Rakesh was quoted saying, “Intel guided its September quarter up about 6% quarter over quarter while Advanced Micro Devices Inc. (NYSE: AMD) guided down 1% sequentially at the midpoint. While AMD might have a potential headwind with increasing Ultrabook and 7mm Slim-drive mix, the HDD supplier commentary from Seagate and Western Digital Corporation (NASDAQ: WDC) of flat to down 10% sequentially points to incremental further PC weakness continuing in late July into August.”
The question to ask here is whether or not Intel knew about this two weeks ago. The processor giant did guide lower and the take is that investors should have known to expect that after the slew of tech and PC warnings we had seen in the weeks before Intel reported earnings.
Rakesh further noted, “Both Seagate and WDC, which together account for 84% to 86% of all HDD drive units shipped (NB-DT+Enterprise), guiding to flat to lower TAM in the third calendar quarter we believe points to slower PC shipments in the quarter.”
Intel is currently trading up about $0.04 at $25.79 while Seagate is down 3.5% at $29.38.
JON C. OGG
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