Microchip said it was ready for another industry correction and, according to financial analysts at Seekingalpha.com, “the entire semiconductor space was reeling on Friday”. That applied particularly to behemoths like Intel.
But other things may help Intel’s share price, according to the financial analysts. There were reports that Apple will delay its 12.9-inch iPad to 2015 and that will give Intel a window of opportunity to steal market share on its chips, if the reports are true.
Intel will report its third quarter earnings tomorrow afternoon, US time.
Analyst Bill Maurer at Seeking Alpha said the fact that Intel planned to buy back a cool $4 billion worth of shares will have an impact on its bottom line – a positive one, that is.
As a result of Microchip’s revenue warning on Friday, Intel (ticker: INTC) lost over five percent on the stock exchange. Intel still makes huge gross margins and had predicted when it released its second quarter earnings that gross margins would be 66 percent, and revenues $14.4 billion or so.