Intel is seen as a technology bellwether
Intel, the world's largest maker of semi-conductors, said its first-quarter net income fell 12% to $1.44bn (£0.73bn) from $1.64bn a year ago.
But the firm, whose revenues rose to a record first-quarter $9.67bn, from $8.85bn, said it was optimistic about growth opportunities in the year.
It said it had seen "healthy demand for our leading-edge processors and chipsets across all segments".
In March Intel had warned of weaker pricing on certain memory chips.
Prices of NAND flash memory-chip market have been under pressure for more than a year now.
But, announcing the results, chief executive Paul Otellini, said: "Our first quarter results demonstrate a strengthening core business and a solid global market environment."
Shares in Intel were ahead by 5% in after-the-bell trading.
Cody Acree, analyst at Stifel Nicolaus, said: "More important than anything it's simply that Intel is not giving an indication that the wheels are coming off."