Intel Corp, the world's dominant maker of computer chips, has posted record quarterly sales of $9.23 billion as strong demand for laptops saw profits rise by 16 per cent over the same period last year.

The Silicon Valley stalwart said that it posted record sales in emerging markets in Asia and Latin America in a further sign that the digital revolution is spreading fast throughout the world.

Intel Tuesday said it earned $2.04 billion compared with $1.76 billion in the same period last year. Revenue rose 15 percent from the $8.05 billion reported in the second quarter of 2004.

Intel predicted continued growth in the current quarter, with sales of between $9.6 billion and $10.2 billion.

"This is a good second quarter - a period when business is typically slow," said Andy Bryant, Intel's chief financial officer.

"The momentum of the first half appears to be continuing as we enter the third quarter. Demand is strong. The factories are full. We're ahead of our cost targets, and business is generating high levels of cash."