Hedge fund founder Chanos says shorting Intel shares: CNBC
Kynikos Associates LP Founder and Managing Partner Jim Chanos speaks during the Reuters 2014 China Summit in New York, October 28, 2014.
Credit: Reuters/Brendan McDermid
NEW YORK (Reuters) – Jim Chanos, founder of hedge fund firm Kynikos Associates, said on Friday he is betting against the shares of chipmaker Intel Corp.
“We’re short Intel,” Chanos told cable television network CNBC. Chanos said he has been shorting, or betting against the company’s shares, for the past six months.
Chanos, who has been critical of the personal computer sector and has bet against companies such as International Business Machines Corp and Hewlett-Packard Co, said Intel has “the same challenges.”
Intel said Thursday that revenues from its mainstay PC business fell about 3 percent in the fourth quarter from the prior quarter to $8.9 billion. That raised doubts about a long-anticipated recovery of the PC business.
The company also forecast first-quarter revenues of $13.76 billion, plus or minus $500 million, and gross margins of about 60 percent, below the 65.4 percent reported in the fourth quarter. Analysts, on average, expecting revenue of $13.77 billion in the first quarter, according to Thomson Reuters I/B/E/S.
(Reporting by Sam Forgione, Editing by Franklin Paul and Jeffrey Benkoe)