Meanwhile, BMO Capital Markets downgraded the stock to market perform from outperform, citing the unimpressive outlook. The analyst is of the view that the company could lose market share to Advanced Micro Devices (AMD), especially once the latter’s server products start hitting the market. The analyst also slashed the price target to $50 from $68.
BMO Capital Markets downgraded the stock to market perform from outperform, citing the unimpressive outlook
Market watchers, in general, are of the view that long-term strain on margins will be harmful to the company and its stock, especially when the slowdown persists for long periods.
Intel is currently on the path of a technological transition as it faces stiff competition in the non-PC segments, and the revival process requires high investment. The existing 14-nanometer microchips are being replaced with the 10-nanometer and 7-nanometer versions as smaller chips ensure faster processor speed and higher energy-efficiency.
While reporting stronger than expected first-quarter results last week, Intel had issued full-year guidance below the consensus estimate. The tech firm seeks to overcome the situation with a stronger product portfolio and competitive pricing.
The downturn that began following Wednesday’s outlook statement continued Thursday and Intel shares traded down 4% in the afternoon. The stock lost around 14% in the past twelve months.