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In a Flash, Intel Undercuts Optimism

Posted Mar 04, 2008 10:37am EST by Aaron Task in Investing, Semiconductors

Intel's first-quarter margin guidance cut to 54% from 56% was surprising --- even if some analysts claim otherwise -- as NAND flash is a relatively small part of its overall revenue. Intel did say the rest of its business outlook is unchanged but this gross margin cut speaks to larger macro issues, says Henry "Mr. Sunshine" Blodget.

While bulls say the market is "cheap" they are not taking into account the likelihood that still-fat profit margins will be coming down this year -- meaning those "cheap" stocks don't look so cheap after all. 

Henry and I also discuss the implications of Intel's NAND memory comments for Apple, which uses NAND flash in its iPhones, iPods and MacBook Air notebook. When iSuppli slashed its NAND forecast in February, it specifically cited Apple's inventory as a culprit. But Apple COO Tim Cook was resolutely upbeat at the Goldman conference last week and the MacBook Air is off to a good start, so there's a disconnect here. 

 

13 Comments

Betty
Betty - Tuesday March 04, 2008 10:55AM EST

all's well (!) ends better,,,,,,,,,

Yahoo! Finance User
Yahoo! Finance User - Tuesday March 04, 2008 11:26AM EST

Does a day go by when you don't try to weaken Apple shareprice, shysters?

jim
jim - Tuesday March 04, 2008 11:28AM EST

You're trying to waterboard Apple.

That other guy....
That other guy.... - Tuesday March 04, 2008 12:02PM EST

About the Mac Book Air - "they only made 50 of them" lol With that theory I guess you could say they also only made 50 Nintendo Wii's because they still are incrediably hard to find.

Gale
Gale - Tuesday March 04, 2008 01:01PM EST

just a little bit downward ,other than that tech stocks is ok.

arqg
arqg - Tuesday March 04, 2008 01:23PM EST

Why the f*** is a past convict Henry Blodget allowed back to comment on anything??

- Tuesday March 04, 2008 01:35PM EST

Time to buy Tech stocks when it's down. Most of kids are gluing on the internet in developed countries, which may take 10% of the world, while 90% is awaiting the hi-tech to catch up the education of the modern world. Besides, once, the government of the world decide move the education from classroom to internet in order to save huge education budget which costs from 30%-50% of the whole budget. You know what. That's why the whole world is underwater. People are afraid of change. Only the new tech can save the world.

monk man
monk man - Tuesday March 04, 2008 01:38PM EST

Just wait until the institutional investors dump their apple and google shares. Burn baby burn

Yahoo! Finance User
Yahoo! Finance User - Tuesday March 04, 2008 01:55PM EST

They negative market hype is getting so deep, that my waders no longer help, I'm going to have to get a dry suit... ;-) The "big Buffet", who has absolutely nothing to gain by this turmoil (ahem...), has even started daily advisories... It just gets better and better...

RanHarley
RanHarley - Tuesday March 04, 2008 02:08PM EST

Le's face it. People making negative comments obviously don't get it. The AIR is the coolest computer on the market and PC's are sure to follow. We are so behind our friends in Aisa...come on and let's get America at least equal. I love my country and to see us behind in technology is a political screw up.

Daniel
Daniel - Tuesday March 04, 2008 02:35PM EST

Yes why does Henry Blodgett get to speak on any financial topics. He should have been barred from the industry. This is the same analyst, from Merril Lynch, I believe, that touted internet stocks to the point of ridiculousness.

Kathy
Kathy - Tuesday March 04, 2008 02:51PM EST

If anyone buys stocks now, they truly are as stupid as they look.......

Jeff
Jeff - Tuesday March 04, 2008 02:59PM EST

Henry Blogett is clueless and a fraud. He was banned from the security's industry . He loved shares at nasdaq 5000, but is a bear 8 years later at nasdaq 2200. nasdaq is at 1998 levels Henry. The market is cheap, growth will return. This is a problem in the financial sector not the entire market. Blogett is a buffoon mr. amzn $ 1000. He has and deserves zero credibility. Henry it is easy to "follow the crowd" you sir are a "lemming"

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