Intel (INTC) Rallying Sharply as Q2 Results, Q3 Guidance Better-Than-Expected

Halted just before it's highly-anticipated earnings were issued, shares of Intel (Nasdaq: INTC) have now reopened more than 8% higher, around $18.14. As Intel is thee semiconductor bellweather within in the tech sector, the company's solid quarterly results have boosted other semi stocks, including the Semiconductor HOLDRs ETF (NYSE: SMH), which is now up 3.7% from today's close.

Intel reported Q2 non-GAAP EPS of $0.18, down 36% from the same quarter last year, but 10 cents better than what analysts had been expecting. Sales for the quarter were $8 billion, down 15% from the $9.47 billion reported in Q208, but, compared to the Wall Street consensus, Intel once again beat.

Gross margin, which is probably the most heavily tracked metric for semi companies, came in at 50.8%, topping Intel's previously-issued forecast.

Looking ahead to Q3, Intel said it expects to report revenue in the range of $8.1-$8.9 billion, which compares to the Street estimate of $7.8 billion. The company also sees Q3 gross margin of about 53%, plus or minus 2%.

UPDATE: Click here to see some highlights from Intel's Q2 conference call.

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