Intel Drags on Semiconductor ETFs | Page 2 of 2 | ETF Trends

“The setup is for Advanced Micro Devices to control both the architectural and process node aspects of the x86 [processor]market for years to come; a dynamic we have never seen before and structurally destructive for Intel’s business model. We reiterate our Sell rating,” Rosenblatt Securities wrote in a note on Friday, adding that Intel could lose its “near monopolistic position in CPUs that allowed for increased ASPs.”

Intel’s Production Goals

Fueling the more pessimistic outlook, Intel has struggled to maintain timely production goals on next-generation chip. The company said its next lineup will arrive in the second half of next year after hinting at the large-scale release of 10-nanometer chips for years.

Due to its less dazzling outlook, Bank of America also downgraded Intel to “neutral” from “buy” as analysts warned that the “biggest risk” remain unresolved, according to CNBC.

“The biggest risk to Intel is the year delay in shipments of its next-gen 10 [nanometer]product while rivals Taiwan Semiconductor have finally caught up and are enabling Advanced Micro Devices, Nvidia and Xilinx to potentially leapfrog,” Bank of America analysts wrote.

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