Intel Shares Rise on Forecast of Stronger Sales in Second Half

Intel's stock price surged to $84.25 on Wednesday as investors focused on the company's forecast of increased sales in the second half of the year, following a second-quarter earnings report that exceeded expectations. The company's Q2 earnings were boosted by the optimism surrounding the PC market, which had experienced a slump due to Compaq Computer's inventory problems. However, Compaq's announcement of clearing its inventory issues has sparked hopes of a market bounce back.

Key Takeaways:

• Intel shares rose $3.56 1/4 to $84.25 on Wednesday, driven by the company's forecast of stronger sales in the second half.
• The company's second-quarter earnings report exceeded expectations, with sales expected to exceed the first half's.
• Compaq Computer's announcement of clearing its inventory problems has sparked optimism about the PC market's potential recovery.
• Compaq shares slipped 12 1/2 cents to $33.56 1/4, despite exceeding earnings expectations.
• The PC market had experienced a slump due to Compaq's inventory issues, but Intel's forecast and Compaq's recovery plan have alleviated concerns.
• Intel's Q2 earnings season saw other chip makers struggling, but the company's forecast of increased sales in the second half suggests resilience.

Statistics:

• Intel shares rose $3.56 1/4 to $84.25 on Wednesday.
• Compaq shares slipped 12 1/2 cents to $33.56 1/4.
• Second-quarter sales at Compaq rose 5.7 percent to $5.8 billion.
• Compaq earned $32 million, or 2 cents per share, in the second quarter.
• Compaq's Q2 earnings excluding charges related to its purchase of Digital Equipment.
• Sales in first half vs. second half: exceeding expectations.

Sources:

• Bloomberg News
• Compaq Computer's Q2 earnings report