Intel Drastically Cuts 4Q Revenue Forecast
Revenue is being affected by significantly weaker than expected demand in all geographies and market segments.
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.