Analysts at Goldman Sachs are saying that chip maker Intel may be in a pickle as microprocessor shipments slow and it faces stiff competition. That said, analysts have advised stockholders to sell Intel as they downgraded the stock.
James Covello and Simon Schafer of GS said that there will be a surplus in chips due to plant expansion. Meanwhile the rest of the gang on Wall Street is forecasting a six percent year-over-year rise in Intel’s sales, amid expanding gross margins, Goldman says otherwise and that sales will be flat due to excess capacity.
Furthermore, Intel is expected to face problems dealing with better chips from their main rival AMD: while tablets are cannibalising notebooks with ARM kicking its tail in the mobile space.
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