First quarter earnings at Intel, the world's largest chipmaker, increased by 29 per cent to $3.16bn (£1.95bn) as businesses stepped up spending on new computers.
The increase helped the US-owned company overcome a problems with its recently-launched Cougar Point chip and supply chain disruption following the earthquake and tsunami in Japan.
Revenue during the period was $12.8bn, up 25 per cent on last year.
Intel, which has its UK sales and marketing office base in Swindon, also said it expects revenues to stay level during the current quarter.
Intel chief executive Paul Otellini said: "These outstanding results, combined with our guidance for the second quarter, position us to achieve greater than 20 per cent annual revenue growth."
The figures showed sales holding up strongly despite fears that the growing popularity of smartphones and tablets will begin to eat into the computer chip business.
