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No. 1 chipmaker Intel ( INTC ) could slough $1.2 billion off Q1 sales amid a notebook PC depression, a Nomura analyst wrote Friday as he slashed his price target on Intel stock. Notebook shipments are expected to plunge 28% sequentially in Q1, Nomura analyst Romit Shah wrote in his research report, which he said suggests PC shipments will slump as well. The report comes less than two months after Intel acknowledged that a fatal bug in its Skylake processor could freeze Windows and Linux operating systems under certain work conditions. Intel has since released a fix, but the stock slipped nearly 7% in the three days following that Jan. 6 acknowledgement. Intel stock was down more than 1.5% in afternoon trading on the stock market today , near 29, after Shah cut his price target to 35 from 38. Intel stock touched a five-month low below 28 on Feb. 11. Shah lowered his revenue forecast for Intel’s Q1, now seeing a 20% sequential decline vs. his earlier view for a 7% decline. Citigroup analyst Chris Danely lowered his notebook forecast on Wednesday, according to ValueWalk.com. Danely forecast a 38% month-over-month decline in notebook shipments for January, where the three-year average had been a 14% decline. Citigroup expects a 20%-25% sequential decline in Q1 notebook shipments, said the ValueWalk story. Shah’s analysis puts Intel’s Q1 sales and earnings per share ex items at $13 billion and 35-40 cents. Intel previously guided to $13.6 billion to $14.6 billion in sales, which implies 50 cents EPS minus items, he wrote. But Q1 remains is typically “a back-end loaded quarter,” Shah wrote, and he reiterated a buy rating on Intel stock. Scalper1 News
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