Intel post profits, shares up 100% since start of year

Intel, the world's largest semiconductor maker, has posted quarterly net income that more than doubled on sales, beating Wall Street expectations.

This reflects an improved demand from Asia and stronger sales of pricier chips for laptops and servers - pushing its gross margin to 58.2%.

Intel also said cost-cutting and the release of new products drove a 150% year-over-year rise in third-quarter net income.

The company also forecast higher fourth-quarter revenue, but cautioned that while consumer spending was picking up corporations remained conservative in new investment on technology.

Shares of Intel rose in after-hours trading on Tuesday, to US$31.84, a gain of US$0.76 cents from the Nasdaq and their highest level in 18 months.

That margin could improve to 60%or so in the current quarter as revenue and factory utilisation rates both rise, Intel said.

Intel, which employs 3,200 employees in Leixlip, Co Kildare, said that sales of microprocessors at its Architecture division set a record and that the average selling price for the units was slightly higher than a year earlier.

Intel reported net income for the third quarter was US$1.7 bn, or 25 cents per share, more than doubled the US$686m, or 10 cents per share, posted a year earlier.

Revenue for the quarter was US$7.8 bn, up 20 percent from US$6.5 bn a year ago and topping the company's own forecast.

Intel saw strong sales in so-called emerging markets, including China, Russia and India in the third-quarter, while sales in the United States grew by a smaller margin, Bryant said.

Shares in Intel have risen nearly 100% since the beginning of the year, outperforming the Nasdaq Composite, which is up about 45%, and the Philadelphia Stock Exchange semiconductor index, which is up 64%.