Intel stock hit a 12-year low yesterday as the chip vendor revealed fourth quarter numbers will come in below previously announced expectations. It cited weakening semiconductor demand and said aggressive reduction of component inventories in the PC supply chain was taking its toll.
In a hastily scheduled mid-quarter announcement, California-based Intel cut previous guidance, which put Q4 sales somewhere in the range of $10.1bn to $10.9bn (approximately £7bn) and said it now expects to post revenues of around $9bn give or take. Gross margins for the quarter are not anticipated to be around 55%, down from 59%.
Intel controls around 80% of the global chip market and its warning cry impacted both competitors, including mobile chip developer National Semiconductor and chip production kit specialist Applied Materials, as well as dragging down shares in HP and Dell,which are to report results later this month, and networking bellwether Cisco also slipped again.
Analysts will be waiting for a scheduled AMD conference later today at which Intel’s beleaguered competitor is expected to attempt to give more details of its roadmap and maintain credibility in the eyes of its investors. AMD also officially launched its Shanghai processor family this morning.