Despite Intel Corporation (NASDAQ:INTC), big news in its weekly estimates last week, the company’s long-term performance has not been so wonderful.. The company was slashed its first quarter forecast by approximately $1 billion. As a result, the company now expects that its first-quarter revenue will be approximately $12.8 billion with a range of $300 million. In comparison, the corresponding period for the previous year its expectation was $13.7 billion, with a range of $500 million.
The company attributes this change to the demand for business desktop PC coming in at a weaker than expected. Additionally, the company says that inventory across its PC Chain supply was at a lower than expected level. Additionally, the company cites the competitive nature of the dollar as being amongst its disadvantage. On the heels of this news, the company’s shares fell 5.6% on the last two trading days last week to close at $30.51. This represents a stark comparison, when looking at the fact that the company’s shares were at an all time high $37.73, just December last year.
The planned selloff will offer the company’s investors a good opportunity. The selloff is an attractive valuation and the 3% dividend yield offers the investors an opportunity that is compelling,. The company’s ability to lower what could be seen as unrealistic PC sales expectations has lightened its burden somewhat. In fact, this move has seen Matt Ramsay, analyst at Canaccord Genuity, upgrading the company’s shares to ‘hold’ from ‘buy’ and targeting a price of $38 per share.
In addition, the company is now able to turn its attention to growing other businesses. These businesses include its mobile chip venture that may be a catalyst for pushing the growth of the company. This could be realized later this year when Microsoft Corporation (NASDAQ:MSFT) release its anticipated Windows 10 platform. Additional good news for the company’s shareholders is the fact that the company’s technology continues to top its rivals.