System Crash

The eight-month rally in technology stocks hit a wall on May 30. IBM fell big. Microsoft fell bigger. Biggest of all: Semiconductor giant Intel, which dropped 53/8, to 1101/2, after a 90% runup since Christmas. Why the carnage? "Summer has traditionally been the time demand tends to slow down," says Sanford C. Bernstein analyst Vadim Zlotnikov. And investors fear that shortages of CD-ROMs, memory, and monitors could keep prices high for personal computers and chips.

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