INTEL (INTC) produces a great earnings beat!

Intel (INTC) reported a fourth-quarter profit of $2.3 billion, or 40 cents a share, compared with a profit of $234 million, or 4 cents a share for the same period 2008. Revenue was $10.6 billion versus expectations of $10.2 billion, up from $8.2 billion for the same quarter a year before. Adjusted income was 55 cents a share, compared with analyst estimates of 30 cents a share

For the current quarter, Intel said it expected revenue of $9.7 billion, with an a potential upside or downside of $400 million, versus expectations of $9.3 billion, Chief Executive Paul Otellini said in a call with analysts that the outlook for semi conductors was improving and that Intel's major business units posted sequential gains in sales. Its PC client group, focused on chips and other products for desktops, notebooks, netbooks and wireless devices, reported a 10% increase. its data center group, focused on servers, work stations and storage systems, reported a 21% jump Its Netbook Atom products, rose 6%.

The results support the thesis that demand in enterprise and consumer segments is improving as economic recovery gathers pace.

Will be looking to reduce position in INTC on opening strength.