AMD Can Use Intel’s Serious Supply Issues | Intel CPU shortage to last beyond Q1 2019

AMD*Intel

Credit: AMD/Intel

Intel has big issues with shortage and not being able to support the demand and AMD Can Use Intel’s Serious Supply shortage that is mentioned in some reports that may stay till early 2019. As investment firm Jefferies raised their target price again on their shares from $30 to $36 due to Intel’s perceived issues with 10nm and its 14nm chip shortages. Analyst Mark Lipacis from the investment firm Jefferies pointed towards some research from Fubon make the point that AMD could very well triple their market share by capitalizing on this.

“Fubon’s report that Intel will undersupply the PC market between 4Q18 and 2Q19 leaves us with higher conviction that AMD will report improving revenue, pricing and margins near term, and that is positioned to take share in the high-end PC MPU and server market long term,” analyst Mark Lipacis penned in a note to clients , called “INTC Supply Constraints = Multi-Fold Benefits to AMD” succinctly enough. Clearly, the author did not want to mince words, but typically analysts that are talking about a stock that has risen over 200% year to date want to make sure they get their message on target.

Lipacis posits that there is a “share shift potential to 70/30 from 90/10” meaning overall CPU market share. “Assuming our assessment of AMD’s transistor lead in 2019 is correct, and Intel’s supply constraints linger through mid-19, we think a market share of 70/30 is not out of the question,” he elaborated. As we wrote a few days ago, this is a possible big opportunity for AMD. Oddly enough, the transistor lead is what ends up being emphasized as the problem between the two CPU producers, with Intel’s current supply shortage for 14nm products or its lack of a CEO being sidelined by comparison. wccftecch reports

Earlier reported……..

Intel is trying to avoid CPU shortage and “assure a continuous supply”

Intel has just published a document that says the expansion of testing capabilities for 14nm processors to “assure a continuous supply” of its CPUs in shortage of manufacturing capacity. It somehow indicates that the 14nm production capacity may stem from the availability of the company’s chip-testing facilities.  Intel’s 14nm CPU shortage impacts nearly every aspect of its cpu market, including its desktop, server, and laptop processors. The shortages, which Intel self-reported during a recent earnings call, have exploded into the mainstream eye as OEM customers have revealed the impact to their businesses. 

Recent reports suggest Intel’s biggest challenges may lie in testing capacity of the chips, and offloading some testing, even for older seventh-gen processors built on 14nm, could help alleviate some of the strain. A recent report from CRN reinforces the impact, which Intel purportedly outlined during a presentation to its partners:

The company also attributed the shortage to additional factory and assembly test capacity required for higher-end 14nm processors from the latest families of Core client and Xeon products that are seeing fast adoption from customers, said the source, who spoke on the condition of anonymity because the person wasn’t authorized to speak publicly about the matter.

And in a question and answer session, Mehrotra indicated that the shortage could last beyond Q1 of next year:

And I would just add that the CPU shortages, we expect it to be short-term; it’s possible that it goes beyond Q1 as well.

Categories: AMD, Gaming hardware, Gaming News, Technology

Tags: , , , , , , , , , 

Mohsen Daemi
Latest posts by Mohsen Daemi (see all)