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Intel (INTC) stocked dipped 2% Tuesday following a research note cautioning that manufacturing technology issues will dog the chip maker.

Raymond James lowered its rating on Intel to Underperform from Market Perform, citing delays in transitioning to the company’s next-generation chip. “Intel’s biggest strategic problem is their delay on 10nm production—we don’t expect a [10-nanometer] server chip from Intel in two years,” analyst Chris Caso said in a note to clients that did not include a price target. “10nm delays create a window for competitors, and the window may never again close.”

Intel shares closed at $45.94, down 2%.

Caso, who reduced his outlook on the semiconductor sector after visiting chip supply-chain companies in Asia for a week, pointed to Intel’s delays in moving to the smaller 10-nm chip process. Such chip-making technology allows companies to produce faster, more power-efficient chips.

In July, Intel said its 10nm chips will be released by the 2019 holiday season. Rival Advanced Micro Devices (AMD) expects its 7-nm server chip to be available sometime next year.

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Caso said that “while Intel is standing still,” TSMC, which manufactures AMD chips, is not. Caso said he expects TSMC to be “firmly in the lead” by the time Intel’s chip is ready.

Intel begged to differ in a statement, saying “strong demand” for Intel products and a stronger-than-expected PC market in the first half of 2018 has “Intel on track for a third record year in a row.”

Caso also lowered his ratings on Analog Devices (ADI), Microchip Technology (MCHP), and ON Semiconductor (ON) after his Asia trip. He lowered his ratings on all three companies to Market Perform from Outperform.

Write to Jon Swartz at jonathan.swartz@dowjones.com