The forecast from one of the largest suppliers of PC chips weighed on Nvidia, Advanced Micro Devices, Qualcomm and Micron Technology, which fell between 0.6% and 1.7%.
The chipmaker was set to increase its market value by more than $10 billion, if gains hold. Other chip firms such as AMD , Nvidia and Arm rose 1% to 2%.
Intel continues to underperform its rivals and is set to report another quarter of lower sales and earnings. We look at how Intel shares could respond to the upcoming results.