Intel raises revenue forecast as PC market improves

INTEL Corp raised its quarterly revenue forecast for the first time in more than two years as suppliers of parts used in personal computers replenish their inventory amid improving PC demand.

Intel, which helped found the personal computer industry, has been struggling as tech users shift away from PCs to mobile phones for their computing needs.

Sales in the company’s PC business declined three per cent to US$7.3 billion in the latest quarter. The unit includes sales of chips for mobile phones and tablets.

However, there have been signs PC demand may be recovering.

HP Inc, which houses the hardware business of the former Hewlett-Packard Co, said last month that revenue in its computer business rose 7.5 per cent in the third quarter from the second as sales of notebooks improved. FBN Securities analyst Shebly Seyrafi said commentary from Intel and HP suggested that PCs were “not as dead as people were thinking.”

Research firm IDC said in July global PC shipments fell less than expected in the second quarter, helped by strength in the United States.

“We expect PC units to decline less than the high-single-digit decline consensus in 2017, driven by continued Windows 10 upgrades and accelerating SSD adoption, along with new form factors,” Baird Equity Research analyst Tristan Gerra wrote, raising his price target to US$42 from US$40. — Reuters