INSTANT VIEW - Intel again warns on outlook

NEW YORK (Reuters) - Leading U.S. semiconductor maker Intel (INTC.O) warned that its fourth-quarter revenue would lag expectations, further slashing estimates that it had already cut once in November.

Intel shares were down 78 cents, or 5.1 percent at $14.59 in early trading on the Nasdaq.

The following is reaction from industry analysts and investors:

KIM CAUGHEY, SENIOR ANALYST, FORT PITT CAPITAL GROUP, IN PITTSBURGH, WHICH MANAGES ABOUT $800 MILLION. THE FIRM DOES NOT HOLD INTEL SHARES:

"It's not a huge surprise. In their mid-quarter update they had said it was soft. Over the past couple of days I have seen a lot of sell side analysts bringing down their expectations for the PC-oriented part of technology."

"Intel is probably still well positioned, given their strong balance sheet."

"Intel has seen this too. They've taken some steps in the recent past to skinny down expenses."

"It shows that IT departments are being very careful with their dollars. We would still expect purchasing to go on. I don't think it's going to go to zero."

"PCs are kind of nodes. They are out at the end of the chain. it looks like money is still being spent on the data centre."