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Shares of the world's top chip makers like Intel and AMD (Advanced Micro Devices) fell down after weakening outlook for corporate as well as consumer IT spending on global basis. Both the companies had a strong expectation from the last quarter’s earnings.
It is expected that this year worldwide enterprise spending for IT will grow by 2.9 percent, which was previously expected to be at 4.1 percent. For the next few years, it is expected to have some very good growth trends for PC makers.
Intel obtains 90 percent of its revenue from PC market by controlling just about 70 percent of processor market, but its shares fell by 3.4 percent while that of AMD (Advanced Micro Devices) fell dropped by 7 percent.
PC shipments for Intel range closer to 5 to 7 percent from the normal range was about 15 percent plus, which reflects the passive demand from Europe, slow demand from China as well as careful US consumers.
Himanshu Sethi / ITvoir Network. |
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