Market Buzzkill: Chips

Chips performed poorly again on Wednesday as investors worried that the weak economy could translate into a pronounced slowdown in PC sales.

Earlier in the week Barclays downgraded shares of chip goliath Intel to ‘Equal Weight’ from ‘Overweight’ and Baird downgraded the stock to 'Neutral' citing “a sharp deterioration in PC-related order trends."

Adding to the headwinds, J.P. Morgan analyst Christopher Danely said in a research note that checks with Taiwanese chip suppliers showed a downturn in orders, indicating that deals for personal computers are "falling off a cliff."

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Trader disclosure: On Aug 11, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (AKAM), (BAX), (FCX), (MOS), (PFE), (SU), (XBI); Terranova owns (GLD) Calls; Adami owns (AGU), (BTU),. (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman and Finerman’s Firm owns (BAC); Finerman and Finerman’s Firm owns (JPM); Finerman & Finerman's firm owns (RIMM); Finerman owns (AAPL); Finerman's firm owns (ARM); Finerman’s firm owns (BBY); Finerman's firm owns (LEA); Finerman’s firm owns (KFT); Finerman’s firm owns (TSX); Finerman’s firm owns (GYMB); Finerman’s firm owns (PLCE); Finerman's firm owns (WMT); Finerman's firm owns (DAN); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Jon Najarian owns (AKAM) short calls

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