Intel PC chip sales rise, but profit forecast falls short on manufacturing costs

FILE PHOTO: The logo for the Intel Corporation is seen on a sign outside the Fab 42 microprocessor manufacturing site in Chandler, Arizona, U.S., October 2, 2020. REUTERS/Nathan Frandino/

(Reuters) -Intel Corp on Thursday raised its annual sales outlook on booming demand for personal computers, but its second-quarter profit forecast fell short of analyst expectations as the company spends heavily to get its manufacturing operations back on track and catch up to rivals with faster chips.

Intel shares were down 3.1% to $60.60 in after-hours trading after the results. The company also missed first-quarter expectations in its closely watched data center chip unit.