Intel said that it now expects third-quarter revenue to be below the company's previous outlook "as a result of weaker than expected demand in a challenging macroeconomic environment."

The company now expects third-quarter revenue to be US$13.2 billion, plus or minus $300 million, compared to the previous expectation of $13.8 billion to $14.8 billion.

The company said in a statement that it is is seeing customers reducing inventory in the supply chain compared to the normal growth in third-quarter inventory; softness in the enterprise PC market segment; and slowing emerging market demand.

"We believe there could be headwinds for AMD-NVDA," said Sterne Agee analyst Vijay Rakesh in a research note. " As we had noted in our prior notes on the PC space and INTC, (there are) multiple challenges in the PC space."

Intel closed Friday at $24.18, down by $0.91; Advanced Micro Devices closed down by $0.20 at $3.46; and Nvidia closed down by $0.33 at $13.40.