Yesterday, Intel revised its guidance for the ongoing quarter, saying revenue would be below expectations because of the hard-drive shortages plaguing the industry. What of other major chip companies? According to two separate reports, there’s a chance AMD and Nvidia will both be forced to revise their estimates, as well.
TheStreet quotes Evercore Partners analyst Patrick Wang as saying the shortages "could impact AMD a bit more than Intel" in part because AMD "has made a living selling to cost-sensitive customers." Wang expects an announcement to that effect within the next couple of weeks. Another analyst quoted by TheStreet, Cody Acree of Williams Financial Group, disagrees that AMD will be hit harder, but he says the firm will nevertheless be "feeling some pressure."
A third analyst, this time quoted by International Business Times, believes Nvidia also won’t come out unscathed:
"Following our checks in Asia this week, we believe NVDA’s January quarter is tracking below plan. We believe the company’s GeForce (GPU), Quadro, and Tesla businesses combined are down about 10-12% Q/Q, with Quadro/Tesla somewhat weaker than GPU," Susquehanna Financial analyst Chris Caso wrote in a note to clients.
Last month, Nvidia said it expected flat revenue growth this quarter, with gross margin either flat or up half a point. (By the way, we should point out Nvidia’s ongoing fiscal quarter doesn’t correspond to the calendar quarter; it will end in late January.)