Sunday July 29, 2018

Bank of America Downgrades Intel, Says "Biggest Risk" Remains Unresolved

Bank of America Merrill Lynch has downgraded shares of Intel to "neutral" from "buy." The main reason for this is the delay in the company’s 10-nanometer chip production process; its next-generation products are not expected to arrive until the holiday season of 2019.

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"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. Shares of Intel fell over 6 percent from Thursday's close of $52.16 per share in premarket trading.