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Thursday, 5 December, 2002, 22:26 GMT
Intel suggests better times ahead
An Intel plant
Intel is seen as a bellwether for the technology sector
The chip maker Intel has hinted at better times ahead for the tech sector by raising its revenue outlook for the October to December period.

All we've seen is a seasonal pickup, there could be a downturn next year

Mark Grossman, SG Cowen Securities
Intel raised its forecast for fourth quarter revenues to between $6.8bn (4.3bn) and $7bn, up from its previous estimate of $6.5bn to $6.9bn.

It said the improved performance was down to increased demand for its microprocessors, especially in Asia.

Intel issued its trading outlook after the close of trade on Wall Street, but its shares rose 37 cents to $19.47 in after-hours trade.

More good news

Earlier on Thursday, rival chip maker AMD had also increased its outlook for the fourth quarter.

AMD said it now forecast sales of about $700m for the October to December period, a 35% jump on the previous quarter.

The company had previously expected a 20% increase in sales.

AMD said it had seen strong demand for chips used in personal computers and flash memory for cell phones.

Turning the corner?

Despite the upgraded forecasts, analysts warned people not to get carried away.

Mark Grossman, an analyst at SG Cowen Securities, said that sales during the fourth quarter tended to be strong because of the holiday season.

And he said AMD's numbers in the third quarter were "artificially depressed because they had a lot of inventory".

"I think at this point the real question is do we get a corporate upgrade cycle next year in PCs?" said Mr Grossman.

"All we've seen is a seasonal pickup. There could be a downturn next year."

See also:

16 Nov 02 | Technology
06 Oct 02 | Business
16 Jul 02 | Business
03 Oct 02 | Business
19 Jun 02 | Business
19 Jun 02 | Business
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