Oh, dear. Even the safest of ports got sucked into this storm. What's a lonely sailor on the stock market seas to do now?
Chip giant Intel
Well, scratch that. Intel is singing a new song, and this quarter's sales now look like they're staying below $9.3 billion. Gross margin is dropping back to approximately 55% or so, down from expectations north of 59%.
Management blames slow orders across "all geographies and market segments." Emerging markets aren't riding to the rescue this time, and neither high-margin server chips nor its profitable and popular notebook processors have the clout to pull Intel out of this dive. In my opinion, this data means that Intel will likely come in lower than last year’s GAAP number of $0.38. It also may end up being lower than last quarter’s $0.35.
And now we wait. I think Advanced Micro Devices
But Intel remains a solidly profitable blue chip, with shares selling at a very attractive earnings multiple right now -- at least for an American company. This storm-stricken harbor will be safe again. In the meantime, enjoy the cut-rate docking fees.