Analyst says Intel shares are 'dead money'
Forbes is running an interesting article quoting RBC Capital Markets analyst Apjit Walia as saying
Intel's stock is "dead money." According to Walia, sales in the PC
market are low and getting lower, and that doesn't combine well with
Intel's current price war with AMD. Walia says Intel's recent price cuts,
which have chips like the 3.4 GHz Pentium D 950 selling for just $316, have allowed the company to take
back some market share over AMD. However, he says those market share
gains come at the expense of revenue share losses for Intel,
cutting its overall income. Reportedly, Intel's gross margin has "very
little chance" of bottoming before the end of the third quarter. Intel's
second quarter results are expected to sink below expectations, as well;
last week, EE Times quoted an analyst
for Handelsbanken Capital Markets as saying Intel might issue a profit
warning for this quarter. Walia echoes this prediction, saying the
company "may miss earnings." Thanks to The Inquirer for the tip.