Tuesday's Tech Winners & Losers

Updated from 2:28 p.m. EST with new stock prices

Tech stocks tumbled Tuesday as the major indices slipped into the red after data showed the services sector contracted in January for the first time in five years, giving rise to fears of an economic slowdown.

SiRF Technology(SIRF - Cramer's Take - Stockpickr), which makes chips used in GPS devices, fell $8.91, or 54.8%, to $7.36 after the company saw profit fall 92% in the fourth quarter and offered guidance that was below the Street's expectations.

In the fourth quarter, net income was $717,000, or a penny a share, vs. $9.1 million, or 16 cents a share, a year ago. The results included about $7 million in acquisition-related charges.

Excluding charges, SiRF earned 28 cents a share, 4 cents lower than analysts' expectation of 32 cents. The company forecast a first-quarter loss of 4 cents a share on revenue of $71 million to $77 million. Analysts were expecting earnings of 24 cents a share on revenue of $92.4 million.

Navigational devices maker Garmin(GRMN - Cramer's Take - Stockpickr) fell $5.88, or 8.4%, to $63.78 as analysts feared SiRF's weak results could mean lower demand for GPS devices in the next few months.

Chipmaker Intel(INTC - Cramer's Take - Stockpickr) fell 95 cents, or 4.5%, to $20.12, a day after an analyst at American Technology Research removed the company from his investment focus list on the belief that the risk-reward ratio is more balanced at the stock's current levels.

Shares of AMD(AMD - Cramer's Take - Stockpickr) sank 71 cents, or 9%, to $7.21 following Nvidia's purchase of Ageia Technologies, a company that makes physics technology for video game development.

The move has a negative impact on AMD because it "faces the possibility of being shut out of leading-edge physics applications," said an analyst at BMO Capital Markets in a research note.

"It is likely either AMD will be left out in the cold, or locate and acquire its own physics vendor, or adopt technology not likely optimized for AMD graphics platforms," the analyst wrote.

Nvidia(NVDA - Cramer's Take - Stockpickr) was also down $1.63, or 6.3%, to $24.39.

Motorola(MOT - Cramer's Take - Stockpickr) continued to fall, a day after it was downgraded to sell from neutral by American Technology Research following reports that the company might sell its cell phone business. Shares of Motorola were off 71 cents, or 5.8%, to $11.51.