INTEL HAS posted a 12 per cent rise in third-quarter profit as the world's biggest computer chipmaker said demand, while uncertain, was holding up despite the global economic crisis.

Intel said it expected revenue in the fourth quarter of $10.1 billion (€7.4 billion) to $10.9 billion.

The midpoint of that range, $10.5 billion, is around 2 percentage points lower than Wall Street had hoped but better than many had feared.

Meanwhile, profit in the quarter topped Wall Street targets and Intel shares rose 5 per cent in after-market trade.

Investors said Intel was benefiting from one of its strongest product line-ups in years, was executing well and was keeping a lid on costs.

However, the company's uncertainty over the financial crisis's influence on the computer sector limited the positive impact on other tech stocks.

The chip-maker employs almost 5,000 staff - both directly and through third parties - at its manufacturing facility in Leixlip, Co Kildare.

Intel said the average selling price for its microprocessors dipped as sales increased of its smaller, lower-priced Atom processor for use in new mobile computers that are smaller than conventional notebooks.

It said it generated $200 million in revenue from sales of its Atom chip.

Third-quarter net income rose to $2.01 billion, or 35 cents per share, from $1.86 billion, or 31 cents per share in the year-ago quarter. Revenue rose 1 per cent to $10.2 billion.

"In light of what's going on in the economy, in the market, it's nice to see a company come through and actually beat numbers," said Jason Pride, director of research at Haverford Trust, which owns Intel shares.

However, he cautioned that the current fourth quarter and next year was when business would probably see "a little bit more of the tech demand seepage as the economy softens". - (Reuters)