clara, California-based company in October predicted sales of $6.5 billion to $6.9 billion.
Estimates of sales from Dell Computer Corp. and Hewlett- Packard Co. suggest holiday demand for PCs is looking stronger than it did in October, investors have said. Increasing orders for flash-memory chips used in cell phones and sales of higher-priced products are also boosting sales, analysts have said.
Gross margin, the percentage of sales left after paying production costs, will be at the high end of the company's prior forecast of 49 percent, ``plus or minus a couple of points,'' Intel said in its statement.
Intel shares rose as much as 54 cents, or 2.8 percent, to $19.50 in after-hours trading following the fourth-quarter update. They lost 78 cents to $18.96 as of 4 p.m. New York time on the Nasdaq Stock market.
