Intel raised its quarterly revenue forecast for the first time in more than two years as suppliers of parts used in personal computers replenish their inventory amid improving PC demand.

Shares of the world’s largest chipmaker rose as much as 4.1 per cent to a more than 15-year high of $38.05 on Friday.

Intel, which helped found the personal computer industry, has been struggling as tech-users shift away from PCs to mobile phones for their computing needs.

Sales in the company’s PC business declined 3 per cent to $7.3 billion in the latest quarter. The unit includes sales of chips for mobile phones and tablets.

However, there have been signs PC demand may be recovering. FBN Securities analyst Shebly Seyrafi said commentary from Intel and hardware group HP suggested that PCs were “not as dead as people were thinking”.

Intel said on Friday it expected third-quarter revenue to be $15.6 billion, plus or minus $300 million, compared with its prior forecast of $14.9 billion, plus or minus $500 million. That implies the highest-ever quarterly revenue for Intel, according to Thomson Reuters data. Analysts on average were expecting $14.9 billion.

RBC Capital Markets analyst Amit Daryanani said the pre-announcement was a good first step to the PC story stabilising at Intel, and raised his price target by $2 to $38. – (Reuters)