Intel today raised its forecast for third-quarter sales, citing a recovery in the computer market. The world’s largest maker of semiconductors has been suffering from a global slide in demand for PCs as people prefer their tablets or mobile phones and businesses do more in the cloud. In April, Intel said it was cutting 12,000 jobs, or 11 percent of its workforce, as Chief Executive Officer Brian Krzanich shifts the company’s focus to new segments such as chips for wireless devices.

Intel's previous outlook for Q3 was at the range of $14.9 billion, plus or minus $500 million. The company now expects third-quarter revenue to be $15.6 billion, plus or minus $300 million. The increase in revenue is primarily driven by "replenishment of PC supply chain inventory." The company is also seeing some signs of improving PC demand.

Shipments of PCs, a market that provides Intel with more than half of its sales, fell to their lowest level in a decade in the first three months of 2016. The depth and duration of the slump means Intel can no longer fall back on booming demand for server chips or market-share gains against weaker rival AMD.

Intel also boosted its forecast for adjusted gross margin by 1 point, now expecting the midpoint at 63 percent, plus or minus a couple of percentage points.