AMD is taking advantage by raising market shares to 30 percent because of Intel’s CPU shortage

AMD is taking advantage of Intel’s difficult market situation, and that really shows the true spirit of business between the giants. From Businessinsider, an interesting report reveals new measures and futuristic probabilities of processor market shares. AMD and Intel have recently rekindled the processor war after the first few years without offering a truly competitive overall performance. It all began when AMD launched its Ryzen mobile and desktop processors, popular with enthusiasts and conventional users alike, and at prices in some cases well below what Intel offers. In addition, it seems that things are not going well for Intel at the moment as it is reportedly having difficulty producing some of its latest versions of certain CPUs.

AMD is taking advantage by raising market shares to 30 percent because of Intel

In fact, the shortage of Intel Whiskey Lake mobile processors is so severe that it is impacting laptop shipping in general and lowering DRAM prices due to an oversupply of memory as a result of lower consumption levels. Intel’s problems are a blessing for AMD as the chip manufacturer has a unique opportunity to replace Intel on certain models in which it competes directly. Analyst firm Jefferies raised its AMD share price target from $30 to $36 since AMD expects high market share gains due to Intel’s supply problems.

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Analyst Mark Lipacis states in a Fubon research company report that HP will use AMD processors for up to 30% of its consumer equipment in the coming year. Dell will also use more AMD chips for its PC line, according to the report. Analysts believe AMD has the potential to triple its market share to 30%.

AMD is taking advantage by raising market shares to 30 percent because of Intel

“Fubon’s report states that Intel will supply the PC market between the fourth quarter of 2018 and the second quarter of 2019, confirming our belief that AMD will deliver better sales, prices, and margins in the short term and that it will be able to compete in the high-end PC and server market.”

Lipacis hopes that Intel’s offer will be restricted until 2019 and AMD will achieve a market share of 30%, with this restriction not being “out of the question,” he says. Many have wondered what is going on at Intel, which has led to such a massive shortage of processors. Investment firm JP Morgan released a report saying Intel’s shortage is worsening and the chip manufacturer is having capacity problems postponing its manufacturing technology to 10nm.

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