Intel (Nasdaq: INTC), the No. 1 chipmaker, warned third-quarter sales would be far below prior estimates, chopping as much as $600 million from predictions.

The Santa Clara, Calif., chipmaker said revenue will likely be around $13.2 billion, rather than in the range between $13.8 billion to $14.8 billion. Intel said revenue could be as much as $300 million lower or higher than the new target.

The surprise news sent Intel shares down 75  cents, or more than 3  percent, to $24.34 in early Friday trading.