14 DAY TRIAL // It appears that Intel is not exactly immune to market analyst skepticism, which means that Advanced Micro Devices is not the only company whose future performance is being looked at with a critical eye.
Just a short time ago, it was revealed that a certain analyst downgraded AMD's rating over concerns regarding its mobile segment performance and likelihood of seeing its GPU share diminished.
Now, a certain other analyst, J.P. Morgan analyst Christopher Danely to be exact, took the time to write down a set of concerns of its own.
This once, however, Intel is the one whose immediate future seems poised to fail to meet the company's expectations.
Intel originally set an intended revenue target of $11.4 billion for the fourth quarter of 2010, and also said that Asian contract manufacturer shipments would either stay flat or fall 3 percent.
According to Danely, however, said contract manufacturers saw their shipments go down six percent, which means Intel will probably fail to reach its target sum.
He also said that the Sandy Bridge CPUs with integrated graphics won't drive demand as much as one may think, because they are evolutionary and not revolutionary.
The reason behind this assumption is that J.P Morgan supposedly failed to find any evidence that customers are holding off on buying new PCs in anticipation for the new processors.
All in all, Intel's revenue for the first quarter of 2011 is expected to fall from 11.1 billion in Q4, 2010, to 10.1 billion.
“While orders from the PC end market have stabilized, it is at low levels and Intel stated it needs an increase in orders to meet the midpoint of its guidance of $11.4 billion,” Christopher Danely wrote.
“As a result, we believe Intel will miss the midpoint unless order rates increase in November and December. We are expecting Intel Q4 revenue below the midpoint, or flat [sequentially] at $11.1 billion, below consensus of up 3%” at $11.4 billion.