Intel Corporation INTC shares are trading lower by 1.10% to $29.34 Tuesday morning. The stock is down roughly 3% on a week-to-date basis, weakness may be amid analyst Ming-Chi Kuo highlighting weak server market demand for the company's new Sapphire Rapids server chip.
In a Monday tweet, Kuo highlighted how Intel "is the main loser of Sapphire Rapids' lower-than-expected demand and Microsoft's significant reduction in Sapphire Rapids server orders due to weak server market demand."
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Amid several headwinds for Intel mentioned by Kuo: "Besides competing with AMD in the server market, Intel faces increasing competition from ARM chips. Microsoft will likely start buying ARM server chips produced by Ampere from 1H24, which will gradually reduce its dependence on x86 and be detrimental to Intel's server business."
According to data from Benzinga Pro, INTC has a 52-week high of $54.08 and a 52-week low of $24.59.
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