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.