My guess is that there are two issues today. One is consumer sentiment and trade deficit issues again, this has affected the entire market. The other is a WSJ article by Don Clark which is nothing new. These in addition to the BofA report that you seem to have there, which talks about lower than expected laptop demand.
Consumer Sentiments Drags Down Stocks
preliminary reading of consumer sentiment tumbled to 93.1 in February from January's final reading of 103.8, its highest level in over three years.
Economists had forecast a reading of 103.3.
Another report showed the U.S. trade deficit widened nearly 11 percent in December, as strong U.S. economic growth sucked in record imports and exports inched lower despite a weaker dollar.
Next the WSJ article,
AMD's Opteron Chip Puts Pressure on Rival Intel
Intel officials aren't likely to give AMD much credit. Yet there is little dispute that AMD, of Sunnyvale, Calif., is putting pressure on the world's biggest chip maker, and helping to raise more doubts about a microprocessor line called Itanium that Intel, based in Santa Clara, Calif., has nurtured for 10 years.
Several big companies, including International Business Machines Corp., Armonk, N.Y., and Sun Microsystems Inc., Santa Clara, have adopted an AMD chip called Opteron to make server systems. Even Hewlett-Packard Co., Palo Alto, Calif., which helped develop Itanium and plans to unify several computer lines around it, now is expected to add Opteron-based servers to its product line.
Message 19804625
Just generally speaking I am not expecting much from Intel here, though. Chipmakers are selling a lot to asia but ASPs are too low, and the capex recovery in the US is probably never coming back to the degree that it once existed. Its not just intel, chip stocks just aren't moving. I wonder if the laptop demand problem is really just more ASP price erosion. Intel is just too expensive imho. |
