Intel, the world’s largest chipmaker, said its first quarter earnings rose by 29% to $3.16bn (£1.95bn).
The company said strong spending by businesses on new computers helped the company overcome a serious product design error and supply chain disruption from Japan’s earthquake and tsunami.
For the same period a year ago, Intel earned $2.44bn.
Revenue was $12.8bn, 25% higher than 2010’s $10.3bn.
The company also gave an outline forecast for the current quarter for revenue equal to the first quarter’s of $12.8bn.
In a statement, Intel’s chief executive, Paul Otellini, said: “These outstanding results, combined with our guidance for the second quarter, position us to achieve greater than 20% annual revenue growth.”
The figures showed sales holding up strongly despite fears that the growing popularity of smartphones and tablets will begin to eat into the computer chip business.
That business suffered a setback earlier this year when a fault was discovered leading to a recall.
Leading computer makers, including HP, Dell, Samsung and Lenovo had to halt sales of some machines in February because of problems with certain Intel chips.
The company’s shares were 6.2% higher in after hours trading at $21.10.
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Intel quarterly profits jump 29%