Intel forecasts revenue growth on better PC sales
Intel has delivered a rare piece of good news for the shrinking PC market after the chipmaker noted a pick-up in demand.
The company raised its revenue forecast for this year, saying there was stronger-than-expected demand for personal computers used by businesses.
Shares in Intel rose almost 5% in after-hours trading on Wall Street.
PC sales have been under intense pressure as consumers' preferences switch to tablets and smartphones.
Intel said it now expects second-quarter revenue of $13.7bn - plus or minus $300m. Intel had previously forecast revenue of $13bn - plus or minus $500m.
The chipmaker said it expects "some" revenue growth for the full year, compared with its previous forecast of flat revenue.
With personal computer shipments falling for eight straight quarters to the end of March, some analysts have suggested the industry's decline is close to hitting bottom, potentially giving Intel breathing room as it struggles to develop better processors for mobile and wearable devices.
"PCs have been getting less bad for a while," said Bernstein analyst Stacy Rasgon. "But if it's all business PCs then the question is going to be sustainability."