Intel performance boosts sector hopes

CHIP-maker Intel boosted revival hopes in the technology sector yesterday after revealing that first-quarter profits nearly quadrupled compared with a year ago. The industry bellwether benefited from higher sales of new chips for computer servers – the kind of purchase that many firms delayed in the recession.

Sales rose 44 per cent to $10.3 billion (6.7bn) in the three months to March and meant Intel achieved net income of $2.4bn, well ahead of both Wall Street hopes and last year's $629 million. The company raised its margin guidance and said it was optimistic about prospects.