Intel Corp (NASDAQ:INTC) shares jumped higher on Friday after the company reported third-quarter revenue and profit that beat Wall Street estimates and raised its full-year revenue forecast in an after-hours release on Thursday.
Intel shares recently traded up 7% at $55.88 in New York.
The Santa Clara, California-based chipmaker on Thursday said its positive quarterly results were powered by sales to data centers and easing concerns about slowing demand during the US-China trade war.
Intel said net revenue was steady at $19.19 billion, beating estimates of $18.05 billion. Revenue from its higher-margin data center business rose 4% to $6.4 billion, while analysts were expecting revenue of $5.62 billion.
Excluding items, the company said it earned $1.42 per share, above estimates of $1.24 per share.
For the full year, Intel expects revenue of $71 billion, up from its earlier forecast of $69.5 billion. That came in above analysts’ estimate of $69.43 billion.
Chief Financial Officer George Davis said revenue could have been higher but Intel was unable to make enough chips for entry-level PCs.
“Demand has just outstripped our ability to add capacity,” Davis told Reuters in an interview. “In some ways it’s a good problem to have, but anytime you can’t satisfy your customers, that’s not a good outcome.”
Intel’s results gave a boost to the industry facing some headwinds. Major chipmakers Texas Instruments Inc (NASDAQ:TXN) and Xilinx Inc (NASDAQ:XLNX) earlier this week issued downbeat forecasts.
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