Intel Updates Third-Quarter Business Expectations

Intel Updates Third-Quarter Business Expectations

Intel guided their revenue for the quarter down due to a global slowdown in consumer demand relative to expectations. The important point to note, is that they are still posting strong growth--there's a difference between slowing growth and negative growth. Semiconductor growth follows GDP, and GDP is still growing steadily. While we may be near the "top of the cycle", the market did not over heat, so it's unlikely to crash like it did in 2000. This reduction in volatility should actually make the prospects for the industry more favorable. Of course, the market only looks quarter to quarter and will discount Intel's stock for the short term change despite the long term benefit that will likely result.