By Michael Bruck
Last month, Intel announced its second-quarter financial results, handily beating analysts’ consensus expectations by a handsome margin. Still, investors sold the stock and the company lost around US$50 billion in valuation. Meanwhile, its rival in advanced process technology, TSMC, saw its market valuation increase by over 50 per cent over the same period.
Most investment bank analysts covering this sector downgraded Intel to a “sell” and upgraded TSMC and Intel’s US-based rival AMD to a “buy”. The reason they gave for the downgrade was that in Intel’s quarterly announcement, the company’s CEO revealed an additional six-month delay in Intel’s transition to 7nm (nanometre) manufacturing process technology.
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