The company's shares closed down 3.4 percent on Monday.
Richard reduced his price target for Intel shares to $45 from $53, representing 18 percent downside to Friday's close.
The analyst predicts Intel's sales growth in its data center segment will peak at 25 percent in its second quarter, then drop to 20 percent in its third quarter and fall to 11 percent in its fourth quarter.
"In our opinion, process is critical in driving product leadership in the x86 market. AMD is moving to TSMC at 7nm, and it has access to a competitive 14nm process today," the analyst said. "We expect that AMD will sample a 7nm server CPU in 2H:18 and move into production in 2019 likely in lock step or slightly ahead of INTC."
Intel sent the following statement for this story:
"We see significant opportunities for growth in the data center – an estimated $70 billion market opportunity by 2021 where we have an opportunity to grow our total silicon datacenter market segment share from where we are today. To win, we will continue our history of CPU leadership and deliver the broadest portfolio of products that, when combined, change the basis of competition in the data center.
While we are prepared for a more competitive environment as we move through 2018, we've already factored that into our financial forecast and we're in a great position to compete. We remain very confident in our products, our roadmap and our competitive position. For example, Intel Xeon processor Scalable family represents the biggest advancements in platform capabilities in a decade, and later this year we'll introduce breakthrough new Intel Optane DC persistent memory and storage technology architected specifically for the data center."
— CNBC's Michael Bloom contributed to this story.