Canaccord Genuity Morning Coffee on Intel (INTC): Stale Chips

Canaccord Genuity Morning Coffee on Intel (Nasdaq: INTC): Stale chips.

Shares of Intel fell after the company reduced its Q3 guidance due to slowing demand. The company new sees Q3 revenues in the range of $12.9 billion to $13.5 billion, about 7% lower than its prior forecast of $13.8 billion to $14.8 billion. Management points to "weaker than expected demand in a challenging macroeconomic environment." Management said it sees customers reducing inventory softness in the enterprise PC market as well as slowing demand from emerging markets. In addition to the reduced revenue outlook, the company also narrowed and reduced its Q3 gross margin estimate to 62%, plus or minus a percentage point versus its previous forecast of 63% plus or minus a couple of percentage points. Intel’s warning pushed other chipmakers and company’s with PC exposure lower, including: AMD (NYSE: AMD), NVIDIA (Nasdaq: NVDA), Micron (Nasdaq: MU), HP (NYSE: HPQ), Microsoft (Nasdaq: MSFT), Seagate (Nasdaq: STX) and Western Digital (NYSE: WDC)

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