The Channel logo

News

By | Charlie Taylor 4th October 2007 14:48

Intel shares drop on price war warning

AMD's stock declines too

Shares in a number of leading chip makers have slumped after Morgan Stanley warned investors about a possible price war in the sector.

Intel shares fell by $0.57 or 2.2 per cent to $25.81 in US trading on Wednesday following the publication of a Morgan Stanley report from analyst Mark Lipacis advised investors to sell stock in both Intel and its main competitor Advanced Micro Devices (AMD).

AMD's stock declined by 3 per cent during late trading on Wall Street but later rallied to close virtually unchanged at $13.23.

In its investor briefing earlier this week, Morgan Stanley said an oversupply of chips could lead to a price war between Intel and AMD if they opt to cut prices.

Micron Technology also saw its share price slump in the US on the back of Morgan Stanley's report and following its announcement of a fourth quarter loss of $158m, or $0.21 a share on Wednesday. Shares in Micron closed at $10.74, down $1.05, the firm's worst decline in a year.

Morgan Stanley's recommendation saw Intel, AMD and Nvidia all seeing a fall in share price in Europe and Asia.

Other firms associated with the chip sector have also been hit hard. Ibiden, a circuit board manufacturer and Intel supplier saw its shares fall by 3.4 per cent in trading in Japan overnight. A large number of other hi-tech companies operating in other sectors have also been affected; Intel's performance is widely viewed as indicative of the technology sector's health in general.

© 2007 ENN

alert Send corrections

Opinion

Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world