UPDATE 1-Intel beats estimates, raises full-year revenue forecast; shares up 6%

Intel Corp beat analysts' estimates for quarterly profit and raised its full-year revenue forecast on Thursday, raising hopes that a recent slump in chip demand aggravated by the U.S.-Sino trade war was easing.

Separately, Apple Inc said it would buy the majority of Intel's smartphone modem business for $1 billion, months after the chipmaker announced plans to exit the 5G modem chip business. The company's shares rose 6% in extended trading.

Revenue in Intel's client computing business, which caters to PC makers and is still the biggest contributor to sales, rose to $8.84 billion, beating FactSet estimates of $8.13 billion. Revenue from its higher-margin data center business rose to $4.98 billion, while analysts had expected revenue of $4.89 billion, according to FactSet.

The company now expects full-year revenue of $69.5 billion, up from $69 billion it predicted earlier. Intel said it expects a gain of $500 million net of tax from the sale of the modem business.

Net income fell to $4.2 billion, or 92 cents per share, in the second quarter, from $5 billion, or $1.05 per share, a year earlier. Net revenue fell 3% to $16.5 billion.

Excluding items, the company earned $1.06 per share. Analysts on average had expected adjusted earnings of 89 cents per share and revenue of $15.7 billion, according to IBES data from Refinitiv.