Computer chip producer Intel has today forecast stronger than expected fourth-quarter sales and margins saying resilient demand from emerging markets and corporations should offset weak consumer spending.
Intel, one of the State’s largest multinational employers, posted a third-quarter net profit of $2.955 billion, or 52 cents a share, compared to $1.86 billion in the same quarter last year.
That was slightly higher than the 50 cents per share expected by analysts, raising hopes that the technology sector could end 2010 on a strong note.
Intel forecast revenue of $11.0 billion to $11.8 billion in the final three months of 2010, in line with analysts' expectations of $11.32 billion.
Intel chief executive Paul Otellini said early demand for Sandy Bridge - its next-generation chip combining central processing and graphical functions - was much greater than originally anticipated
Revenue in the quarter ended September 25th was $11.1 billion, slightly above the $10.99 billion expected.
In the longer term, Wall Street remains concerned about the threat to Intel, whose microprocessor brains drive eight out of 10 of the world's personal computers, from the fast-growing tablet such as Apple's iPad.
"Consumers will have a limited amount of discretionary income and some will choose to purchase a tablet instead of upgrading an existing PC or purchasing a netbook in any given period," Mr Otellini conceded.
On top of soft US and European demand, the PC industry has faced rising inventories for chips and other components that have led some customers to reduce their orders for new parts.
Reuters