Intel Corp. (NASDAQ: INTC) continues to beat up on beleaguered smaller rival Advanced Micro Devices, Inc. (NYSE: AMD), and the world's largest chip maker has now upped its outlook for the third quarter, as laptop computer sales increase and Intel takes back some market share it lost to AMD in 2006.

Intel's third quarter revenue outlook is $9.4 billion to $9.8 billion, up from its earlier projection of $9.0 billion to $9.6 billion. Intel also stated that it expects gross margin to be about 52% in the quarter. With analysts already pegging Q3 sales at $9.33 billion, this increased outlook from the chip giant is great news for investors, although CEO Paul Otellini did not expand on the specifics around the increase other than to hint at increased forecasts of PC shipments for the quarter.

This makes sense, as Intel's rising market share will sail along with those increased shipments if in fact they materialize as forecast. But remember, the holiday shopping season is coming up, and the consumer segment is the hot one in PC sales right now, not the corporate segment. Come holiday shopping time, laptop shipments are set to blaze once again. Add in Apple Inc.'s (NASDAQ: AAPL) growing Mac sales -- which now all ship with Intel chips -- and there you go.

After Intel gained about 6% of share from AMD in the first quarter of 2007, the company regained enough of the market to pin AMD with the lowest market share in more than a decade. Intel's Core Duo chips are increasingly shipping in mid-range and higher-end laptop systems, even with AMD's Turion dual-core chips in the same market segment and shipping with all major laptop brands. Come October 16, we'll see how Intel fared in the current quarter, but right now the chipmaker's return to former glory is definitely on track, much to the chagrin of AMD.