AMD together with Intel say they can cope with CPU demand in coronavirus chaos

Intel and AMD have together moved to reassure people who might be looking to buy CPUs, both consumers and businesses, that supply will not run out due to the covid-19 outbreak.

The case of the coronavirus in China and the ensuing supply chain disruptions could affect AMD more than peers Intel Corporation (NASDAQ: INTC) and NVIDIA Corporation (NASDAQ: NVDA), Eric Ross, chief investment strategist at Cascend Securities, said in a note.

The consequence will be felt in the March quarter and will likely extend into the June quarter as equally, the analyst said.

About 78% of AMD’s revenue comes from computers and graphics, and low-end notebook board makers as well as low-end graphics makers in China are not ramping production meaningfully after the Lunar New Year, Ross said.

World class supply chain

it was brought to our notice from AMD’s CEO, with Lisa Su writing a letter to customers saying that the chipmaker is actively working to ensure continued supply, mitigating the impact of the virus outbreak on the company’s global operations.

Su said AMD also has a “world-class global supply chain” and is “well positioned” to maintain supplies, as CRN noted. In addition to Intel, the AMD CEO also stressed the importance of ensuring the safety of his employees during the outbreak.

in as much as many isolate themselves, and switch to working from home, there has been quite a strain on the infrastructure of the internet in many countries, with an increase on the use of streaming services to boot.

like we have seen, Disney, Apple and Amazon recently made the same move as Netflix and YouTube did previously by reducing the video quality of their streaming offerings in Europe, to cope with huge demand.

Naturally, that also means more demand on the data centers that these – and other – companies rely on, and those data centers will likely be looking to expand the number of servers and chips at their disposal. But according to Intel and AMD, there’s still no need to panic on the supply front…

As for consumers, PC sales are expected to drop considerably in the face of coronavirus disruption, as economic shocks and job losses could make their presence felt, not to mention disruption to shipments.

As we’ve seen, Disney, Apple, and Amazon recently made the same move as Netflix and YouTube previously by reducing the video quality of their streaming offerings in Europe, to cope with high demand.

Naturally, that also means increased demand for the data centers that these and other companies trust, and those data centers will likely seek to expand the number of servers and chips available to them. But according to Intel and AMD, there is still no need to panic on the supply front …

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