August 25, 2003 – Intel has upped its projections for 3Q03 revenues, but execs stopped short of saying the semiconductor equipment market or even the overall IT industry is officially in recovery.

Intel raised estimates for 3Q03 revenues from between $6.9 billion and $7.5 billion, to between $7.3 billion and $7.8 billion, saying its architecture business is generally trending higher despite “soft” demand for communications products. Intel also expects gross margins to slightly exceed previous estimates, up from 54% to 56%.

Intel execs are hesitant, however, to color the news as any kind of market recovery. CFO Andy Bryant told analysts in a conference call that despite the improved projections, the company has yet to see an inventory build among customers so far this quarter.

And during a talk in Malaysia, CEO Craig Barrett told reporters that despite improvements across all geographies, the company will continue to be conservative in its forecasting. “We’re not forecasting a recovery in the IT sector just yet,” he said. “We’ll look at it one quarter at a time.”