Intel hikes revenue forecast as business demand picks up

Intel hikes revenue forecast as business demand picks up

Chipmaker Intel Corp. on Thursday raised its revenue forecast for the current year, saying it noticed a stronger-than-expected demand for personal computers used by businesses.

Buoyed by an improvement in demand for personal computers, Intel raised its revenue forecast for second quarter and said its annual sales will also rise. It annual sales really increases, it will be the first increase since 2011.

The higher forecast by the world's largest semiconductor maker drops another hint of optimism in the global PC industry, which has been suffering decline in shipments for the last two years in a row. PC segment accounts for most of Intel's annual revenue.

The Santa Clara, California-based company said its sales this quarter would be $13.7 billion, plus/minus $300 million, as compared with its earlier forecast of around $13 billion, plus/minus $500 million.

Ian Ing, senior analyst at MKM Partners, added that the global PC market might have stabilized and started regaining strength.

Speaking on the topic, Ing said, "In the short to medium term, it looks like the market has stabilized, and business and corporate PCs are driving a lot of strength. It's really a nice positive for them, even without needing the consumer to come back yet."

Ing has the equivalent of a hold rating on Intel stock, which gained as much as 6.6 per cent to $29.80 per share in extended trading after yesterday's announcement.

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