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Prudential’s Mark Lipacis says checks in Asia find expectations for March quarter unit shipments for PC desktop and notebook motherboards have declined about 5% over the past month.

He says aggregate unit demand is likely to decline 10% from the December quarter, about 1.5% below the 3-year historical average, after a seasonally weak fourth quarter in which units grew 12% sequentially, from a historical average 17%.

Lipacis also points out that Broadcom (NASDAQ:BRCM) indicated in its earnings call Thursday night that it expects weakness in its Ethernet controller business due to excess inventory in the PC channel. “Broadcom’s comments are consistent with our Asia checks, and indicate a potential issue in the PC supply chain,” he writes.”We remain underweight companies with the largest exposure to the PC supply chain: Intel (NASDAQ:INTC), AMD (NYSE:AMD) and Marvell (NASDAQ:MRVL), with price targets of $16, $16 and $15, respectively.”

Friday, Intel was up 13 cents at $21.49, AMD was off 1 cent at $15.12 and Marvell was up 31 cents at $18.86.

Source: Chip Stocks: Weak Motherboard Sales Signal Trouble In PC Supply Chain