Intel Keeps Chips Upbeat With Higher Sales Outlook; AMD, Other Chip Stocks Up; No. 1 chipmaker also says it's reducing its inventory, a key factor in profitability.(A)

Byline: JAMES DETAR

It's mostly been a tough year for the chip industry, but on Thursday its largest company did its part in keeping up a steady stream of upbeat news that's marked the year's end.

Intel raised its sales outlook for the fourth quarter to $9.3 billion to $9.5 billion. When it released third-quarter results on Oct. 12, it forecast sales of $8.6 billion to $9.2 billion. That's a 5.6% increase at the midpoints of those ranges.

This comes after a spate of good news from other chip firms, including Intel archrival Advanced Micro Devices.

Intel released its update after the close of regular stock trading. Its shares were up more than 7.5% after hours.

"This revenue guidance would yield a record quarter, and a record year," Andy Bryant, Intel's chief financial officer, said on a conference call.

The company made another upbeat point. "Intel continues to make progress on inventory reduction and expects a net inventory decrease of several hundred million dollars by the end of the quarter," the company said in a statement.