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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (146908)	5/6/2002 9:30:18 AM
From: tejek	Read Replies (1) \| Respond to of 1573682

April desktop flag JP Morgan lowered its industry estimate of a quarter-over-quarter drop in PC desktop units to 6 percent from an earlier forecast for a 3 percent decline. "Recent channel checks seem to have confirmed our view of persistent weakness in the PC sector, particularly desktop PCs in April and May," the broker said. It said it lowered second quarter estimates for Intel, Advanced Micro (AMD: news, chart) and Nvidia (NVDA: news, chart). Intel second quarter revenue estimate was cut to $6.5 billion from $6.6 billion and earnings per share forecast to 14 cents from 15 cents. Still, the cuts from JP Morgan are within Intel's own expectations. Intel itself has guided to a $6.4 billion-$7 billion in revenue for the quarter. JP Morgan also lowered its second quarter estimates on Maxtor (MXO: news, chart), Western Digital (WDC: news, chart) and Hutchinson (HTCH: news, chart) on the weak desktop PC market in April, "increasing component inventories, and aggressive pricing by IBM this quarter." The broker added it believed the companies factored the weakness into guidance for near-term growth after first quarter results. "Therefore we are now modeling at the low end of guidance given that the strength of the rebound in May and June is uncertain," it told clients. Emily Church is London bureau chief of CBS.MarketWatch.com. Tomi Kilgore is a reporter for CBS.MarketWatch.com.