NEW YORK (CNN/Money) - Shares of Intel Corp. rose sharply early Friday, taking back some of the week's earlier losses and trading about 8 percent higher on the day as investors breathed a sigh of relief following its mid-quarter financial update.

A stronger-than-expected jobs report also helped Intel as well as the broader markets in the early going.

After Thursday's close, Intel (INTC: Research, Estimates), the No. 1 maker of microprocessors for personal computers, hosted a regularly scheduled mid-quarter conference call with analysts during which executives lowered the top-end of their revenue forecast but kept it within their previously stated range.

Intel said it expects to log third-quarter revenue between $6.3 billion and $6.7 billion. Previously, the company had been targeting a range between $6.3 billion and $6.9 billion.

Executives of Intel said so far in the third quarter, microprocessor unit sales are "trending toward the lower end of the normal seasonal pattern." Intel's revenue historically has been stronger in the third and fourth quarters because of increased PC sales during the back-to-school and holiday seasons.

Citing steps the company recently has taken to pare costs, they also stood by their previous target for gross margin, a key measure of profitability, saying they expect it to be in a range between 49 percent and 53 percent.

Intel's stock had come under pressure earlier this week in anticipation of the mid-quarter update as several analysts issued cautious research notes. Even with Friday's rally, Intel shares were trading below last Friday's closing level of $16.67.

Reviews of Thursday's news were mixed.

Lehman Brothers Friday upgraded its rating on Intel's shares to "equal-weight" from "underweight," advising its clients that Intel is likely to hit what he called its now more realistic financial targets.

"Now that many Intel bulls have become bears and hopes for a strong [technology] spending recovery have been crushed, we hope Street expectations will be lowered enough after today to be achievable," the firm wrote in a research note.

At the same time, Merrill Lynch reiterated a "neutral" rating on Intel shares, saying it expects a short rally on the heels of the company's latest guidance but advising clients to remain cautious.

"We can see a relief rally lifting the stock for a day or two," Merrill told clients in a research note Friday.

"Bulls hoping for a more substantial move in Intel may be disappointed, however," Merrill said. "There was nothing in Intel's comment that can be used to support an improved outlook for either the third or fourth quarter."

At the same time, Banc of America Securities cut its earnings estimates for Intel in 2002 and 2003 and cut its price target on the company's shares to $20 from $25. Still, the firm reiterated a "buy" rating, advising its clients that Intel is likely to be able to outperform a "weakened" group of chip stocks and calling it a "core holding."

Most other chip stocks were following Intel higher Friday. The Philadelphia Stock Exchange's semiconductor index was up 15.21 points at 290.57, a 5.5 percent gain.