Intel's Net Plunges as Demand Dries Up

Intel Corp.'s fourth-quarter profit plunged 90% and the semiconductor giant predicted even weaker conditions ahead, the latest evidence that the recession is rocking all segments of the high-tech sector.

Intel's report, which serves as a leading indicator of consumer and business spending on technology, kicks off what investors expect to be a parade of dismal technology earnings reports.

Slumping demand and shrinking profits, which triggered layoffs last year at struggling Silicon Valley companies such as Yahoo Inc., Applied Materials Inc. and Sun Microsystems Inc., have recently spread to companies with strong positions in healthier markets.

Big tech companies, including Oracle ...