Tech stocks continued to tumble Wednesday, with chip companies trading lower as a result of
reporting a slowdown in cell phone upgrades.
was down 0.8% to 2332.
Qualcomm fell 3.2% to $49.51 after Chief Executive Paul Jacobs told CNBC on Wednesday that customers have been holding onto their cell phones longer than in the past instead of upgrading to a new device.
That sent a ripple effect through the chip sector, with shares of
sinking 3.8% to $23.50 in afternoon trading.
were also down 4.5% to $23.36 while
Research In Motion
declined 2.6% to $115.26.
was down more than 10% to $17.48 after the company
slashed its third-quarter guidance Wednesday, saying a longer-than-expected supply chain correction forced it to reduce its estimates.
Advanced Micro Devices
saw its stock slip 2.1% to $6.21 despite Jefferies raising the chipmaker's price target to $7 from $6 and forecasting a narrower full-year loss of $1.60 a share vs. its previous estimate of $1.70 a share.
Friedman, Billings, Ramsey lowered its rating for
to underperform from market perform, sending the stock down 3.1% to $38.56. The firm expects McAfee to face greater challenges in the next six to 12 months due to increased competition, tighter information technology budgets and weak consumer spending.
Friedman also cut its price target for
to $26 from $33, citing waning confidence in the company's ability to meet estimates.
Shares of Akamai fell 5.6% to $20.61.