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Intel employees walk by a sign as they enter their office in Santa Clara, California.
after Bloomberg reported that Apple would ditch Intel chips for an in-house model on Mac computers. Its shares fell as much as 9 percent after the report and then regained ground, ending the day down 6 percent.
“The market is over reacting to Apple’s announcement for using an internally developed CPU for its Mac systems as early as 2020,” analyst Kevin Cassidy wrote in a note to clients entitled “Potential Apple Move Not a Major Threat to Intel” on Monday. “According to IDC, Apple had 7.3% traditional PC unit market share in 4Q17.”
He recommended investors buy Intel shares on Monday’s weakness.
Cassidy reaffirmed his $53 price target for Intel shares.
He estimated Apple generated only 4 percent of Intel’s revenue last year and less than 1 percent of its profits.
“We do not expect any other PC manufacturers will consider designing its own CPUs,” he wrote.