Intel Corp's quarterly revenue forecasts trumped Wall Street's expectations, defying investors' concerns about slowing personal computer sales and buoying its shares.
Doubts about high U.S. unemployment, the risk of a European financial crisis, climbing inventories and sluggish PC sales had clouded the second-half outlook for Intel and other chip makers like Advanced Micro Devices.
But the company, which dominates the PC microchip industry but is struggling in a fast-expanding mobile market, forecast current-quarter revenue of about $14 billion, give or take $500 million.
Analysts on average had expected Intel's revenue to rise to $13.5 billion in the current quarter, according to Thomson Reuters I/B/E/S, less than normal growth for this time of year.
Revenue in the June quarter was $13.1 billion, up 22 percent over the year-ago period and above the $12.8 billion expected by analysts, according to Thomson Reuters I/B/E/S.
Non-GAAP net income in the quarter was $3.2 billion, up 10 percent. Non-GAAP earnings per share were 59 cents.
Shares of Intel rose 1.65 percent to $23.37 in extended trade after closing down 0.3 percent.
(Reporting by Noel Randewich; Editing by Richard Chang)