New Intel (NASDAQ: INTC) Rating Downgraded to Neutral by New Street Research, Price Target at $27 - AMD (NASDAQ: AMD) Gains Market Share
New Street Research has downgraded Intel Corporation (NASDAQ: INTC) from Buy to Neutral, with a price target of $27.00. The firm expressed concerns over Intel's performance and market competition, particularly from AMD (NASDAQ: AMD).
AMD's market share in PCs is expected to rise above 20% and exceed 40% in servers by the fourth quarter, posing a significant challenge to Intel. Despite new product shipments, Intel's position may weaken further due to strong competition.
Intel's key rival, AMD, reported robust Q2 results with a 9% year-over-year revenue increase, reaching $5.8 billion. The company's data center segment saw revenue surge by 115% to a record $2.8 billion, receiving a reiterated Buy rating from Benchmark.
In light of Intel's downgrade and AMD's performance, InvestingPro offers insights into AMD's financial health and market performance. With a market capitalization of $214.51 billion and high earnings multiple, AMD's revenue growth and gross profit margin showcase its financial resilience.
InvestingPro Tips suggest that AMD is expected to see net income growth this year, positioning it as a prominent player in the semiconductors industry. Readers can access detailed analysis on AMD's financials and market performance on InvestingPro for a comprehensive understanding of the competitive landscape.
