Advanced Micro Devices Inc (AMD)

[rupert]

Intel's Flash, Communication Ops Seen Strong
06.01.04, 11:06 AM ET


EDIT: Interesting choice of words. Says Intel "continues" to gain back market share from AMD...." Continues from when?

J.P. Morgan said the second-quarter processor business of Intel (nasdaq: INTC - news - people ), which represented 87% of the company's first-quarter revenue, is "roughly in line with expectations," according to channel checks. Other PC component suppliers such as Advanced Micro Devices (nyse: AMD - news - people ), Micron Technology (nyse: MU - news - people ) and Integrated Circuit Systems (nasdaq: ICST - news - people ) are also on track to meet J.P. Morgan's second quarter revenue and earnings estimates, according to the firm. The research firm said Intel's flash and communication operations, which represented the remaining 13% of first-quarter revenue, are "ahead of plan, leading to the slight upside" for the second quarter. Intel continues to gain back market share in communications from AMD at a few large accounts, most notably Nokia (nyse: NOK - news - people ), according to J.P. Morgan. The research firm raised the second-quarter revenue estimate to $7.95 billion from $7.9 billion but left the earnings estimate of 24 cents per share stand. J.P. Morgan said it expects Intel to raise its second-quarter revenue guidance to a range of $7.8 billion to $8.1 billion from a range of $7.6 billion to $8.2 billion. Intel will provide an update on the quarter after the market close on Thursday June 3. J.P. Morgan said it remains "lukewarm" on Intel stock, "particularly given the recent appreciation, due to overly optimistic consensus expectations and our belief in risk to estimates in both second-half 2004 and calendar 2005 due to inventory build at Intel and the approaching downturn." J.P. Morgan said, "We remain most concerned with the inventory bubble at Intel as inventory has risen to 79 days, the highest level since 1995. Intel's inventory days have reached this level twice in the last 10 years, with gross margins negatively impacted on both occasions." Intel, which J.P. Morgan rates at "neutral," is now "appropriately valued and should continue to trade in the middle of its historic range."


http://www.forbes.com/markets/2004/06/01/0601automarketscan05.html?partner=yahoo&referrer=