Intel said that ongoing hard drive supply shortages would result in lower than expected revenue with customers ordering fewer chips.
Major PC builders including Dell, HP and Lenovo have also said that they expect to build fewer PCs. The resulting weak demand for processors looks set to hit Intel as well as the entire PC supply chain.
The chip giant now expects $13.7 billion in revenue, down from $14.7 billion. Still, what’s a billion between friends? The markets were less flippant, sending Intel shares down a hefty 4.8 per cent.
The fallout wasn’t limited to Intel either with shares of Far Eastern chipmakers and component suppliers also sliding. Tech firms in Korea, Taiwan and Japan experienced a widespread sell off with shares falling two percent on average.