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) -- Chip giant


(INTC) - Get Intel Corporation (INTC) Report

has revised its outlook to reflect a chipset design issue and the completion of its $1.4 billion



The move pushed the company's shares down 23 cents, or 1.03%, to $21.24 in late morning trading Monday. Shares of rival


(AMD) - Get Advanced Micro Devices, Inc. Report

were climbing on the news, up 43 cents, or 5.74%, to $7.92.

Intel has discovered a design issue in its recently-released Cougar Point support chip, which works with its new Sandy Bridge processor. In a statement, Intel said that it has implemented a silicon fix to the problem, and has stopped shipping the impacted chipset.

Intel has revised its first-quarter outlook.

The tech bellwether, which recently posted

stellar fourth-quarter results

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, expects that the issue will reduce its first-quarter revenue by around $300 million, although full-year revenue is not expected to be materially affected.

Despite its chipset problem, Intel nonetheless raised its outlook, thanks partly to the recent completion of its

Infineon deal

. The company also said that it expects to complete its $7.7 billion



purchase by the end of the first quarter.

Intel now expects first-quarter sales between $11.3 billion and $12.1 billion, compared to its previous forecast of $11.1 billion to $11.9 billion. The company now expects a gross margin of 63%, plus or minus "a few percentage points", down from its previous guidance of 65%, plus or minus a few percentage points.

For the full year, Intel is looking for a revenue growth percentage in the mid to high-teens, up from its previous forecast of approximately 10% growth.

--Written by James Rogers in New York.

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