SAN JOSE, Calif. - Worldwide sales of semiconductors rose 1.8 percent in October from the previous month, indicating that demand is recovering, an industry group said yesterday.

Sales rose to $12.5 billion in October from $12.3 billion a month earlier, boosted by demand for chips used in mobile phones, the Semiconductor Industry Association said in a report.

Chip sales posted their steepest decline last year, and the trade group lowered its 2002 sales forecast earlier this month. Sales rose 20 percent in October from a year earlier, and the association predicted a "normal" pattern for year-end orders. Some investors said there is insufficient data to project that the rebound will hold up.

"One month does not make a trend," said Jake Dollarhide, who helps manage about $100 million at Fredric E. Russell Investment Management. Fredric Russell sold its Intel Corp. stake last year because the stock was too expensive, Dollarhide said.

Intel shares have risen 61 percent since trading at a 52-week low of $12.95 on Oct. 9. The shares closed yesterday at $20.88. The Philadelphia Semiconductor Index has gained 75 percent since Oct. 9.

"If there are any doubts remaining about the strength of the global chip industry, a healthy recovery continues as we move into the fourth quarter," association president George Scalise said in the statement.