Mobile chips leader Qualcomm (QCOM) is planning to launch a variety of 'augmented reality' software for use in different consumer applications, according to Bloomberg/Businessweek.

Qualcomm wants to drive demand for its powerful processors that can handle high speed computing tasks for mobile devices. To do that, it intends to promote processor intensive augmented reality applications. Augmented reality aims to aid consumers with what they see. By pointing the phone's camera to objects and scanning them, the application can then identify them in the database, and find relevant material.

We may soon see "one of the biggest advances in years in the technology that powers laptop and desktop computers," according to the Wall Street Journal, as chipmakers begin to merge microprocessors and graphics-processing units.

Microprocessors are described as "the calculating engines that run most PC software," while graphics-processing units "render images in video games and other programs." According to the report, Intel (INTC) and Advanced Micro Devices (AMD) are expected to make announcements about this move at the upcoming Consumer Electronics Show.

Thinking about shorting Intel's stock? Think again. Bellwether Intel Corporation (INTC), the world's largest semiconductor manufacturer, is signaling that the global economic recovery is strengthening, which is why I'm reiterating my buy rating for the company's shares, first recommended on March 30, 2009, at a price of $14.72. If you bought Intel in March, you're up 40%.

Look for Intel's FY2010 revenue to increase 11-15%, as customers re-build inventories to prepare for ramping demand for computers, and chip-needed devices, each of which thoroughly explains why institutional investors (IIs) have looked past INTC's poor FY2009 results.

Monday morning, Intel (INTC) confirmed that it will delay the introduction of its stand-alone graphics chip, which is named Larrabee. The processor was supposed to be released in the 2009-2010 time frame, but this will not happen as the company has "fallen behind" on the work.

Intel spokesman Nick Knupffer would not give any reasons for the delay, but added that "our first Larrabee will not be launched as a standalone discrete graphics chip. ... Rather it will be used as a software development platform."

Intel Corporation (NASDAQ: INTC) announced its first quarter (Q1) earnings today. Intel, the world's largest maker of computer chips, made some 25 cents a share, or some $1.44 billion. The higher than expected revenue of $9.67 billion, however, beat out analyst's expectations, which is probably why shares in after-hours trading have been trending upwards. This same time last year Intel saw $1.64 billion and 28 cents a share, demonstrating that Intel is feeling the economic pinch that everyone else is, despite beating expectations.

All in all, that's a 12% drop in year-over-year profits when comparing the same quarter.

Next quarter Intel is expecting $9 to $9.6 billion in sales.