Intel Corp (INTC)

[SemiconEng]

Why Investors Are Dumping Chips

http://yahoo.businessweek.com/technology/content/mar2005/tc20050314_2245_tc024.htm
Despite solid numbers from Intel and others, the industry may be heading for a cyclical downturn. Wall Street is acting accordingly

A curious thing happened last week. A series of semiconductor companies reported earnings or profit expectations that should have pleased Wall Street. Xilinx (XLINK ) and Altera (ALTR ) significantly increased their sales-growth guidance. And on Mar. 10, National Semiconductor (NSM ) said bookings stopped what had been an alarming decline.

The same day, the world's largest chipmaker, Intel (INTC ), topped it all off by slightly increasing its revenue and margin guidance for the first quarter. Revenue at the Silicon Valley giant should be between $9.2 billion and $9.4 billion, while the gross margin on sales is expected to be 57%, plus or minus a percentage point.