SAN JOSE, Calif. -- First, Nvidia Corp. issued a warning. Then, last week, Intel Corp. lowered its sales target for the third quarter.
Intel said revenue is being affected by weaker than expected demand for consumer PCs in mature markets. Inventories across the supply chain appear to be in-line with the company's revised expectations, Intel said.
Now, an investment banking firm has lowered its estimates for Advanced Micro Devices Inc. (AMD) for the same reasons.
''We are lowering our estimates for AMD consistent with weakness seen at Intel and
Nvidia,''said Hans Mosesmann, an analyst with Raymond James & Associates, in a report.
''We believe that AMD is likely not immune to the slowdown in the consumer PC market given its historical higher consumer exposure. In addition, AMD does not have server momentum that Intel has, which is the most stable segment in computing.'' he said. ''Finally, it is unlikely that AMD will continue to gain share in the GPU segment over the next few quarters as Nvidia's Fermi architecture starts to permeate into higher volume price points.''
The analyst has lowered his Q3 2010 sales, GAAP EPS, and non-GAAP
EPS estimates to $1.66 billion, $0.02, and $0.17 from $1.77 billion, $0.05, and $0.20, respectively.