Intel (NASDAQ:INTC) Tracking at Lower Level of Guidance

FBR Capital says Intel (NASDAQ:INTC) appears to be tracking at the lower level of their guidance, shrinkage in desktop computer sales and "tepid growth" for notebooks.

"Recent 4Q notebook PC build checks with the top five ODMs are slightly weaker than our month-ago checks as OEM customers await signs of Black Friday holiday sell-through before becoming more aggressive about late-quarter reorders, and as the supply chain whittles away any remaining Calpella platform PC inventory ahead of the 1Q11 Sandybridge ramp. We now expect 4Q notebook builds to grow +1% QOQ, two points weaker than last month's +3% QOQ. For Intel, tepid growth in notebook builds and slight shrinkage in desktop builds means that 4Q revenues are likely tracking in the lower half of guidance of $11.0B–$11.8B (+3% QOQ, +8% YOY), though 4Q server strength and easy 3Q comparisons for Atom chips could help somewhat," said FBR.

Intel closed Monday at $21.25, gaining $0.11, or 0.54 percent. Trading volume was about half the 3-month average. FBR has a price target of $27 on them, and a "Market Peform" rating.