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NEW YORK (Reuters) - Intel Corp posted stronger-than-expected first quarter results and provided a revenue outlook ahead of Wall Street forecasts.
The first major U.S. technology company to post its results for the quarter, Intel's report suggests that global demand for PCs is on the upswing. Shares of the company rose 4 percent immediately after it released the quarterly results.
"I think what Intel is benefiting from is the pent up demand, because customers delayed upgrading servers and upgrading desktops over the last several years because of the downturn. They can't delay anymore, so the floodgates have opened."
"It's definitely enterprise strength. What we're seeing is a willingness on the part of organizations to really start to spend."
"I expect similar good news for AMD and Micron Technology. The chip sector has always been a real roller coaster ride, but as Intel goes so goes the rest of the sector. They are really being buoyed by the fact that technology spending is really beginning to happen in a big way."
"It look like a blowout...there is huge demand as the Atom processor picks up steam, it's becoming a bigger chunk, closer to 20 percent of all notebooks."
"There's an expectation that businesses will start hiring and as a consequence they'll need the high-end chips and that'll definitely lift the margins overall later this year."
"Basically, what they're seeing is a continued improvement, the consumer is very strong now, and that's the one that they have the clearest visibility into. Enterprises have still not picked up and I'm sure the rest of the year is predicated on the enterprise picking up."
PATRICK WANG, SENIOR VICE PRESIDENT SEMICONDUCTORS, WEDBUSH MORGAN SECURITIES
"It's like a trifecta. Intel had better-than-expected revenue and revenue guidance, which shows brand resilience. It also handily beat expectations on gross margins, and the third thing was inventory, which had been a concern. I think it's good all around. There is some concern, looking out into the third quarter, about whether they have gotten too hot too early."
"We're very pleased with the results. Certainly a strong indication for rest of technology as we move through earnings season. For Intel, it appears the company has successfully navigated through the recession and is clearly emerging stronger from the downturn."
"The cost control during the downturn is helping set a new norm in terms of gross margins for the company moving forward."
"Not only were we pleased with the numbers, we were pleased with the company's increased confidence for all of 2010."
RYAN DETRICK, SENIOR TECHNICAL STRATEGIST, SCHAEFFER'S INVESTMENT RESEARCH
"The reaction so far has been positive. People have been looking at revenue growth. It looks like they upped their revenue outlook for the second quarter. They exceeded expectations on that, and they are being rewarded."
"They actually beat the whisper numbers and the outlook for margins continues to be better than expected. That, combined with the fact that inventory continues to be very well controlled, up only very slightly in dollars, is contributing to driving the stock higher."
"I wouldn't be surprised if Street estimates came up between 8 and 10 percent as a result of the strong first quarter results and second quarter guidance."
"Solid beats. I think that everyone expected the beat, that the whisper was somewhere else. The question was had this beat already been discounted. From the after-hours, it looks like it hadn't been."
"Intel is the first to report in the tech sector. It's a leading indicator. Not only is it the first to file, it's also more upstream in the supply chain than other vendors so that bodes well for the entire downstream, the overall sector."
"Of course there's going to be winners and losers and some better than others, but everyone buys silicon from Intel."
Reporting by Sue Zeidler in Los Angeles, Gabriel Madway in San Francisco, and Ritsuko Ando, Ellis Mnyandu and Richard Leong in New York; Compiled by Paul Thomasch