A leading Wall Street firm has downgraded AMD, saying that Intel had engaged destructive actions against its smaller rival in the desktop PC space to slowdown its market share expansion. These actions could eventually hurt Intel itself, but for now it can use its vast manufacturing capacity and ability to offer competitive pricing to outsell its competitor and prevent its penetration into lucrative high-end notebook space.
"In recent months we have been growing more wary of potential PC dynamics, both given the market outlook as well as exacerbated by Intel's semi-destructive behavior as of late as they use both price and capacity as a strategic weapon, continuing to overship even amid broader breakdowns in the industry," Stacy Rasgon, an analyst with Bernstein Research, wrote in a note to clients, reports
SeekingAlpha. "It seems to us that Intel has decided that if the channel is going to hold parts, it might as well be their parts."
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