Intel facing "Perfect Storm"

[CaptainKirk]

Citing decreasing demand overall in the PC market, Intel has lowered earnings expectations and has taken a significant hit to its stock prices. Trading at its lowest level in six years, Intel could face very hard times throughout 2009. Reflecting its overall condition, several large investment houses have downgraded Intel stock to a "sell" rating.

"We believe Intel is heading in to a perfect storm in 2009, with some of the prior growth drivers fading and multiple macro and company-specific headwinds, which imply a slowdown in its growth and multiple contraction, well below current consensus Street estimates," analyst Vijay Rakesh of ThinkPanure told clients in a research note, in which he slashed his rating on Intel from buy to sell.

In his report, Rakesh cited signs of softening demand in the consumer market, marked by what appears to be flat year-over-year growth in the personal computer space.
The note also pointed to a decline in corporate information technology spending as companies scale back expenses amid the global slowdown.

Intel does have one beam of hope in their new "Atom" chipsets, small chips designed for low cost computers and handhelds, but whether or not that will mitigate the downturn in the overall PC market is yet to be seen.

Source

[CptainCrunch]

Re: Intel facing "Perfect Storm"

Right now I dont think any company is not going to be hit by all the market issues around the world. I dont think Intel is going down, but they and many other gaming manufacturers are going to get beat up.

Crunch

[AllFoamNoBeer]

Re: Intel facing "Perfect Storm"

Lol @ market problems.

Me so happy in Thailand, oh wait, political problems. PHAIL.

[imported_Whiskey]

Re: Intel facing "Perfect Storm"

Lol @ market problems.

Me so happy in Thailand...

It's a Global Economy these days...some Asian markets (eg. Japan's stock market dropped 24% in one day) are already experiencing ripple effects from the banking problems in North America and Europe...it's only a matter of time before it hit everyone.

[AllFoamNoBeer]

Re: Intel facing "Perfect Storm"

Take this as a note, the hardest hit nations are those that are allies to the USA. Most likely due to trade links.

[imported_Whiskey]

Re: Intel facing "Perfect Storm"

Take this as a note, the hardest hit nations are those that are allies to the USA. Most likely due to trade links.

At first, yes. But eventually it trickles out to everyone. All countries are connected these days, not necessarily directly, but through their associations with other countries.

Country A may not trade with the USA, but they may trade with Country B or C, which do trade with the USA. Eventually, the problems move down the line from one to the other.

And this issue isn't mostly based on trade, but on banking, which is inter-connected as they all borrow and lend money to each other. China and Russia, along with Western/European nations, are also having to take steps to prop up their banks.

The only countries that won't feel anything are those 2nd and 3rd world nations that are so crappy anyway that you'd never know if things got worse or not.

[=98=]

Re: Intel facing "Perfect Storm"

At first, yes. But eventually it trickles out to everyone. All countries are connected these days, not necessarily directly, but through their associations with other countries.

The trickle down effect. Happens in any kind of relationship. Reason is that all countries are linked in one way or another. For example, you may not be a direct trader with the US, but one of your other allies maybe and thus, it will effect you.

[Skaggy]

Re: Intel facing "Perfect Storm"

Take this as a note, the hardest hit nations are those that are allies to the USA. Most likely due to trade links.

I wonder how many items in my house are made in Asian countries...

Economic disturbance means less demand for unnecessary and expensive items. Job losses and factory closures are inevitable. The extent of these is unknown...