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 Curtis 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 Friday’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, according to CNBC. "Intel continues to believe that it can retain a performance advantage even with a process node disadvantage, but has provided 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% the past three months.

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 investors concerned about the delay of a new chip. (See also: 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.