July 10 (Bloomberg) -- Intel Corp. Chief Executive Officer Paul Otellini said the chipmaker isn't suffering from a slowing U.S. economy and demand overseas remains steady.

``Seventy-five percent of our sales are not in the U.S. and global business seems very strong still,'' Otellini said in an interview at Allen & Co.'s media conference in Sun Valley, Idaho. ``There may be some patterns in the U.S. that may be concerning to some people, but we haven't seen them at this point.''

Intel, the world's largest chipmaker, is still getting orders from retailers and makers of consumer, business and server computers, Otellini said, speaking ahead of the company's July 15 second-quarter earnings report. His comments contrast with reports from analysts such as Merrill Lynch & Co.'s Srini Pajjuri. He said yesterday that demand for Intel's chips may ebb in the second half as consumer shopping slows worldwide.

Intel rose 81 cents, or 4.1 percent, to $20.62 at 4 p.m. New York time in Nasdaq Stock Market trading, the biggest gain in almost two months. The shares, down 23 percent this year, had dropped as low as $19.71 earlier in the day.

There's still concern that demand in Asia may decline as governments there take action to slow inflation, said David Wu, an analyst at Global Crown Capital in San Francisco.

``There could be some headwinds developing later in Asia,'' said Wu, who has a neutral rating on the stock.

Holiday Buildup

Intel's sales typically rise sequentially in the third and fourth quarters as computer makers order parts in anticipation of the year-end holiday shopping season.

``Generally people assume that business was good in the second quarter and will be seasonal in the third,'' Wu said.

The Santa Clara, California-based company, whose chips run more than 75 percent of the world's personal computers, will report a profit of 26 cents a share on sales of $9.32 billion, according to a Bloomberg survey of analysts. In April, Otellini forecast sales of between $9 billion and $9.6 billion.

In the first quarter, the company got 60 percent of its $9.67 billion in revenue from Asia. The Americas, including the U.S., provided 21 percent, while Europe contributed 19 percent.

To contact the reporters on this story: Ian King in San Francisco at ianking@bloomberg.net; Greg Miles in Sun Valley at gmiles1@bloomberg.net

Last Updated: July 10, 2008 16:21 EDT