AMD, Nvidia Fall After Intel Unveils Next Generation Of Core Processors
Shares of AMD (AMD) and Nvidia (NVDA), which build technology used for gaming in desktop computers, slipped after peer Intel (INTC) unveiled its latest generation core processor family for desktop.
WHAT'S NEW: Before the market open, Intel announced that its new family of 8th Gen Intel Core desktop processors will be available for purchase starting October 5, saying the new family will deliver "premium performance" for PC gaming in particular. Intel noted the new family of processors, along with the Intel Z370 chipset, are "perfect" for gamers and that the 8th Gen Intel Core processors include a new Core i7 desktop processor, which the company calls the "best gaming processor ever" from Intel, as well as the first-ever 6-core Intel Core i5 desktop processor and 4-core Intel Core i3 desktop processor. Such new technology is expected to deliver frame rate improvements of up to 25% compared with 7th Gen Intel Core, Intel added.
WELLS FARGO REMAINS BULLISH: Following the announcement, Wells Fargo analyst David Wong maintained an Outperform rating and $45 price target on Intel, saying the rollout of further 8th Generation Intel core processors could help stimulate demand for PCs for the remainder of 2017 and in the first half of 2018. The analyst said he believes the PC end market could continue to improve in 2017 and that Intel's Client Group revenues could be flat to up in 2017, with rising operating margins. Wong noted, however, that company-specific risks for Intel include competition from AMD and rising capital spending.
PRICE ACTION: Shares of Intel are down marginally in afternoon trading, while AMD and NVIDIA have slipped 3.4% and 4%, respectively.