Intel Shares Jump 3% Following Raised Revenue Guidance

Tech giant Intel Corporation (NASDAQ:INTC) saw its shares rise up to 3% in morning trading today, after lifting its Q3 revenue outlook.

The Santa Clara-based company said it now expects third quarter revenue of $15.6 billion, plus or minus $300 million. That’s up from a prior forecast of $14.9 billion, plus or minus $500 million.

Intel noted the change is mostly due to “replenishment of PC supply chain inventory” amid “some signs of improving PC demand.”

From the press release:

The company is forecasting the mid-point of the third-quarter GAAP gross margin range at 62 percent, plus or minus a couple of points, up 2 points versus the prior third-quarter GAAP outlook gross margin midpoint of 60 percent, driven mostly by higher PC unit volume. The midpoint of the third-quarter non-GAAP gross margin range is now forecasted at 63 percent, plus or minus a couple of points, up 1 point versus the prior third-quarter non-GAAP outlook gross margin midpoint of 62 percent.

All other expectations have been withdrawn and guidance will be updated with the company’s third-quarter earnings report on Oct. 18.

The world’s largest chipmaker, Intel has expanded its offerings in recent years amid the explosion of mobile platforms and tepid PC sales growth. The company now derives nearly half its revenues from non-computer processor businesses like cloud computing, security, Internet of Things, and more.

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Intel shares rose $1.02 (+2.79%) to $37.58 in Friday morning trading. INTC has now gained 9.42% year-to-date, versus a 4.49% rise in the S&P 500 during the same period.

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