Intel on Tuesday reported the strongest quarterly results since it was founded in 1968.

The global chip giant posted second quarter revenue of $10.8bn, up 34 percent year-over-year. The company reported operating income of $4.0bn, net income of $2.9bn and earnings per share (EPS) of 51 cents.

"Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," said Paul Otellini, Intel president and CEO. "Our process technology lead plus compelling architectural designs increasingly differentiate Intel-based products in the marketplace. The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future."

Intel's profit margins hit an all-time record and its shares jumped 7.3% to $22.55 in after-hours trading. Intel shares had gained 44 cents to $21.01 at 4 pm EST - -  the closing time on the Nasdaq Stock Market.

The second quarter is typically a low point for the PC industry, with Intel's revenue falling an average of about 2 per cent compared with the quarter ending in March, Paul Otellini said. However, revenue rose about 5 per cent over that period, he noted, while revenue for Intel's data center group  -- including chips for server systems - - rose 13 per cent.

Gross margin was 67 per cent, 3 percentage points higher than the midpoint of its expected range.

“We see clear signs that the corporate market for PCs is strengthening,” said Stacy J. Smith, the chief financial officer at Intel, said in an interview.

While Intel has hugely gained from the rebound of the PC market, it does not dominate new markets such as smartphones and other consumer electronics.

Results detail

As Intel reports its best ever quarter, Patrick Wang, senior VP of Wedbush Securities, says the tech giant's Q3 earnings won't look as rosy. He tells CNBC's Martin Soong and Karen Tso that he is forecasting a sub-seasonal H2 in 2010: