Intel today raised its guidance for third quarter revenue, citing stronger than expected demand for microprocessors and chipsets.Revenue is now expected to be $8.8 billion to $9.2 billion, compared to the previous guidance of $8.1 billion to $8.9 billion. Analysts had been expecting $8.55 billion in revenue. The company also said it expects gross margins to be in the upper half of the previous range of 51-55 percent.
The news comes on the heels of Dell's better than expected second quarter earnings report. The company said there were signs of stabilization in the quarter and that it expected "seasonal demand improvements" but still pointed to 2010 before it sees a refresh cycle from the enterprise.
Shares of Intel were on the rise, up more than 5 percent in early trading.
The company is scheduled to report its Q3 results on Oct. 13.