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AMD and Intel Stock Might Struggle. The PC Chip Comeback Could Take Much Longer.

Intel stock has fallen about 40% over the past 12 months.

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Courtesy of Intel

Bernstein is cautioning investors that a turnaround for PC chip demand could take several more quarters.

On Wednesday, analyst Stacy Rasgon reiterated his Underperform rating on
Intel Corp.
(INTC) stock and his $20 price target for the company. He also reaffirmed his Market-Perform rating on
Advanced Micro Devices
) and his $80 stock forecast.

AMD and Intel use the x86 chip architecture in making the processors that act as the main computing brains for PCs and servers.

“The correction still likely has some ways to go,” he wrote. “We would not be surprised to see several more quarters of inventory correction before things truly normalize.”

In Wednesday trading, Intel stock fell 0.4% to $28.53, while AMD shares fell 2.2% to $84.04.

The outlook for PC sales has been deteriorating over the last few quarters. According to research firm IDC, worldwide shipments of PCs fell 28% in the December quarter from a year earlier, after a 15% year-over-year decline in the September quarter. IDC cited a continued unwinding of the pandemic-era boom.

The analyst cited how Intel has pulled forward demand by offering incentives and discounts for chips over the last three quarters, which will likely have a negative effect on sales this year. He also noted there is greater competition from
‘s (AAPL) computer processors, which now represent more than 10% of the overall PC market.

Intel shares have fallen about 40% over the past 12 months, compared with AMD stock’s roughly 30% drop.

Write to Tae Kim at


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