It seems that PC sales are starting to increase and Intel has raised its outlook for the second quarter and the full year.
Shares of Intel jumped more than four percent in extended trade as the chipmaker's improved forecast lifted hopes for a PC industry that been shrinking due to consumers' preferences for tablets and smartphones.
Now Intel is expecting a second-quarter revenue of $13.7 billion, plus or minus $300 million. Intel had previously forecast revenue of $13 billion, plus or minus $500 million.
Previously Chipzilla had said that it would not get much dosh in the full year thanks to flat PC sales. Now it is saying that it expects "some" revenue growth for the full year.
The Santa Clara, California company also raised the mid-point of its gross margin forecast range for the second quarter, which ends at the end of June, by one point to 64 percent.
PC shipments have been falling for eight straight quarters through March, Intel's announcement means that the industry's decline has hit bottom, potentially giving Intel breathing room as it struggles to develop better processors for mobile and wearable devices.
It is not clear what pulled PCs out of the doledrums. It is no doubt due to Microsoft's winding down of support in April for its Windows XP operating system. Corporations have duties to ensure their machines aren't vulnerable. But their machines are vulnerable to monopolies like Microsoft and Intel.
Intel is expected to report its second-quarter results on July 15.