Intel stokes hopes for PC recovery

SAN FRANCISCO: Intel Corp has been asserting for months that the personal computer business is rebounding from its deepest slump in nearly a decade. Its stock jumped late on Tuesday (local time) on signs things are picking up faster than expected, despite a few lingering trouble spots.

Intel reported after the market closed that its profit and sales both dipped 8 percent in the July-September period as spending by corporations remained weak, a trend that has dragged on throughout the recession and probably won't ease until next year.

The price for Intel's chips also fell. One reason is that "netbooks", little laptops that cost a few hundred dollars and have limited functions beyond surfing the Internet, have caught on but aren't big moneymakers. Another is that PC makers have slashed their prices on full-sized computers, and aren't willing to pay as much for the chips that go into them.