The shares of Intel (INTC) and other companies that obtain revenue from PC sales are rising. The rally comes after Intel raised its third quarter revenue guidance, citing strength in its PC business.

GUIDANCE INCREASE: Intel raised its Q3 revenue guidance to $15.6B, plus or minus $300M, versus its previous guidance of $14.9B, plus or minus $500M. The guidance increase was "primarily driven" by replenishment of PC inventories, the company stated. However, Intel added that it's "seeing some signs of improving PC demand." The tech giant also raised the mid-point of its gross margin guidance to "about 62%, plus or minus a couple of points," versus its previous guidance midpoint of about 60%. Intel said it was withdrawing all of its other prior guidance, adding that it would provide additional guidance on October 18, when it's due to report its Q3 results.

WHAT'S NOTABLE: Research firm Cleveland Research upgraded Micron (MU), which develops flash memory products, to Buy from Neutral today. The company, whose products are used in PCs as well as other computing devices, is benefiting from improved flash memory fundamentals, wrote analyst Kevin Rottinghaus. Moreover, he thinks that the company has a number of upcoming positive catalysts, including strengthening demand for flash memory for use in computing, data centers,and mobile devices.

PRICE ACTION: In early trading, Intel rose over 2% to $37.40 and Micron climbed 1.5% to $17.70, while hard disk drive makers Western Digital (WDC) and Seagate (STX) advanced 3% and 1%, respectively. Western Digital earlier this year acquired flash memory product maker SanDisk.