Intel has joined Dell and Hewlett-Packard in seeing a technology recovery ahead, led by consumer PC purchases. Stronger than expected demand for its microprocessors caused the chipmaker to raise its revenue forecast for the third quarter to about $9 billion, up from its July forecast of $8.1 billion to $8.9 billion.
The improved forecast pushed up Intel's stock Friday. Dell's stock also rose on hopes for improving PC sales.
On Thursday, Dell reported a 23 percent drop in its fiscal second-quarter profit but still beat analyst estimates. CEO Michael Dell said, "If current demand trends continue, we expect revenue for the second half of the year to be stronger than the first half."
Last week, rival Hewlett-Packard reported a 19 percent drop in profit but also expressed optimism.
Besides the improved revenue forecast, Intel also raised its gross margin to the upper half of its predicted 51 to 55 percent range.
An economic stimulus package in China has raised hopes for PC sales, along with what appears to be the start of an economic recovery in the U.S.
Consumers and some businesses are expected to buy new PCs and laptops with the release of Microsoft's Windows 7 operating system in October. However, enterprises will probably delay purchases until next year.