Shares in Intel, the world’s biggest chipmaker, plunged more more than 10 per cent on Wednesday after its cautious outlook for 2008 fuelled Wall Street’s fears of a recession.

Intel forecast first-quarter revenues in a range of $9.4bn to $10bn, with a midpoint of $9.7bn – below analysts’ expectations of $10bn. Its shares were down 11.7 per cent at $20.04 in midday trading in New York.