Sales went up 12% sequentially to $8bn but fell 14.6% year-on-year from $9.4bn while the company swung into net losses of $398m when the EU's $1.45bn anti-trust fine was factored into the results.
"Intel's second-quarter results reflect improving conditions in the PC market segment with our strongest first to second quarter growth since 1988 and a clear expectation for a seasonally stronger second half," said Paul Otellini, Intel CEO.
In a conference call with analysts, the chip giant said PC vendors has run down inventories in the first quarter - when Intel has claimed the market had bottomed out - and were now replenishing stocks in preparation for an upturn in the second half.
"Our customers signalled increased confidence for a seasonal second half with their ordering patterns. I believe this reflects how critical personal and enterprise computing has become to the world," said Paul Otellini.
Despite this, inventories at Intel were down $240m in the second quarter compared to a year ago, while restructuring and asset impairment charges were ahead of the company's expectations at $91m.
Microprocessor unit shipments were higher quarter-on-quarter it said, but ASPs were down and net losses from equity investments and interest were $38m.
Revenues are forecast in the region of $8.5bn for the next quarter, plus or minus $400m. Asset and impairment restructuring charges are estimated to be roughly $40m.