It looks like Intel CEO Pat Gelsinger just suffered his first public setback. Intel is now planning on starting production of Sapphire Rapids (10 nm successor to its Ice Lake server processors) in early 2022 after previously saying it would be ready late this year said Intel's Lisa Spelman in the company's blog post.
Wall St. believes Intel's delay may a sign of weakness. In a note titled, "Do you want to hear the good news or the bad news first?" Bernstein analyst Stacy Rasgon stated he couldn't "imagine the company would do this unless it was neccessary." Rasgon has an underperform rating on Intel and a $43 price target.
"One possible explanation could be the one the company appears to be trying to make, namely that demand for the new features is strong and they need time to get it right, and that customers will be (apparently) happy to deal with the delayed road map to get those features. A less charitable explanation however is that the company’s competitive positioning is worsening, and that the downside associated with delaying Sapphire Rapids (both for the products and, it should be said, for the stock) is perceived by management to be less that what would be experienced by launching earlier with a less competitive product," said Rasgon.
Here are the articles:
Intel says it’s delaying production of Sapphire Rapids, the 10-nanometer Xeon Scalable successor to the recently launched Ice Lake server CPUs, because of extra time needed to validate the CPU. (Source: CRN)
Another Intel product delay drags on chip stocks, Dow (Source: MarketWatch)
https://www.wsj.com/articles/intel-...drmw6cngxu6&reflink=desktopwebshare_permalink (Source: Wall Street Journal)
Wall St. believes Intel's delay may a sign of weakness. In a note titled, "Do you want to hear the good news or the bad news first?" Bernstein analyst Stacy Rasgon stated he couldn't "imagine the company would do this unless it was neccessary." Rasgon has an underperform rating on Intel and a $43 price target.
"One possible explanation could be the one the company appears to be trying to make, namely that demand for the new features is strong and they need time to get it right, and that customers will be (apparently) happy to deal with the delayed road map to get those features. A less charitable explanation however is that the company’s competitive positioning is worsening, and that the downside associated with delaying Sapphire Rapids (both for the products and, it should be said, for the stock) is perceived by management to be less that what would be experienced by launching earlier with a less competitive product," said Rasgon.
Here are the articles:
Intel says it’s delaying production of Sapphire Rapids, the 10-nanometer Xeon Scalable successor to the recently launched Ice Lake server CPUs, because of extra time needed to validate the CPU. (Source: CRN)
Another Intel product delay drags on chip stocks, Dow (Source: MarketWatch)
https://www.wsj.com/articles/intel-...drmw6cngxu6&reflink=desktopwebshare_permalink (Source: Wall Street Journal)