Intel delves into the delays of its products and fears losing an almost monopolistic position

• Although the chip maker outperformed the earnings forecast on Thursday, badysts have expressed concern that competitors like AMD are eating away at its dominant market share.
• Outside of external competition, Intel is struggling to maintain its production targets on its next-generation chips.

Intel INTC shares fell more than 8% on Friday, fearing tougher competition and product delays. 19659005] Despite the fact that the chip maker reported strong earnings and revenue in the second quarter on Thursday, several badysts have expressed concerns about the competition of Advanced Micro Devices. Delays on next-generation microchips, which have plagued the company for months, certainly will not help.

AMD AMD climbed 14% Thursday after posting quarterly results and revenues that impressed Wall Street

Micro Devices will control both the architectural aspects and process nodes of the x86 market [processor] for coming years, a dynamic that we had never seen before and structurally destructive to the Intel business model. We reiterate our sales rating, "Rosenblatt Securities wrote note on Friday. Analysts have noted that Intel could lose its "near-monopoly position in processors that allowed for boosting ASP."

Intel struggling to maintain production targets on its next-generation chips In its publication of the results, Intel revealed that the company's 10-nanometer chip production process would arrive in the second half of next year, which would mean that its p Next-generation would arrive at the holiday season of 2019. Intel has teased nanoscale chips for years, promising that they would provide better performance with lower power consumption than chips built with 14-nanometer technology. the company, which are shipped since 2014.

Delays in the chip prompted Bank of America Merrill Lynch to degrade Intel on Friday to "neutral" to "buy," calling Intel delays "the biggest risk."

Even though Intel is struggling with 10-nanometer chip production, AMD said earlier in July, it is considering 7-nanometer chip production by the end of 2018.

"The biggest risk for Intel INTC is delayed by one year in the deliveries of its next-gen 10 product [nanometer] while rivals Taiwan Semiconductor have finally caught up and allow Advanced Micro Devi "Bank of America badysts have echoed concerns from Bank of America regarding 10-nanometer chips, adding that the costs of accelerating production could reduce the gross margin.

"We are not convinced that 2019 [gross margin] will develop from year to year," writes Stifel in a Friday note.

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