Intel Corp slashed nearly $1 billion from its first-quarter revenue forecast as small businesses put off upgrading their personal computers, sending the chipmaker's shares down more than 5 percent.

Fewer companies than Intel had expected replaced desktop PCs running on outdated Microsoft operating systems, leading to weak demand for its chips. Intel also cited "challenging" macroeconomic and currency conditions, particularly in Europe.
Though dominant in the market for chips used in PCs, Intel has been slower than rivals such as Qualcomm Inc to adjust in recent years to the growing popularity of smartphones.
"The macro environment is not robust enough for people to upgrade their PCs the way they normally would," Topeka Capital Markets analyst Suji De Silva said.
Intel said on Thursday that it expected first-quarter revenue of $12.8 billion, plus or minus $300 million - about 7 percent lower than its earlier forecast of $13.7 billion, plus or minus $500 million.
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