Intel shares closed above 10% on Friday, a day after the company’s third quarter results revealed new weakness in its business data center and reaffirmed the delay in its latest generation chips
Intel’s data center group, which derives its revenue from businesses and government customers, reported a 7% drop in revenue in the quarter Overall, Intel revenue over for the quarter ended September 26 were down 4% on an annualized basis
Bank of America downgraded Intel stock Friday to underperforming neutrality on Friday, highlighting uncertainty surrounding the company’s new chips and the lack of a plan to resolve or update its manufacturing challenges
Intel announced in July that it had postponed its 7 nanoscale processors until 2022 for computers and the following year for servers The company could begin to rely on other companies to manufacture its chips
« We have the decision to make the decision to build this next generation of products on Intel’s manufacturing footprint, on the third-party manufacturing footprint, or a combination of both. We have designed our products to have the flexibility inherent in making those decisions over time, « Intel CEO Bob Swan told CNBC’s » Squawk Alley « »
« The result could be years of uncertainty, with customers moving at a minimum more shares to AMD to mitigate risk, and increasingly for a more compelling price / performance / features list, » said Friday Bank of America analysts
Shares of competing chipmaker AMD, which already sells 7-nanometer chips for PCs and graphics cards, rose 3% At Friday’s close, the company’s shares were up more than 78% since the beginning of the year
Data is a real-time snapshot * Data is delayed by at least 15 minutes Global business and financial news, stock quotes and market data and analysis
Intel Stock
World News – CA – Intel Stock Closes Over 10% After Poor Data Center Results and Chip Lag
