A day after Intel released a toned-down outlook for the rest of 2019, INTC stocks dropped as low as 11%. The stock prices managed a rebound during the day and ended at -8.99% at closing time.\r\n\r\nFor comparison, the semiconductor sector index (PHL SOX) was down by -0.83% the same trading day. This drop in Intel stock prices almost hit the -10.1% nosedive at the end of trading on September 29, 2008.\r\n\r\nCEO Bob Swan issued the toned-down 2019 outlook despite its earnings being higher than expected. Also released was the first quarter financial reports, Swan\u2019s first as the new CEO. Moreover, Intel\u2019s outlook for the remainder of the year is also lower than those predicted by Wall Street analysts.\r\n\r\nIntel continues to be a top player in the production and marketing of high-end microprocessors and memory chips. It underwent a corporate transition from mainly PC-centric products and increased its focus on products for data centers and cloud computing.\r\n\r\nSales from datacentric products declined to $4.9B for the 1st quarter, down by 6% for the same period last year. Data centers tended to use their inventories rather than buy new chips from Intel.\r\n\r\nThe data center segment is currently Intel\u2019s second largest sales group. Swan, however, expects data center sales to pick up towards the second half of the year.\r\n\r\nSwan also mentioned the increasing headwinds in sales to China, which had been a major geographical customer of Intel. The previous quarter\u2019s sales decline may be a period of digestion for the relatively high sales volume generated in the past.\r\n\r\nOr this may be due to a temporary period of a cool down in China\u2019s economy. Again, Swan is confident that the decline in sales to China may pick up towards the second semester.\r\n\r\nAnother factor in the tempered outlook for Intel\u2019s revenues for 2019 is the current trend in the price of NAND flash memory chips. The price for flash memory has been on the decline and may continue for the major part of the year.\r\n\r\nOn the positive side, Intel expects to roll out the 10-nanometer chips in substantial volume towards the end of the year.\r\n\r\nThis next generation lithography process in the manufacture of chips has been overdue for almost two years already. When Intel succeeds in ramping the 10nm chips this holiday season, all sectors will benefit from the efficiency and power savings.\r\n\r\nIntel is also rolling out its discrete graphics card by next year. With a tempered and workable financial outlook for this year, Intel\u2019s investors may remain confident. The company may again be on track to maintain competition.