Citi analyst Christopher Danely’s channel checks indicate that order rates from the PC food chain remain depressed amid poor demand and excess inventory, and the data center end market is also rolling over.
It appears the share gains of Intel Corp’s (NASDAQ: INTC) CPU business in 3Q22 has reversed, and Danely expects Advanced Micro Devices, Inc (NASDAQ: AMD) to gain back market share in 4Q22.
However, the analyst expects a poor PC environment to persist into 2023 and downside to Consensus estimates for Intel and AMD from the PC and data center food chains.
Danely’s checks indicate order rates from the data center end market are fading with a downside from the enterprise end market (roughly 40% of the data center end market) and Meta Platforms Inc (NASDAQ: META) Facebook.
The analyst continues to expect a correction in the data center end market in 1H23, and Danely’s C23 estimates are 24% below the Consensus on AMD and 9% below the Consensus on Intel.
Price Action: INTC shares traded higher by 0.73% at $28.54 on the last check Thursday.
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Latest Ratings for INTC
Date | Firm | Action | From | To |
|---|---|---|---|---|
Mar 2022  | Morgan Stanley | Downgrades | Equal-Weight | Underweight |
Feb 2022 | Raymond James | Upgrades | Underperform | Market Perform |
Feb 2022 | BMO Capital | Maintains | Market Perform |
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Source: https://finance.yahoo.com/news/amd-likely-gain-share-4q-183708926.html