Global Crisis Batters Chip Stocks

Danely, who has a neutral rating on Intel(INTC Quote), cut his 2009 estimates for Intel's revenue and EPS to $42.3 billion and $1.30, from his previous estimates of $43.2 billion and $1.40.

JP Morgan makes a market in Intel shares and has provided Intel with non-investment banking services in the past 12 months.

And in yet another somber assessment of the chip industry Monday, Friedman Billings Ramsey analyst Craig Berger said that while fourth-quarter earnings estimates for chip firms have been cut by many analysts in recent weeks, expectations for 2009 have not been reduced enough.

Berger cut his own fourth-quarter and 2009 financial estimates for Linear Technology(LLTC Quote), Silicon Labs(SLAB Quote) and Advanced Micro Devices(AMD Quote)to "align our forecasts with the reality of weakening global demand."

He said that Wall Street's 2009 earnings estimates are higher than his own for 11 of the 14 chip firms he covers, with some, such AMD and National Semiconductor (NSM Quote) exceeding his estimates by 10 cents and 9 cents respectively.