Investing.com – Intel (NASDAQ:INTC) rode the wave of green across chip stocks on Thursday amid positive U.S.-China trade news, shrugging off Wells Fargo's warning that it may face further delays to roll out its 10-nanometer chips.
Citing industry checks and a SemiAccurate report, Wells Fargo analyst Aaron Rakers said Intel could face further delays of its 10nm Ice Lake Xeon Scalable Processor.
Intel has previously insisted that it will not miss its own pledge to deliver the Ice Lake chips by the holiday season of 2019. But the company recently conceded that challenges remained to increase output even as it had invested "record levels" of capital expenditure to drive up production of both its 14nm and 10nm chips.
"However, sustained market growth in 2019 has outpaced our efforts and exceeded third-party forecasts. Supply remains extremely tight in our PC business where we are operating with limited inventory buffers," GM of sales, marketing and communications, Michelle Johnston Holthaus said in last month.
The 10nm chip was intended to ship by 2016, but production was put on ice after the tech company ran into manufacturing problems that delayed production of its 14nm chips.
The delay has seen Intel cede market share to rival Advanced Micro Devices (NASDAQ:AMD) in the low-end mobile and desktop PC market.
The tech giant reported that third-quarter CPU revenue fell 7.1% year on year to $8.4 billion and its notebook and desktop platform volumes fell 10% and 11% respectively.
Intel, however, rose 0.6% benefitting from a broad-based rally in semiconductor stocks, with the Philadelphia Semiconductor Index up about 2% after President Donald Trump said a deal with China was "very close."
The U.S.-Sino trade war has weighed on economic growth in China, a key source of revenue for U.S. semiconductor companies.