Shares of chip-based companies remain strong on Friday after Intel Corporation (NASDAQ: INTC) boosted its revenue outlook for the third quarter. The revised forecast is
significantly above the Street estimates.
Intel boosted its revenue forecast from $14.9 billion (plus or minus $500 million) to $15.6 billion (plus or minus $300
million). The company cited improving PC demand for the upward revision in its guidance. Street analysts are looking for $14.9
billion revenue.
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The chip company is also forecasting increased GAAP margin of 62 percent, plus or minus a couple of points, compared to midpoint
of 60 percent projected earlier. The company also lifted its adjusted gross margin by one point to 63 percent, plus or minus a
couple of points, from midpoint of 62 percent predicted earlier.
Intel expects R&D and MG&A spending to be $100 million more than its initial estimation of about $5.1 billion. The
company expects to suffer a loss of about $125 million from equity invests, interest and other income.
Following this, chip stocks' share performances are given below:
-
Advanced Micro Devices, Inc. (NASDAQ: AMD) was up 0.5 percent at $6.05.
- Intel was up 2.75 percent at $37.56.
-
Micron Technology, Inc. (NASDAQ: MU) was
up 0.89 percent at $17.60.
-
NVIDIA Corporation (NASDAQ: NVDA) was
flat at $62.68.
-
Texas Instruments Incorporated (NASDAQ: TXN) was down 0.29 percent at $69.02.
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