A Wall Street analyst says Intel, the world's biggest chipmaker, is poised to hold up in the coronavirus slump: 'The guy with the biggest umbrella stays the driest'

• A Wall Street analyst who has recently been critical of Intel said the world's biggest chipmaker will likely hold up better than its peers in the coronavirus crisis.
• Bernstein Research analyst Stacy Rasgon said despite some issues Intel has grappled with, such as production problems and market share loss, it has a solid balance sheet and an ability to generate "significant cash."
• "In a rainstorm, the guy with the biggest umbrella usually stays the driest," Rasgon told clients in a note.
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A Wall Street analyst who's been critical of Intel's recent trajectory says the semiconductor behemoth is poised to do better than its peers as the industry reels from the coronavirus downturn.

"In a rainstorm, the guy with the biggest umbrella usually stays the driest," Bernstein Research analyst Stacy Rasgon told clients in a note this week.

Rasgon has previously been "negative" on Intel's direction, citing its manufacturing problems and market share losses.

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Intel is the world's biggest chipmaker based on revenue, with 16% of the $418 billion market in 2019, according to Gartner. But the Silicon Valley company has struggled with production issues and stiffer competition from archrival AMD, particularly in the data center market.

"These issues still exist," Rasgon told clients in a note. "But in the wake of COVID-19 these may not be the most important issues to focus on at the moment. In the forthcoming storm we can see potential for Intel to hold up better relative to peers."

Like other tech companies, Intel will likely take a hit in demand due to the coronavirus crisis. But Rasgon also highlighted Intel's strengths as a semiconductor powerhouse, including a "a strong balance sheet" and its ability to generate "significant cash" which he said are "potentially comforting at the moment."

Intel may also get a lift as "more knowledge-based consumers are required to work from home," he said.

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