Intel, Advanced Micro Devices could see 'negative impact' as Citi highlights fourth month of 'bad data'
Intel (INTC) and Advanced Micro Devices (NASDAQ:AMD) could be impacted by a weakened PC market after investment firm Citi highlighted continued weakness in the PC market, with notebook shipments coming in below estimates for the fourth month in a row.
Analyst Christopher Danely, who rates Intel (INTC) and Advanced Micro Devices (AMD) shares neutral, noted that April notebook shipments fell 41% month-over-month, 35% below the firm's estimate, due in large part to COVID-related lockdowns in China. 
"We see this as another yellow flag confirming our view that PC sales are cooling off albeit there is some influence from lockdowns as well," Danely wrote in a note to clients, adding that the contraction in the PC market is likely to "negatively impact" both Intel (INTC) and AMD (AMD).
Intel (INTC) shares rose nearly 1.5% to $44.60 in premarket trading on Wednesday, while AMD (AMD) was up 1.25% to $89.94.
In addition, Danely noted that while lockdowns in Kunshan, Shanghai and Suzhou "negatively impacted factory operations, component supply and logistics," April is likely to be the trough for the second quarter, as lockdowns are starting to ease again.
Apart from lockdowns, Danely added that consumer PC demand is "sluggish," with Intel (INTC) and AMD (AMD) both telling investors in their recent earnings reports of weak consumer and education demand, with AMD going so far as to say that PC units will be down "high single digits" in 2022. 
In a separate note, Danely highlighted that AMD (AMD) gained microprocessor share in the first quarter, going to 18% of the overall market from 17.1%, including 20.9% of the notebook market. By comparison, Intel (INTC) continued to lose share, falling to 82% of the market in the first quarter, down from 82.9% in the fourth quarter. Intel's (INTC) share of the notebook market fell to 78.2% in the first quarter from 79.1% in the fourth quarter.
On Tuesday, Intel (NASDAQ:INTC) showed off several new chips, including some aimed for the data center, that could give it firmer ground against competitors AMD (AMD) and Nvidia (NVDA).