"INTC's use of cash for M&A makes us wonder if the market is drifting away from x86," said Jefferies analyst Mark Lipacis on Monday in a note titled "Chasing New Markets."
X86s are a variety of CPUs that are manufactured by Intel and its competitors.
The analyst noted that revenue for Intel's Data Center Group has slowed. The division's revenue grew only 8 percent in the fourth-quarter of 2016, down from 11 percent growth, year-over-year.
"The bar is low, but we think its P/E multiple drifts down," added Lipacis.
Intel announced on Monday that it will acquire the Israeli self-driving technology firm Mobileye for $15.3 billion, at $63.54 per share, representing a 34 percent premium to Mobileye's closing price of $47.27 on Friday.
The deal comes after the chip giant completed its acquisition of Altera back in Dec. 2015 for $16.7 billion, as well as acquisitions of smaller firms Movidius and Nervana in late 2016.
Shares of Mobileye were up over 28 percent on Monday, while Intel traded down about 2 percent.
Mobileye shares 5-day performance
Intel shares 5-day performance