Intel downgraded at Erste over increased competition from AMD
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2 months ago
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- Intel (NASDAQ:INTC) was in the spotlight on Thursday as research firm Erste downgraded the semiconductor giant, citing increased competition from AMD (NASDAQ:AMD).
- Intel shares fell almost 1% in premarket trading.
- AMD’s CPUs have become very competitive compared to Intel’s offerings, as the Dr. Lisa Su-led AMD has made progress in both hardware and software milestones, Erste analysts said. Additionally, they pointed to increased demand for its artificial intelligence GPUs in data centers, namely the MI300x.
- AMD raised its annual outlook for AI-related revenue in July when it reported second quarter results.
- Additionally, Intel’s valuation compared to its estimated 2024 earnings is higher than that of its peer group, especially Nvidia (NVDA), which suggests any upside potential in Intel is “limited” at the present time, the analysts added.
- Analysts are exceedingly cautious on Intel (INTC). It has a HOLD rating from Seeking Alpha authors, while Wall Street analysts rate it a HOLD. Conversely, Seeking Alpha’s quant system, which consistently beats the market, rates INTC a HOLD.