Intel raises revenue outlook

NEW YORK (CNNMoney.com) -- Chipmaker Intel Corp. raised its revenue estimates for the third quarter Monday and said it expects its gross margins to come in at the high end of estimates, citing stronger-than-expected worldwide demand for its computing products.

Intel (up $0.00 to $25.47, Charts, Fortune 500) shares jumped over 2 percent in pre-market trade on the news Monday, after slipping 2.6 percent in the previous session.

The Santa Clara, Calif.-based company said it anticipates revenue to be between $9.4 billion and $9.8 billion in the coming quarter, compared to previous estimates of $9 billion to $9.6 billion.

Intel said its gross margins should be in the upper half of the previous range of 52 percent, plus or minus a few points.

The company is scheduled to report its third-quarter results on Oct. 16.

Chip sales have been robust recently. Computer chip sales grew 2.2 percent in July from a year ago to over $20 billion, an industry group reported last week, helped by demand for personal computers, cell phones, and other consumer electronics.

Intel's announcement also comes just as rival Advanced Micro Devices (up $0.00 to $12.61, Charts, Fortune 500) is set to launch its new server chip Monday - its biggest product introduction in four years.

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