A Stifel research analyst is downplaying the fallout from a published report suggesting that Apple Inc. (NASDAQ:AAPL) will start manufacturing its own microprocessors for its line of Mac computers, which sent shares of Intel Corp.(NASDAQ:INTC) plummeting Monday.
Kevin Cassidy wrote in a research note that Apple accounted for less than 1% of Intel’s net income last year, and just 4% of revenue.
Over reaction, says analyst
But a Bloomberg story that says Intel could be cut out of Apple’s supply chain by 2020 sent the chip maker’s shares into a 6% spiral Monday, closing the day at US$48.92.
Cassidy called the market response an “over reaction” and that any such move is “not a major threat” to Intel.
In trading just after the market open, Intel shares were up 1% to US$49.42, while Apple shares were flat at US$166.96.