Intel Corp's third-quarter sales growth may be reduced by lower-than-expected demand for personal-computer parts and problems with its new Grantsdale chipset, said two analysts who cut their revenue forecasts.
Deutsche Bank analyst Ben Lynch cut his growth estimate and Morgan Stanley's Mark Edelstone said Intel may forecast a sales range with a midpoint of US$8.5 billion to US$8.6 billion for the quarter ending in September, below the US$8.75 billion average prediction of analysts surveyed by Thomson Financial.
"End demand could be slowing, which would be the worst-case scenario," Deutsche Bank's Lynch said in an interview. New York-based Lynch cut his rating on Intel to "hold" from "buy."
The estimate cuts indicate PC demand may be waning more rapidly than previously thought. After averaging sales growth of 21 percent for the past three quarters, Santa Clara, California-based Intel may achieve growth of as low as 9 percent, according to Edelstone's estimates. Intel said last week that some of its new Grantsdale chipset for PCs were malfunctioning, prompting concern sales of the chipset may not grow as quickly as expected.
Intel said the problem has been fixed.
Intel, the world's largest semiconductor maker, will report second-quarter earnings July 13 and give forecasts for the current period. Spokesman Robert Manetta declined to comment because of a "quiet period" ahead of the company's earnings announcement.
Edelstone said the midpoint of Intel's forecast range for third-quarter sales will probably be US$8.5 billion to US$8.6 billion, below his previous forecast of US$8.7 billion. New York-based Edelstone rates Intel "overweight/attractive." Deutsche Bank's Lynch said he expects revenue growth of 5.7 percent in the third quarter from the second, down from a previous forecast of 7.7 percent. He cut his third-quarter sales estimate to US$8.57 billion, less than the average estimate of US$8.75 billion from 24 analysts in a Thomson Financial survey.
Computer component makers in Asia "are uncertain going into the third quarter, and that could lead to conservatism on Intel's part," Lynch said in the interview.
Shipments of motherboards, the main circuit boards that hold parts in computers, will grow 16 percent in the third quarter from the second, instead of the typical 25 percent, he said.
The Grantsdale chip, which is designed to improve graphics and sound on computers, may power about 20 percent to 30 percent of PCs sold by the end of the year, lower than Intel's estimate of 50 percent, said Hans Mosesmann, an analyst at Schwab Soundview.
"We believe that Grantsdale will ramp at a slower clip than current expectations," Mosesmann said.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique