Intel earnings on the rise

Sales of chips for laptops rose

Technology provider Intel has seen its strongest second-to-third quarter growth in 30 years, proving "technology innovation is leading the economic recovery", according to chief executive Paul Otellini.

Otellini attributes the results to better-than-expected demand for the microprocessors and chip sets.

Intel shares rose almost 5 per cent on the news in after-hours trading.

Intel's strong third-quarter results reported a profit of $2.6bn (£1.6bn), down from $3.1bn (£1.9bn) on the quarter a year ago.

Revenues fell only eight per cent year on year, falling $828m (£517m) to $9.4bn (£5.8bn) compared with 15 per cent and 26 per cent declines reported in the second and first quarters of the year.

"Intel's strong third-quarter results underscore that computing is essential to people's lives, proving the importance of technology to the economic recovery," said Intel chief executive Paul Otellini.

"This momentum in the current economic climate – plus our product leadership – gives us confidence about our business prospects going forward."

Intel's mobility group, which makes chips for laptops and netbooks, performed strongest with sales up 19 per cent, and the firm is confident the Windows 7 release will lead to further sales as businesses upgrade their PCs.

Earlier this year Intel was fined $1.45bn (£900m) by the European Commission for violating anti-trust rules.