Some of the biggest technology names are suffering because of the shift to mobile computing from traditional PC-based systems.
Intel’s shares tumbled after the world’s largest maker of microchips for PCs cut its full-year revenue forecast based on flat sales.
It reported a 29 percent drop in second quarter profit and plans to reducing capital spending.
Its problems are rooted in softer personal computer sales and weakness in China, one of its biggest markets.
At the same time IBM’s announced second-quarter earnings that were down 17 percent, but they were still better than investors had been expecting.
A big reason for the fall was the cost of layoffs as it cuts 3,300 workers.
In addition the giant computer, software and services provider did raise its profit outlook for the full year.
IBM has coped better with falling demand in a slumping economy and is refocusing its business on software – particularly data analysis and cloud computing.