Chip Stocks Strong As Intel Raises Q3 Guidance

Shares of chip-based companies remain strong on Friday after Intel Corporation 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. AMD was up 0.5 percent at $6.05.
• Intel was up 2.75 percent at $37.56.
• Micron Technology, Inc. MU was up 0.89 percent at $17.60.
• NVIDIA Corporation NVDA was flat at $62.68.
• Texas Instruments Incorporated TXN was down 0.29 percent at $69.02.

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