Intel Corp.'s Lower Outlook Brings Down PC Stocks

Intel Corp.'s

move to cut its first-quarter revenue estimate Thursday dragged down a raft of stocks related to the market for personal computers. The Santa Clara, California-based chip maker changed hands recently down 2.6 percent at $31.47. Hewlett-Packard Co.

lost a similar percentage, trading at $31.81. Advanced Micro Devices Inc.

fell 2.7 percent, changing hands at $2.77, while STMicroelectronics NV

dropped 1.7 percent to $9.27. Microsoft Corp.

ticked down about 1 percent to $41.47. Lower-than expected demand for business desktops resulted in the 6.5 percent cut to revenue guidance by Intel . Intel said small and medium-sized businesses are undertaking "lower-than expected Windows XP refresh," causing lower inventories across the PC supply chain. Microsoft ended support of its Windows XP operating system last year. Currency translations and difficult economic conditions, particularly in Europe, are also hurting the company's business, Intel said Intel, slated to post first-quarter results April 14, now expects revenue of $12.8 billion, plus or minus $300 million, compared with its previous expectation of $13.7 billion, plus or minus $500 million.