The chip manufacturer Intel Corp. announced on Friday that it had enough inventory to meet its annual sales targets and increase PC chip production, which would address concerns over the freezing of its market share, Advanced Micro Devices Inc., due to restrictions on supply.
Shares of the world’s second-largest chipmaker rose 3 percent to $ 47.26 after announcement, while AMD shares fell 5 percent.
Intel, the world’s largest provider of PC chips, is increasingly serving data centers as the PC business has stabilized since its peak in 2011.
“For the first time since 2011, we expect to see slight growth in the PC-based PC market driven by strong demand for gaming systems and commercial systems,” said Acting’s CFO and Chief Financial Officer. Bob Swan, published in a letter on the company’s website. ,
“The offer is certainly not sufficient, especially in the market for personal computers”.
Intel has announced that it will focus on the production of its Xeon and Core processors and reaffirms its intention to increase investment by $ 1 billion in 2018 to around $ 15 billion in response to growing demand to meet.
“We will at least have the offer to meet the full-year sales forecast we announced in July, which is $ 4.5 billion more than expected in January,” Swan said.
The announcement may have eased fears of a potentially lower fourth-quarter sales forecast due to supply constraints, Bernstein analyst Stacy Rasgon said in a customer announcement.
Last year, AMD launched cheaper Ryzen processor chips based on a new Zen architecture to challenge the monopoly of Intel processors on PCs.
AMD will launch its first 7 nanometer (nm) chips for the game this year and its 7nm processor in 2019, while Intel delays its chips to 10nm.
Intel said it would mass-produce its 10-nanometer 2019 chips on Friday.
The company said PC’s return to growth has put pressure on its plant network, driving up the number of companies selling chip-making equipment.
Applied materials increased by 1.5 percent. Lam Research added 1.2%, clearing a previous loss.