Analyst Charles Boucher at Bear, Stearns & Co said personal computer demand remains sluggish and corporate spending unlikely to improve. He lowered his earnings estimates for Intel for this year and next.
Mark Fitzgerald at Banc of America Securities said a recovery at semiconductor-equipment makers will be slow as chipmakers reduce spending.
Marvell Technology Group Ltd bucked the trend in chip stocks, gaining US$3.23, or 17 percent, to US$22.21. The maker of semiconductors used to boost the speed of network connections reported quarterly profit and sales that beat forecasts.
General Motors Corp dropped US$1.40 to US$47.92. Auto dealers said the biggest carmaker plans to end its no-interest car loans Sept. 3 because the program has cleared out most of this year's cars and trucks.
Cisco Systems Inc, the biggest maker of networking gear, lost US$0.65 to US$14.45.
RSS