Intel raises revenue expectations for third quarter

Technology giant Intel Corporation has bumped up its revenue forecasts for the third quarter, as demand for personal computers improves.

Revenue for the quarter is expected to rise to $15.6bn, plus or minus $300m, whereas the previous forecast was $14.9bn, plus or minus $500m.

Intel forecast the mid-point of its third quarter GAAP gross margin range at 62%, an increase of two points versus previous estimates, while the non-gross margin range was brought up by a point to 63%.

"The increase in revenue is primarily driven by replenishment of PC supply chain inventory," the statement said.

"The company is also seeing some signs of improving PC demand," management said in a statement.

Santa Clara, California-based Intel also said research and development plus marketing, general and adninistrative spending was expected to be about $5.2bn.

That was $100m than previously expected.

The tax rate for the quarter was seen rising from 21% to 22%, while gains and losses from equity investments and interest and other income were expected to be a net loss of approximately $125m, versus its prior forecast for a loss of $75m.

All other expectations were withdrawn and guidance would be updated alongside the firm´s third quarter earnings on 18 October.

Shares in Intel were up 3.3% to $37.76 in early morning trading.