A 'healthy and in balance' Intel sees its revenue rise 9%

SAN FRANCISCO -- Chip giant Intel reported strong quarterly earnings and an optimistic outlook Tuesday -- but that doesn't necessarily mean that the U.S. economy is making a big recovery.

The No.1 chipmaker posted revenue of $9.7 billion in the first quarter, up 9% from $8.9 billion a year ago. Every region grew, and "overall demand seemed to be healthy and in balance," CEO Paul Otellini said.

But many of Intel's gains may have come at the expense of its chief rival, Advanced Micro Devices. "We think they picked up a significant amount of market share from AMD," says analyst Ashok Kumar at CRT Capital Holdings.

Plus, "75% of Intel's revenue is not in the U.S.," Otellini said. "Much of the (macroeconomic) concern ... has to do with the U.S., especially Manhattan," he said, referring to the recent Wall Street banking crisis. "We really don't see ...