JPMorgan (NYSE:JPM) Sees Intel (NASDAQ:INTC) Revenue Under Pressure in Q4

JPMorgan (NYSE:JPM) says Intel Corp. (NASDAQ:INTC) will struggle to meet its revenue goals for the fourth quarter, and if they do, they'll be on the low end of their estimates.

Saying they've checked with supply chains based in Asia, JPMorgan wasn't able to come up with any evidence demand was increasing for the fourth quarter.

JPMorgan analyst Christopher Danely said, “While orders from the PC end market have stabilized, it is at low levels and Intel stated it needs an increase in orders to meet the midpoint of its guidance of $11.4 billion. As a result, we believe Intel will miss the midpoint unless order rates increase in November and December. We are expecting Intel Q4 revenue below the midpoint, or flat at 11.1 billion, below consensus of up 3%” at $11.4 billion.

Also contrary to what Intel Corp. (NASDAQ:INTC) believes concerning its Sandy Bridge processor, that it will be a driver of demand in the first quarter of 2011, Danely concluded, “Although Intel seems to believe that its upcoming Sandy Bridge processor will drive demand, we cannot find evidence of delayed PC purchases for it.”

Intel closed Thursday at $21.01, losing $0.07, or 0.31 percent. JPMorgan has a price target of $17 on them.