Intel, chip stocks slide on M.Stanley downgrade - News

Runway Angels
The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.
Smartphone Guide
Here's a need-to-know guide to nine devices, based on features, price, network and platform.
Wines for the Holidays
Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES

How Well Do You Know Your Bird?
Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.
A Healthier & Wealthier You
Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.
The Billionaire BFF's
Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

SPECIAL REPORTS

Winterizing Your Portfolio
If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.
Investor's Guide to Real Estate
Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.
Alternative Investing
Stocks and bonds? Sure. But it's a big world out there for investors.

CNBC ON DIGG

Intel, chip stocks slide on M.Stanley downgrade

By: AFX | 03 Nov 2009 | 01:01 PM ET

Text Size

SAN FRANCISCO, Nov 3 (Reuters) - Intel Corp shares and other semiconductor makers slid on Tuesday after Morgan Stanley downgraded the sector, warning that inventory was creeping up and revenue growth could peak in early 2010. Morgan Stanley, which downgraded bellwether Intel to equal- weight from overweight, cast a shadow over growing optimism among investors and executives that a revival in corporate and consumer spending would prop up chip sales. The U.S. investment bank downgraded the U.S. semiconductor sector to cautious from attractive, saying expectations of a recovery and forecasts of above-seasonal growth may have already been factored into stock prices. "A lot of good news has been baked in," wrote Morgan Stanley analyst Mark Lipacis. "We can't help but think that PC component suppliers will have a difficult time beating expectations for over the next several quarters." But he added: "On the demand side, we've argued that the financial crisis motivated companies to stop spending on IT hardware and there is now pent-up demand for IT equipment." Intel shares tumbled 3.37 percent to $18.37 on the Nasdaq along with Rambus Inc, which fell 2.5 percent to $15.55, and Nvidia Corp, which slid nearly 1.5 percent to $11.89. The shares of Intel arch-rival Advanced Micro Devices Inc slid 3.26 percent to $4.45 on the New York Stock Exchange, along with LSI Corp, which fell 4.29 percent to $4.91. (Reporting by Ian Sherr; editing by Andre Grenon) ((ian.sherr@thomsonreuters.com +1 415.677.2542; Reuters Messaging: ian.sherr.thomsonreuters.com@reuters.net)) Keywords: INTEL/SEMIS (See http://blogs.reuters.com/mediafile/ for Media and Technology -- Reuters' media and technology blog.) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Tools: