Intel surprised Wall Street early Friday, raising its third-quarter guidance in a sign that the tech sector is recovering.
It followed other recent signs. Late Thursday, PC maker Dell (DELL) and Marvell Technology Group (MRVL), which makes chips for data storage and other gear, both reported better-than-expected second-quarter results. Marvell's third-quarter sales and profit margin outlook beat views, and Dell executives said they expect sales to pick up in the second half of 2009.
The latest news "further confirms there's a big PC build going on now," said Avian Securities analyst Avi Cohen. "Things are getting better for chipmakers. How much better is the question."
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Analysts said the timing suggested that PC makers expected stronger sales for the holidays. Late Thursday, Dell Chief Financial Officer Brian Gladden said the company expects a strong computer refresh cycle next year. Dell sells mostly to businesses, so a rebound to consumers this year followed by a rebound for business users next year could bring tech a one-two punch.
And the accompanying chart:
This is a healthy development. Semis are the backbone of the technology industry. An increase in sales means things overall are looking better.
