Intel, the world's largest chipmaker, fell about 11 per cent in midday trading yesterday, continuing its recent decline. The latest fall was triggered by analyst concerns about falling microprocessor prices and general PC market weakness.

Intel shares were down $4.63 at $35.75 (€42.14) on heavy volume, compared with a high this year of $75.825, reached on August 24th. This translates into a more than 50 per cent fall in market capitalisation to about $260 billion.

The company will report its third-quarter results today, following a revenue warning two weeks ago. Intel's fall hit the Nasdaq, which fell over 1 per cent, or 40.41 points, to 3,237.36.

Analysts are concerned that Intel has been unable to maintain microprocessor prices because an expected rebound in PC sales has so far failed to materialise. Prices of Intel microprocessors have also fallen significantly on the "grey" market, forcing it to bring forward a price cut from October 29th to yesterday.