Intel to Investors: Save Your Tears for AMD
Apparently, someone forgot to tell Intel (INTC) about the recession. The company reported a sharp rise in profit on Tuesday in the face of a flaccid U.S. economy. Revenue rose 9 percent to $9.5 billion from the year-ago quarter. And net income rose 25 percent to $1.6 billion, or 28 cents a share–well above the expectations of Wall Street analysts, who had projected earnings of 25 cents a share.
Best of all, Intel predicted more strong sales in the months to come. “As we enter the second half, demand remains strong for our microprocessor and chipset products in all segments and all parts of the globe,” Intel CEO Paul Otellini said in a statement. Comments like that, coupled with Intel’s strong Q2 earnings, should go a long way toward reassuring investors that the technology sector isn’t succumbing to the economic downturn. At least until AMD reports second quarter results on Thursday. Analysts expect AMD (AMD) to post a loss of 52 cents per share.