Infineon Technologies AG, Europe's second-biggest semiconductor maker, dropped to its lowest in four-and-a-half years after analysts cut price targets amid widening losses at the German company.
Shares of Infineon dropped as much as 0.78 euro, or 8.6 percent, to 8.32 euros -- the biggest decline since March 2003. They traded at 8.41 euros as of 12:08pm in Frankfurt trading.
Infineon said on Wednesday its net loss widened to 280 million euros (US$408.6 million) in the quarter ended Sept. 30 from 36 million euros a year earlier after prices at its memory-chip unit Qimonda AG slumped.
"Qimonda will continue to drag on Infineon," Jerome Ramel, an analyst with Exane BNP Paribas in Paris, said in a research note yesterday.
Ramel rates Infineon "underperform" and cut his price target by 25 percent to 7.70 euros.
Goldman Sachs also reduced its price target for Infineon to 12 euros from 13.50 euros.
Infineon completed an initial public offering of Qimonda in August last year to reduce its dependence on markets with volatile demand and prices.
The Munich-based company now focuses on custom-made chips for mobile phones, credit cards and cars.