Intel, the world's largest semiconductor maker, predicted higher second-quarter sales than some analysts had estimated as it ships new personal-computer and server chips as shortages of hard drives abate.
Sales in the current period will be $13.6 billion, plus or minus $500 million, the Santa Clara company said Tuesday. Analysts on average had estimated revenue of $13.43 billion, according to data compiled by Bloomberg. Sales were $13.03 billion a year earlier.
Intel is rolling out updated chip designs, and its PC-maker customers are expanding their lines of slim Ultrabook computers, created to stoke consumer interest in laptops, said Patrick Wang, an analyst at Evercore Partners. In addition, the company's new products for servers - the machines that run corporate networks and provide the backbone of the Internet - are helping boost profitability, he said.
Increasing supply of hard-disk drives is encouraging PC makers to replenish stockpiles of other parts, including Intel processors, he said.
Intel shares were little changed in late trading after the announcement. Earlier, they gained less than 1 percent to $28.47 at the close in New York. That left the shares up 17 percent this year.
The world's largest semiconductor maker, Intel, has projected higher second-quarter sales than some analysts had estimated as it ships new personal-computer and server chips and hard drives shortages abate.