Intel (INTC) Cut to Hold at Nomura on Tablets Surpressing PC Demand, Losing Ground to AMD (AMD)
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Price: $34.50 +0.64%
Rating Summary:
21 Buy, 32 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
21 Buy, 32 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Nomura Equity analyst Romit Shah cut his rating on Intel Corp. (NASDAQ: INTC) on Tuesday, saying that the onslaught of PC companies missing and dropping guidance in the first quarter will put stress on the world's biggest microprocessor maker.
“With the Apple (NASDAQ: AAPL) iPad 2 launching in 26 countries over the next month, we would not be surprised to hear about subdued PC trends in other regions as well.”
The analyst cut his estimate for the first quarter from $11.9 billion and earnings of 46 cents per share, to $11.6 billion and 41 cents per share.
Shah's estimates are slightly below the id-point of the revised forecast Intel gave in January for $11.7 billion, plus or minus $400 million.
Shah added that "we estimate that Internet capital spending could decline by 8% in 2011 before reaccelerating in 2012. HP’s comments that the enterprise PC refresh is already in the 'middle innings' of the cycle is also a reminder that the period of significant growth in the datacenter business is likely behind the company over the short to intermediate term."
Shah also sees Intel losing market share in notebook PC's to rival Advanced Micro Devices Inc. (NYSE: AMD) in the second half of the year.
Shares of Intel are down 74 cents to $20.10 in midday market movement, while AMD shares are down 25 cents to $8.18.
“With the Apple (NASDAQ: AAPL) iPad 2 launching in 26 countries over the next month, we would not be surprised to hear about subdued PC trends in other regions as well.”
The analyst cut his estimate for the first quarter from $11.9 billion and earnings of 46 cents per share, to $11.6 billion and 41 cents per share.
Shah's estimates are slightly below the id-point of the revised forecast Intel gave in January for $11.7 billion, plus or minus $400 million.
Shah added that "we estimate that Internet capital spending could decline by 8% in 2011 before reaccelerating in 2012. HP’s comments that the enterprise PC refresh is already in the 'middle innings' of the cycle is also a reminder that the period of significant growth in the datacenter business is likely behind the company over the short to intermediate term."
Shah also sees Intel losing market share in notebook PC's to rival Advanced Micro Devices Inc. (NYSE: AMD) in the second half of the year.
Shares of Intel are down 74 cents to $20.10 in midday market movement, while AMD shares are down 25 cents to $8.18.
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