Intel Q2 forecasts beat expectations

Intel forecast revenue for the current quarter of 10.2 billion,plus or minus 400 million. Analysts polled by Thomson Reuters I/B/E/S,on average,expect 9.68 billion.

Shares in fellow chipmakers Advanced Micro Devices and Texas Instruments Inc rose about 2 per cent after hours.

8220;Certainly a strong indication for the rest of technology as we move through earnings season,8221; said Edward Jones analyst Bill Kreher. 8220;The cost control during the downturn is helping set a new norm in terms of gross margins for the company moving forward.8221;

The company said on Tuesday net income totaled 2.4 billion,or 43 cents a share,in the three months ended March 27,compared with net income of 629 million,or 11 cents a share,in the year-ago period. That exceeded average expectations for 38 cents a share.

Revenue rose to 10.3 billion,above the Wall Street target of roughly 9.84 billion.

Shares of the Santa Clara,California-based company rose 4.1 per cent to 23.70 in after-hours trading after closing Tuesday8217;s regular trading session at 22.76 on Nasdaq.