Analysts raise Intel price target

July 15 (Reuters) - Several analysts raised their price targets on Intel Corp (INTC.O), a day after the chipmaker reported quarterly results and forecast outlook that blew past Wall Street estimates.

Shares of Intel were trading up 7 percent at $18 in midday trade Wednesday on Nasdaq.

The company's strong results lifted shares of chip makers while boosting hopes for an economic recovery and a rebound in technology spending.

Intel is in the early stages of the industry's recovery, has reset its manufacturing and cost structure to generate significant cash flow at lower revenue rates, and continues efforts to diversify into markets outside the current PC structure, Stifel Nicolaus analyst Cody Acree said in a note.

Second quarter margins came in ahead of even whisper expectations and third quarter outlook of 53 percent should satiate most investors, Wedbush analyst Patrick Wang said in a note.

Gross margins are expected to continue their expansion in the third quarter, driven by increasing factory utilization, Canaccord Adams' Bobby Burleson said.

"Product mix is likely to improve as well, as netbook production flattens and traditional notebook production drives units in third quarter," the analyst said in a note.

The company forecast third-quarter gross margin at 53 percent, plus or minus 2 percentage points, an improvement from the second quarter's 51 percent.