Raised Intel outlook boosts stock

The world's biggest chipmaker Intel says stronger-than-expected demand means it will beat its earlier forecasts for three month revenues.
Intel is seen as a gauge for the whole of the technology sector so this news may boost the rest of the Nasdaq.

Intel shares rose 2.5% to $26.11 in early trading following the news.

The company expects revenue for the three months to the end of September to be between $9.4bn (£4.6bn) and $9.8bn (£4.8bn), up from $9.0bn to $9.6bn.

Intel also says that its gross margin will be in the upper half of the previous range of "52% plus or minus a couple of points". ,

New chips

It has been a good day for chipmakers with Intel's rival Advanced Micro Devices (AMD) unveiling its much-hyped new server chip.

It is AMD's first "quad-core" chip, which features four processors on a single chip.

The product launch is a key part of AMD's attempts to compete with Intel, which has a market value 21 times bigger than AMD.

AMD shares rose 2% in early trading.