NEW YORK (CNN/Money) - Intel moved up the low end of its sales guidance for the third quarter Thursday, saying that it now expects revenue to be between $7.6 billion and $7.8 billion.

The world's largest semiconductor manufacturer typically gives so-called mid-quarter updates at the beginning of the last month of the quarter. But Intel raised its guidance for sales and gross margins two weeks ago, to a range of $7.3 billion to $7.8 billion, so it was not expected to change its outlook substantially on Thursday.

Intel left its gross margin target unchanged, saying that margins should hit 56 percent. Analysts expect Intel to report sales of $7.6 billion and earnings of 22 cents per share.

Intel reiterated in a press release that it was seeing improving demand for microprocessors used in desktops and notebook computers. But last week Intel CEO Craig Barrett warned Wall Street that the pickup in sales could be temporary and that it was too soon to tell whether this was a real recovery.

Shares of Intel (INTC: Research, Estimates) gained 1.5 percent to $28.63 in regular trading Thursday and climbed another 1.6 percent in after-hours trading to $29.10, according to Island ECN.