AMD $AMD ( ▲ 2.35% ) popped Friday as traders digested Intel’s latest warning that its turnaround will be a “multiyear journey,” while also admitting supply constraints are keeping it from meeting demand. In plain English: Intel has customers who want chips, but Intel can’t ship enough chips. That’s basically a gift-wrapped opportunity for AMD.
AMD and Intel are still locked in the same brutal CPU war, especially in data center/server CPUs. And any delay or stumble from Intel gives AMD more time to keep taking share while its product roadmap stays strong.
Intel’s Constraints = AMD’s Opening
JPMorgan analyst Harlan Sur said Intel remains at risk of further share loss in core product categories, pointing specifically to server CPUs where AMD has been gaining ground. The key point: this isn’t just “Intel weakness” as a headline, it’s Intel weakness that directly impacts the part of the market where switching costs are high and contracts are sticky.
That makes the upside for AMD bigger, because once customers move workloads, they don’t always come back quickly.
AMD is now up nearly 3% on the day and is riding a serious streak, on track for its ninth straight day of gains. If it closes positive, it would match the company’s longest winning streak since 2005.