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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Sig who wrote (175297)	11/1/2005 4:40:14 PM
From: Shawn Donahue	Respond to of 176387

Sig, Did you see this article? Wow! Over 5 times avg volume today. Take care, Shawn Intel Chips Face Dell's Computer Crunch Tom Van Riper, 11.01.05, 12:11 PM ET The downbeat profit forecast issued by Dell (nasdaq: DELL - news - people ) Computer on Monday likely won't stop with the computer maker itself. After all, Intel (nasdaq: INTC - news - people )'s inside. Shares of the top chipmaker were off 2.5% Tuesday after Dell, its biggest customer, downgraded its earnings forecast for the latest quarter. Shares of Intel's main rival, Advanced Micro Devices (nyse: AMD - news - people ), were also lower. Dell shares tanked 5% in Monday's after-hours trading after the company said weaknesses in the U.S. and U.K. consumer markets are hurting demand. Dell said it expected to earn 25 cents a share for the three months ended Oct. 28, a big downgrade from the 39 cents to 41 cents it previously forecast. Intel derived 19% of its 2004 revenue through sales to Dell. "We expect continued evidence of disappointing demand and increasing inventory throughout the fourth quarter," said J.P. Morgan analyst Chris Danely in a research report. He also noted that in addition to weakening PC demand in the U.S. and Western Europe, sales are slackening off at Asia's two largest notebook PC makers, Quanta and Compal. Downside risk to demand during the first half of 2006 has Danely maintaining a "neutral" rating on Intel shares, which are currently trading at 15 times projected 2006 earnings, the bottom of their historical price-earnings ratio range. forbes.com