AMD +7.5% After Intel (-3.5%) Chip Security “fundamental design flaw”

 (Updates:  AMD +9.7% AND Intel -6.3% ) Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD) shares fluctuating after a report from The Register alleging that an Intel processor chip security flaw forced redesigns of Linux and Windows kernels. Right now Linux programmers and Microsoft are working on a fix with Microsoft expected to release the Windows change through a Patch Tuesday. Apple’s 64-bit macOS will also need an update based on the report and this flaws.

The fixes will throttle the performance of Intel products. The Register reports that the “effects are still being benchmarked,” but estimates a slow down of 5% to 30%. Newer Intel chips will fare better. Intel shares are down 2% premarket. AMD shares are up about 7.5% premarket.

The British tech website Register reported Tuesday that some Intel processors have a “fundamental design flaw” that will spur a significant security update of Linux and Microsoft Windows operating systems to work around it. Shares of AMD were up 6 percent Wednesday, while Intel’s stock declined 2.5 percent

“Programmers are scrambling to overhaul the open-source Linux kernel’s virtual memory system,” the report said. “Crucially, these updates to both Linux and Windows will incur a performance hit on Intel products.”

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Mohsen Daemi