Intel Corp (INTC)

[VeeCee]

I know Intel has not warned but I am sure this will affect Intel earnings and outlook.
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Advanced Micro Halted, Drops 8%: Cuts Q2 Outlook on Weak PCs
By Tiernan Ray

Chip maker Advanced Micro Devices (AMD) this afternoon said its Q2 revenue will decline more than expected because of “weaker than expected consumer PC demand impacting the company’s Original Equipment Manufacturer (OEM) APU sales.”

AMD added “The company expects second quarter channel sales and channel inventory reduction efforts to be in-line with the company’s plans.”

Revenue is now expected to decline from Q1's level by 8%, worse than a prior forecast for revenue flat to down 6%, offered back on April 16th, which caused shares to plunge 13% the next day.

Gross margin, on a non-GAAP basis, is now expected to be 28%, below a prior forecast of 32%, it said. The company said its GAAP gross profit will be reduced by “$33 million associated with a technology node transition from 20 nanometer (nm) to FinFET. The company started several product designs in 20nm that will instead transition to the leading-edge FinFET node.”

AMD reports full results on July 16th, after market close.

AMD shares were halted just before the announcement at $2.47.

Update: The stock has resumed trading and is down 23 cents, over 9%, at $2.24.