It probably has less to do with UBS and more to do with HPQ.
The HPQ revenue and earnings for their PC division were down double digit YoY. How much of that drop is "death of the PC" or "reaction to Leo announcing HPQ should sell their PC division" or .... is the source of many new IDs and too many single message threads on the board this morning.
Correctly or incorrectly the market is just pricing in more news.
Your most likely correct. Fact is, if we were making ARM along side of x86, we would have more business than we could handle. TSM can't supply 28nm and we have a ton of excess capacity at 22nm. TSM is running a PE=16 and INTC with state of the art fabs have a PE+9. Even an idiot can figure out what INTC needs to do.
I'd trust Wally any day over wall street analysts. At least he truly believes what he says and backs it up with articles and facts. The one good thing is wall street is running out of bad news,I think.