Intel slumps after two analysts pan shares

theflyonthewall.com

Shares of Intel (INTC) are falling after two analysts issued negative notes about the company earlier today. WHAT'S NEW: JMP Securities analyst Alex Gauna downgraded Intel to Market Perform from Market Outperform. The chip maker is having technological difficulties with its new Haswell architecture and will not implement its planned power management scheme for the chips, Gauna reported. As a result, the company may have to delay launching Haswell, and the product may have performance issues, the analyst wrote. Meanwhile, CLSA analyst Srini Pajjuri predicted that Intel would lose a significant amount of the Linux server market to ARM chip vendors. The prices of Intel's server processors will come under pressure, added the analyst. Pajjuri maintained an Underperform rating on the stock. TODAY'S PRICE ACTION: In early afternoon trading, Intel dropped 45c, or 2%, to $21.40. OTHERS TO WATCH: Applied Micro (AMCC), Cavium (CAVM), and Marvell Technology (MRVL) are the ARM vendors that are well-positioned to see a major impact from Linux server share gains, added the analyst. He has an Underperform rating on Marvell (MRVL) and no ratings on the other two stocks.

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