The chipmaker now expects fourth-quarter revenue between $13.4 billion and $14 billion, compared to its prior forecast of $14.2 million to $15.2 million. Intel's forecast pushed the company's stock down 97 cents, or 3.87%, to $24.04 shortly after market open.
The global PC supply chain is reducing inventories and microprocessor purchases as a result of disk drive supply shortages, according to Intel. Shortages, which followed the recent floods in Thailand, are expected to continue into the first quarter, it added.The tech bellwether, however, said that PC sales are expected to be up sequentially in the fourth quarter. Intel now expects a fourth-quarter gross margin of 64.5%, plus or minus a couple of percentage points, lower than the previous expectation of 65%, plus or minus a couple of percentage points. Excluding items, Intel expects a gross margin is 65.5%, plus or minus a couple of percentage points, below the previous expectation of 66%, plus or minus a couple of percentage points. The lowered revenue forecast will focus investor attention on other semiconductor stocks, as well as PC giants such as HP (HPQ) and Dell (DELL). HP, for example, recently gave itself a modest target for fiscal 2012 amid an uncertain economy and the impact of Thailand's floods on the hard disk drive market. HP shares were down 1.58% shortly after market open while Dell's stock dipped 2.28%. Semiconductor specialist Seagate (STX) was down 1.36%. Monday also marks what would have been the 84th birthday of Intel founder and microchip pioneer Robert Noyce. Search giant Google (GOOG) celebrated the event by turning the logo on its home page into a microchip. Noyce founded the first successful silicon company, Fairchild Semiconductor, in 1957, before going on to create Intel in 1968. Noyce died in 1990 at the age of 62. -- Written by James Rogers in New York >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV