Citigroup reduced its 2006 and 2007 earnings` estimates for chip makers Intel Corp. (INTC) and Advanced Micro Devices Inc. (AMD), citing concerns about the second-quarter microprocessor pricing environment.

The broker cut AMD`s 2006 earnings estimates to $1.14 from $1.28 a share and 2007 forecasts to $1.42 from $1.56 a share. It also reduced its price target to $33 from $42.

Citigroup lowered Intel`s 2006 earnings estimates to 77 cents from 86 cents a share and 2007 forecasts to 97 cents from $1.01 a share. It left its price target unchanged at $21.

-Aude Lagorce; 415-439-6400; AskNewswires@dowjones.com