DJ Chip Analyst: Sees Intel Raising Margin, Rev Views >INTC
NEW YORK (Dow Jones)--Intel Corp. (INTC) will likely raise its fourth-quarter margin expectations, said Adam Parker, semiconductor analyst with Sanford C. Bernstein.
"I expect them to have margins of 50% on increased revenue," Parker said in a CNBC interview Thursday.
Investors already expect Intel to raise revenue guidance because of better personal computer sales and lower initial expectations, he added.
In November, Intel reiterated its fourth-quarter revenue view of $6.5 billion to $6.9 billion. The company expects margins of 49%, Parker said.
Last week, Parker downgraded his position on Intel to hold from buy because he doesn't see the company earning more than $1 a share in 2004.
Analysts currently expect the company to earn 87 cents, excluding goodwill, for the period.
When it comes to Advanced Micro Devices Inc. (AMD), a competitor of Intel, Parker is "still uncomfortable with their cash position."
Earlier Thursday, AMD raised its fourth-quarter outlook, because of stronger-than-expected personal-computer processor demand and continued strength in its high-density flash memory products.
