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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Sarmad Y. Hermiz who wrote (183652)	3/4/2006 6:19:24 AM
From: John Carragher	Respond to of 186894

from briefing.com With respect to Intel, the company cut its first quarter revenue outlook to $8.7-9.1 billion, which is below the $9.39 billion consensus estimate. The chip maker cited weaker than expected demand and a slight market segment share loss. Because of the change in revenue expectations, gross margins will be adversely impacted. Reading between the lines, it is clear that Intel is still losing share to Advanced Micro Devices (AMD 39.54 +0.04) - a development we think that has a lot to do with capacity limitations that should ease in the second half of the year. The news was a bearish factor, but its effect lessened over the course of the day. Essentially, it came as not much of a surprise, and it was interpreted as company-specific. The semiconductor companies are in the midst of a cycle upturn, which Novellus (NVLS 26.35 -0.02) underscored with its mid-quarter update last night. The Technology sector (-0.4%), the Nasdaq, and the Philadelphia Semiconductor Index each closed lower, but still showed resilience. We continue to like Intel, which is a suggested holding in our Active Portfolio.