Intel shares slide on concerns about lengthy slump

(AP) Intel Corp.'s stock price slid again Monday on concerns that the company is in the early stages of a financial slump brought on by the growing popularity of mobile devices that don't rely on its computer chips.

After Intel ended last week by lowering its revenue forecast for its current quarter, Nomura Securities analyst Romit Shah issued a glum assessment of the company's prospects in a Monday note.

Shah believes Intel's earnings next year might sink as low as $2 per share next year as more people buy smartphones and tablet computers that are powered by rival chip-makers. If Shah is right, Intel's 2013 performance will fall well below the current earnings estimate of $2.26 per share among analysts surveyed by FactSet. It would also represent a drop from Intel's earnings this year, which are expected to come in at $2.17 per share, according to FactSet.

Intel already has acknowledged it is being hurt by the advent of mobile devices that are reducing the need for laptop and desktop computers to access the Internet. The company also says the frail economy is undercutting PC demands in many markets around the world, including China.

Shah expects the same trends to torment Intel next year. The biggest trouble spot, Shah said, is likely to be laptop computers. The $800 to $1,000 price for laptops is becoming an increasingly tough sell amid an array of sleek tablets selling for $200 to $700, Shah reasoned.

Intel on Friday warned that its third-quarter revenue will fall well below the projections that management made in July. The mid-range for the company's forecast now envisions revenue declining by about 7 percent from the same time last year to $13.2 billion. Intel had previously predicted revenue ranging from $13.8 billion to $14.8 billion.

The Santa Clara, Calif., company's stock shed 93 cents, or 3.8 percent, to close at $23.26 Monday. Shares fell 3.6 percent Friday as well, are off 12 percent in the past three months and have lost 4 percent of their value in 2012.