Nvidia Q4 Revenue Hurt By Disk Drive Shortage

Nvidia, makers of the Tegra 2 and Tegra 3 processors found in dual core and quad-core processor toting Androids, has lowered it’s expectation for fourth quarter sales.  Nvidia will report their Q4 earnings after the markets close on February 15th.

Nvidia is feeling the pinch that other chip manufacturers are feeling after major flooding in Thailand halted production of disk drives in the second half of 2011. The disk drive shortage slowed computer sales and with less computer sales came less orders for chips for the Santa Clara based chip manufacturer.

More after the break
Nvidia also suffered a secondary set back from the disk drive shortage. Some of their customers who lured their own customers with Nvidias superior graphics cards decided to forgo the pricier graphics processors to offset the increase in cost in disk drives.

As far as the expected loss goes, Nvidia was expected to report revenue of $1.066 billion when they gave an estimate in November of 2011. Now they’ve revised that estimate to $950 million.

The good news as that some disk drive manufacturers like Western Digital saw an uptick in their stock prices yesterday which could signal that companies are rebounding after the Thailand disk drive crisis.

This isn’t the only natural disaster to stifle mobile industry vendors in 2011. A major earthquake and ensuing Tsunami in Japan last spring interrupted the supply chain for manufacturers like Sony, Kyocera and Texas Instruments. Luckily, during both events no major life was lost and now the manufacturers are all bouncing back.

source: Bloomberg