Intel first quarter results boost tech stocks

After the close last night, Intel Corp. (INTC) on reported a large rise in first-quarter profit as strong sales of PC's and server chips helped the company. The company reported a profit of $2.4 billion, or 43 cents a share versus expectations of 38 cents, and compared with a profit of $629 million, or 11 cents a share, in the same period in 2009. Revenue was $10.3 billion, up from $7.1 billion in the same quarter the previous year versus analyst estimates of $9.8 billion. Revenue in the PC Client group, the company's largest business unit, rose 43% to $7.67 billion compared with the same quarter last year.


Intel Chief Executive Paul Otellini said "A year ago at this time, the industry was in the midst of a sharp correction with many expecting it to continue for an extended period,but we saw signals of it bottoming then and now a year later the industry is nearly fully recovered."
The shares rose 4% after hours to $23.67. Intel also issued a better-than-expected sales forecast for the second quarter of $10.2 billion and raised margin expectations.

 

Intel's results are a good sign for PC related, software and semi-conductor stocks such as Microsoft, Hewlett Packard, AMD and ASML.