Intel Profits Give Nasdaq a Boost

Everyone likes a good profit story. And Intel is providing one. As the Dow and the S&P 500 head lower this morning, Intel has the Nasdaq hanging on in the black. Intel announced that its forecast for third-quarter revenue beats the Wall Street expectations. This is a sign that things are improving for the large chip maker, and it could mean that the technology sector is ready to move out of its slump.

Technology is one of those things hit hard by drops in consumer spending. When consumers are not confident about the economy, they often decide that technology projects are luxuries they can live without. As a result, computer sales and other electronics have seen decreases. However, cost cutting and the anticipation of consumers buying more have served to help raise Intel’s profit margins and help provide the new revenue prediction.

Intel isn’t the only company technology company offering rosy forecasts; Dell is also reporting that it expects third quarter revenues to beat Wall Street estimates. A recovery in consumer spending will only help increase the revenues to technology companies.

Image source: Ioan Sameli via Wikipedia