Out-Law News

European high-tech shares suffer aftershock of Intel profits warning


European technology stocks suffered in early trading this morning following the announcement by Intel that it was significantly cutting its third quarter revenue forecast, citing low demand in Europe, possibly due to high oil prices and a weak Euro.

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.

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