Intel, Advanced Micro Devices rise even as BofA cuts estimates, citing PC market decline
Justin Sullivan

Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD) rose on Thursday even as investment firm Bank of America lowered estimates on both semiconductor companies, pointing to a "further deterioration" in the consumer PC market and getting rid of excess inventory.
Analyst Vivek Arya, who has an underperform rating on Intel (INTC) and a buy rating on AMD (AMD), lowered estimates and now expects Intel to generate $64.95B in revenue in 2022 and $66.66B in 2023, down from a prior view of $66.5B and $68.5B, respectively.
For AMD (AMD), Arya now expects the Dr. Lisa Su-led company to generate $25.76B and $28.09B in sales, down from a previous outlook of $26.05B and $28.68B, respectively.
Across the spectrum, Arya cut estimates on both Intel (INTC) and AMD (AMD) between 3% and 5%.
"While one more cut is unwelcome, our sense is we are nearing the end of PC related cuts especially for AMD," Arya wrote, noting that the firm's estimates now show an 11% year-over-year decline for 2023. 
Intel (INTC) and AMD (AMD) shares saw fractional gains in premarket trading. 
In addition, Arya noted that Intel (INTC) is likely to see "continued strategic, financial and competitive challenges," while AMD (AMD) is trading at an attractive valuation, at 17 times 2023 estimates and is likely to keep gaining share in the data center and continued execution gains. 
"We continue to see $6 in [2024 earnings per share] power for AMD implying compelling [less than] 12x PE for a leading compute franchise," Arya added.
Earlier this month, investment firm Stifel started coverage on Advanced Micro Devices (AMD), highlighting the company's strong execution and an "expanding IP portfolio."