December 7, 2001
2 Big Chip Makers Raise Forecasts
By CHRIS GAITHER
nytimes.com
AN FRANCISCO, Dec. 6 — Intel and Advanced Micro Devices raised their financial forecasts for the current quarter today, saying that their microprocessors that power personal computers were selling better than expected.
The two companies, leading competitors in the PC chip market, said that computer makers had bought more of their newest chips than projected in October.
Though corporations continued to show frugality in their spending, analysts said, retail shoppers had begun to open their wallets again during the holiday season and buy computers.
Intel, the world's largest chip maker, based in Santa Clara, Calif., said it expected sales of $6.7 billion to $6.9 billion in the quarter — an increase over its October estimate of $6.2 billion to $6.8 billion. Intel shares, which fell 45 cents, to $34.16, before the announcement, rose as high as $35.22 after hours.
Surprising demand for the Pentium 4, its newest line of chip, contributed to the new forecast, Intel said. Andy D. Bryant, the chief financial officer, said the company was making all the Pentium 4 chips it could, but acknowledged that its factories could not keep up with orders. "Right now supply is tight," Mr. Bryant said in a conference call with analysts. "We're doing all we can to meet our customers' needs." |
