Here is another report on INTC from CNNMoney
money.cnn.com
<<Will Intel ignite a tech rally?
World's largest semiconductor company tightens its sales guidance, new midpoint ahead of forecasts.
June 3, 2004: 6:03 PM EDT
By Paul R. La Monica, CNN/Money senior writer
NEW YORK (CNN/Money) - Intel, the world's biggest manufacturer of semiconductors and one of the tech sector's bellwethers, tightened its sales forecast for the second quarter Tuesday.
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<<Intel (INTC: Research, Estimates) stock gained nearly 1.5 percent in after-hours trading, after falling 2.1 percent to $27.41 in regular trading on Nasdaq.
The Dow component's stock more than doubled in 2003 but has slipped nearly 15 percent this year on concerns that the semiconductor cycle may be close to peaking.>>
NOTE: INTC fell 2.1 percent during regular trading hours, but even with the good report, could only gain back 1.5 percent in AH.
<<Demand for PCs still strong and flash biz improving
But in a brief press release, Intel said that demand for its so-called architecture products, which consist of microprocessors, motherboards and chipsets, were in line with the company's expectations at the beginning of the quarter. This business accounts for the majority of Intel's sales.>>
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<<Intel is the latest and highest profile semiconductor manufacturer to give an update about its second quarter. Earlier this week, Xilinx and Fairchild Semiconductor reaffirmed sales guidance while Altera said that its second quarter revenues should come in at the high end of its range.
Intel, like most chip companies, is expected to post strong year-over-year gains in sales, but it and other chip stocks have fallen lately because of worries about declining levels of sales growth.>>
[snip]
<<But Cody Acree, an analyst with Legg Mason, said investors might have gone a bit overboard with their skepticism.
"Chip companies are getting ready for stronger demand in the back half of the year. There's a big difference between building a safety margin and overbuilding," said Acree. "People have been pessimistic, but we continue to get fairly firm fundamentals about the environment for PCs and semiconductors overall.">>
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