Intel will announce that it is on track with its Q3 guidance tomorrow in its schedules mid-quarter update, according to one analyst.

Tim Luke, a Lehman Brothers managing director of equity research, said in a research note this morning that the firm expects Intel will report solid demand trends and a healthy quarter.

“We look for management to maintain a  midpoint at or slightly above its original $9.9 billion/plus 7.3 percent quarter-over-quarter guidance,” he said, noting that the sales range of guidance given for the quarter is $9.6 billion and $10.2 billion.
 
“In general, we believe demand trends are solid across end markets tracking to Intel's mid-single digit growth forecast, with CEO Paul Otellini noting at the IDF conference Aug. 26 that manufacturing facilities continue to run at or near full capacity to meet demand, and that select chipset shortages in notebooks remain,” Luke continued.

“We note that notebooks are expected to reach approximately 36 percent of total Intel shipments by the end of 2005 and that Q2 was the first quarter in which notebooks outsold desktops. In servers, we believe low to mid range servers (primarily two-four way servers) continue to see mid to high single digit growth as these lower cost server networks displace higher-end solutions and RISC-based servers,” he stated.
 
Lehman further said it expects the flash business to show revenue up 5 percent sequentially to $552 million after  two quarters of revenue contraction.

By: DocMemory
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