Tech Sector in Hiring Drive
The technology industry, an engine of innovation and U.S. prosperity for more than half a century, is accelerating its recovery from the recession with surging earnings that have spurred companies to sharply ramp up their hiring.
The latest evidence for the rebound came Thursday, when Internet giant Google Inc. (GOOG) posted a 37 percent profit jump for the first quarter and chip maker Advanced Micro Devices Inc. (AMD) reported a 34 percent revenue increase to record levels. The results follow the strong showing of bellwether Intel Corp., (INTC) which Tuesday announced quarterly profit that nearly quadrupled on a 44 percent jump in sales.
The trio of results kicks off what is likely to be a strong earnings streak as tech spending by companies and consumers picks up. Next week, Apple Inc. (AAPL), Amazon.com Inc. (AMZN) and Microsoft Corp. (MSFT), among others, are slated to report quarterly results. Tech-research firm ISI Group projects that overall revenues from such companies will rise more than 10 percent for the first quarter, compared with a 16 percent decline a year earlier. Meanwhile, Standard & Poor’s forecasts a 79 percent increase in tech earnings for the quarter from year-ago levels.