The world's largest computer chip maker Intel says profits fell 55% percent to $US647 million in the first three months of the year compared to the same period last year, while sales were valued at $US7.1 billion.
The figures were better than analysts had been expecting.
Intel chief financial officer Stacy Smith says the figures suggest a recovery in the industry, indicating PC sales have bottomed out.
Mr Smith says Intel's first quarter results reflect its focus on cutting costs and becoming more efficient.
After the close on Wall Street, Intel shares shed 4.6% to $US15.28 after it gave no formal second-quarter revenue forecast even as it posted stronger-than-expected first-quarter results.
In regular trade, Intel ended up 0.2% at $US16.01 on Nasdaq.