Shares of Advanced Micro Devices Inc fell as much as 9 percent in early trading after the chipmaker slashed its sales outlook, prompting a slew of brokerages to cut their price targets on the stock.

AMD and other chipmakers are grappling with slowing demand, as consumers shift to mobile devices and economic growth weakens in Europe and emerging markets.

Chip gear maker Applied Materials Inc also cut its full-year sales outlook on Tuesday morning, sending its shares down 6 percent on the Nasdaq.

The companies joined software firms Qlik Technologies Inc and Informatica Corp in issuing estimates below market forecasts - an early indication of potentially weak results from tech companies this earnings season.

AMD said on Monday second-quarter revenue may slide 11 percent from the first quarter, reflecting disappointing sales in Europe and China.

The company, which faces competition from Intel Corp's newest personal computer chip -- code-named Ivy Bridge -- will likely remain under pressure due to its low market share and Intel's superior products, J.P. Morgan said in a client note.