Goldman (NYSE:GS) Sees Intel (Nasdaq:INTC) Pressured by Tablets

The good news, according to Goldman Sachs (NYSE:GS) concerning Intel (Nasdaq:INTC) is there will be a huge surge in tablet sales, the bad news is, there will be a big surge in tablet sales.

We're of course talking about the coming cannibalization of PC sales by tablets, generating concern on how much that will affect the bottom line of Intel.

Goldman says their research shows server units and PCs will grow by 5 percent and 8 percent in 2011, far below consensus of growth in the low teens.

For tablets, Goldman sees sales growing from 9 million units to a range of about 55 million to 79 million in 2011/2012. They estimate that will result in PC sales plummeting up to 35 percent, with a tight range of 33 to 35 percent. That cause Intel to lose $825 million in revenue for 2011, said Goldman, and $1.3 billion in revenue for $2012.

EPS estimates for full year 2010/2011/2012 remain the same from Goldman, at $1.90/$1.75/$1.85.

Intel closed Monday at $21.50, down $0.41, or 1.87 percent.