Intel Corp. shares INTC,
+ 0.22%
are down 10.7% in Friday morning trading after the company released September quarter results that showed data center sales fell more than analysts expected. Bank of America analyst Merrill Lynch Vivek Arya lowered the stock to go from neutral in the wake of the report, writing that there appeared to be “no easy fixes” to the manufacturing problems of business, because the business is also facing competitive challenges. The report noted “no plan / update to address manufacturing issues at the next-generation 7-nanometer level, with low and continuous yields to the current-generation 10-nanometer process,” Arya wrote. He is also concerned about “growing competition from faster and more nimble factory-less competitors such as Nvidia NVDA,
+ 0.81%,
AMD AMD,
-0.34%,
ARM-based suppliers and others ”who have capitalized on the foundry ecosystem. “We admire the age of Intel, the breadth of the portfolio, the track record /[free-cash flow] and strategic manufacturing based in the United States, ”Arya wrote, but worried about“ the uncertainty of the execution of the roadmap, ”which he said could hurt the high share of value in the company. ‘Intel into the PC and data center markets while pushing for profit growth. He also wonders if Intel is “too big” to switch to a factory-less model, as it “is not clear whether a foundry has the capacity available to manufacture the multiples. [tens of billions of dollars] of transistors, or the desire to help a competitor only for a short time while he improves his internal process and then leaves behind an empty factory. the last three months as the Dow Jones Industrial Average DJIA,
+1.09%,
of which Intel is a component, rose 6.6%.