Intel, world's biggest chip-manufacturer, has enhanced optimism that technology sector will recover soon from the slump.

Santa Clara-based Intel said on October 13 that its sales jumped 17 per cent to settle at $9.4 billion during the third quarter.

Falling prices attracted more customers to buy new machines and helped the company in surpassing market forecasts about quarterly results.

Intel's total Mobility Group revenue soared 19 per cent, while the corporate-focused Digital Enterprise Group sales jumped 14 per cent.

Paul S. Otellini, CEO of Intel, said, "The results underscore that computing is essential to people's lives, proving the importance of technology innovation in leading an economic recovery."

Microsoft, IBM, AMD and Google are among other technology companies expected to report earnings in the approaching weeks.

The launch of Microsoft's Windows 7 operating system on October 22 is also hoped to push the demand for the new technology up.

In the extended trading on Tuesday, shares in Intel gained 99 cents to close at $21.48.