Intel moving up on inside lane

COMPUTER chip maker Intel got the reporting season in the United States off to a strong start by posting its "best quarter ever" as corporate customers splashed out on the latest technology.

Second-quarter revenues at the company - which is often used as a bellweather for the US economy - rose by 34 per cent year on year to $10.8 billion (7.1bn), while pre-tax profit was up 175 per cent to $2.9bn.

Paul Otellini, Intel's chief executive, said: "Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history. The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future."

Shares in PC-makers Hewlett Packard and Dell rose in early trading in New York yesterday as investors interpreted Intel's results as a sign of good things to come over the weeks ahead during the reporting season.

Angela Hsiang, an analyst at KGI Securities, said: "Intel has given investors that boost of confidence they need.

"While there are still broad fears about the wider economy, investors were looking for an excuse to buy and Intel provided that."

Craig Berger of FBR Capital Markets, added: "Server strength and corporate PC refresh activities should keep the PC demand story robust into 2011."