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Even so, the $9.2bn in earnings was in the lower region of analyst predictions, and shares were off 5.6 per cent in early trading on the Nasdaq - down $1.60 to $27.10.

Revenues grew 15 per cent year on year in what is the seasonally quieter half of the year. Sales of notebooks using its next-gen Centrino platform provided the biggest boost. The company claims sales volumes grew at an unprecedented rate, accounting for more than half of high-end mobile shipments in the quarter subsequent to launch.

Indeed processors were shifting at record levels,

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helped by strong Xbox sales, as were its Flash memory products. Intel said it also shifted record numbers of wireless units. The losers in Intel's portfolio were motherboards and wired products, both down sequentially.

Overall, the chip giant landed a net income of $2bn, a 16 per cent year on year growth, with earnings per share at 33 cents, a rise of 22 per cent year on year.

During the second quarter, Intel spent $2.5bn buying back nearly 100 million shares and also paid out a 8 cents per share dividend to shareholders.

'Intel delivered record second-quarter revenue, with growth of 15 percent versus a year ago led by strong demand for our notebook platforms,' said Paul Otellini, president and CEO. 'Our investments in new products, advanced silicon capacity and emerging markets are paying off with growth that is outpacing the industry. We look forward to the second half of 2005 as we ramp dual-core microprocessors into high volume, begin production on our 65nm process technology and deliver innovative new platforms.'

Intel says it expects revenues in the region of $9.6bn and $10.2bn for the next quarter.