Intel shares were down 8.6% on Friday as fears of product delays and increased competition gripped investors. The chipmaker fell to a low intraday of $47.78 after opening at $48.76, but recovered somewhat by the end of the day to finish down just $1.08 after being down as low as $1.28.
Despite reporting strong revenue and earnings for the second quarter on Thursday, a number of analysts expressed worry over Intel’s competition from Advanced Micro Devices. In addition, delays in its latest microchips, that have plagued Intel for month, were not helping as well.
Shares of AMD surged on Thursday by 14% after it reported revenue and earnings that impressed analysts on Wall Street.
It is expected that AMD can control both the process and architectural node aspects of the processor market for many years ahead, which is a dynamic that has not been seen prior to now and structurally destructive for the business model of Intel, said one analyst.
He added that Intel could be losing its monopolistic position it holds in CPUs.
Intel has struggled to keep its production timeline goals for next generation chips. In its release of earnings Intel revealed that the company’s production of its 10-nanometer chip would arrive during the second six months of 2019, meaning that the company’s next generation products would arrive prior to the 2019 holiday shopping season. Intel teased about the release on a large scale for years of its 10-nanometer chips. It has promises they would deliver better performance but with less power usage than chips that were built with the 14-nanometer technology of the company.
Intel’s shares were downgraded on Friday by Bank of America from buy to neutral, calling the chip delays the biggest risk Intel has.
Even while Intel is struggling with its production of the 10-nanometer chip, AMD said in early July that it was planning to start production of its next-generation chip production for the 7-nanometer chips during the latter part of 2019.