$1 Billion Short: Hard Drive Shortage Impacts Intel's Q4

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Intel today told investors that the global hard drive shortage caused by the Thailand flood has forced the company to reduce its fourth quarter outlook to a midpoint of $13.7 billion, down from a previous midpoint estimate of $14.7 billion.

Intel's stock was down about 4.7 percent as a result of the announcement. According to the company, sales of PCs will be up sequentially for the quarter, but there are not as many sales into the supply chain as chip inventories are reduced due to the supply disruption in the hard drive industry. Intel expects hard drive shortages to persist through the first quarter and continued improvement of supply during the first half of the year.

Several other chip companies were dragged down by the announcement as well. AMD fell by about 4.9 percent, Nvidia by 4.0 percent, Micron by 3.3 percent, Broadcom by 3.1 percent and Texas Instruments by 2.8 percent.

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Wolfgang Gruener
Wolfgang Gruener
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Wolfgang Gruener is an experienced professional in digital strategy and content, specializing in web strategy, content architecture, user experience, and applying AI in content operations within the insurtech industry. His previous roles include Director, Digital Strategy and Content Experience at American Eagle, Managing Editor at TG Daily, and contributing to publications like Tom's Guide and Tom's Hardware.