It's an example of intricate and connected the global supply chain really is.
Shares of chipmakers that make processors for personal computers and other devices that run on Microsoft (MSFT) - Get Report software plunged on Thursday after the world's most valuable tech company warned the coronavirus will have a negative impact on its supply chain in China.
Shares of Intel (INTC) - Get Report, Nvidia (NVDA) - Get Report, Advanced Micro Devices (AMD) - Get Report and Micron Technology (MU) - Get Report were all trading lower on Thursday in the wake of Microsoft’s warning that its supply chain in China is coming back online at a slower-than-expected pace in the wake of the Chinese Lunar New Year production halt and coronavirus outbreak.
Microsoft’s China supply chain “is returning to normal operations at a slower pace than anticipated,” the company said. “As a result, for the third quarter of fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated.”
All other components of the firm’s third-guidance remain unchanged, the company said.
Still, that was enough to prompt investors and analysts to turn away from semiconductor stocks, as well as shares in personal computer and other equipment makers.
Hewlett Packard Enterprise (HPE) - Get Report, Lenovo and Dell (DELL) - Get Report, which will unveil its most recent quarterly earnings and sales numbers on Thursday, also saw steep stock-price drops on Thursday.
Catch up on the Latest Videos on TheStreet!
- Inside Wednesday's Wild Market Ride - What Led Stocks Lower in Late Trading
- The Future Lies in Bitcoin Says Shark Tank’s Robert Herjavec
- Microsoft Says it Won’t Meet Q3 Personal Computing Guidance Due to Coronavirus
- Stressed About the Selloff? How Investors Should Approach Their Portfolios
- Starbucks Is Now Serving Beyond Meat, Eh?
- What Is Donald Trump’s Net Worth?
- 5 Stocks (And Some Extras) to Add to Your Portfolio
- TheStreet Explains: What is EBITDA and Why Does it Matter?
- Retirement Daily: Don’t Retire With Debt: It’s Bad for Your Well-Being
- Free Webinar: Webinar - Expert Advice on FX/Metals Trading by CME Group