Intel may trim Q3 sales forecast, investors say

Intel Corp may trim third-quarter revenue targets to the low end of an earlier range because of disappointing back-to-school computer sales and corporate demand, analysts and investors said.

Lehman Brothers Inc analyst Dan Niles said the world's biggest chipmaker will narrow its sales forecast to US$6.4 billion to US$6.7 billion. Banc of America Securities analyst Doug Lee expects Intel to call for the "lower half" of its range.

Investec Inc's Eric Ross says sales will be US$6.5 billion.

"They're struggling," said Jim Luke, whose BB&T Asset Management owns Intel shares and manages US$10 billion. "There's nothing really to get excited about at the moment in terms of PCs."

He said he may buy more shares at a lower price.

Intel, set to host a mid-quarter update later today, has sold more low-price Celerons and fewer of its Pentium4s so far this quarter, shareholders said.

Consumers are buying cheaper PCs, and businesses continue to put off spending, hurting Intel's profit.

Intel in July predicted US$6.3 billion to US$6.9 billion in sales this quarter. Analysts expect sales of US$6.6 billion and profit of 13 cents a share excluding some costs, the average estimates in a Thomson First Call survey. Net income was US$0.02 a share a year ago, or US$0.10 before some costs, on sales of US$6.55 billion.

The shares of Santa Clara, California-based Intel have lost 41 percent of their value in the past three months.