SemiAccurate reported on the Intel CPU shortage Friday but why is it happening? More importantly what will the effects on Intel be? Lets take a look at those questions.
For months now, rumors of Intel CPU shortages have been swirling around with evidence coming in the form of popular models sold out everywhere, price hikes, and other more anecdotal stories. It was clear something was going on but no one had any definitive answer as to what. Then came SemiAccurate’s discovery of the HPE customer newsletter that stated the problem directly. Intel could not meet demand and the shortage, forecast to ease in September/October when the page was written, is now December best case.
So why is this happening? There are three reasons, two of which are ‘old’ and one of which is new. Whatever the reasons for the shortages, Intel is selling everything they can make and then some, so they will have a very good quarter or three. These short term gains are leading to two longer term pain points for Intel as well. Lets take a look at what exactly is causing the shortages and what the short, mid, and long term effects will be.
Note: The following is for professional and student level subscribers.
Disclosures: Charlie Demerjian and Stone Arch Networking Services, Inc. have no consulting relationships, investment relationships, or hold any investment positions with any of the companies mentioned in this report.
Note: The following is analysis for professional level subscribers only.