Shares of Intel Corp. (INTC) are down 2% in midday trading Tuesday after Northland Capital Markets analyst Gus Richard downgraded the stock to underperform from market perform. Richard had moved to market perform from underperform in mid-September. "We believe that the trade tensions caused companies to pull in demand to beat the increase in tariffs expected on January," he wrote in his Tuesday downgrade. "Now that there is a 90-day reprieve to the increase in Chinese import tariffs, we think the channel will rethink inventory levels going into Q1 and likely slow ordering." He also sees "little evidence of Intel preparing for a significant ramp of 10-nanometer production at this time" based on his conversations with industry contacts. Richard wrote that products from Advanced Micro Devices Inc. (AMD) continue to improve and the company is gaining share in desktop, notebook, and servers. AMD's stock is down 6.5% in Tuesday's session following an 11.3% rise Monday. Its shares are down 21% over the past three months, while Intel shares are up 1.8% and the Dow Jones Industrial Average is off 2%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
December 04, 2018 12:12 ET (17:12 GMT)
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