Intel’s weak forecast weighs on chip shares
Technology · First reported 30 Oct, 11:26 · Updated 16:04
Intel’s lower-than-expected fourth-quarter revenue forecast and warning that it does not expect positive cash flow this year coincided with a broad decline in chip and server-maker shares. The article links the pressure to weak PC demand and rising memory costs.
- Intel forecast fourth-quarter revenue of $15 billion to $16 billion, below the analysts’ average estimate of $17.07 billion; its finance chief said the company does not expect positive cash flow this year.
- Intel shares fell 29 per cent on Friday, while semiconductor stocks named in the report fell between 2 and 10 per cent. Shares of Dell, Hewlett Packard Enterprise and Super Micro Computer fell between 6 and 10 per cent.
- The report cites weak PC demand and higher memory prices as pressures on the PC business; Intel expected sales from that segment to decline more than 20 per cent sequentially in the current quarter.
Summary written by Lux AI from 2 articles
Key facts
- Intel share move
- Down 29 per cent on Friday, according to the report.
- Fourth-quarter revenue forecast
- $15 billion to $16 billion, versus an analysts’ average estimate of $17.07 billion.
- Cash-flow outlook
- Intel said it does not expect positive cash flow this year.
- PC segment outlook
- Intel expected PC-segment sales to decline more than 20 per cent sequentially in the current quarter.
- European technology shares
- The STOXX Europe 600 Technology Index fell 2 per cent.
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