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As demand continues to be strong for notebook products, Intel has revised its sales forecast for the second quarter. Before it had predicted sales between $8.6 billion to $9.2 billion.

Now the company is projecting sales of $9.1 billion and $9.3 billion for the second quarter. The company also now expects the second-quarter gross margin percentageto be about 57%, compared to the previous expectation of 56%.

Gains from equity investments and interest and other are expected to be approximately $100 million, higher than the previous expectation of approximately $70 million. CNN Money writes:

Analysts have attributed the success of Intel's Centrino chipset, used in wireless notebook computers, as a main reason for the improving margins, since these chips are more profitable than those used in desktops.

Shares of Intel (Research), a Dow component, gained 2.2 percent in regular trading on the Nasdaq Thursday but dipped more than 1 percent after-hours, according to INET. The stock has surged more than 18 percent since the beginning of May thanks to increased investor optimism about technology demand.

Another likely reason that Intel has revised its outlook, is that Apple announced that it has started using Intel chips in its Macintosh computers, and by 2007, all Apple computers will use Intel chips.

Intel's tax rate for the second quarter is expected to be 26%, plus or minus a point, as compared to the previous expectation of around 31%, primarily due to an increase in estimated research and development tax credits.

Intel expects the tax rate for the third and fourth quarters to be a little lower than the previous expectation of around 31%. The rest of the company's expectations remain the same.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.