Intel to showcase new chips as investors eye stagnant PC sales
Wall Street is reassessing its outlook for the top chipmaker after Hewlett-Packard Co and Inc warned last month of weak demand for PCs.
At least eight analysts have reduced their revenue estimates for the dominant PC chipmaker since August 23, pointing to poor economies in Europe, the United States and China, as well as the growing popularity of mobile gadgets.
The risk of a (negative) pre-announcement is extremely high at this point, said Patrick Wang, an analyst at Evercore Partners. I think the supply chain is reeling at the elevated levels of inventory out there.
The top chipmaker is banking on Microsoft Corp's much anticipated launch of its Windows 8 platform in October to help slow the growing numbers of consumers buying smartphones and tablets instead of personal computers.
Devices running Windows 8 and powered by Intel's latest components will be a major draw when thousands of technology professionals descend on the annual Intel Developer Forum in San Francisco next week.
Analysts on average expect revenue of $14.2 billion when Intel reports its third-quarter results in October, still well within the company's forecast of $13.8 billion to 14.8 billion according to Thomson Reuters I/B/E/S.
But in a further sign of growing investor caution, the ratio of put options for Intel shares to call options has risen close to highs not seen since 2006, said Jim Strugger, a
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