Semi Stocks Slump on Intel Forecast
NEW YORK (TheStreet) -- Intel's (INTC) decision to lower its fourth-quarter revenue forecast dragged down semiconductor stocks on Monday, as the sector weighed the impact of hard disk drive shortages.
Shares of Intel closed down $1.01, or 4.04%, at $24, while rival AMD (AMD) lost 24 cents, or 4.33%, to end the session at $5.30. Texas Instruments (TXN), which cut its own outlook last week, slipped 81 cents, or 2.71%, to $29.13.
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| Semi stocks slumped on Monday. |
Smaller semi stocks were also feeling the burn. Fairchild Semiconductor (FCS), for example, ended the day down 57 cents, or 4.43%, at $12.30, while ON Semiconductor (ONNN) saw its stock slump 39 cents, or 4.79%, to $7.75.
In a statement released before market open on Monday, Intel blamed its lower view on hard disk drive shortages following the recent floods in Thailand. Shortages, it added, are expected to continue into the first quarter.
The no. 1 chip maker now expects fourth-quarter revenue between $13.4 billion and $14 billion, compared to its prior forecast of $14.2 million to $15.2 million. Intel also forecast a fourth-quarter gross margin of 64.5%, plus or minus a couple of percentage points, at the low point of its prior guidance range between 63% and 67%. Excluding items, Intel expects a gross margin is 65.5%, plus or minus a couple of percentage points, compared to its prior range of 64% to 68%. The tech bellwether, however, said that PC sales are expected to be up sequentially in the fourth quarter. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: tips@thestreet.com.Select the service that is right for you!
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