Intelraised second-quarter guidance above Wall Street expectations late Thursday, citing continuing strong demand for notebook products.
Intel’s better than expected guidance is the latest good news for the chip industry, which has benefited this week from bullish industry reports and results from Texas Instrumentsand National Semiconductor.
Intel said it now expects second-quarter revenues of $9.1-9.3 billion, above $8.97 billion estimates. Gross margins will be a better-than-expected 57%, and the company also announced investment and tax gains for the quarter.
After a year-long inventory glut that hit shares of Intel and other chip stocks, Intel CFO Andy Bryant said demand is actually exceeding supply for some products at the moment.
“Demand feels pretty good right now,” Bryant said on a conference call.
Despite the good news, shares of Intel slipped 1% in after-hours trading, but the stock is up 25% since mid-April.
Stocks gained Thursday after Federal Reserve Chairman Alan Greenspan said the economy is sound and inflation under control, but gave no hint of when the Fed’s rate hikes will end.
The Nasdaq gained 18 to 2076, the S&P rose 6 to 1200, and the Dow added 26 to 10,503. Volume rose to 1.82 billion shares on the NYSE, and 1.67 billion on the Nasdaq. Advancers led 18-13 on the NYSE, and 18-11 on the Nasdaq. Upside volume was 66% on the NYSE, and 77% on the Nasdaq. New highs-new lows were 122-22 on the NYSE, and 72-49 on the Nasdaq.
Nikusoared on a buyout offer from CA.
National Semirose 9% on its results.
Adtrangained 10% after raising guidance.
Research In Motionfell 5% on more patent troubles.
Xilinxslipped on its results.