22 Sep 2000, 12:00 am
The share price of the world’s largest chip maker yesterday fell 21% on Nasdaq. On Thursday, concerns over European demand had already hit the US share prices of Dell and Compaq, each losing about 10% in value, and Gateway, which fell by 14%. The profits warning from Intel caused high-tech shares to fall in Europe.
In Amsterdam, the share price of Philips dropped by nearly 12% and ASML, a Dutch semiconductor equipment manufacturer, fell by 10%. UK chip designer Arm Holdings lost about 9% and fibre optics company Bookham lost 8%. Other companies affected included Infineon, Ericsson, Nokia and Vodafone.
Intel’s performance is seen as a bellwether for the high-tech industry. When US trading begins today, it is expected that high-tech stocks will fall further.