Intel raised its revenue expectations for the third quarter on Friday (22 August) citing strong demand for PC and server processors.
The revised forecast by the chip giant prompted speculation that the market was near to staging a recovery after a prolonged slump in demand.
Intel now expects third-quarter revenue to come in between $7.3bn (£4.6bn) and $7.8bn. During the presentation of Intel's second-quarter results on 15 July, the company said it expected to take in between $6.9bn to $7.5bn.
The Intel Architecture business has seen stronger-than-expected demand, Intel said. This division comprises all of Intel's desktop, notebook and server processors, and has been responsible for all of the company's profits for some time. Sales of communications processors are still weak.
The semiconductor industry is feeling a little better about itself these days.
Analyst firm Gartner recently raised its expectations for semiconductor revenue growth in 2003 to 11% for the year. PC sales have picked up, albeit slowly, and demand for semiconductors is increasing at fabrication plants, which have raised their utilisation rates in the last month.