Tech industry bellwether Intel has forecast a healthy 7.5% revenue growth in Q4, in an indication the sector could be poised for an upbeat quarter.
The company projected revenue of $11.4 billion - plus or minus $400 million - compared to $10.6 billion revenue from 4Q09. Intel expects gross margins of around 67% for the quarter.
Intel reported also first ever revenues of over $11 billion in Q3. Revenue grew 18% to $11.1 billion, while net profit grew 61% to $3 billion.
“Looking forward we continue to see healthy worldwide demand for computing products of all types,” Intel CEO Paul Otellini said.
The growing use of Atom processors in devices ranging from Windows, Android and MeeGo tablets to the new Google TV products should stimulate sales growth, he said.
The forecasts beat analysts' expectations of $11.3 billion revenue, according to the average of projections compiled by Bloomberg.
Canaccord Genuity analyst Bobby Burleson told Reuters that “Intel has set a high bar for tech earnings. There was concern about Q4 ... and the number is better than the Street expected.”
The outlook sent Intel's Nasdaq stock up 1.07% to $19.77 and a 0.8% lift in rival AMD’s share price. The tech-heavy Nasdaq grew 0.65% in a sign of improved confidence in the sector.
In an earnings call, Otellini added that he expects PC unit sales to grow by 18% this year. “The industry is now shipping more than 1 million PCs a day,” he said.