Intel Shares Tumble as New Chip Technology Seen Pushed Out
- Postponement opens door to rivals who could leapfrog chipmaker
- Company beats on earnings and revenue as it raises forecast
Intel Corp., the world’s second-biggest semiconductor maker, fell as much as 8.8 percent Friday after executives said a key new chip technology wouldn’t be out until late next year, prompting concerns the company could be vulnerable to rivals who are accelerating their own push into the field.
Even as Intel reported strong results for the second quarter and raised its sales target for the full year, analysts focused instead on the company’s timeline for its new 10-nanometer manufacturing. Intel will have chips using that technology in personal computers on sale in the second half of 2019, the company said Thursday on a conference call to discuss earnings. Server chips will follow after that, executives said. Improvements to semiconductor designs being made using existing manufacturing lines will keep Intel’s offerings competitive in the meantime, the executives said.