Intel (NASDAQ: INTC) sent the tech world and stock market more news which they did not need. The company cut its gross margin estimates. According to the company "Intel Corporation today lowered its first-quarter gross margin forecast to 54 percent, plus or minus a point, as compared to the previous forecast of 56 percent, plus or minus a couple of points, due to lower than expected prices for NAND flash memory chips."
Intel closed at $20 and dropped to $19.50 after hours. It may test its 52-week low of $18.05 tomorrow.
Wall St. should expect a bigger sell-off in Intel’s smaller rival AMD (NYSE: AMD). It can’t afford to lose any more margins points. AMD dropped over 6% today. Their shareholders must have heard footsteps.
Douglas A. McIntyre