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Last Updated: Friday, 5 December, 2003, 10:33 GMT
Intel disappoints market bulls
Intel HQ
Intel has taken the gloss off the market rally
The world's largest maker of computer chips has disappointed stock markets with a flat sales forecast.

Intel had been expected to raise its expectations, buoyed by a strong revival in the US economy.

But it failed to do so, and admitted that future results would be tainted by a $600m (348m) charge related to its mobile-phone chip business.

The news pushed the company's stock lower in late New York trading, and hit rivals' shares in Asia and Europe.

Better news

On Thursday, the Dow Jones Industrial Average climbed to an 18-month high, extending a rally that has seen indexes climb for the best part of two weeks.

And the tech-heavy Nasdaq index briefly broke above the 2,000-point barrier for the first time in two years.

Intel, however, may have stalled things for the time being.

The company expects sales in the fourth quarter will rise to $8.5bn-8.7bn. It previously had forecast revenue of $8.1bn-8.7 bn.

Intel's shares dropped about 3% in European and after-hours trading in New York.

Chipmakers in Europe, including STMicroelectronics and Infineon, declined.

But some analysts insisted that the trend was still upwards.

"Ok, so people were expecting better news from Intel," said Roger Hornett of Theodoor Gilissen Bankiers.

"But all it can do is slow down the market. It can't halt it."


SEE ALSO:
Intel confirms recovery hopes
14 Oct 03  |  Business
Earnings optimism lifts Intel
22 Aug 03  |  Business
Intel narrows revenue forecast
05 Jun 03  |  Business
Intel ditches growth hopes
07 Mar 03  |  Business
Computer chips pushed to edge
26 Feb 03  |  Technology
Intel chief sees brighter future
19 Feb 03  |  Technology
Intel looks to the future
18 Feb 03  |  Technology


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