Overview
- Intel warns chip inventories could be exhausted by early 2026, calling the first quarter the most challenging for meeting demand.
- The company is diverting wafer capacity to data center and AI server processors over entry-level client chips, with Q4 server shipments expected to rise.
- Shortfalls stem from tight Intel 7 and Intel 10 capacity and industry-wide substrate shortages that Intel expects to persist into 2026.
- Intel is adjusting pricing and product mix to maximize output, contributing to higher Raptor Lake prices and a tilt toward higher-end SKUs.
- A slow 18A ramp keeps Panther Lake limited and potentially expensive, and management says new capacity will only follow committed external demand.