Investors Pause: Intel is Flashing These Warning Signs
After hitting a year to date high of $29.18 a share in May, Intel (NASDAQ:INTC) is down on news of weaker than expected revenue. The company released a statement adjusting its projected revenue to $13.2 billion. Intel had originally projected revenues from $13.8 to $14.8 billion but “weaker than expected demand in a challenging macroeconomic environment” has led to weak enterprise PC sales and slowing demand in emerging markets.
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While Intel remains dominant in the data center and server market, the trend toward tablet, mobile, and cloud computing means that Intel will have to change its game if it wants to see growth. Piper Jaffray analyst Auguste Gus Richard said, “We believe popular holiday gifts this year will include the Nexus 7, Kindle Fire, Microsoft Surface, and iPad Mini,” adding, “This does not does not bode well for the semiconductor industry or Intel as PCs are roughly one-third of overall chip demand.”
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