Global Crisis Batters Chip Stocks

Chip stocks fell down another rung Monday, as a slew of Wall Street reports warned of worsening business conditions.

With one week to go until semiconductor firms begin reporting third-quarter financial results, and the financial crisis showing no signs of abating in the wake of the $700 billion U.S. rescue package, analysts said that expectations for chip companies are too high.

In a note to investors Monday, Citigroup chip analysts Craig Ellis cited "snowballing signs of softness" and wrote that chip orders are "freezing up." ...