Intel (INTC +2.9%) provides a supply update that includes news that the company is making progress with 10nm with yields improving and volume production still expected in 2019. The 10nm delay has proven a tailwind for rival AMD (NASDAQ:AMD), which is down 4.5% on the news.
Intel confirms that chip supplies are tight in part due to the “surprising return to PC TAM growth.” The company will prioritize production of Intel Xeon and Core processors and believes it has at least the supply to meet the FY revenue outlook.
To cope with the shortage, Intel is investing $15B in capex this year, up $1B form the beginning of the year.
Previously: RBC presents AMD bull case; reports of sell-side firm questioning share gain (Sept. 24)
Previously: Raymond James downgrades Intel on 10nm delay (Sept. 25)
Previously: Bernstein cautious on chips, favoring Broadcom, Nvidia (Sept. 26)
Now read: AMD: This Is What Success Looks Like »
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