Intel's 'historic collapse' triggers selloff in chip stocks

Five of the biggest U.S. chipmakers were set to erase nearly US$15 billion in market value on Friday after Intel Corp. stumped Wall Street with dismal earnings projections, fanning fears around a slump in the personal-computer market.

The company predicted a surprise loss for the first quarter and its revenue forecast was $3 billion below estimates as it also struggled with slowing growth in the data centre business.

Intel shares fell10 per cent before the bell, with rival Advanced Micro Devices, Nvidia, Applied Materials and Qualcomm losing between 0.8 per cent and 3.2 per cent. Intel supplier KLA Corp. fell five per cent after its own dismal forecast. Reuters