Intel saw its stock price slide more than 18 percent Friday, a day after the chip maker lowered its second-quarter revenue forecast due to slower-than-expected business in Europe.
Intel's shares on the Nasdaq (INTC) closed Friday at US$22, down $5 on the day, or 18.52 percent, to reach their lowest closing price in eight months. Shares of Advanced Micro Devices Inc. (AMD), one of Intel's main rivals, also dipped, falling 7.5 percent to close at $9.81.
Intel said Thursday in a mid-quarter business update that its revenue for the quarter, which ends June 29, probably will be between $US6.2 billion and $6.5 billion, down from its previous guidance of $6.4 billion to $7.0 billion. Besides weak demand in Europe, the Santa Clara, California, company it said its results for the quarter have been hurt by a "weaker than expected mix," meaning it sold more of its lower priced Celeron processors than it had forecast, and fewer of its higher priced Pentium 4 chips. It said it continues to expect the second half of the year to be brighter.
Analysts had been expecting second-quarter revenue of $6.7 billion and earnings per share of $0.15, according to a consensus estimate from Thomson Financial/First Call. In the second quarter of 2001, Intel posted revenue of $6.3 billion and earnings per share of $0.12.