Intel thinks the PC industry has reached its lowest point and will begin a recovery.
According to a report in the New York Times, the chip-maker believes the industry bottomed out in the first quarter of this year.
"The worstis now behind us," it quotes Intel's chief executive Paul Otellini as saying.
Intel reported that its net income for the first quarter of this year was 55% lower than for the same period last year, but forecase modest growth going forward.
Otellini said consumer demand has been stronger than corporate demand, and that the US and China appear to be recovering quicker the Europe, Japan and emerging markets.