PC Players Could Have Significantly More Downside

We recently had a post on INTC and noted it sat at quarter-century support.

We also noted that relative to the XLK tech ETF, it was as cheap as it’s ever been.

In that post we asked the following if INTC broke support:

“If such a break-down occurs, might it be indicative of the PC, INTC’s bread and butter business, losing relevancy vs. mobile computing, a space where INTC has much less clout?”

While INTC has yet to break support, fast forward two weeks and we have the HPQ debacle in which this week’s massive decline has resulted in that stock breaking multi-decade support.

Add to this the fact that DELL broke ~15 year support some time back and we’re left with the impression INTC might be doing the same in the not too distant future, following the fate of its PC brethern.

PC-land is not looking so hot right now and despite the recent decline in all three of these names, the next noteworthy support for each comes some 35%-50% lower.