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Intel To Narrow Forecast Range: Page 2 of 2

There is good and bad news for Intel. "A workdown of excess notebook inventories, as evidenced by improving Taiwanese ODM unit shipments (up 12 percent sequentially), coupled by renewed flash memory market share gains at distributors and OEMs, should underlie a positive tone from management," McConnell said in the report.

But the desktop PC market remains sluggish amid seasonal trends. The company's bottom line will also be affected by an "ongoing stall in demand for desktop chip sets and motherboards ahead of the Grantsdale launch on June 21," he said.

Grantsdale is Intel's next-generation chip set, which supports its 90-nm Prescott desktop processor and double-data-rate SDRAM-II memory.