It may just be the right time to let go of Intel Corporation (NASDAQ:INTC) stock, Stacy Rasgon said in an interview on CNBC.
The AllianceBernstein senior analyst aired his concerns about Intel Corporation (NASDAQ:INTC) after his firm released a note identifying apprehensions about the technology giant and its strategy.
“There has been worries that Intel Corporation (NASDAQ:INTC) has been over over-shipping the market for a while. This was crystalized in their last earnings where they had unit growth up 15% year-over-year versus the PC market has been kind of flat,” he said.
Nonetheless, Rasgon said that the issue may be “more nuanced” than the company just over-shipping the personal computer industry.
AllianceBernstein has downgraded Intel Corporation (NASDAQ:INTC) to “Underperform” with a price target of $30. As of writing, the company’s stock is trading at over $33.70. In AllianceBernstein’s downgrade, the firm was pessimistic of the prospects for the personal computer and specifically Intel’s second-half performance.
Nonetheless, Pete Najarian said that he is bullish on Intel and pointed out to Rasgon that some industry observers see Intel and the personal computer industry being strong. Rasgon said that he does not believe that the personal computer market is dead – it’s just flat.
He said that this call is around what Intel is shipping in the wake of the way the PC market is. He added that if one takes a look at what Intel has done, they would notice that among the upsides the company showed in the first half was share gains. They are “slaughtering” Advanced Micro Devices, Inc. (NYSE:AMD), Rasgon said.
He said that it’s normal for Intel to build channel inventory during first half, it’s just his firm doesn’t see the typical channel drain to happen in the second half. The fourth quarter guidance of the Silicon Valley veteran suggests continued channel inventory gain, he noted.
Intel Corporation (NASDAQ:INTC) shareholders includes Jean-Marie Eveillard’s First Eagle Investment Management which reported owning about 39.54 million shares of the company by the end of the second quarter. Intel is one of the world’s most valuable brands.