INSTANT VIEW: Intel smashes expectations, sees strong Q3

LOS ANGELES/SAN FRANCISCO (Reuters) - Intel Corp's (INTC.O) quarterly results smashed Wall Street expectations on Tuesday, and the chip maker offered a forecast for current-quarter revenue that also topped analysts' estimates.

COMMENTARY:

STEVE NEIMETH, PORTFOLIO MANAGER, SUNAMERICA MUTUAL FUND

"It seems like very good news. Revenues are much better than expected, which was a surprise to many investors due to the Dell numbers, which spooked investors. In addition, gross margins looked better than expected, which will likely result in the stock being up tomorrow.

"This bodes well for the sector, which many believe looks inexpensive. It bodes well for many of the large-cap tech companies like IBM, Microsoft and Cisco, which have correlation due to similarities in their end market.

"Many investors will be focused on their gross margins and how they were able to come in at such strong levels. Was it driven by a change in depreciation levels, or a positive mix of sales? If the latter, it will be extreme positive for stocks tomorrow."

UNNI NARAYANAN, CEO OF PRIMARY GLOBAL RESEARCH

"We felt things were going to be better than expected. I did not expect it to be this much better.

"The fundamentals of the company around the three vectors -- server, desktop, and ultimately netbooks -- look solid, with a big rebound happening -- we forecast -- close to mid-2010.

"Clearly on the enterprise recycles as well as the consumer recycles, we're seeing an uptick and it's happening probably faster than most of us expected."

VIJAY RAKESH, ANALYST, THINKEQUITY

"The numbers were very good and the guidance was very strong. Overall, it was very good guidance, indicating the PC market has improved and they have a clear expectation of a seasonally strong second half. It paves the way for tech in general."

CODY ACREE, ANALYST, STIFEL NICOLAUS

"It looks like a very solid number. Revenue was ahead of expectations. The lower inventories and higher gross margins are driving earnings per share above even the high end of expectations.

"It looks like a solid number across the board."

ASHOK KUMAR, ANALYST, COLLINS STEWART