Intel Corp believes the worst is over for a personal computer industry hammered by the mobile revolution. The Santa Clara, California chipmaker forecast third-quarter revenue above Wall Street's expectations on Tuesday, sending its stock 4 percent higher in extended trade.
Investors have pushed shares of PC mainstays Microsoft Corp and Intel to decade-highs, partly on bets that the global slump in PC demand that began with Apple Inc's launch of the iPad four years ago is hitting bottom. From the end of 2010, the year the iPad was launched, to the end of 2013, annual global PC shipments shrank a total of 12 percent, according to IDC.
Intel now expects the market's recovery to help it grow its full-year revenue about 5 percent, slightly higher than prior expectations. Chief Executive Officer Brian Krzanich told analysts on a conference call that improved demand from companies replacing old PCs would last at least through the end of 2014. Also on Tuesday, Intel increased its share buyback program by $20 billion. It plans to repurchase about $4 billion of stock in the current quarter, underscoring its confidence in a turnaround and a growing crop of "two in one" devices with detachable keyboards and screens. Intel said in a statement it expects third-quarter revenue of $14.4 billion, plus or minus $500 million. Analysts had expected $14 billion on average, according to Thomson Reuters I/B/E/S.
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