Rhodes pick Intel slashes revenue forecast by $1 billion

US chipmaker Intel - a top-ten holding in Stuart Rhodes’ M&G Global Dividend fund - has slashed its fourth-quarter revenue forecast by $1 billion (£640m).

Stuart Rhodes
Stuart Rhodes

Intel lowered its forecast from $14.7 billon to $13.7 billion, plus or minus $300m, after predicting that a shortage of hard disk drives will affect the sales of its microprocessors.

“The worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages,” the manufacturer explains.

“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 accounts for 2.9% of Rhodes’ £1.6 billion M&G Global Dividend fund. It also features in the top-ten holdings of the £1.4 billion M&G American fund and the £744.3m Halifax North American fund.

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