In their policy brief, Bank of America experts emphasize that Intel’s total revenue is still 50% dependent on products for the personal computer market, and in the context of the pandemic-driven processes, it has a greater impact on the company’s business than the server segment. In the PC market, Intel makes 60% of its profits, which is equally important.

Intel managed to increase shipments of PC processors by 7% in the first half of the year, outstripping actual market demand by five percentage points. Surplus processors, according to representatives of Bank of America, are not formed at the same time, since the third quarter will be characterized by stable demand for PC components. The Tiger Lake generation processors will hit the market, and the dominant view of Intel’s revenue dynamics in the second half of the year is considered too conservative by Bank of America. The loss of contracts for the supply of processors to Apple not only will not be instantaneous but in the general scale of Intel’s business will have a not so noticeable impact.

Analysts of Bank of America also pay attention to AMD, which currently occupies no more than 18% of the market for processors for personal computers. In the desktop segment, particular hopes are associated with the upcoming debut of the Ryzen 4000 series processors with Zen 3 architecture, which will help outperform Intel products in terms of performance. Bank of America specialists raise their forecast for AMD shares to $ 65 at the current level of $ 55, for Intel shares – to $ 70 at the current level of $ 60.