Lombardi Publishing Corporation’s Profit Confidential Cautions: There’s Major Trouble for Chip Stocks

Profit Confidential, an e-letter of Lombardi Publishing Corporation, a 26-year-old consumer publisher that has served over one million customers in 141 countries, warns that the challenging personal computer (PC) market, which may not experience growth until 2016, is killing demand for computer chips.

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Lombardi Publishing Corporation’s Profit Confidential Cautions: There’s Major Trouble for Chip Stocks

Lombardi Publishing Corporation’s Profit Confidential Cautions: There’s Major Trouble for Chip Stocks

“…the revision is a major sign of trouble ahead for PC makers and those companies that manufacture chips, hardware, and software for the PCs,” Leong warns.

New York, NY (PRWEB) October 17, 2012

Profit Confidential, an e-letter of Lombardi Publishing Corporation, a 26-year-old consumer publisher that has served over one million customers in 141 countries, warns that the challenging personal computer (PC) market, which may not experience growth until 2016, is killing demand for computer chips.

According to George Leong, Sr. Editor, Profit Confidential, warning signs continue to flash for companies in the PC market. Some of the largest, most recognizable chip-makers are revising revenue expectations downward, blaming the weak global economy and declining PC demand for the revisions.”

In a recent Profit Confidential article, Leong points out that Advanced Micro Devices Inc, the second largest chipmaker, revised its preliminary third-quarter revenues to below consensus; predicting a 10% decline in revenue over the second quarter.

“…the revision is a major sign of trouble ahead for PC makers and those companies that manufacture chips, hardware, and software for the PCs,” Leong warns. According to the financial expert Leong, Advanced Micro Devices had previously noted that revenues would only slip one percent. “The downward revision [to 10%] is downright brutal,” stresses Leong.

Technology giant Intel Corp. also warned it is going to report weaker than expected third-quarter results, Leong reports. The company blames a challenging macroeconomic environment for the forecast, meaning consumers and companies are reining in their spending.

Hewlett-Packard Company’s share price recently hit a nine-year low, Leong points out. The struggling company said it expects to report less next year as it attempts to revamp its business. The Profit Confidential editor believes the dire news could extend beyond 2013 as crippling declines in demand for PCs intensify, and increased competition for printers and other businesses increases.

Powerhouse Dell Inc. and small cap stalwart Intersil Corp. are also feeling the economic crunch, according to Leong. Intersil said it expects third-quarter revenue to fall 19% year-over-year to below analyst estimates.

Leong reiterates the view of Todd Bradley, one of Hewlett-Packard’s executive VPs: “The PC market may not grow until 2016.”

“Make no mistake about it,” says Leong, “the rise of the tablet will kill off the former PC and chip powerhouses unless there is a major change in their underlying structure…”

Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, and to get its popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com. Or, visit http://www.lombardipublishing.com/customer-service.html.

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