Following on from the reports earlier today that Intel is struggling with a shortage of CPUs, OEMs (Original Equipment Manufacturers) are turning to AMD en masse in a bid to make up the shortfall.
Intel’s issues with both 14nm production and the development of its 10nm process have forced Team Blue to rev up its 22nm production in a bit to make up the gap. AMD, obviously enough, has seen this gap and appears to be striking deals with OEM partners in order to supply AMD CPUs for use in pre-built PCs and notebooks.
Mark Lipacis an analyst at Jefferies, has informed potential investors that AMD’s target share price has risen from $30 up to $36 per share. This move comes off the back of research firm Fubon claiming AMD has struck deals with both Dell and HP to increase the number of AMD processors, including Ryzen chips, in its pre-built PC systems through until 2019.
“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,” said Lipacis.
Earlier today it emerged AMD could be on track to triple its CPU market share from 10% all the way up to 30% within the year, and these potential deals with Dell and HP embolden these claims. Dell and HP are collectively two of the biggest PC providers on the planet, representing a huge opportunity for AMD to grow in stature.