A news release from Nomura following the HPQ announcement of yesterday. Romit Shah has not changed his mind since his press release yesterday
* Keeps "reduce" rating, price target of $18 * Sees Intel missing Q3 outlook Aug 19 (Reuters) - Intel Corp's PC business will face greater pricing pressure following Hewlett-Packard Co's decision to spin off its personal computers business, Nomura said and added that it expects the top chipmaker to miss its third-quarter guidance. On Thursday, HP said it may spin off its PC business -- the world's largest -- as part of a wrenching series of moves away from the consumer market, including killing its new tablet and buying British software company Autonomy Corp for as much as $11.7 billion. Intel's PC Client group -- which caters to personal computers -- accounted for 64 percent of the chipmaker's sales last quarter, the brokerage said. It maintained its "reduce" rating on the stock and a price target of $18. Nomura said HP's lowered outlook for the second half of 2011, consistent with Dell Inc and NetApp Inc's weak forecasts, backs its view that Intel will miss its third-quarter outlook. Last month, Intel forecast third-quarter revenue of about $14 billion, give or take $500 million. Intel's shares closed at $19.77 on Thursday on Nasdaq.
Capitulation does not necessarily relate to a change in trend in the markets from down to up. There is all kinds of overhead resistance. Today, INTC managed to bounce all the way from 19.50 to 19.67 before getting overbht
true, the same number of pcs will be sold regardless and Intc will provide the same number of chips for them.
But Nomura fails to and has failed over the past three qtrs, to take in to acoount that Intc, like Dell and soon like HPQ (guess they will go back to HWP) to come to terms with the fact that all of them ridding themselves of low margin businesses and going after high margin businesses where business is growing.
The only co that has successfully gone after hardware and raised margins is Aapl. (and suppliers)
Intc has gone after servers and has raised it margins accordingly. The same with Dell and soon that is what Apetaker will do too. Its what IBM did successfully.
The only one going in the opposite direction is Orcl. What are they going to do with SUnW purchase?