Intel, AMD Earnings to Offer Guidance on PC, IT Spending
When Intel and AMD report their third-quarter earnings in a few day, the two companies, which are the leading suppliers of x86 processors for desktops, notebooks and servers, are expected to offer a glimpse of how the financial crisis and the U.S. credit crunch is likely to impact the entire IT industry. In addition, Intel and AMD are likely to discuss the impact of the new chip manufacturing that formed when AMD sold off its fabs earlier this month.When Intel and Advanced Micro Devices, the two largest suppliers of x86 processors for PCs and servers, report their 2008 third-quarter financial results in a few days, industry watchers will be looking for signs of how those numbers will reflect the ongoing financial crisis and its impact on the IT industry in the coming months. Intel will report its third-quarter results after the markets close on Oct. 14, with AMD to follow on Oct. 16. While it is still too soon to tell how the credit crunch in the United States and the financial crisis will play out, financial analysts have started to cut their forecasts for IT spending and PC sales, which could have an impact on what Intel and AMD report later this month and offer some insight into what the two companies will forecast for 2009.
"Our core assumption is that IT spending continues to decelerate and year-over-year growth on a global basis moves into negative territory in the fourth quarter before an inflection point is reached in mid-2009," Brian Alexander, an analyst with Raymond James, wrote in an Oct. 10 research note. "By geography, we assume that the U.S. declines in the low- to mid-single digits, Europe in the mid-single digits and Asia Pacific and Latin American grow in the mid-single digits."