Semiconductor Winners & Losers: Intel

NEW YORK -- Deteriorating conditions in the PC market in Asia are hurting companies that make computer chips, analysts said on Wednesday, on the same day research firm IDC said it expects U.S. computer shipments to decline next year because of the economic crisis.

Intel (INTC Quote) is the world's biggest maker of PC microprocessors, with about 80% of the global market. Rival Advanced Micro Devices(AMD Quote) makes most of the rest.

On Wednesday, Robert W. Baird analyst Tristan Gerra lowered his fourth- and first-quarter revenue estimates for Intel, citing declining notebook demand in Asia.

"While PC weakness since [the second quarter] was driven by reductions in IT spending, consumer appears to be the culprit in November," the analyst wrote in a note to investors. He kept a neutral rating on Intel. His target price is $11, down from $14.

Elsewhere, Fitch Ratings said its 2009 rating outlook for the semiconductor industry is "negative due to a meaningfully weaker [economic] environment, resulting in lower revenues for all semiconductor markets." PCs and mobile handsets, which represent nearly 60% of global chip consumption, will be particularly affected.

Intel's shares rose 13 cents to $13.41 in afternoon trading. AMD's shares rose 18 cents, or 8.9%, to $2.21, having traded between $1.62 and $8.08 in the past 52 weeks. The stock is down about 71% year-to-date.

The Philadelphia Semiconductor Sector index rose 9.84, or 5.3%, to 195.53.