SANTA CLARA, Calif. (AP) -- Intel Corp. Friday raised its sales forecast for the third quarter, saying its processor business is generally trending higher, while demand for communications products remains soft.
In a press release, the world's largest chip maker said it expects third-quarter revenue between $7.3 billion and $7.8 billion, compared with its previous forecast of $6.9 billion to $7.5 billion.
The forecast tops the $7.24 billion average estimate in a Thomson First Call of survey of analysts. First Call also projects earnings of 19 cents a share.
Gross margin is expected to be around 56 percent, compared to its earlier projection of 54 percent.
The company said all other expectations are unchanged.
In the last year's third quarter, Intel earned 11 cents a share on revenue of $6.5 billion.
The company will issue a mid-quarter business update on Sept. 4.
In early trading Friday on the Nasdaq Stock Market, Intel shares were up $2.02, or 7.6 percent, at $28.41.