This page is quite old hence its rather spartan appearance.
Why not check out our Latest Stories page for our newest articles or search our site for anything.
By
Given both are semiconductor companies, these were hardly unexpected. In fact, shares in AMD rose in after-hours trading. Intel (Nasdaq: INTC) shares have risen 16% since their profit warning of last Thursday. Slow personal computer (PC) sales continue to be the culprit.
The Fool's Eye View
The Millennium is turning out to be a fizzer in more ways than one. Companies of all ilk splashed out on new computer kit not necessarily because they needed it, but because they were scared into believing they needed it. Of course we now know the much feared Y2K bug failed to bite, so in hindsight much of that pre-2000 spending was unnecessary.
Companies and investors alike were initially guilty of expecting the pre-2000 spending boom to continue unhindered. Expectations have since been lowered, based on harsh reality.
Many technology companies are indirectly or indirectly dependent on the health of the PC market. So what's the future hold? If you are a believer in the long-term future of the PC, then the current market wobbles may present you with buying opportunities. That's what the buyers of Intel and AMD shares are doing.
The market always looks forward. At the moment, it is looking forward at an improving PC market. But don't be surprised to see a bit more pain before the gain. There will be some more profit warnings, both in the US and here in the UK. Whilst many US companies already have the expected pain priced into their share prices, many high profile UK technology companies still see their share prices riding relatively high.
Unlike the share price boom of March 2000, investors must be patient and realistic. History says they will act otherwise, greed and fear being the emotions which drive the market in the short-term. A fearful market creates buying opportunities for the fearless investor. We may not be there just yet, but we also may not be a million miles away. A couple of high profile UK profit warnings may do the trick.