The world's largest chipmaker said third quarter sales would be between $7.3 billion and  $7.8 billion, up its previous guidance of between $6.9 billion and $7.5 billion.

Intel has benefited from increased demand for all its PC chips, including those used in  notebooks, desktop computers and servers.

Andy Bryant, the company’s chief financial officer, said demand for some of its chips was so healthy there had been some shortages and it had placed some customers on allocations

Intel, amongst other technology companies, has been waiting for a strong rebound in global PC markets.

There are tens of millions of PCs that were bought ahead of the millennium bug that are nearing the end of their usefulness.

Still, companies and consumers have so far been reluctant to replace those systems and Intel cautioned that this boost does not necessarily signal the start of a long-term recovery.