Shares of semiconductor giant Intel (NASDAQ: INTC) are trading 18% lower year to date and the stock is hovering just 14% above its mid-March market bottom. Meanwhile, the S&P 500 gained 4% in 2020, and Intel's archrival Advanced Micro Devices (NASDAQ: AMD) posted a 72% gain. Is Intel down for the count, or is the stock primed for a soaring return to full health? Let's have a look.
Critics argue that Intel's recent manufacturing hiccup in its 7-nanometer chips is letting AMD steal market share in both the data center and home computing markets. That's particularly unfortunate at a time when work-from-home policies are driving strong demand for both of these product categories.
The production problems run so deep that Intel is actually using third-party manufacturing services such as Taiwan Semiconductor Manufacturing (NYSE: TSM) for the first time in many years. Chipzilla has lost a treasured competitive advantage here.
Source Fool.com