Intel, chips drop on analyst downgrade

November 19, 2009 10:07 AM ET

Article tools

The value of Intel Corp. stock and other chip companies fell Thursday after an analyst downgraded the rating on a number of companies in the sector.

Bank of America Merrill Lynch lowered its rating to neutral from buy on Intel (NASDAQ:INTC), Marvell Technology Group Ltd. (NASDAQ:MRVL), Texas Instruments Inc. (NYSE:TXN) and ASML Holding NV.

It cut to underperform the stock of Microchip Technology Inc. (NASDAQ:MCHP), Maxim Integrated Products Inc. (NASDAQ:MXIM), National Semiconductor Corp. (NYSE:NSM), Power Integrations Inc. (NASDAQ:POWI) and ARM Holdings Plc.

Intel was down more than 5 percent in morning trading at $19.04.

BofA Merrill Lynch said chip stocks have been replenished and some companies may have overshot demand, which is why it has downgraded the ratings.

"Barring a sharp upturn in the global economy, our indicators point to the potential for an inventory correction, thus rendering the risk-reward associated with ownership of chip stocks unattractive," it said.

Back to News Home

MSN Money: Search MSN Money; Message Boards; Site Status

Data providers
Quotes supplied by Interactive Data Real-Time Services.