Intel asking PC makers to use latest chips a sign of margin

Intel asking PC makers to use latest chips a sign of margin protection: Wedbush
Amid reports that Intel (INTC) has asked PC makers to utilize chips built on its 18A production process, Wedbush Securities sees that as a sign that the semiconductor giant is prioritizing its margins.
This strategy makes sense to us given Intel should be prioritizing higher margin Xeon production on its older nodes, with Intels ability to bring on newer production (b/ c it has existing cleanroom space) a strategic advantage that this course of action allows it to leverage, Wedbush Securities analyst Matt Bryson wrote in a note to clients. The question rather, in our view, is how strong the 18A node and products made on that process is/are (CEO Lip-BU Tan yesterday suggested yields are improving rapidly).
Intel shares rose 5% in premarket trading on Wednesday.