The world’s largest chipmaker is allaying PC makers’ fears that the universe’s love affair with desktop computers is over.

Intel Corporation revealed that third-quarter revenue exceeded $11 billion for the first time, up 18 percent year-over-year to $11.1 billion. The company also reported operating income of $4.1 billion, net income of $3 billion and EPS of 52 cents. Intel is predicting a stronger-than-expected fourth-quarter too and is forecasting a December quarter gross margin of 67 percent.

Intel’s results topped analysts’ expectations and are a positive sign that sales of PC computers should remain steady throughout the holiday shopping season and that any loss in personal computer sales could be compensated by spending on servers or data centers.

"We'll see the consumer market growing but likely a little less than you'd normally expect. I attribute that to consumers pulling back a little bit based on economic uncertainty," Intel Chief Financial Officer Stacy Smith told Reuters. 

“Intel’s third-quarter results set all-time records for revenue and operating income,” said Paul Otellini, Intel president and CEO. “These results were driven by solid demand from corporate customers, sales of our leadership products and continued growth in emerging markets. Looking forward, we continue to see healthy worldwide demand for computing products of all types and are particularly excited about our next-generation processor, codenamed Sandy Bridge, and the many new designs around our Intel Atom processors in everything from the new Google TV products to a wide array of tablets based on Windows, Android and MeeGo operating systems.”

Just a couple of months ago, Intel Corporation made its most significant acquisition to date with the $7.68 billion purchase of security giant McAfee. The move bolstered Intel’s portfolio with an added emphasis on security. Said Otellini, in a statement: “In the past, energy-efficient performance and connectivity have defined computing requirements. Looking forward, security will join those as a third pillar of what people demand from all computing experiences.