Intel Cuts Revenue Outlook By $1 Billion

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Intel Corp. (NASDAQ:INTC) cut its sales outlook today causing the stock to fall 5.24% at $23.70. Intel expects sales of $13.7, give or take $300 million, in the fourth quarter. The company’s previous outlook was $14.7 billion, give or take $500 million.

Intel expects PC sales to rise in the fourth quarter, but “the worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages.”

“The company expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012,” Intel said in a statement.

Other PC chip and PC makers were down today including Advanced Micro Devices (NYSE:AMD) down 5.14%, Dell Inc. (NASDAQ:DELL) down 3.42% and Hewlett-Packard (NYSE:HPQ).

Intel didn’t say how there hard drive shortage occurred, but the massive flooding in Thailand heavily impacted hard drive makers. The flooding caused one of the biggest hard drive makers Western Digital Corp. (NYSE:WDC) to shut down operations temporarily.

Intel expects their hard disk shortage to last into the first quarter, but should recover during the first half of 2012.