AMD Q1 Hurt by Weak Demand, Other Names May Be at Risk

4/8 - "AMD negatively pre-announced Q1 revenues on weak end market demand. This conforms to our view that PCs along with wireless handsets are likely to drive negative earnings revisions in the first half of 2008....maintaining a Hold rating."

"We are lowering our estimates...Revenue: Q1 C2008E from $1.66 billion to $1.5 billion; C2008E from $7.145 billion to $6.402 billion...EPS: Q1 C2008E from ($0.31) to ($0.44); C2008E from ($0.57) to ($1.26)...Price target remains $6.50, and equates to a market cap of 0.6x our C2008 revenue estimate."

"Other semiconductor names may be at risk from a weak PC environment, including Intel (INTC : NASDAQ : $21.75 | HOLD) and NVIDIA (NVDA : NASDAQ : $19.23 | SELL). Recent checks with Asian ODMs emphasized a negative Q1 outlook. Our checks indicated a sequential decline of 15% for motherboard shipments in Q1 and slightly worse for notebooks due to order push outs."