More Intel Price Cuts Present Challenge For AMD, Says Mizuho
Mizuho analyst Vijay Rakesh's channel checks indicate that Intel (INTC) is cutting Cascade Lake pricing again, now to parity with Skylake, which he feels presents a challenge to AMD.
He believes that with Skylake processor supply tight, Intel has dropped Cascade Lake pricing to parity with Skylake in some instances, which equates to an incremental 25%-30% discount. Intel is offering software support and aggressive pricing, which could position it to aggressively compete with AMD, Rakesh tells investors in a research note. Further, heading into year-end, the analyst expects U.S. hyperscale to slowdown seasonally with some potential weakness at China hyperscale.
In addition, Rakesh raised his price target for Neutral-rated AMD (AMD) to $38 from $36 and for Buy-rated Intel (INTC) to $64 from $60 to reflect the recent expansion of semiconductor multiples.
Disclosure: None.
I've always felt that the price premium for Intel over AMD was not only justified, but helped to differentiate them as a superior product. $INTC $AMD