Ask not for whom the bellwether tolls, just be glad that it's ringing in tune.
Tech giant Intel (NASDAQ:INTC) is raising the floor on its top-line guidance. The chip maker is now looking to produce between $7.6 billion and $7.8 billion in revenue in its third quarter. The old target was a much wider $7.3 billion to $7.8 billion range.
Why does this matter? Well, that "old" target wasn't seasoned at all. The company made that earlier call just two weeks ago. Before that, the floor was dragging around $6.9 billion. Business must be booming for Intel to tighten those clamp screws so quickly for the better.
We won't know how well Intel made out for sure until it posts its financial results next month, but the appetizers have been tasty. While skeptics might write this one off as a seasonal blip, momentum has been hitching a ride on Intel for some time now. Even before last night's welcome tweak, the company was already starting to roll. Back in July, it reported that second-quarter profits had doubled on an 8% uptick in revenue.
The revised guidance for the current quarter means that the company is looking to grow its top line by at least 17% over last year's showing.
In other words, if Intel is back, then the personal computer makers can't be too far behind. Sure, Dell (NASDAQ:DELL) never broke a sweat, but this is still great news for Hewlett-Packard (NYSE:HPQ) and Gateway (NYSE:GTW). Even Apple (NASDAQ:AAPL) can cheer Intel's report, albeit vicariously.
Intel is also looking for healthy gross margins, though the bottom line won't feel all of the love due to higher tax rates. That's OK. Let Uncle Sam have his fun. Intel isn't going to be crying "Uncle" anytime soon.
Is Intel's upbeat outlook for real? Is the company's restrained capital spending budget still a concern? Where does AMD (NYSE:AMD) fit into Intel's plans? All this and more -- in the Intel discussion board. Only on Fool.com.
