It has been pointed out that Intel made significant profits from CPUs that would normally be considered 'defective.'



Intel's first-quarter 2026

revenue is strong, up 7% year-over-year. Analysts point to the large volume of low-quality CPU sales as a factor in the increase in profit margins.




Intel reportedly says it boosted yields by selling what would normally be 'scrap' or 'low-expectation' CPUs — customers more willing to accept lesser chips due to overwhelming CPU demand | Tom's Hardware
https://www.tomshardware.com/pc-components/cpus/intel-reportedly-says-it-boosted-yields-by-selling-what-would-normally-be-scrap-or-low-expectation-cpus-customers-more-willing-to-accept-lesser-chips-due-to-overwhelming-cpu-demand

According to analyst Ben Bajarin, who obtained the information directly from Intel's investor relations team, customers are buying up CPUs that would otherwise be considered defective or low-quality, which is generating substantial profits for the company.

In CPU manufacturing, chips called dies are cut from a substrate called a wafer. However, dies cut from the edges of the wafer tend to be of lower quality, have more defects, and perform worse than those cut from the center. According to Mr. Bajarin, the demand for CPUs has been so high recently that sales of these potentially lower-spec CPUs have increased significantly.



Intel has lost market share in recent years and is being closely pursued by its competitor, AMD.

As Intel's market share declines, AMD surpasses a 36% share in desktop PCs, reaches 26% in notebook PCs, and approaches 30% in servers - GIGAZINE



Nevertheless, the company showed significantly better-than-expected performance in the first quarter, with earnings per share exceeding expectations by 3000%. Most recently, it signed a multi-year agreement with Google to provide chips for the development of next-generation AI.

Intel and Google sign multi-year AI infrastructure contract - GIGAZINE



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in Hardware, Posted by log1p_kr