Barclays has downgraded shares of Intel Corp. (INTC) citing the chipmaker’s rising competition from AMD (AMD), which it says makes its growth uncertain.

Barclays analyst Blayne C🎐urtis lowered his rating on Intel to Equal Weight from Overweight, and lowered the firm’s price target to $53 from $62, or a roughly 7% upside from F🍸riday’s close. Curtis said Intel needs to prove it can produce a generation of chips that can outperform AMD’s chips.

“We see risk of moderation in PC/server end markets, which have already outperformed, while the storyline is hampered by much uncertainty remaining around competition, process nodes/roadmaps, as well as the new CEO," analyst Curtis said in a note, . "Intel continues to believe that it can retain a performance advantage even with a process node dis🌱advantage, but has provi♐ded little evidence to support this, creating an overhang well into 2019."

Intel stock was down 1.7% in pre-market trade Monday following the report. Intel shares are up 36% the past 52 weeks, but down 5% th💜e past three ꧑months.

Market for Microchips

Intel reported better-than-expected earnings last month, with revenue increasing about 7.5%. Still, the stock plunged on the results with 澳洲幸运5开奖号码历史查询:investors concerned about the delay of a new chip. (See also: 澳洲幸运5开奖号码历史查询:Intel’s Lead is Disappearing.)

Intel’s🌠 competitor AMD is planning to release a 7-nanometer chip later this year. Smaller chips create faster and more powerful technology. In comparison, Microsoft said last month it will launch a larger 10-nanometer chip by next year.

"The entire competitive argument has been reduced to a comparison of process nodes and the burden is on Intel to change this storyline, which they have not to date," Curtis said in the note.