Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Analysts: Intel Guidance A Letdown

MANHASSET, N.Y. — Intel Corp.’s mid fourth-quarter guidance was a slight disappointment to analysts who expected the semiconductor supplier to project higher sales.

With Intel projecting fourth quarter sales to fall between $10.4 to $10.6 billion, ThinkEquity analyst Eric Ross lowered Intel’s sales guidance from $10.7 billion to $10.6 billion, and full 2005 sales to $39.2 billion from $39.3 billion.

On a positive note, Ross expects Intel’s margins to be slightly above the 63 percent originally projected.

Ross reiterated other analyst’s concerns that chipset shortages are hampering Intel’s growth, and added that inventory buildup at customers is a larger factor than originally expected.

Next Inning Technology Research analyst Paul McWilliams added in a report that Intel faces stiff competition from AMD, which has made inroads into Intel in the retail PC market. He expects both AMD and Intel to benefit from long-term PC growth the next few years, particularly as the China and India markets grow.

  • 1