Intel cashes in chips
Intel's stock jumps more than 6 percent a day after the chip maker said it expects to post higher revenues and profits than anticipated.
The stock, which closed at 88-5/8 yesterday, hit 94-5/8 during morning trading. It had been trading in the low 80s through August.
Intel, which is an investor in CNET: The Computer Network, issued its optimistic report after the close of market yesterday, basing its estimate for third-quarter revenues on increased sales over the previous quarter.
Revenues for the quarter are expected to come in at least 5 percent higher than the $4.62 billion recorded in the second quarter, company spokesman Tom Waldrop said. The company earlier had expected revenues to remain at the same level.
The estimate was revised after a rush of customers placed orders at the last minute, Waldrop said. At the same time, brokerage houses, as expected, are increasing their recommendations on the stock.
Alex. Brown upped its rating to "strong buy" from "buy," while Smith Barney revised its recommendation to "buy" from "outperform."
Intel will report its third-quarter earnings on October 14, after the market's close.