Intel to fall 17% on increasing competition from Nvidia and AMD, Bernstein says

Brian Krzanich Intel CEO
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Bernstein lowered its rating for Intel to underperform from market perform, saying the company's earnings results will come in below expectations next year.

"We believe INTC is facing structural headwinds as datacenter weakens, quality growth becomes more elusive, and competition increases," analyst Stacy Rasgon wrote in a note to clients Tuesday. "Datacenter, for long the (only) structural reason to hold Intel's stock, is showing signs of cracks. … We are seeing an increasing number of credible competitive threats emerge, including AMD (with their first major offering in half a decade) and NVDA (whose GPU offerings appear preferable in high growth AI [artificial intelligence] efforts."