Intel gives rosy fourth-quarter revenue forecast as PCs recover

SAN FRANCISCO (Reuters) - Intel Corp gave a current-quarter revenue forecast above expectations as demand for personal computers recovered.

A global slump in personal computer demand that began with Apple Inc's launch of the iPad four years ago has stabilized in recent months, in part due to companies replacing employees' older laptops.

Intel said in a statement on Tuesday that demand for its chips was in good shape.

"The worldwide PC supply chain appears to be healthy, with inventory levels appropriate in anticipation of the fourth quarter retail cycles," Intel said.

The recovering PC industry has helped push Intel's shares 24 percent higher in 2014, making it the top performer in the Dow Jones industrial average.

Tuesday's results, the first from a major technology company this earnings season, came after Chandler, Arizona-based Microchip warned last Thursday of weak demand in China that would soon become visible across the chip industry, sparking a broad selloff in chip stocks.

Intel posted third-quarter net income of $3.32 billion, or 66 cents a share, compared with $2.95 billion, or 58 cents a share, in the year-ago quarter as demand for personal computers stabilized.

Third-quarter revenue was $14.6 billion, up 8 percent from the year-ago quarter, Intel said in a statement on Tuesday. Intel said it expects fourth-quarter revenue of $14.7 billion, plus or minus $500 million.

Analysts on average expected third-quarter revenue of $14.44 billion and fourth-quarter revenue of $14.48 billion, according to Thomson Reuters I/B/E/S.

Shares of Intel were up 0.59 percent in extended trade after closing up 2.13 percent at $32.14 on Nasdaq.

(Reporting by Noel Randewich; Editing by Chris Reese and Meredith Mazzilli)

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