Bank of America downgrades Intel, says ‘biggest risk’ remains unresolved

As tech giants race against the clock to fix major security flaws in microprocessors, many users are wondering what lurks behind unsettling names like 'Spectre' or 'Meltdown' as well as also what can be done about This specific latest This specific scare.

Thomas Samson | AFP | Getty Images

As tech giants race against the clock to fix major security flaws in microprocessors, many users are wondering what lurks behind unsettling names like ‘Spectre’ or ‘Meltdown’ as well as also what can be done about This specific latest This specific scare.

Bank of America Merrill Lynch downgraded shares of Intel on Friday to “neutral” by “buy” after second-quarter results left what the firm’s analysts call the chipmaker’s “biggest risk” unresolved.

Intel’s earnings revealed of which its 10-nanometer chip production process would likely arrive inside second half of next year, meaning its next generations products would likely be delayed a year, arriving in by the holiday season of 2019. Intel has been facing pressure by competitors as Intel seeks to get to these products as soon as possible.

“The biggest risk to Intel is actually the year delay in shipments of its next-gen 10 [nanometer] product while rivals Taiwan Semiconductor have finally caught up as well as also are enabling Advanced Micro Devices, Nvidia as well as also Xilinx to potentially leapfrog,” Bank of America analysts wrote.

Shares of Intel fell over 6 percent by Thursday’s close of $52.16 per share in premarket trading. Bank of America lowered its cost target to $56 per share by its previous goal of $62 per share.

The core numbers will take a back seat to the technical issues as well as also leadership shuffle for right now, Bernstein analysts led by Stacy Rasgon said in a Friday note.

“The headline risk around delays is actually unlikely to change quickly as well as also could remain an overhang,” Bank of America wrote.

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