Lenovo Shares Fall After Intel Guides for Soft Sales
By Tracy Qu
Lenovo's shares fell sharply after U.S. chipmaker Intel flagged a tepid sales outlook in the first quarter of the year, raising concerns about a long-awaited rebound in the personal computer market.
Shares of the world's largest PC maker were 8.6% lower at the mid-day break Friday in Hong Kong, taking their loss this year to 14%.
The drop comes after Intel forecast roughly $12.7 billion sales for the first quarter of 2024, higher than last year but still missing analyst expectations.
That outlook is "raising market concerns on PC demand," Maybank head of retail research Sonija Li said.
Lenovo shares have been on a tear in recent months, helped by hopes for improved sales. Over the past 12 months, its shares have surged around 50%, making it the best performing stock among Hang Seng Index constituents over that period.
Global PC maker shipments fell 13% to 247 million units in 2023, but companies "can now look forward to an improving landscape" on the back of improving macroeconomic conditions, research firm Canalys said in a report earlier this month. "Companies and individuals that have delayed their purchasing for many quarters are now set to resume spending on PCs," it added.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
January 26, 2024 00:41 ET (05:41 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?
-
Walmart Earnings: Low Prices and Strong Digital Presence Drive Market Share Gains
-
After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?
-
Cisco Earnings: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing
-
Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?
-
A Cheap Dividend Aristocrat to Buy Before It Bounces Back