We’ve talked about Intel’s supply issues over the past year. Even though they’ve increased production capacity and even outsourced some of its silicon manufacturing to other players in the industry they still cannot meet demand, and these measures aren’t really going to take effect in the short-term. Dell, who has already called out Intel during their last quarterly results call, is starting to look for alternatives.
While Dell has a few products that feature AMD CPUs, most of their lineup is made up of Intel-based products. Then considering AMD as an alternative to Intel is not all that surprising really, we assume that many PC makers are doing the same. “We are evaluating AMD chips,” Dell CFO Tom Sweet said on Yahoo Finance’s The First Trade when asked how the Dell plans to address Intel’s ongoing chip shortage. He also mentioned that they expect Intel’s shortages to only be fixed by the half of 2020.
If AMD is able to become a viable alternative to Intel to large companies like Dell, they could really take a large chunk of that market, one that Intel has been on top of for a very long time. This also could be a way of Dell putting pressure on Intel to get their supply issues fixed asap.
