Intel has raised the lower level of its first quarter sales forecast, thanking reduced manufacturing costs.
Intel's figures are seen as key to the whole computer industry
It now expects revenue in the three months to 31 March to fall between $9.2bn (£4.7bn) and $9.4bn.
Back in December the world's largest chipmaker predicted that the figure would be between $8.8bn and $9.4bn.
The new estimate exceeds Wall Street expectations. Shares in the company rose by 2% in electronic after-hours trading in New York.
Intel said its gross margin - the difference between sales and the cost of the products sold - is expected to be about 57%, compared with the previous forecast of 55%.
"I'm encouraged by the gross margin guidance, which is a little better than expectations," said Krishna Shankar, a computer industry analyst with JMP Securities.
"Sounds like the PC business is tracking normally."
Intel does not provide profits guidance ahead of its reports.