Intel raised its outlook for third-quarter revenue on Friday, citing stronger-than-expected demand for its microprocessors and chipsets. In the meantime, Dell reported a decline in both its quarterly profit and sales on Thursday—but the company's results edged above Wall Street’s forecasts.
“We’ve seen incredible elasticity and incredible government funding in markets such as China, and a combination of those two is driving unit demand that’s a lot higher than what anybody would have thought a few months ago,” said Hargreaves.
He said he expects Microsoft’s Windows 7 to give the company a “big boost.”
“From a corporate standpoint, it could be big—especially when you combine with some of the new chips and with Office 2010 that will launch later next year,” he said. “When you have all three of those things and an aging PC fleet, the expectations are that those will be a pretty big boost.”
Pacific Crest makes a market in the shares of Dell.