Intel reports Q3 profits rise but forecast disappoints

Shares in chipmaker Intel Corporation fell 6% in extended trading on Tuesday after it reported its third quarter earnings, despite an 8.7% rise in profit.

Record revenue in its data centre business and and Internet of Things segments saw the company bringing in $4.5bn and $689m respectively.

However, for the current quarter Intel said it now expects total revenue to be $15.7bn, below analyst estimates of $15.86bn.

In July the company, which produces the vast majority of chips for computers, reported a 51% drop in profits after the announcement that it was to lay off more than 12,000 staff by next year.

However, chief executive officer of Intel Brian Krzanich stressed the positive results in his statement.

"We're executing well, and these results show Intel's continuing transformation to a company that powers the cloud and billions of smart, connected devices," Krzanich said.

Weak PC demand has hurt Intel's business, but it has been able to counteract that with its response to strong demand for cloud computing software.