News Burst: Gloomy future shaves 5.5% off Intel shares

Intel's shares dropped 5.5 percent last night as rumours circulated about a possible warning before the chip manufacturer's second-quarter earnings.

The rumours have been fuelled by fears of an imminent slump in the PC market.

Intel's shares fell $3.32 to $56.93, a 52-week low. Analysts point to the boom in sub $1000 PCs and increasing competition from AMD and Cyrix.