Intel (INTC -1.6%) has gradually sold off after QLogic, whose Fibre Channel and Ethernet adapter cards and controllers go into plenty of servers powered by Intel Xeon CPUs, issued a major calendar Q2 sales warning.
Avago is also off, as are Mellanox/Brocade and IDT (IDTI -7.1%). IDT received 45% of its calendar Q1 revenue from HPC/data center chip sales.
QLogic blamed its warning on soft enterprise server/storage demand, along with high OEM inventories caused by a "slower next-generation server transition in enterprise environments." The latter is an apparent reference to Intel's Grantley (Xeon E5 V3) platform.