Robertson Stephens sees seasonally slow demand for Intel 's(INTC) motherboards and PC components.
Analyst Eric Rothdeutsch says recent checks with motherboard makers in Asia indicate that demand is exhibiting seasonal weakness. He expects May shipments to be down 10%-15% month over month. He also expects the June quarter to be the seasonally slowest quarter for the PC industry this year. Checks indicate that Advanced Micro Devices (AMD) and Intel will again cut CPU prices. New chipsets, motherboards, new packages, new processes, and new wafer sizes appears to be a lot of challenges for any company to manage.
Rothdeutsch rates Intel long-term attractive. He rates Applied Micro buy and thinks Advanced Micro offers a better execution story at a more reasonable valuation.