INTC flies by forecasts - strong beat and analyst upgrades everywhere.

Intel is the first of technology sector bellwethers to report. It had already pre-reported that it would have a strong third quarter, although the actual numbers surpassed all analysts expectations - both top line and bottom line. The sequential quarterly growth was reported by Management to be the strongest in 30 years. Analysts are raising targets, and already some are whispering stretch targets of $40.00, with official 12-month targets appearing to settle in a range between $26 and $30.

Because INTC chipsets are dominant in PCs, Intel is considered to be a good predictor for PC manufacturers, and related software and IT services. Considering that growth in its mobile division was 19% sequentially, INTC may also be an early indicator that mobile stocks should also show strong outlooks from Q3 when they report. As a whole, the sector should move today with special emphasis on infrastructure, PC hardware, business software, IT services, and mobility.

The technology sector continues to lead the world economy out of the recession. Most technology companies entered the recession with relatively strong balance sheets after learning from the bursting of the technology bubble in 2002.

Related Canadian technology stocks should benefit from the overall move including GIB.A, ABT, RIM, CSU, DWI, BWC, Q, PIX, RKN, SVC, SW, WIN, MSD among others.

Disclosure: I do not own shares of stocks mentioned.

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