Intel blew past the expectations of Wall Street analysts on Tuesday as the world's biggest computer chip-maker posted its best quarter ever on stronger demand for servers and personal computers.

The Santa Clara, California-based technology bellwether reported a second-quarter net profit of 2.9 billion dollars compared to a loss of 398 million dollars during the same quarter a year ago.

Intel's results a year ago were impacted by a 1.45 billion dollar fine levied by the European authorities for anti-trust violations.

Second-quarter revenue was up 34 percent over a year ago to 10.8 billion dollars, better than the 10.25 billion dollars forecast by analysts and Intel's own prediction of between 9.8 billion dollars and 10.6 billion dollars.

Earnings per share of 51 cents topped the 43 cents predicted by analysts.

"Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," Intel president and chief executive Paul Otellini said.

"The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future," Otellini said in a statement.

Intel forecast revenue of 11.2 billion dollars to 12 billion dollars for the current quarter.

In a conference call with analysts, Otellini said he expected the rise of tablet computers like Apple's iPad to provide opportunities for Intel's Atom processor.

"There's really just one (device) shipping in volume today," he said in a reference to the iPad, which is not powered by Intel chips and which has sold more than three million units since hitting store shelves in early April.

"I think this is an additive category of computing, much like netbooks were an additive category," the Intel CEO said. "I don't see tablets cannibalizing the PC market.

"In terms of Intel participating in the tablet market we remain very optimistic about this," Otellini said. "We feel pretty good about our opportunity to participate in the growth as it happens."

Otellini also said the chip-maker had high expectations for a product to be released later this year code-named "Sandy Bridge." He declined to provide any further details about the product.

Intel shares gained 7.47 percent to 22.58 dollars in after-hours electronic trading after rising 2.09 percent during the day.