Intel Corp has reported a better-than-expected 9.1 per cent rise in quarterly revenue, helped by improving PC demand and growth in its data centre and cloud businesses.

Intel’s shares were down 3.9 per cent at $36.29 in after-hours trading.

Market sentiment was hit by Intel’s forecast of fourth-quarter revenue between $15.2 billion and $16.2 billion, raising the risk that the figure could come in below the median market estimate of $15.9 billion.

Revenue from the data centre business, which offers storage and cloud-based software services, rose 9.7 per cent to $4.54 billion in the third quarter, from a year earlier.

Demand for cloud-based services has been growing as more businesses shift to cloud-computing methods.

Revenue from the company’s traditional PC business, which still accounts for over half of Intel’s total revenue, rose 4.5 per cent to $8.89 billion.

According to research firm IDC, global PC shipments fell by a smaller-than-expected 3.9 per cent in the third quarter.

Excluding items, the company earned 80 cents per share, above analysts’ average estimate of 73 cents.

The company’s net revenue rose to $15.78 billion from $14.47 billion, beating the average analyst estimate of $15.58 billion.

Net income at the world’s largest chipmaker rose to $3.38 billion, or 69 cents per share, in the third quarter ended October 1st, from $3.11 billion, or 64 cents per share, a year earlier.

Up to Tuesday's close, Intel's shares had risen 9.6 per cent this year, lagging the 22.8 per cent gain in the broader Philadelphia semiconductor index. – Reuters