Intel shares are down 2.3 percent Friday after the report. Its stock is up 8.6 percent this year through Thursday versus the S&P 500’s 6.7 percent return.
Hari lowered his price target for Intel shares to $44 from $49, representing 12 percent downside to Thursday’s close.
The analyst noted the company’s repeated delays in moving to the 10 nanometer chip process. Intel said last month that its 10 nanometer chips will be released for holiday 2019 compared with AMD’s 7 nanonmeter products’ launch later this year.
One nanometer equals one-billionth of a meter. Smaller nanometer chipmaking technologies historically have allowed companies to create faster, more power-efficient chips.
“Note any slowdown in the Enterprise spending environment (although this is not our base case view) would also add to the earnings decline we forecast in 2019,” he said.
Intel did not immediately respond to a request for comment.
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