Published: Wed, September 21, 2016
Economy | By Melissa Porter

Intel Boosts Outlook on Surprising PC Sales

The shares rose 3 per cent to $37.67 at the close in NY, the biggest single-day jump in about nine months and the highest value since December 2014.

Intel (INTC) expects third-quarter revenue of $15.3 billion to $15.9 billion vs. its prior range of $14.4 billion to $15.4 billion.

Third-quarter R&D plus MG&A spending is expected to be $5.2 billion, $100 million above prior guidance. But Mr. Reeves attributed recent demand to the arrival of new graphics chips from Nvidia Corp., which help improve the visual effects in game software, as well as the arrival of new virtual- reality headsets that need to connect to powerful PCs for the most vivid experiences. "The company is also seeing some signs of improving PC demand", Intel said in a press release.

Shipments of PCs, a market that provides Intel with more than half of its sales, fell to their lowest level in a decade in the first three months of 2016.

Micron Technology, Inc. (NASDAQ: MU) was up 0.89 percent at $17.60.

The Santa Clara, California, company has been hurt by slowing sales of personal computers that use its chips. Analysts surveyed by FactSet had expected revenue of $14.87 billion. The company also boosted its gross margin forecast by 2 percentage points.

Intel said all other expectations have been withdrawn, and the company will update guidance with its third-quarter earnings report on October 18.

Up to Thursday's close, the stock had risen 6.1 percent this year, underperforming the 20.8 percent gain in the broader Philadelphia SE Semiconductor Index during the period.

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