Why Intel Took the Chip Sector Down Today
Shares of Intel (NASDAQ: INTC) were trading down by 5.25% as of 2:06 p.m. ET Wednesday.
The chip stock fell following the release of a negative note from a Citibank analyst that was based on his takeaways from a semiconductor industry conference hosted by Bank of America earlier this week. Apparently, the tone of Intel's presentation was enough to make the already-pessimistic analyst even more cautious about Intel stock, at least in the near term.
On Wednesday morning, Citi analyst Christopher Danley wrote that his "bear case" scenario for Intel appeared to be taking shape. Danley already had a neutral rating on the stock, and he did not downgrade it to a sell. He also maintained his $45 price target on it. What he did, though, was reduce his revenue and earnings estimates for the company for the quarter and the year, citing the cautious tone of Chief Financial Officer David Zinsner at the conference.
Source Fool.com
