The floods in Thailand last year continue to wreak havoc on technology companies stateside.
First, Intel (Nasdaq: INTC ) cut its revenue guidance last month for that same reason, since its processors go hand-in-hand with the hard-disk drives (HDD) that got stricken with a sudden case of scarcity. It trimmed its fourth quarter revenue estimate from $14.7 billion to $13.7 billion, give or take $300 million. When Chipzilla reported last week, it ended up clearing $13.9 billion.
Rival Advanced Micro Devices (NYSE: AMD ) just reported last night, with sales of $1.7 billion, while CEO Rory Read said the company was also hit by the HDD shortages.
Next up: NVIDIA (Nasdaq: NVDA ) .
The chipmaker just revised its fourth-quarter sales guidance, also citing the HDD deficiencies plaguing the industry. The top-line projection shrank from just over $1 billion to $950 million. The shortages have hurt NVIDIA's GPU business, as shipments to PC OEMs were hit, and the resulting rise in HDD prices crimped OEM's ability to add in a GPU.
On top of that, the company saw demand for its Tegra 2 mobile processor fall more than expected, although some decline is inevitable as NVIDIA ramps up its quad-core Tegra 3 chip.
While NVIDIA's ARM Holdings (Nasdaq: ARMH ) -based Tegra mobile chips should be growth drivers in the future, they currently comprise a smaller chunk of sales. The company's consumer and professional graphics segments combined accounted for 82% of sales last quarter, although its mobile business is putting up the most growth, jumping 268% last quarter.
NVIDIA and Intel continue to escalate their frenemy relationship. While Intel CPUs and NVIDIA discrete GPUs were always complementary, Intel integrated graphics partly diminished the need for a separate GPU. Intel's new Medfield Atom chip is gunning for mobile, an arena where Tegra is a major contender. Microsoft Windows 8 will support ARM chips, where Tegra will inevitably win some main brain spots.
Who has escaped the Thai floods relatively unscathed? Apple (Nasdaq: AAPL ) . Thanks to Cupertino's general practice of locking down supply, CEO Tim Cook said, "I don't predict Apple having a material supply issue during the quarter, but we will pay more for drives during the quarter."
While the HDD shortages have presented a speed bump for tech players, this too shall pass. NVIDIA's long-term story is still intact.
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