Intel, AMD shares fall as analysts warn of slowing PC market
08/10 11:04 AM
SAN FRANCISCO (MarketWatch) -- Shares of Intel Corp. (INTC:$19.87,00$-0.78,00-3.78%) and Advanced Micro Devices (AMD:$6.94,00$-0.4800,-6.47%) fell sharply Tuesday morning, amid signs of a slowing personal computer market, with one analyst warning that orders are "falling of a cliff."
Intel (INTC:$19.87,00$-0.78,00-3.78%) sank nearly 4% to $19.84, while AMD was off more than 5% to $7 at the opening bell. Other chip makers also saw their shares fall sharply, including Nvidia Corp. (NVDA:$9.275,0$-0.365,0-3.79%) , Micron Technology (MU:$7.22,00$-0.32,00-4.24%) and SanDisk Corp. (SNDK:$45.25,00$-1.12,00-2.42%) . The Philadelphia Semiconductor Index was down 2.7%, setting the pace for a tech sector retreat.
"Checks in Taiwan indicate PC orders falling off a cliff," wrote J.P. Morgan analyst Christopher Danely. "We believe a host of PC companies pushed out orders throughout the supply chain."
Baird analyst Tristan Gerra downgraded Intel's (INTC:$19.87,00$-0.78,00-3.78%) rating to neutral from outperform, while noting signs of "a sharp deterioration in PC-related order trends over the past week, following a below-expectation July."
He added: "Our checks point to a sharp deceleration in PC order trends continuing into August, after a below-expectation July month. Hopes of a meaningful recovery for the September month are less and less likely, in our view, leading to a likely below-expectation third quarter."
Wedbush analyst Patrick Wang also said that, based on checks, "we come away incrementally more negative on the PC supply chain, in light of lowered third-quarter forecasts for both Intel (INTC:$19.87,00$-0.78,00-3.78%) and AMD as well as an expectation for softer DRAM pricing and questionable demand."
"Visibility is now hazier than before," Wang added. |
