"Intel is beginning to find out what happens when even the lowest-quality chips find buyers, as inventory once considered unsellable is now moving at full price or close to it."
"Chips that would have been a cost burden are now being monetized because demand is so tight that customers are willing to compromise on performance."
"Supply is constrained enough that buyers are accepting reduced performance, and pricing power is extending down the product stack, not just at the premium tier."
The demand for CPUs has surged, driven by cloud providers and enterprises needing more processing power. Intel is experiencing a shift where even lower-quality chips are being sold at full price. Historically discarded chips are now being monetized due to tight supply, indicating that buyers are willing to accept lower performance. This trend reveals that supply constraints are affecting pricing power across all product tiers and that yield optimization is becoming a significant revenue opportunity for manufacturers.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]