With the news last week about Intel’s shortage extending into 2019, it seems that the company’s partners aren’t taking this one lying down. AMD’s Ryzen 2 processors are in plentiful supply and finding their way into a lot of OEM towers and workstations, and sales keep on climbing to consumers who DIY their own machines. OEMs like Dell and HP have taken note of this, and are now badgering AMD to sell them more chips to cover their shortage. For AMD, this is a good problem to have.
According to reports from Fubon Financial Holdings, which were seen by the Jefferies Financial Group (man, that is a lot of gate-keeping), AMD told its clients that HP Inc. is expected to increase its adoption of its products in up to 30% of the company’s consumer products in 2019, and that Dell Technologies is also expected to use more of AMD’s products in their consumer lines as well. Fubon also reported that the reasons for this were down to Intel’s shortages, which are expected to continue into the second half of 2019. The report took the view that AMD’s revenue is set to hike up dramatically in the short term, which positions the company to take more market share in the high-end consumer space in the future.
But it looks like things are happening faster than expected. Mindfactory, one of Germany’s biggest computer retailers, compiles statistics every three months based on their internal sales to the public, and another report is expected to be released in October. Early samples of their sales show a massive swing in sales in AMD’s favour, and Intel’s market share, at least for sales in Germany, continues to trend downwards.
In teaser graphs released on the AMD subreddit, Mindfactory shows that there’s a direct correlation in the increase in Intel’s processor prices and an upswing in AMD sales. The market share between the two was a tight battle right up until the beginning of September, when rumours were circulating that Intel’s 9th Gen processors were going to be available in October 2018. Sales of Intel chips dropped heavily, and 8th Gen parts are now enjoying price hikes and a drop below 1000 chip sales per week.
At the same time, AMD’s sales shot up to just under 3,000 chips per week, both because of the price drop, and because of the rumour that processors such as the Core i9-9900K will be retailing for more than €500. AMD’s price trend is also below 100% because of large discounts to their first-generation Ryzen and Ryzen Threadripper processors. With the company’s stock price also clearing $31 per share long before most analysts had predicted, it seems that the hype train is driving their growth again.
Once Intel’s 9th Gen processors launch there is sure to be another swing back in their favour, but the rumour mill is pointing at a $499 price point for the Core i9-9900K. That’s only $20 more than the Core i7-8700K’s hiked price in Europe, and that’s only as a result of stock shortages and pent-up demand for new systems. It’ll be interesting to see how Intel fares in the next, and final quarter for 2018.