Shares in Intel Corporation, the world's largest microchip maker, fell almost 19 per cent today, the day after the company lowered its revenue guidance for the second quarter beyond any investor expectations.
Wall Street analysts reacted to the new guidance quickly, with brokerages lowering either their ratings, earnings estimates or price targets on the Santa Clara, California, company.
Shares of Intel fell US$5.05, or 18.7 per cent, to US$21.95 on the Nasdaq this morning.
Intel's revised outlook dimmed hopes for a recovery in the beleaguered technology industry any time soon, causing a decline in the broader market.
Mr Andy Bryant, Intel's chief financial officer, said yesterday that demand from corporate customers hasn't picked up. There have been expectations for a rebound in demand in the second half of the year, but it is now clear any such recovery will be labored, analysts said.
Analysts expected the company to post a second-quarter, profit of 15 cents a share, with a range of 14 cents to 17 cents, on revenue of $6.67 billion, according to research firm Thomson First Call.