Intel Does not have enough CPUs to sell, Says JP Morgan | Good chance for AMD

Intel (INTC) & Potential Financial Impact Of CPU Flaws, Meltdown/Spectre

Intel (INTC) & Potential Financial Impact Of CPU Flaws, Meltdown/Spectre

Intel will not have enough chips for the CPU demand during the upcoming holiday season. This is part of a recent prediction by a JP Morgan analyst. The analysis may take factors such as the long-awaited switch to 10nm chipsets by the premier processing manufacturer into account. Intel shares declined by 0.1 percent Friday.

J.P. Morgan report and got an interesting statement in response with the company saying: Customer demand has continued to improve over the course of the year, fueling growth in every segment of Intel’s business and raising our 2018 revenue outlook $4.5 billion from our January expectations. We will have supply to meet our announced, full-year revenue outlook and we’re working closely with our customers and factories to manage any additional upside.

This projection was made by Gokul Hariharan, an analyst who works on the Asia-Pacific area for the company. The predicted shortage will affect both laptops and desktops, and is expected to take effect in the last quarter of 2018. Hariharan has also indicated that it may reduce PC shipments by up to 7% in this quarter.

“Our conversations with PC vendors indicate that the shortage, which started in small magnitude in 3Q, has been progressively worsening and is likely to have the maximum impact in 4Q18,” the firm’s Asia-Pacific technology analyst, Gokul Hariharan, said in a note to clients Friday. “We expect this to affect both notebook and desktop PCs and likely to have a higher impact on commercial and high-end consumer PCs, where using AMD or older Intel family of CPUs as substitutes are more difficult.”

The analyst said Intel’s manufacturing issues will likely benefit its primary competitor in PC processors. AMD expects to launch its 7 nanometer processor chips next year.

“We see rising interests in AMD adoption in the next cycle from PC OEMs given recent Intel CPU supply concerns,” he said.

These are the winners and losers in the chip space, technician says from CNBC.

 

Tags: Technology, finance, intc, intel, amd, stocks, amd stocks, intel stocks, CPUs ,JP Morgan,

Mohsen Daemi
Latest posts by Mohsen Daemi (see all)