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Semiconductor bellwether Intel (INTC) - Get Intel Corporation Report was down 10.6% in preopen Island trading. CNBC reported that Morgan Stanley Dean Witter downgraded the stock.

Other chip stocks were also lower in the preopen.

Rambus

(RMBS) - Get Rambus Inc. Report

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was off 6.8% and

Applied Micro Circuit

(AMCC)

was down 5%.