Intel Cuts Revenue Forecast, Sees Stock Drop

Intel on Friday said it expects to earn between US$8.7 and $9.1 billion this quarter, well below its previous forecast of $9.1 to $9.7 billion and on track to miss Wall Streetis $9.4 billion average. Mark Gongloff noted in his Afternoon Report on the Wall Street Journal Web site (registration required) that Intel saw its stock drop around 2% on the news, "which doesnit seem all that bad until you consider that Intelis shares had already plunged 23% since Jan. 17," he wrote.

On that day, Intel reported 4Q05 revenue that missed expectations and said it wouldnit meet analystsi forecasts for this quarter either. Mr. Gongloff pointed out that competition from Advanced Micro Devices (AMD) has cut into what was once an overpowering market share for Intelis processors, enabling AMD to quadruple its share price in the same span of time that has seen Intelis stock plummet.

Intel, of course, has a new, high-profile customer in Apple, but the Mac makeris market share isnit enough for analysts to consider it a major contributor to Intelis revenue. However, Apple is gaining market share, albeit in baby steps.