Did you see intc drop 30 cents after market close due to the Dell news? Good chance intc drops back to 19.00 tomorrow if not lower......nothin good comin out of this sector at the moment.....bad news on a weekly bases from every aspect of this sector......
INTC, MSFT, and now DELL warns on earnings. These are Bell weather Tech stocks. If these guys are having trouble making forecasts in an economy that is doing pretty good, you have to wonder about those tech stocks the next level down. Maybe more hits to come....
QUOTE FROM MADMUNNY 04-25-06 11:41 PM Well all of you that are long INTC should send thank you notes and chocolates to the market maker MLCO cause if it wasnt for those dumbasses INTC would be at 18.50 by now......just blows my mind why anyone would hold up a stock that clearly wants to tank and tank and tank and tank and tank...........every god damn level they are sittin there with a hidden bid holdin the level....brutal Just curious, how do you know there is hidden bid?
Dell to use AMD chips, says profit slumps Thursday May 18, 6:07 pm ET By Philipp Gollner SAN FRANCISCO (Reuters) - Dell Inc. (NasdaqNM: DELL - News) on Thursday said it would begin using chips from Advanced Micro Devices Inc., sending shares of both companies higher. Shares of AMD rose more than 13 percent, shares of Dell rose 4 percent and shares of Intel Corp., AMD's far larger rival and Dell's only chip supplier before the announcement, fell more than 5 percent. Dell, which posted an 18 percent decline in quarterly profit, had been the last major PC maker to use processors only from Intel (NasdaqNM:INTC - News), the world's largest chip supplier. Dell's decision to use the Opteron microprocessor finally consummates a long-running on-again, off-again flirtation with AMD. Dell plans to introduce multiprocessor server computers using Opteron by the end of the year, it said in a statement. In its earnings report, Dell said net income declined to $762 million, or 33 cents per share, from $934 million, or 37 cents per share, a year earlier. Revenue increased to $14.2 billion from $13.4 billion. Analysts, on average, had forecast earnings per share of 33 cents and revenue of $14.2 billion, according to Reuters Estimates. Analysts cut their estimates after Dell last week said earnings were lower than the company's February forecast as it cut prices to rekindle growth. "It is not clear to us why more aggressive pricing will drive improved profits going forward, as it clearly failed to do so in the back half of last quarter," said Cindy Shaw, an analyst at Moors & Cabot. Round Rock, Texas-based Dell, whose founder Michael Dell changed the computer business by selling PCs directly to customers and bypassing retailers, has stumbled in the past year as competitors including No. 2 PC maker Hewlett-Packard Co. (NYSE:HPQ - News) offered lower prices thanks to cheaper components and more efficient manufacturing operations. The company also said that it was ending its practice of giving specific revenue and earnings per share forecasts, noting only that it does "expect financial results for the second fiscal quarter of fiscal 2007 to be similar to its first quarter results." For the current quarter, analysts expect Dell to earn 34 cents before items, on average, on revenue of $14.4 billion. "The elimination of go-forward quarterly targets is an indication that Dell's uncertainty about its business remains high," Goldman Sachs analyst Laura Conigliaro wrote in a brief note to clients after Dell reported its results. Shares of Dell have plunged more than 40 percent in the past year as the company three times has missed revenue forecasts. Its stock trades at 16.8 times expected 2006 earnings per share, about the same as Hewlett-Packard, whose stock is up 44 percent from a year ago. Shares of Dell rose to $24.91 in extended trade on Thursday after closing at $23.95, up 32 cents, or 1.4 percent, on Nasdaq. Shares of AMD jumped $4.15, or 13.2 percent, to $35.50 in extended trade after closing at $31.35, up 58 cents or 1.9 percent, on the New York Stock Exchange. Intel declined 95 cents, or 5.1 percent, to $17.70 in extended trade after closing at $18.65, off 1 cent, on Nasdaq. http://biz.yahoo.com/rb/060518/dell_earns.html?.v=4
Interesting........AMD shares up strongly in after hours but if you read the press release it says that they are only planning to use the AMD 64bit Opteron in their high end server range - "It's a fairly small category in terms of units," Rollins said. "We will still be launching this year a broad line of Intel products. We think we've got a winning combination of bringing great technology to all customers." Would have to agree that the 64bit servers are a small category so not sure if the impact it will have on AMD is worth the $4 jump in price, will be interesting to see if this follows through with more buying.
I have been waiting for this Dell's anouncement to put INTC on my watch list. The stock may bottom today.
I'm personally waiting to see benchmarks/reviews for Intel's next generation of "Core" chips (Conroe, Merom, Woodcrest). I think that strong benchmarks (and lower power consumption) would be one of the first datapoints indicating a turnaround for the company.
The processor manufacturer recently tested the latest stepping for its upcoming Woodcrest processor, only to find the stepping was healthier than originally believed. Intel had planned to create three Woodcrest steppings before the official summer release, but it looks like the last iteration won't be necessary. The second stepping-based launch will save the giant some serious manufacturing costs, and allow for a slight schedule pull-in. Even better for Intel, the original projections showing the server chip's power consumption and performance were also off. Intel now thinks the processor will run at full performance consuming only 65 watts. In fact, the performance levels at the 65W power envelope will actually exceed the original performance projections at the 80 watt threshold. Considering Intel originally said this chip would consume 40% less power while bringing a massive increase in performance (all when it believed the original numbers), Intel may have a very hot summer release (pun intended). If true then Intel truly will recapture lost market share. I would think the general market correction, Dell announcement that it will incorporate AMD chips in their servers and the latest earnings shortfalls will set-up a buying opportunity but I don't think we're their yet. 2nd bounce and an uptrend works best for my tastes.