12/07 02:45
Intel, Advanced Micro Raise 4th-Qtr Sales Targets (Update5)
By Cesca Antonelli
quote.bloomberg.com
Santa Clara, California, Dec. 6 (Bloomberg) -- Intel Corp. and Advanced Micro Devices Inc., the biggest makers of personal- computer processors, raised their fourth-quarter sales targets on a surge of holiday buying that's propping up demand.
The shares of both companies jumped on the news. Intel said revenue will be $6.7 billion to $6.9 billion, compared with an October estimate for $6.2 billion to $6.8 billion. Rival Advanced Micro said sales will climb at least 10 percent from the third quarter's $765.9 million, beating analysts' highest forecasts.
PC sales so far this holiday season are shaping up better than expected, analysts and executives say. That means manufacturers are stocking up on processors from Intel and Advanced Micro, which together control 99 percent of the market. The forecasts cheered investors, who said they may signal a rebound in sales of PCs and devices after a yearlong slump.
``This is the beginning sign of a turn in the business that could continue, barring other unforeseen risks,'' said Graham Tanaka, whose Tanaka Capital Management owns more than 100,000 Intel shares and has $160 million under management.
Advanced Micro shares gained as much as 11 percent to $18 after the report. The stock added 1 cent to $16.25 in regular trading and has more than doubled since Oct. 1. |
