Intel is warning of an uncertain fourth quarter following the US terror attacks and military action in Afghanistan.
The company says efforts by the US government to stabilise the American economy may not be enough.
Last week, Intel said it was pulling out of electronic gadgets because of the slowing global economy.
Mr Jason Chen, vice president of Intel's sales and marketing group, says: "We have seen the US government take measures to help revive consumer confidence, such as further rate cuts. Whether such measures can effectively offset the negative impact from recent events remains to be seen.
"We can say that the recent developments set in after Intel saw a definite business upturn in the third quarter while compared with the second."
Intel's architecture group vice president Mr Anand Chandrasekher says the company is confident that the fundamentals of growth remain strong.
He says the relatively weak demand for new computers due to the economic slowdown this year looks poised to pick up next year.
He says PCs will be replaced to keep companies competitive.
PA