Intel Profits Jump But Fall Below Forecast

While Intel Corp.'s second-quarter net profit jumped 44 percent, the company's gross profit margin fell below forecasts, pushing stock prices down Wednesday. While its microprocessor sales remained strong, the company blamed weaker profits on competitive chip pricing. Net income was at $1.28 billion, compared with $885 million during the same period last year. Revenues were up 8 percent, jumping to $8.68 billion from $8 billion over the same period last year. But the company's gross profit margin fell to 46.9 percent of revenues, short of the forecasted 48 percent. Intel is locked in a price battle with competing chipmaker AMD, which is set to report its second-quarter results Thursday.