Analysts Predict AMD & Intel will Struggle in 2009

The slowdown in the economy continues to trickle down into the technology sector and new warnings have been issued for both AMD and Intel. According to the marketing research firm IDC; "The supply chain is telling us that there is strong concern for demand decline." As a result IDC, and many other firms are cutting their processor growth forecast to around 2-5 percent for fiscal 2009.

This negative outlook on the global PC market had a crushing effect on the earnings forecasts of both companies. Investment bank Friedman Billings Ramsey has slashed its fourth-quarter earnings expectations for Intel to a meager 30 cents per share, down from a previous estimate of 36 cents. AMD also takes a hit jumping from a 19 cent per share loss to as much as 24 cents. Obviously the situation is much worse for AMD who continues to struggle to find its way out of the red, but both companies are facing challenges.

Wall Street analyst firm ThinkEquity predicts much of the weakness will come from softer corporate notebook demand. According to Avon Securities; "PC OEMs...are worried about having too much inventories if end-market demand comes in materially weaker than expectations this holiday season."

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