Intel: Supply Concerns Lower Stock Prices
With supply concerns causing Intel’s (INTC:Nasdaq) stock to be near a three-month low, the chipmaker’s progress in meeting customer demand will be a key issue during its midquarter update this afternoon. We will be keeping an eye on the conversation that takes place and post accordingly.
Intel said in July that its primary constraints concern chipsets, which are groups of semiconductors that surround a microprocessor in order to help it interact with other devices. Chipsets make up only about 10% of Intel’s revenue, but Intel also has said it was tight on its primary microprocessors and flash memory. This isn’t a situation that gets fixed overnight. Intel boosted its capital expenditure budget for the second time this year in July and announced plans last month for a new factory in Arizona, but that facility won’t start producing chips until the second half of 2007.
Comments are closed.