Chip Equipment Makers Tumble On Altera Warning

Semiconductor capital equipment makers were tumbling in preopen action this morning on the heels of a warning from

Altera

(ALTR) - Get Report

last night.

Altera said it expects fourth quarter growth to be at the low end of earlier estimates provided in October of 12% to 15% growth.

The company was hit by bearish comments this morning.

Credit Suisse First Boston

, for one, said it thinks Altera and its primary competitor,

Xilinx

(XLNX) - Get Report

, "will likely come under pressure given this news."

Altera also said in a release on its website that its resales for the month of October were "slightly below management expectations."