Analysts from Susquehanna downgraded shares of Intel from neutral to negative and said that while they would like to think this was a one-time reset, problems persist.
“For decades, Intel was able to cover up a litany of failed projects, poor acquisitions, and strategic foibles by pushing Moore’s Law and process leadership,” the analysts wrote in a report on Friday. “Unless they regain this leadership (we think unlikely), or change strategic direction, we expect growth, profitability, and cash flow problems to persist at Intel.”
Baird analysts also downgraded Intel, citing concerns over supply chain delays and shifts in consumer patterns following the pandemic.
“We are increasingly concerned 20+ year-high inventory days in the PC supply chain could take quarters to unfold, given what we think are structural changes in PC consumer consumption patterns, combined with a seasonally weak first half which would continue to pressure Intel’s utilization rates and gross margin recovery,” they said in a report on Friday.