JP Morgan resumes Intel coverage with Underweight rating
Yahoo Finance Live anchors discuss the decline in stock for Intel as JP Morgan resumes its coverage on the chip manufacturer with an Underweight rating.
Video Transcript
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BRIAN SOZZI: Intel shares in focus as JPMorgan resumes its coverage on the chip manufacturer with an underweight rating and a $32 price target. JPMorgan analyst noting, it will take Intel several years to reclaim the technology leadership. And I would say, a well-timed note by Intel because yesterday, AMD came out and really dropped the mic with these new Genoa chips.
We mentioned that last week. We previewed that AMD could come out here with some real special products. And it looks like they did that, to the point where they might just continue to take market share from Intel.
BRAD SMITH: Yeah, and I think with what we had watched over the course of this week with some semis getting a huge bid yesterday. We'll see where that continues to hold up there. You're taking a look at some of the other semiconductors, eh, kind of split, kind of mixed here.
But Intel seeing, of course, a huge move down in comparison to the rest of them. NVIDIA also moving in concert. But Taiwan Semi doing well. And Taiwan Semiconductor also got a shout out within this, too.
He said that Intel has 77% of market share for central processing units. And noted that it's losing business every year and it's technologically behind AMD and Taiwan Semiconductor.
BRIAN SOZZI: I will just add this, too, if you're coming out with an underweight rating, which for people at home is the equivalent of a sell rating, you're expecting the stock to not do well. Come out with a $20 price target. $32, the stock's at $29. So you're essentially telling investors, the stock can go up but just a little old school analyst note there. It's in my system still.
BRAD SMITH: No, that's good context.
