Shares in chip maker Intel fell sharply on Wall Street last night after US investment bank Morgan Stanley said it expected a price war in the sector.
Intel, which employs more than 5,000 people in Ireland, recently said it would make up to 200 people at its Leixlip plant redundant by the end of the year due to competitive challenges it was facing in the global marketplace.
The Morgan Stanley report warned that Intel had too much stock, which would lead to an oversupply of computer chips on the world market. The report told investors to reduce their holdings of Intel shares.
Intel's shares fell 2% to $25.81 on Wall Street, and had a knock-on effect on other technology shares.
