Wall Street Watch Friday: AMD Doesn't Chip In
The chip maker that was a thorn in Intel's side during the PC glory years announced preliminary quarterly results after Thursday's market close, and it wasn't pretty.
The chip maker that was a thorn in Intel's side during the PC glory years announced preliminary quarterly results after Thursday's market close, and it wasn't pretty.
Sometimes, companies that were once leaders fall hopelessly behind. They may struggle on for years, but their chances to engineer turnarounds have passed. 24/7 Wall St. has found nine of these companies -- names you know well, but that will never be great again.
Last month, 96 CEO changes were announced by U.S. based companies, reports job-services firm Challenger, Gray & Christmas, among them the heads of Google and Advanced Micro Devices. The number is down 9% from December, but 8% higher than January 2010, when 89 CEOs left their corner offices behind.
Intel has discovered a design flaw in its recently released Intel 6 Series chipset, code-named Cougar Point, and has halted shipments of the support chip.
Better-than-expected earnings from General Electric helped lift the Dow and S&P 500. The Nasdaq closed lower after disappointing results from chipmaker Advanced Micro Devices. Overall, the week's strong earnings bode well for coming corporate reports.
AMD announced the resignation of CEO Dirk Meyer Monday, sending stock down over 4% in after-hours trading.
Despite all the amazing gadgets launched at the Consumer Electronics Show -- the smart TVs, 3-D technology, larger touch screens, and tablet PCs -- the bigger news in Las Vegas this week may be about price cuts.
Intel's stock is up just 2% this year compared to the Nasdaq's 17% rise, and investors fret that the explosive growth of smartphones and tablets will crimp the market for the PC chips that produce the bulk of Intel's revenue. But the tech giant has a plan.
Shipments of personal computers missed forecasts in the third quarter, increasing by 7.6% rather than the 12.7% industry analysts had expected to see.
Global semiconductor revenue growth this year will be slower than previously expected, as weaker-than-expected demand for personal computers and other consumer-electronic devices will cause inventory to pile up, iSuppli said in a statement today.
Advanced Micro Devices has lowered its third-quarter sales guidance, citing weaker-than-expected demand for laptops in North America and Europe. The news comes after another chip maker, Intel, cut its third-quarter forecast last month.
President Obama will announce billions more in infrastructure spending and tax cuts this week. Supporters say it's just what the sagging economy needs. But critics worry that with mid-term elections just a few weeks away, the main motivation may be political.
Intel cut its guidance for third-quarter revenues, citing weak consumer PC demand. The news signals underlying trends in technology that could be a drag on companies beyond Intel. Keep an eye on companies like Microsoft, HP, Dell and AMD.
PC orders are "falling off a cliff," according to a J.P.Morgan analyst who downgraded his revenue estimates for Intel on Tuesday. Another analyst offered a similarly glum assessment.
After years of battle, the Federal Trade Commission plans to report details of an antitrust settlement with Intel on Wednesday.











