Nasty news from Intel in its mid-quarter update tonight. The company had been guiding analysts toward Q3 revenues of $8.6b-$9.2b; now it is saying the quarter looks more like $8.3b-$8.6b. From peak to trough that is a 9.8% cut in in forecast revenues. After losing 7.7% in regular trading, Intel stock is down another 8.6% after-hours.
There had been much speculation that Intel’s quarter would be light. Asian manufacturers had been saying over the last few weeks that back-to-school sales were weak, and so that undoubtedly played in. There is also renewed aggression over at Intel competitor AMD, a company that has seemingly found its pace and is growing into a legitimate contender.