Intel’s golden years have come to an end. Although yesterday the company revealed robust earnings from the second quarter of 2020, announcing that its crucial manufacturing process @ 7nm has been delayed has been devastating, and right now the company has huge bleeding open looking at the value of their shares are falling by as much as 16.17 per story.
This reduction was linked to market analysts such as Ross Seymore, an analyst at Deutsche Bank, downgrading the bank to “Hold from Buy”, while Mizuho Americas analyst Siti Panigrahi joins Seymore and other analysts to lower the target price of Intel stock. The analyst also claims the obvious by informing investors in a research note that the 7nm lag is positive for the prospects for AMD’s product roadmap and also carries the potential to affect the Taiwanese semiconductor manufacturing company. TSMC due to a “contingency” signaled by Intel that will seek to outsource its 7nm manufacturing process.
Bank of America (BofA) analyst Vivek Arya believes the delay casts doubt on Intel’s ability to compete in the long term, as the company is still faltering with its 10nm manufacturing process. The new BofA price target for Intel is $ 62 a share, reduced from a previous price target of $ 70 a share. UBS analyst Timothy Arcuri, while lowering Intel’s price target to $ 64 from that same $ 70, maintains a positive outlook for the company due to his belief that the delay in Intel’s 7nm will increase market penetration. from the “external foundries”.
Barclays analyst Blane Curti s downgrades Intel’s Overweight Rating and lowers the bank’s target price by 17% to $ 48 / share. He believes that Intel’s decision to delay 7nm again longer than expected will make gross margins lower and allow the company to release 10nm products with lower margins. The analyst also reiterates Mizuho’s belief that the 7nm delay will benefit AMD, which will continue to eat up Intel’s market share.
If we stop talking about analysts, what we know is that Intel shares have already devalued 16.67 percent, which makes each share cost at the time of writing $ 50.64, while yesterday they cost $60.40.