Strong demand for portable computers gave Intel a lift

Net earnings rose to $2.03bn (�1.17bn) during the three months to 2 July compared with $1.76bn a year earlier.

The US group added that revenues rose 15% to $9.2bn, in line with forecasts.

"Investments in new products, advanced silicon capacity and emerging markets are paying off with growth that is outpacing the industry," Intel said.

Strong demand

Meanwhile the firm added that tight supply chains meant it had been unable to meet demand from personal computer makers.

"Right now demand is strong enough that I haven't been able to build up inventory," Chief Financial Officer Andy Bryant told Reuters, adding that Intel was working hard to boost capacity at its plants.

Looking ahead the firm said it expected sales to come in at between $9.6bn and $10.2bn - with gross profit margins rising to 60% from around 56.4% during the current quarter.

But despite the company's good news, shares in the firm fell 3.6% in after hours trade to $27.68.