SAN FRANCISCO (Dow Jones) - Intel Corp., the world's biggest supplier of computer chips, will raise the low end of its fourth-quarter sales range when it updates investors after the market closes Thursday, analysts estimate.

During its last earnings call, in October, Intel projected sales would be in the range of $10.2 billion to $10.8 billion but indicated that quarterly revenue growth would be less than typical due to a $100 million rise in inventory at its largest distributors.

Wall Street is looking for Intel (INTC) to post earnings of 43 cents a share on revenue of $10.6 billion, according to analysts polled by Thomson First Call.

Within the past two weeks, analysts at Deutsche Bank, Bear Stearns, and Citigroup have said they expect Intel to raise the mid-point of its revenue forecast from the current $10.5 billion mark.

Deutsche Bank analyst Ben Lynch also raised his stock price target on chipmaker to $35 from $29, saying "we are increasingly confident in the outlook for Intel's first quarter and 2006, and believe January will be a big month for the stock."

Still, analyst David Wong at A.G. Edwards & Sons Inc. said weaker microprocessor sales in October may constrain Intel.

"We think that there is relatively little likelihood that Intel will raise the midpoint of its guidance," Wong wrote last week.

Sales of microprocessors, the brains of personal computers, fell 8% to $1.95 billion in October from the year-ago period, according to data from the Semiconductor Industry Association.

Santa Clara, Calif.-based Intel commands about 80% of the market for PC chips. This year, its fortunes have been bolstered by increased demand for its laptop chips.

Elsewhere, Texas Instruments Inc., the world's biggest maker of mobile phone chips, narrowed its sales target for the fourth quarter late Wednesday.

(END) Dow Jones Newswires

12-08-05 0516ET Copyright (c) 2005 Dow Jones & Company, Inc. Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.