Intel Corporation (NASDAQ: INTC) stock fell 1.43% after Northland Capital Markets  analyst Gus Richard downgraded the stock in a note to investors from market perform to underperform due to CPU competition from the competitors like Advanced Micro Devices, Inc. and other companies developing similar products. The analyst Richard expects AMD’s  7-nanometer server CPU and 14-nanometer notebook CPU offer great competition to Intel’s own products. The analyst has downgraded the stock to “underperform” rating, as Intel relied heavily on sales to server farms to power its revenue growth of late, but Intel’s advantage in chip quality “is diminished if not evaporated,” and there’s a real risk that rival AMD will begin taking market share from the chip giant in the second half of this year, which will put the brakes on Intel’s growth rate.

Moreover, this prediction is due to the fact that other companies have been more successful at decreasing the size of their chips in terms of nanometers in order to make them cheaper and more powerful. Intel has a 10-nanometer process that is “roughly” equivalent to the 7-nanometer product that competitor  Taiwan Semiconductor Mfg. Co. Ltd., which has AMD as a customer. Further, INTC’s 10-nanometer technology has been delayed multiple times, prompting its management to recently say that the product won’t be in production until some time in 2019, which could allow other companies to get ahead of Intel.

However, in the long term, Northland sees positive catalysts at Intel’s business strengthen in such fields as autonomous cars (Mobileye), artificial intelligence, and graphics processing chips. Unfortunately, Northland doesn’t believe any of these factors will “move the needle” for Intel before 2020 at the earliest. The company’s growth is expected to revive in 2020 and beyond, with Northland citing autonomous cars, artificial intelligence, and graphics processing chips as potential growth markets 18 months out. But even so, long-term estimates still suggest that Intel won’t grow earnings faster than 10% annually over the next five years

In the meantime, Intel is expected to do two things in its upcoming second quarter FY 18 earnings report due out late next month. First, meet or beat consensus analyst targets for $0.85 per share, which is no easy task, as it will require an earnings growth rate of 18%. Secondly, the company has to reassure investors that the rest of this year won’t be as bad for Intel as Northland seems to think it will be.