Shares of Intel (INTC) on Friday plunged over 16% after a delay in the launch of its next-generation chips triggered rating downgrades by several analysts. During its 2Q conference call, Intel announced that its 7-nanometer chips will be available for sale by the end of 2022 or early 2023. The new time frame is almost a year behind its previous schedule.
Bernstein analyst Stacy Rasgon downgraded the stock to Sell from Hold stating that the company’s conference call was the “worst we have seen in our career.” The analyst further added, “from here we see things growing increasingly painful as 7 nanometer delays are likely to overshadow anything good they can put forth”.
Northland Capital Markets analyst Gus Richard cut Intel to Sell from Hold. Moreover, Blayne Curtis of Barclays and investment research from Exane BNP Paribas also downgraded the stock to Sell or equivalent ratings.
Deutsche Bank analyst Ross Seymore said the delay “will foster fears of competitive pressures persisting, if not accelerating over the next 2-3 years and thereby cap the valuation on its shares.” He cut the rating from Buy to Hold.
Overall, the majority of Wall Street analysts are sidelined on the stock with a Hold analyst consensus. INTC has lost 15.5% of its value so far this year. Looking ahead, the analysts’ average price target of $57.52 implies 14% upside potential in the coming 12 months. (See Intel’s stock analysis on TipRanks).
Related News:
Apple Drops 4.6% After Bearish Comments From One Top Analyst
Kohl’s Drops 4% on UBS Downgrade
Xerox Drops 7% As JPMorgan Cuts Stock To Sell
