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Intel Rides Global Sales to Strong Q1

Profit jumps 9% as chip-maker surprises Wall Street

By Jim O'Neill,  Newser User

Posted Apr 16, 2008 6:50 AM CDT

(Newser) – Global demand for computer chips helped Intel power to a 9% first-quarter revenue gain, beating analysts' estimates and sending a message that while US sales may be slumping, the world’s largest chip maker’s still got game. Intel stock rose 7.7% in after hours trading, the New York Times reports, as the news allayed worries that computer sales are slowing.

Net income was off 12% to $1.4 billion, or 25 cents a share, from a year ago, primarily related to costs of a business spinoff. Revenue increased to $9.67 billion from $8.85 billion. Intel’s new nanometer manufacturing process has helped it dominate foundering rival AMD, which has struggled through delays in new product launches and lost customers to Intel.

The Intel exhibit at the Consumer Electronics Show at the Las Vegas Convention Center is seen Wednesday, Jan. 9, 2008.
The Intel exhibit at the Consumer Electronics Show at the Las Vegas Convention Center is seen Wednesday, Jan. 9, 2008.   (AP Photo/Paul Sakuma)
Intel Corp. CEO Paul Otellini holds up a 12-inch Penryn wafer with hundreds of individual silicon chips at Intel headquarters in Santa Clara, Calif.
Intel Corp. CEO Paul Otellini holds up a 12-inch Penryn wafer with hundreds of individual silicon chips at Intel headquarters in Santa Clara, Calif.   (AP Photo/Paul Sakuma)
An Intel sign is shown in front of Intel Corp. headquarters in Santa Clara, Calif.
An Intel sign is shown in front of Intel Corp. headquarters in Santa Clara, Calif.   (AP Photo/Paul Sakuma)
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