Citi Analyst Predicts ‘Worst 3Q Ever in PC History’

Serious trouble lies ahead for PC makers in the third quarter of 2012, Citigroup semiconductor analyst Glen Yeung told CNBC on Friday.

“We were looking into the supply chain over the course of August, and really everywhere you looked, PC data points are bad. What we’re ultimately going to end up with is the worst third quarter in the history of PCs this quarter, so obviously the outlook is pretty dire,” he said on “Fast Money.”

Yeung saw potential upside in Microsoft, based on its new Windows 8.

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“Normally, when we see an upgrade cycle in an cycle, it does stimulate PC demand,” he said. “I would point out that this is the first time ever that Microsoft has changed operating systems, and it’s not just PCs. This time, there’s a tablet involved, there’s a smartphone involved.”

But as far as the best of the bunch?

Yeung likes the Apple ecosystem.

“Keep it simple,” he said. “For us, that’s Broadcom.”

Trader disclosure: On Sept. 7, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long INTC; Pete Najarian is long SLV CALLS, SHORT PUTS; Pete Najarian is long SCCO CALLS, SHORT PUTS; Stephen Weiss is long AIG; Stephen Weiss is long QCOM; Stephen Weiss is long BRCM; Stephen Weiss is long UGL; Stephen Weiss is short VALE; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in GS; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in GLD; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in SWHC; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long STSI;

For Glen Yeung
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of INTC.

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