Stockwatch Daily: Tech massacre continues

The chips get it in the neck...

Cut-throat competition in the chip sector has claimed more victims today. AMD has warned that profits will be $10.2m in stark contrast to the expected $92m. Its share price slumped more than 16 per cent in after hours trading. Arc International, a UK chip design company also took a beating, dipping 22 per cent into the red on the back of news that its Q2 losses have widened. Other warnings include profit shortfalls from BMC Software and storage giant EMC. Nasdaq's negative close, which saw the tech-laden index lose 2.8 per cent, has effected European bourses across the board this morning. The FTSE TechMark lost 2.5 per cent during early trading, while in Germany the Neuer Markt lost 4.6 per cent. The FTSE100 was off by 0.94 per cent.