Strong demand and reduced stockpiles foretell a dramatic rise in chip giant Intel's sales outlook, the firm says.
Intel chips go into four out five PCs built around the world
The company, whose chips power most of the world's PCs, said it expected sales of $9.3bn-9.5bn (£4.8bn-4.9bn) for the three months ending 25 December.
The forecast is far above both Intel's previous prediction of $8.6bn-9.2bn, and its all-time record of $8.74bn.
After poor news such as a high-profile chip cancellation, the figures prompted a surge in demand for Intel shares.
In "grey market" trading after Wall Street closed, Intel rose 7%.
The company's stock has fallen 29% since the start of this year, as bigger inventories and more competition from rival AMD have taken their toll.
Worries about whether the holiday season - traditionally the peak time for consumer computer buying - would prove a bust have also weighed on the firm's prospects.
And analysts are still watching 2005, for which the firm made no predictions, for signs that demand for low-end chips will eat into margins and profits.
That said, the chance of a "record quarter and a record year" as chief financial officer Andy Bryant put it prompted an enthusiastic response from some investors.
"I'm ecstatic," said Harry Papp at L Roy Papp and Associates.
"This tells me end-user demand is healthy."
In its most recent quarter to September, Intel made a profit of $1.9bn on sales of $8.5bn