Intel Drastically Cuts 4Q Revenue Forecast

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Revenue is being affected by significantly weaker than expected demand in all geographies and market segments.

Intel Press Release, 11/12/08

After the close yesterday, chip giant Intel (INTC) cut their 4th quarter revenue forecast by about 15% from a range of $10.1-$10.9 billion to $8.7-$9.3 billion.  They sold $10.7 billion in last year’s 4th quarter so the midpoint of the current range would represent a 16% drop in revenues compared to the year ago period.

Combined with Cisco’s (CSCO) announcement last week, we can see that in addition to the consumer spending collapse there is a major cutback in business capital investment.

It notable, however, that Intel shares are only down 19 cents (1.5%)It looks to me like all of this bad news is mostly priced into stocks – at least for the intermediate term.

Disclosure: Top Gun has no position in Intel (INTC) shares.

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