This is disappointing. It sounds like a combination of both weaker demand for PCs and the continuing impact of some of these inventory excesses hurt them. All in all, it's a pessimistic near-term outlook.

We expect Apple to broaden its use of Intel processors with the likely introduction of new low-end and mid-range notebooks and also a likely Mac Mini home entertainment platform based on Intel architecture.

I think the impairment charge seems to be a big negative surprise to investors,

Intel has a history of making smooth leadership transitions.

This shows Intel's determination to stay ahead of the pack and invest in next generation technology in order to meet the market's needs.

The easy money has been made in many of the semi stocks, including Intel, but I still think some chips stocks have 20 to 25 percent upside left. This is hopefully the pause that refreshes.