$INTC Executive Warns CPU Shortage Is Hitting “Everyone”, and Price Hikes Are Inbound

Intel’s Global Channel Chief, Dave Guzzi, said via CRN that Intel’s CPU supply constraints are having a broader impact across the supply chain, affecting cloud service providers, OEMs, and system builders
Demand for CPUs has increased sharply, partly because hyperscalers are deploying more CPU-only workloads tied to agentic AI. In Intel’s case, older Xeon chips like Sapphire Rapids remain in strong demand, as many customers view them as a more reliable choice than newer generations
This creates a difficult tradeoff for Intel. The company must decide whether to allocate more production capacity to mature nodes like Intel 7, which still power high-demand products, or focus on newer nodes such as Intel 3 and 18A in the hope that enterprise customers transition over time
At the same time, Raptor Lake demand has also picked up, as consumers are turning to older-generation CPUs to secure purchases early amid ongoing PC market uncertainty. Since Raptor Lake also relies on Intel 7, Intel is struggling to balance demand between the consumer and data center markets. For now, the company appears to be prioritizing the data center segment, given its stronger profitability and larger order volumes