The semiconductor sector is shaping up for what looks to be an eventful quarter as Intel readies for price cuts and Advanced Micro Devices is set to release a new series of desktop processors.

Intel will likely initiate dramatic price cuts to its desktop processors on April 23, according to a Tuesday report from Merrill Lynch. "We believe that Intel will be working to reduce inventory of less competitive products during the second quarter prior to its planned third-quarter product launches," wrote analyst Joe Osha in a Tuesday note.