Wells Fargo downgrades Intel on weak 2019 demand, AMD competition

on Apr6
by | Comments Off on Wells Fargo downgrades Intel on weak 2019 demand, AMD competition |

An attendee wears a Genius VR headset at the Intel booth during CES 2019 consumer electronics show, January 10, 2019 at the Las Vegas Convention Center in Las Vegas, Nevada.

Robyn Beck | AFP | Getty Images

An attendee wears a Genius VR headset at the Intel booth during CES 2019 consumer electronics show, January 10, 2019 at the Las Vegas Convention Center in Las Vegas, Nevada.

Wells Fargo lowered its rating of Intel shares to market perform from outperform on Friday, citing weakening 2019 demand coupled with rising competition from Advanced Micro Devices.

“Weak semi demand data points thus far in 2019, coupled with an expectation of cautious outlooks into [the second quarter of 2019], leave us to consider some downside risk” to estimates for the first half of the year for Intel shares, Wells Fargo analyst Aaron Rakers wrote in a note to investors.

Wells Fargo is taking “a more cautious view” on demand for semiconductors ahead of first-quarter earnings, Rakers said. He added that Intel has especially “tough” sales numbers to hit this year.

“Investor sentiment could become more tempered amid increasing visibility into AMD share gain momentum,” Rakers said.

AMD’s line of 7 nanometer processors “are competitively well-positioned” to Intel’s coming 10 nanometer chips.

Intel shares slipped 1.6% Friday morning from Thursday’s close of $55.92 a share. Wells Fargo has a $60 price target on the stock, up from $55 a share previously.



Previous postYelp Posts Top 100 Places to Eat Next postTrump Says Fed Should Cut Rates and Lift Economy


Los Angeles Financial times


Copyright © 2021 Los Angeles Financial times

Updates via RSS
or Email