Intel stock hit a 12-year low yesterday as the chip vendorrevealed fourth quarter numbers will come in below previously announcedexpectations. It cited weakening semiconductor demand and said aggressivereduction of component inventories in the PC supply chain was taking its toll.
In a hastily scheduled mid-quarter announcement, California-basedIntel 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 postrevenues of around $9bn give or take. Gross margins for the quarter are notanticipated to be around 55%, down from 59%.
Intel controls around 80% of the global chip market and itswarning cry impacted both competitors,including mobile chip developer National Semiconductor and chip production kitspecialist Applied Materials, as well as dragging down shares in HP and Dell,which are to report results later this month, and networking bellwether Ciscoalso slipped again.
Analysts will be waiting for a scheduled AMD conferencelater today at which Intel’s beleaguered competitor is expected to attempt to givemore details of its roadmap and maintain credibility in the eyes of itsinvestors. AMD also officially launched its Shanghai processor family this morning.