‘CPUs are cool again,' Intel and AMD reporting spikes in CPU demand due to agentic AI
CPU requirements for AI workloads are multiplying, driving intensifying shortages and price hikes
Intel 7 still underpins a large portion of Intel’s product line, from consumer notebook and desktop CPUs like Raptor Lake to Xeon 6 “Granite Rapids” server processors. As AI-driven demand for data center CPUs surged through 2025, Intel deliberately shifted Intel 7 wafer starts toward its Data Center and AI group, where Xeon parts can bring higher ASPs and better margins. CFO David Zinsner confirmed as much during Intel’s Q3 earnings call last October, when he said capacity constraints on Intel 7 and 10 had limited the company’s ability to meet demand across both data center and client products. Intel currently has no plans to expand Intel 7 capacity.
Another exec described placing an order for 100 Intel 7 processors and receiving just 30, with 10 of those being unrequested 18A-based chips. “We were told if we don't take the 18A CPUs, they would be given to other PC makers.” Intel, in a statement to Nikkei Asia , described its Core Series 3 processors as “integral” to its client strategy but didn’t confirm whether it is actively steering clients toward 18A adoption.
Many PC makers had originally built only a handful of 18A-based models to support Intel's launch rather than in response to consumer demand, the report claims. "Frankly speaking, PC makers designed a few models based on 18A last year mainly as a favor to Intel, as the chip is expensive and the market demand is relatively small because it is too premium," another source reportedly said.
According to this report, that’s now changed, however, as OEMs that want CPU allocation are effectively being forced to redesign more of their lineups around the newer, pricier silicon. These designs, per one executive, will take “at least three months” to complete and verify, and the shift to premium CPUs also forces upgrades to displays, sensors, and other components to justify the price tag. Wildcat Lake launched barely a month ago, meaning Intel is asking OEMs to commit volume to a product family with almost no commercial track record. Beyond managing the shortage, Zinsner said during the same earnings call that 18A yields are adequate for supply but not yet sufficient to deliver healthy margins , with industry yields not expected until 2027. Pushing more OEM volume through 18A gives Intel the high-volume production data it needs to bring those costs down faster.
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