Bank of America Downgrades Intel, Says “Biggest Risk” Remains Unresolved

Megalith

Megalith

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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.

"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.
 
Intel is still considered a good buy by most ratings. I'm not buying any more but I am going to hold on to what I've got. They're a decent dividend paying stock and won't be going anywhere anytime soon so it's worth holding on to for a long time.

I don't see anybody leapfrogging Intel honestly. They were so far ahead of everybody else for so long and got complacent but I don't doubt they'll be back on top eventually.
 
MacLeod said:
Intel is still considered a good buy by most ratings. I'm not buying any more but I am going to hold on to what I've got. They're a decent dividend paying stock and won't be going anywhere anytime soon so it's worth holding on to for a long time.

I don't see anybody leapfrogging Intel honestly. They were so far ahead of everybody else for so long and got complacent but I don't doubt they'll be back on top eventually.
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"Back on top"? They are still on top by a wide margin. Here they try to convince you otherwise though.

They are having manufacturing issues. Until they resolve those they are going to have a lower rating because it's all based on speculation (as I'm sure you know) and manufacturing issues and delays aren't the greatest for future gains in the eyes of the investors.
 
haste. said:
"Back on top"? They are still on top by a wide margin. Here they try to convince you otherwise though.

They are having manufacturing issues. Until they resolve those they are going to have a lower rating because it's all based on speculation (as I'm sure you know) and manufacturing issues and delays aren't the greatest for future gains in the eyes of the investors.
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By "back on top" I mean to where they're not having delays like this, they don't have AMD and Nvidia nipping at their heels and they're not being downgraded to a neutral/hold rating. Kinda like they were a couple years ago.

I believe they're being hit right now because of their complacency due to being head and shoulders above everybody else for so long. Ryzen caught them with their pants down and it's going to take them a minute to recover but I have no doubt they will. They're a bigger company than AMD and Nvidia put together and once that massive machine starts rolling again, they'll be fine and so will their stock.
 
haste. said:
"[...]based on speculation[...]"
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MacLeod said:
Intel is still considered a good buy by most ratings. I'm not buying any more but I am going to hold on to what I've got. They're a decent dividend paying stock and won't be going anywhere anytime soon so it's worth holding on to for a long time.

I don't see anybody leapfrogging Intel honestly. They were so far ahead of everybody else for so long and got complacent but I don't doubt they'll be back on top eventually.
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One word. Netburst.
 
Which part of: Intel's CEO, with access to the most vital secrets, sold all the stocks he could. He knew neither he, his team, or anyone else at Intel had any viable long term plan. We're probably waiting for another shoe to drop besides Spectre/Meltdown and 10nm.

End of 2019, doesn't that kinda dictate that they don't even have a working product yet. It's their guess on when they'll have a working product to actually verify and share with partners and actually build in mass.
 
whatevs said:
Which part of: Intel's CEO, with access to the most vital secrets, sold all the stocks he could.
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I'm still impressed he did that before announcing Spectre / Meltdown publicly and there's no legal ramifications of that. We're in a new age.
 
I believe that Merrel Lynch is the main downgrade, they cost me a small fortune in 2008 when my sell order took them 3 days.
 
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